Bakery products are included in the category of processed foods, alongside breakfast cereals, cookies, donuts, pastries, and customized bakery products. Bread and cookies are the most popular and nutrient-dense bakery products. Bakery goods are in high demand due to their delicious flavor and health benefits, as they are comprised of grains like corn, wheat, and oats. The remaining baking ingredients are eggs, baking soda, and nuts. These items offer buyers both convenience and affordability.

People's changing lifestyles and rising per capita income have both made it easier for them to buy baked goods. There are more online baking sites than ever before, and the rise in manufacturing companies has led to better product development. Technological innovation and research and development are what led to the creation of modern baking techniques that give products a unique taste and look and make them healthier.

There are a lot more people baking at home, in local bakeries, and in small businesses that focus on baking to meet the demand for baked goods. More people are becoming aware of how important it is to live a healthy life, which is increasing the demand for low-calorie bakery products. In recent years, people have become more health-conscious about what they eat, which has led to a change in their eating habits and a rise in demand for gluten-free and organic bakery products.

COVID-19 Impact:

• Disruptions in the supply chain of bakery products will impact market value.

To prevent the spread of COVID-19, the governments of numerous nations ordered the closure of numerous food and beverage manufacturers, imposed transportation restrictions, and closed borders. This lockdown caused panic buying of bakery items in the initial months, resulting in the accumulation of supplies. However, an increase in the number of COVID-19 cases and an increase in worker absenteeism led to a decrease in output. The impact of border closures on the supply chain of baked goods has increased. Consequently, the impact on the demand and supply of bakery products resulted in a decline in sales in 2020.

Market Trends:

• Growing Consumer Inclination Toward Better-for-you Baked Products

Since the COVID-19 outbreak, health has become a top priority among consumers worldwide. According to International Food Information Council's (IFIC) 2021 Food & Health Survey, one in five consumers is dynamically looking for health benefits from foods. Therefore, there is a growing interest in plant-based food and beverages. Hence, these product manufacturers are focusing on developing vegan baked goods. For instance, in June 2021, RXBAR, the Kellogg Company subsidiary, launched its first plant-based product, peanut butter, and chocolate chip flavours.

In addition, consumers are paying close attention to their sugar intake. According to Ingredion's Sugar Reduction Resource Center's bakery insight, 42% of consumers want to reduce the amount of sugar. The number of Americans restricting or avoiding sugar consumption has remained stable at 72% since 2020, according to IFIC's 2021 Food & Health Survey. Therefore, reducing sugar content in bakery fillings would boost the growth of healthy bakery items.

Market Dynamics:

Driving Factors:

• Mounting Demand for Convenient Food Products to Support Market

The primary driver of the bakery market is convenience. The fast-paced lifestyle necessitates the adoption of convenient solutions in every aspect of life. It is difficult for consumers to spend more time cooking due to their long work hours. A hectic lifestyle increases the demand for ready-to-eat foods such as bread, cookies, cakes, tortillas, frozen pizza, and biscuits. Moreover, high spending power and expanding urbanization, which result in a fast-paced lifestyle, play a significant role in the growth of demand for convenient food. In the United States, doughnuts are considered an anytime food and are frequently consumed as a meal replacement, whereas cakes are typically consumed as snacks.

• Rising Working Women to Positively Influence the Bakery Products Market Growth

A growing number of working women presents significant growth opportunities for the bakery industry. As working women have limited time for cooking and meal preparation, they prefer ready-to-eat and frozen foods. In 2019, women comprised 47% of the global labor force, according to the World Bank. In 2019, the U.S. Department of Labor reported that the female employment rate was 46% in the U.S. and 44% in China. Thus, women comprised nearly half of the working population. Thus, the increasing number of employed women is likely to increase the demand for baked goods.

Restraints/Challenges:

• Growing Health-issues from Bakery Food Consumption to Obstruct Market Growth

Bread is one of the most frequently consumed bakery items. In developed nations, however, its consumption is declining significantly due to the growing concern over weight gain and the high consumption of gluten. Additionally, gluten is unacceptable for individuals with celiac disease.

Since refined flour is used to make the majority of baked goods, its excessive consumption can lead to a variety of health problems, including obesity. Therefore, doctors advise consuming nutritionally balanced food, such as the addition of high-protein and probiotic foods to a normal diet. Due to the growing concern over lifestyle-related health problems such as obesity and diabetes, bakery products are also a poor choice due to their high sugar and carbohydrate content. To address these concerns, manufacturers invest in research and development to create new products containing whole grains.

Opportunities:

New innovations, such as reading bakery systems, the newest designs, and innovative commercial bakery equipment, which help customers keep up with the most recent food and snack production trends, also contribute to the increase in demand for bakery products.

The dynamic nature of global bakery and its technology is the result of food research firms, which provides customers with the flexibility and freedom to test a variety of ingredients, formulations, and product concepts until they reach their desired outcome.

Strategic Development:

In April 2022 - Kraft Heinz announced that it had completed the acquisition of Companhia Hemmer Industria e Comércio, also known as "Hemmer" in Santa Catarina, Brazil. It is anticipated that the acquisition will contribute to the future growth of both companies.

In February 2022 - The Kraft Heinz Company and TheNotCompany announced a partnership. In the coming years, this partnership intends to prioritize sustainability. The objective of this transaction is to accelerate innovation by combining the assets of both companies.

In January 2022 - Campbell's partnered with CAMP to produce limited-edition scented candles. There are, among other options, Chicken Noodle Soup, Tomato Soup, and Grilled Cheese.

In April 2021 - The 4th Street Cookie Company introduced two new oatmeal cookies: Orange Cranberry and Sunrise Granola. The snacking culture influences cookie and biscuit consumption further.

Key Vendors:

The top key players includes

• Finsbury Food Group Plc.

Finsbury Food Group PLC is a bakery manufacturer based in the United Kingdom. The company produces a variety of cakes, bread, and bakery snacks for retailers and the foodservice industry. Its divisions consist of UK bakery and Overseas. The majority of its revenue comes from its UK bakery segment.

• Nestle S.A.

As the world's largest food and beverage company, our mission is straightforward: to unlock the power of food to improve the quality of life for everyone, today and for future generations. To achieve this, we serve with passion and a spirit of excellence, offering products and services for all stages of life, 24 hours a day, to assist individuals in caring for themselves and their families.

• Bimbo Bakeries USA

Bimbo Bakeries USA is a subsidiary of Grupo Bimbo, the largest baking company in the world, which operates in 32 countries. Bimbo Bakeries USA employs 20,000 individuals throughout the United States in bakeries, sales centers, corporate offices, and sales routes to ensure that our consumers have access to the freshest products for every meal.

• Britannia Industries Ltd.

Britannia is a century-plus-old company with a presence in biscuits, breads, cakes, rusks, dairy products, and snacks. Britannia has emerged as a Market Leader in the Biscuit industry, while launching a multitude of new products and expanding into new categories, inching closer to its vision of becoming a Global Total Foods Company.

• General Mills

General Mills is a food company that manufactures and markets retail-sold branded consumer foods. They are one of the largest food companies in the world, marketing in over 100 countries. They divide their sales into the following three core business segments: U.S. Retail, International, and Convenience Stores & Foodservice.

• Associated British Foods

Associated British Foods is a multinational food, ingredients, and retail group with £17 billion in sales. The aim is to achieve strong, sustainable leadership positions in markets with profitable growth potential, and to deliver quality products and services that are fundamental to people's lives.

• Campbell Soup Company

The Campbell Soup Company manufactures and markets globally branded convenience food products. In the United States, the company sells condensed and ready-to-serve soups, broth and stocks, pasta and Mexican sauces, canned poultry, juices and beverages, and tomato juices, in addition to canned gravies, pasta, and beans.

• Mondelez International

Mondelz International, Inc. is a multinational American confectionery, food, and beverage company headquartered in Illinois that employs approximately 80,000 people worldwide. Our mission is to encourage healthy snacking. We will lead the future of snacking in the world by providing the right snack at the right time, prepared in the right way.

• Bakers Delight Holdings Limited

Bakers Delight Holdings Ltd is a non-listed public company with local ownership that generates revenue through the operation of franchises and company-owned bakeries. The company's primary brands are Bakers Delight and COBS Bread.

• Dunkin’ Brands

Dunkin' Brands Inc. is one of the world's leading franchisors of quick service restaurants (QSR) serving hot and cold coffee and baked goods, as well as hard-serve ice cream. The Dunkin' Brands 100% franchise global business model includes more than 11,700 Dunkin' Donuts restaurants and more than 7,600 Baskin-Robbins restaurants. Dunkin' Brands Group, Inc. is headquartered in Canton, Massachusetts.

Segmentation Analysis:

The global Bakery Products Market is segmented on the basis of product, distribution channel, category and regions.

By Product Outlook:

The market is segmented by product type into bread, cakes and pastries, biscuits and cookies, and others. Bread's dominance in the market is a result of its popularity among consumers of all ages. Bread consumption in Western diets is primarily driven by its high nutritional value, affordable price, and convenience. Additionally, bread is now available in a variety of categories, including gluten-free, whole grain, and high-fiber varieties. Therefore, the availability of these new bread products is likely to increase its consumption among consumers who favor healthy diets.

The segment of biscuits and cookies is anticipated to grow at the highest CAGR due to rising consumer preferences in both developed and developing nations. In addition, many companies are developing healthier options, such as cookies made with oats and whole grains. For example, in April 2021, the Famous 4th Street Cookie Company in the United States introduced two new oatmeal cookies, Orange Cranberry and Sunrise Granola. The snacking culture influences cookie and biscuit consumption further.

• Bread
• Cakes and Pastries
• Biscuits and Cookies
• Others

By Distribution Channel:

Due to its proximity, accessibility, and affordability, the supermarkets/hypermarkets segment is anticipated to hold the largest revenue share by distribution channel. Additionally, a dedicated retail shelf for bakery products has been observed.

The other retail channels, such as convenience stores and online platforms, will experience greater growth in the coming years due to the enhanced shopping experience and convenience they provide. Consequently, the expansion of distribution channels and e-commerce platforms is anticipated to stimulate the bakery market.

• Supermarkets/Hypermarkets
• Retail
• Speciality Stores
• Others

By Category:

The market data for bakery products has been categorized as either fresh or frozen. The fresh segment dominated the market in 2022 and is anticipated to be the segment with the most rapid growth from 2022 to 2030. This is due to the rising demand for freshly baked goods among consumers. However, frozen is the fastest-growing category due to the increasing demand for long-lasting frozen bakery items such as cakes, pastries, ready-to-eat muffins, and croissants. Therefore, changing lifestyles and longer work hours have had a positive effect on market growth.

• Fresh
• Frozen

Regional Insights:

North America held a 28.25% share of the global bakery products market in 2020, and it is anticipated that this share will increase at a CAGR of 5.4% between 2022 and 2030. In recent years, the market in North America has expanded rapidly. The growth can be attributed to the increasing popularity of ready-to-eat foods among consumers. On the other hand, the number of people employed in North America is increasing, and more people are eating out. This is anticipated to continue driving bakery product sales. In addition, the cold chain industry in the United States is expanding rapidly, which accelerates the growth of frozen bakery products and contributes to the expansion of the bakery market in North America as a whole.

Bakery product manufacturers are likely to be interested in the Asia-Pacific market during the review period. On the global market for bakery products, the region holds a market share of 25.70 percent. From 2022 to 2030, the region is anticipated to grow at the highest rate, with a CAGR of 4.0%. People's increasingly hectic lifestyles and the popularity of convenient food products in emerging economies are the primary factors driving the expansion of bakery products. The Asia-Pacific market is expanding because an increasing number of consumers prefer healthier, longer-lasting bakery products. In addition, the organised retail sector in Asia-Pacific developing economies has expanded rapidly in recent years. This is anticipated to be a major factor in the expansion of the Asia-Pacific bakery products market. The rising disposable income of consumers in the Asia-Pacific region is anticipated to contribute to the market's continued expansion. China held a 34.34 percent share of the Asia-Pacific market in 2020, and it is anticipated that China will continue to dominate the market over the following five years.

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report:

Conclusion:

• The market analysis report provides a thorough overview of the industry, including quantitative and qualitative analysis based on the segmentation of economic and non-economic factors.
• It presents a market dynamics scenario and growth opportunities for the upcoming years, along with six months of analyst support after the sale.
• The report also includes a competitive landscape that ranks major players and describes new service/product launches, partnerships, business expansions, and acquisitions over the past five years.
• It also provides an outlook on the current and future market for the industry, including growth opportunities, drivers, challenges, and restraints for developing and developed regions.