South America Bakery Products Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

South America Bakery Products Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The South American bakery products market is projected to grow at a CAGR of 2.8% during the forecast period (2020 - 2025).

Key Highlights

• The market is primarily driven by the convenience, accessibility and nutrition profile associated with them. Moreover, as a result of urbanization and worldwide increase of working population, the growth of out-of-home consumption and increased demand on instant and nutritious products, this trend has been fueling the continuous increase of bakery products. Therefore, manufacturers are catering to this demand by launching organic baked goods, healthier morning goods, and ‘free-from’ products and retaining consumer loyalty.
• In the indulgent categories, such as cake, pastries, croissants, etc., the region is undergoing a shift from artisanal to industrial goods and this trend is expected to strengthen during the forecast period. With the continuation of this shift, the region will act as emphatic drivers of growth in the retail bakery
• However, the higher prices of raw material and increasing demand for low-calorie and sugar-free products from emerging economies in South America have made manufacturers diversify their assortments in order to capture and retain market share.

Key Market TrendsRising Demand For Morning Goods

The morning goods segment is showing more positive growth with the decline of the bread segment. A key driver for current thinking and behavior in the category is anchored around health. The segment includes pancakes, Madeleine's, muffins, frozen morning goods, toaster pastries, etc. Consumer purchasing behavior is changing, and consumers are preferring on-the-go morning goods more, as they spend less time at home sitting down to the first meal of the day. There is a growing demand for premium morning goods options, which are often wholemeal or granary and seeded. But, since these products are priced high, not all opt for these. Furthermore, frequent launches of new enhanced and fortified products under this segment has further fueled the market. Nearly two-thirds of the new launches in the morning goods segment have been the retailers’ own-label products.

Specialty Stores to Become The Fastest Growing Segment

The specialty stores have recorded to have the fastest growth in the South American market. These mainly include artisanal bakers/small bakeries/home-based bakers, which supply the products to café chains, kiosks, traditional trade/wet market, offices, and general consumers. Constant product innovation is a major challenge for specialist retailers. Given that many of the product types offered at artisanal bakeries are best enjoyed absolutely fresh, efficient production and inventory management is a must-tackle challenge.

Competitive Landscape

The South American market for bakery products is fragmented, owing to the presence of large regional and domestic players in different countries. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the regional market include PepsiCo, Inc., Europastry, S.A., Grupo Bimbo, Wickbold, and Bagley Argentina SA, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Europastry, S.A.
PepsiCo, Inc.
Wickbold
Grupo Bimbo
Bagley Argentina SA
La Casa Alfajores
Havanna

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