The global bakery products market is projected to grow at a CAGR of 2.6% during the forecast period, 2021-2026.
COVID-19 has made a significant impact on the bakery products market as due to the insufficient sale of bakery products during the peak time of the coronavirus pandemic, as many of the bakers have shut operations, which also includes the shortage of labours. Along with this, disruption in logistics facilities due to the lockdown has created more issues in the market as consumers were not getting products as per their requirement which ultimately affected the market. Another factor that has created an impact on the market is the lack of raw material availability due to which production of products was not proper. Due to these issues, smaller bakers in the unorganized segment are the worst affected, as stated by the All India Bread Manufacturers Association.
Bakery products have long been basic food products for human nutrition. The convenience, accessibility, and nutrition profile associated with them are the major factors of their sustenance in the modern market. Their significance as a major portion of diet has been prevalent in middle to lower-income group countries. Bread has been a staple diet of many local cuisines worldwide and has shown remarkable growth even during the period of global economic crisis.
The rising trend of â€œNatural nutritionâ€, â€œhealthy livingâ€ and â€œorganic productsâ€ has significantly raised the consumersâ€™ demand for whole wheat, light, natural and additive-free bakery products. In recent years, the growth in sales of packaged, whole wheat, wholemeal, gluten-free and natural products is an important indication of this new and healthy living sense in the market studied.
Key Market Trends
Surge in Demand for Free-From Food Products
The rising demand for free-from food products particular gluten-free products is not only followed by coeliac patients, but also by the general health-conscious public holding the belief that gluten-free, sugar-free products will help them overcome problems related to bloating, indigestion, obesity, diabetes, many other health problems. Thus, bakery products with claims such as 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. The developed markets of Western Europe in bakery products are matured and saturated compared to emerging markets of Eastern Europe, which are driving the sales of biscuits and breads in particular, owing to the high demand for convenient food products.
The European bakery markets are 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 the rise of gluten-free, whole grain, ancient grain, and additive free products, which have the potential of higher sales, with the growing demand for instant and nutritious baked products.
The global bakery product market is a highly competitive market, particularly with the significant presence of numerous global and regional players. The market share analysis does not account for revenue from artisan bakeries, but the revenue for retail channels and food services. Finsbury Food Group Plc, Mondelez International, General Mills Inc., Britannia Industries Ltd, and Grupo Bimbo are some leading players in the global bakery products market. The strategy for expansion and partnership agreement has been the crucial strategy behind the development of bakery product companies.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support