Bakery Products Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Bakery Products Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The global bakery products market is projected to witness a CAGR of 2.6% during the forecast period, 2021-2026.

COVID-19 had a significant impact on the bakery products market. Many bakers had to close their businesses during the peak of the pandemic due to insufficient sales of bakery products and a shortage of workers. Along with, disruptions in logistic facilities due to the lockdown affected the supply chain, leading to the unavailability of products as per consumers’ needs, ultimately affecting the market. Moreover, the inaccessibility of raw materials hampered production in this market during the lockdown. The smaller bakers in the unorganized sector were the most affected by all of these constraints, as stated by the All India Bread Manufacturers Association.

On the other hand, bakery products (especially bread) have been a staple diet for people all over the world for centuries. The convenience, accessibility, and nutrition profile associated with them are the major factors that have sustained these products in the modern market. Bakery products are included in people's daily diet not only in the developed economies but also in underdeveloped or developing economies. All of these factors have contributed to the growth of this market even during the lockdown, and they are expected to boost the growth of this market over the forecast period.

Additionally, the rising trends of “natural nutrition”, “healthy living,” and “organic products” have significantly increased the demand for whole wheat, light (low calorie), natural, and additive-free bakery products. In recent years, growth in the sales of whole wheat, wholemeal, and gluten-free bakery products is an important indication of this new trend of wellness in the market. The increased availability of such specialized bakery products will further aid the market growth during the forecast period.

Bakery Products Market TrendsSurge in Demand for Free-from Food Products

Free-from food products (particularly gluten-free products) are not only consumed by people with celiac disease, but also by the general health-conscious population. The demand for gluten-free products arises out of the belief that gluten-free and sugar-free edibles help people overcome problems related to bloating, indigestion, obesity, diabetes, etc. Thus, bakery products, which claim to be fat-free, sugar-free, gluten-free, whole wheat, and salt-free are gaining popularity among the health-conscious consumer category.

Moreover, according to the Agriculture and Horticulture Development Board, United Kingdom, the free-from food market is expected to record an average growth of 10% every year for the next three years, and the share of bakery products and cookies in the free-from food category is around 35%. This, in turn, is indicating a lucrative market opportunity for free-from bakery products.

Europe Dominates the Consumption of Bakery Products

Europe accounts for the largest revenue share in the global bakery products market. On the one hand, the developed markets of Western Europe are matured and saturated when it comes to bakery products. On the other hand, the emerging markets of Eastern Europe are driving the sales of biscuits and bread, in particular, owing to the high demand for convenient food products.

The European bakery products market is well-established in terms of the supply chain, product array, distribution channels, and consumer preferences. Innovations and new product development are increasingly observed in the indulgence-categories, like cakes, pastries, and cookies. The traditional morning goods in Europe are witnessing a prevalence of gluten-free, whole grain, ancient grain, and additive-free products. Such products have the potential for higher sales due to the growing demand for instant and nutritious baked products.

Bakery Products Market Competitive Analysis

The global bakery product market is a highly competitive market, particularly with the significant presence of numerous global and regional players. Finsbury Food Group Plc, Mondelez International, General Mills Inc., Britannia Industries Ltd, and Grupo Bimbo are some of the leading players in the global bakery products market. The strategies of expansion and partnership agreement have been crucial behind the development of bakery product companies.

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