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

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

The GCC frozen bakery products market is projected to record a CAGR of 5.15% during the forecast period 2022-2027.

The COVID-19 pandemic negatively impacted the frozen bakery market in the GCC countries as they rely heavily on imports to meet the domestic consumption of bakery products. The COVID-19 pandemic rapidly accelerated the transition to digital commerce. As consumers were asked to practice social distancing, e-commerce orders for bakery products became an important tool. Thus, an increasing number of retailers began expanding their footprints in online deliveries to help consumers order their daily essentials and indulge in food and beverages, such as frozen bakery products. The COVID-19 pandemic also resulted in an inflated demand for frozen bakery products, which created new opportunities for private players to enter these markets.

Key reasons for the growing demand for frozen bakery products in the GCC market include a growing preference for convenience foods and the popularity of specialty frozen bakery products. The increased ex-pat population in the region, followed by the increasing number of women getting employed, are major reasons for the surging demand.

The increasingly busy lifestyles of consumers in the region have also contributed to the expanding retail sector, primarily e-commerce. Additionally, the expansion of all retail sectors, including supermarkets, hypermarkets, and specialty stores, offers an excellent opportunity for international and domestic players to extend their business in the GCC region.

GCC Frozen Bakery Products Market TrendsRise in Demand for In-store Bakery Experience

The evolution of in-store bakeries, primarily due to the increasing number of supermarkets/hypermarkets, malls, clubs, and cafeterias, is a major factor capturing the interest of visitors and shoppers. An in-store bakery offers ease and convenience for shoppers and serves products that come under freshly baked and frozen food categories. The adoption of frozen bakeries at in-store bakeries, wherein traditional bakery machinery cannot be operated, owing to various factors, such as high operational cost and space limitation, is boosting the demand for frozen bakery products, primarily frozen dough and bread. Also, the wide availability of frozen bakery products across retail outlets, followed by the influence of Westernization, owing to the ex-pat population in the region increasing every year, is resulting in higher demand for frozen bakery products from different demographics.

Frozen Cakes and Pastries Segment Holds the Largest Market Share

Frozen cakes and pastries account for the largest share of the market. The smaller size of cakes and pastries has enabled manufacturers to entice consumers with everyday indulgences supplemented by on-the-go packaging and ready-to-eat concepts, making these products more popular. These are also consumed on special occasions, like during Ramadan. The new-age consumer preferences are driving the frozen cake and pastry markets in GCC countries.​ The increased demand for exotic flavors in cakes and pastries also propelled the market growth during the study period. The bakery industry, including pastries, is undergoing “healthy innovation.” Health and wellness concerns among consumers emphasize the importance of innovative products that are both healthy and indulgent. Thus, the launch of frozen cakes and pastries at competitive prices, with clean-label or free-from claims through robust distribution channels, is expected to gain the attention of health-conscious consumers in the region.

GCC Frozen Bakery Products Market Competitive Analysis

The GCC frozen bakery products market is highly competitive, with the presence of both international as well as regional players. Some prominent players in the country include Atyab Food Industries, Dofreeze LLC, Switz Group, Sunbulah Group, and Agthia Group. International players like Kellogg’s, General Mills, and B&G Foods have been continuously working on expanding their geographical reach and creating brand awareness, which in turn, gives them a competitive advantage. Also, companies are efficiently increasing their production platform and extensive distribution network support for profitable growth and increased market penetration.

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• The market estimate (ME) sheet in Excel format
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