Bakery products are gaining marketability day by day among young generation, as they are basic food products for human nutrition. Romans first came with the art of baking and due to globalization, it spread worldwide. In the good old days people were confined to the simpler food like chapati (tortilla), rice, pulses, American corn, bajara, okra etc. and there was no evolution in the food habits as there was lack of awareness about the breakthrough approach of cooking food.
The major factors driving the market demand includes accessibility, convenience and nutritions’ associated with them. The increasing prevalence of bakery products as a portion of diet in middle to lower income people is a major factor responsible for market growth
The capitalization was forecasted at approximately USD 203 billion in 2018 and is predicted to expand at a CAGR of nearly 3% during the forecast period.
Prominent market players:
Associated British Foods Plc
Britannia Industries Ltd.
Campbell Soup Co.
Flowers Foods Inc.
Grupo Bimbo SAB de CV
JAB Holding Co. Sarl
Mondelez International Inc.
Yamazaki Baking Co. Ltd. The global bakery product market is highly lucrative with the presence of several large and small players. These players are constantly innovating their products to expand market reach. Further, players are adopting strategies such as mergers and acquisitions and integration with other companies to enhance their global market share.
Advancement in food processing technology
Availability of health and hygiene products
Low capital requirement to start bakery business
The improving standards in the lifestyles of the people across the globe have led to significant changes in their eating habits. People have now started preferring low calorie, innovative and healthy ready-to-eat items, such as bakery products. This has led the market players to introduce bakery products containing low trans-fat content.
Multiple types of competition – QSR, takeaways, full dining restaurants, street food vendors
Growing consumption of biscuits
Expanding attractiveness of coffee bars
Preference of desert over a meal
Cookies & Biscuits
Rolls & Pies
Cakes & Pastries
Bread registers the major market share in bakery products industry owing to the increasing demand of bread containing whole grain, gluten-free, high in fiber and fortified bread. Increasing demand of healthy lifestyle is another key factor boosting the markets demand.
Middle East and Africa
Europe Dominates the Global Bakery Products Market:
Europe holds the largest revenue share in the bakery products market. The advanced markets of Western Europe in bakery products are saturated in parallel to emerging markets of Eastern Europe. This has led the rise of the sales of biscuits and breads specifically, due to the high demand for convenient food products.
The European bakery markets are deep-rooted in terms of the supply chain, product array, distribution channels, and consumer taste and preferences. Moreover, innovations and new product development are progressively observed in the indulgence-categories, like cakes, pastries, and cookies. The traditional breakfast goods in Europe are observing the rise of gluten-free, whole grain, ancient grain, and preservative free products, which have the potential of higher sales due to the increasing demand for quick and healthy baked products.
APAC, on the other hand, is likely to witness fastest CAGR over the forecast period owing to growing competition in the developing countries such as China, Singapore and India. The growth in this region is also focused on rising per-capita income and growing urbanization
The bakery products industry has expanded significantly over the past decade. Consumers have been drawn to the health-conscious and customizable options emerging on operators' menus; as a result, bakery industry growth has outperformed its competitors in the food service sector. Industry performance has been encouraged by increase in per capita disposable income and increased coffee consumption. However, franchise operations have produced several independent market vendors that have traditionally served local markets.
Almost five years from now, larger operators will likely have access to greater resources, empowering them to expand their franchise business. Smaller operators, might face some serious challenges owing to the increasing competition among large players. They will be unable to compete with the geographic reach and marketing capital of major chains, henceforth, pressurized to specialize.