The Global Bakery Products Market size was valued at USD 216.4 Billion in 2022 and is projected to reach USD 287.9 Billion by 2030, growing at a CAGR of 4.1% from 2023 to 2030.

Bakery Products Market Overview

Food and drink businesses are getting a big boost from the growing world population. Fast-moving consumer goods and the need for quick and easy foods are driving up the demand for bakery products around the world. Baked foods have been eaten for a long time, and the Romans were the first people to do so. From there, the traditional method changed a lot, and new ways of baking made a change in the way people bake.

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.

The market for organic bakery products is growing because people are becoming more aware of how harmful baking ingredients like baking soda can be. Also, people are eating healthier, which is driving up the demand for fresh bakery goods. The Global Bakery Products Market isn't growing as fast as it could because the price of raw materials is going up, it's expensive to buy new equipment, and there are more and more worries about low-calorie diets. The amount of fat and sugar in bakery products affects how much people want to buy them.

Market Dynamics

LATEST TRENDS

Growing Consumer Inclination Toward Better-for-you Baked Products

Since COVID-19 spread, health has become the most important thing for consumers all over the world. According to the 2021 Food & Health Survey by the International Food Information Council (IFIC), one in five people are actively looking for health benefits in the foods they eat. So, more and more people are interested in food and drinks made from plants. So, these companies are putting a lot of effort into making vegan baked goods. For example, in June 2021, RXBAR, a subsidiary of the Kellogg Company, released its first plant-based product, which came in peanut butter and chocolate chip flavours.

Also, people are paying close attention to how much sugar they eat. According to the bakery insight from the Sugar Reduction Resource Center at Ingredion, 42% of consumers want to cut back on sugar. According to IFIC's 2021 Food & Health Survey, the number of Americans who limit or avoid sugar has stayed the same at 72% since 2020. So, lowering the amount of sugar in bakery fillings would help the number of healthy bakery items grow.

DRIVING FACTORS

Mounting Demand for Convenient Food Products to Support Market

Most people buy from bakeries because they are easy to get to. The faster pace of life makes it more important to find easy ways to do everything. People who work long hours find it hard to spend more time cooking. So, people with busy lives eat more ready-to-eat foods like bread, cookies, cakes, tortillas, frozen pizza, and biscuits. Also, people's ability to spend money and the growth of cities, which leads to a faster pace of life, are important factors in the rise in demand for fast food. In the U.S., for example, doughnuts can be eaten at any time and are often eaten in place of a meal, while cakes are usually eaten as snacks.

Rising Working Women to Positively Influence the Bakery Products Market Growth

The growth of the bakery market is helped by the fact that more and more women are working. Since working women don't have much time to cook or make a meal, they prefer ready-to-eat and frozen foods. The World Bank says that in 2019, women made up 47% of the world's labour force. In 2019, the U.S. Department of Labor said that 46% of women worked in the U.S. and 44% worked in China. So, almost half of the people who worked were women. So, the fact that more women are getting jobs is likely to make baked goods sell better.

RESTRAINING FACTORS

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

Bread is one of the most commonly bought items from a bakery. But people in developed countries are eating less of it because they are worried about getting fat and because they eat a lot of gluten. Also, people with celiac disease shouldn't eat gluten.

Since most baked goods are made with refined flour, eating too much of it can cause health problems, such as obesity. So, doctors recommend eating well-balanced foods, like high-protein foods and foods with probiotics, as part of a regular diet. Due to the growing worry about lifestyle-related health problems like obesity and diabetes, bakery items are also a bad choice because they have a lot of sugar and carbs. So, to get around these worries, companies put money into research and development to make new products with whole grains.

Segment Overview

By Product Type

The global bakery products market is divided into breads, cakes and pastries, cookies and biscuits, bagels, donuts, pizza and pizza crust, pies and tarts, brownies, and other products. In 2020, the breads segment had the biggest share of the market at 29.01%, and it is expected to grow at the fastest rate of 4.2% during the forecast period.

By Category

The global bakery products market is divided into two groups: fresh and frozen. The fresh segment held 64.80% of the market in 2020 and is expected to grow at a faster rate of 3.5% during the forecast period. The frozen segment, on the other hand, is expected to grow at a slower rate of 3.0% during the review period.

By Distribution Channel

The global bakery products market is divided into food retail and foodservice based on how the products are sold. In the food retail segment, there are supermarkets and hypermarkets, convenience stores, in-store bakeries, online sales, and other types of stores. In 2020, 68.54% of the market was made up of the food retail segment, and the store-based sub-segment led the food retail market. During the predicted time period, the food retail segment had a higher CAGR of 3.6%.

Regional Analysis

In 2020, North America had a market share of 28.25% of the global bakery products market, and it is expected that this share will grow at a CAGR of 5.4% from 2022 to 2030. In the last few years, the market in North America has grown very quickly. The growth can be explained by the fact that more and more people are choosing ready-to-eat foods. On the other hand, the number of people working in North America is growing, and people are becoming more interested in eating out. This is expected to keep pushing sales of bakery products. Also, the cold chain industry in the US is growing quickly, which speeds up the growth of frozen bakery products and helps the market for bakery products in North America as a whole grow.

During the review period, manufacturers of bakery products are likely to be interested in the Asia-Pacific market. In the global bakery products market, the region has a market share of 25.70%. The region is expected to grow at the fastest rate, with a CAGR of 4.0% from 2022 to 2030. The main reasons for the growth of bakery products are that people's lives are getting busier and that convenient food products are becoming more popular in emerging economies. The Asia-Pacific market is growing because more and more people are choosing healthy bakery products with longer shelf lives. Also, the organised retail sector in developing economies in the Asia-Pacific region has grown quickly over the past few years. This is expected to be a major factor in the growth of the bakery products market in the Asia-Pacific region. Online shopping is a big trend in emerging economies, and the growing disposable income of consumers in the Asia-Pacific region is expected to help the market grow even more. In 2020, China had a 34.34 percent share of the Asia-Pacific market, and it is expected that China will continue to lead the market for the next five years.

Scope Analysis:

Recent Developments

• In April 2022, Kraft Heinz announced that it had finished buying a food company in Santa Catarina, Brazil, called Companhia Hemmer Indstria e Comércio, also known as "Hemmer." It is expected that the purchase will help both companies grow in the future.
• In February 2022, The Kraft Heinz Company and TheNotCompany announced a partnership. The goal of this partnership is to focus on sustainability in the coming years. The goal of this deal is to speed up innovation by combining the strengths of both companies.
• In January 2022, Campbell's joined forces with CAMP to make scented candles that were only available for a limited time. There's Chicken Noodle Soup, Tomato Soup, and Grilled Cheese, among other things.

Market Segmentation

This portion of the study on the Bakery Products Market gives detailed data on the segments at the country and regional level, thereby aiding the strategist in determining the target demographics for the relevant product or service and the impending opportunities.

By Product Type

• Breads
• Cakes & Pastries
• Cookies & Biscuits
• Bagles
• Donuts
• Pizza & Pizza Crust
• Pies & Tarts
• Brownies

By Category

• Fresh
• Frozen

By Distribution Channel

• Food Retail
• Food Service

By Companies

• Finsbury Food Group Plc.
• Nestle S.A.
• Bimbo Bakeries USA
• Britannia Industries Ltd.
• General Mills
• Associated British Foods
• Campbell Soup Company
• Mondelez International
• Bakers Delight Holdings Limited
• Dunkin’ Brands