RTE Baked Products and Bakery Premixes Market Size, Share & COVID-19 Impact Analysis, By Product Type (Bakery Products (Cakes, Bread, Casseroles, Lasagna, and Pizza) and Bakery Premixes (Bread Mix, Cookie Mix, Cake and Pastry Mix, and Other Mixes), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Online Retail, and Others), and Regional Forecast, 2023-2030

The global RTE baked products and bakery premixes market size was valued at USD 141.04 billion in 2022 and is projected to grow from USD 147.74 billion in 2023 to USD 208.14 billion by 2030, exhibiting a CAGR of 5.02% during the forecast period. Europe dominated the rte baked products and bakery premixes market with a market share of 35.39% in 2022.

RTE baked products and bakery premixes are segmented into bakery products such as cakes, breads, casseroles, lasagnas, and pizzas. It also includes bakery premixes, such as bread mix, cookie mix, cake & pastry mix, and other mixes. These are different types of Ready-to-Eat bakery and bakery premix products available in the market. They are distributed through supermarkets/hypermarkets, specialty stores, online retail stores, and other distribution channels.

North America, Europe, and Asia Pacific hold significant market shares due to the higher demand for these products in countries, such as the U.S., Germany, China, and others. Furthermore, RTE bakery products are expected to show rapid growth during the forecast period owing to the strong growth in urban lifestyle in countries across Asia Pacific and South America.

COVID-19 IMPACT

Rise in Home Baking Trend and Demand for Baked Products Amid COVID-19 Positively Impacted Market Growth

The RTE baked products and bakery premixes market growth has accelerated considerably due to the convenience provided by these products. Furthermore, since bread is a staple food in many countries, the sudden lockdowns resulted in panic buying among consumers. Due to their longer shelf life, RTE items and other essentials recorded faster sales in the initial days of the lockdown. For instance, as per Catalina Shopper Insights, the number of shopping trips decreased from 7.5 in 2019 to 6.7 in 2020 in the U.S. Conversely, the shoppers' basket size increased from USD 41 to USD 49 during the same period.

Although owing to the closing of factories & manufacturing plants, increasing raw material prices, rising transportation costs, and increased labor shortage were some of the negative effects of the COVID-19 pandemic on the manufacturing of RTE baked products and bakery premixes products.

For instance, as per General Mills, the company's sales of snacks and baking products in 2021 were significantly low as compared to those of bakery and snack products during the peak of the pandemic. The 3% decline in the U.S. retail sector had a negative impact on the global RTE baked products and bakery premixes market. In addition, the company mentioned that products such as Betty Crocker cake mixes recorded a 1.2% decline in sales due to the industry's rising transport costs, labor shortages, and increased raw material prices, which plagued the food sector.

LATEST TRENDS

Rising Consumer Inclination toward Nutritious Bakery and Premix Products to Favor Market Growth

Due to consumers' rising inclination toward healthier RTE baked products and bakery premixes, sourdough has been observing a rising demand. As sourdough is made by using fermented dough containing bacteria and wild yeast, it has a unique texture and tangy flavor. Furthermore, it contains lower anti-nutrients and gluten levels, making it healthier for utilization in baked products, such as buns, bread, and cookies. Thus, the manufacturers are launching new products to cater to the rising demand for this type of bread. For instance, in January 2023, Bako announced the launch of sourdough products in its finished products range owing to the rising consumer demand for sourdough.

Consumers have shown increased health awareness, so the manufacturers have rapidly adapted to the trend and focused on developing gluten-free premix products. In addition, consuming gluten-free products is known to prevent heart disease, diabetes, celiac disease, and others. Thus, manufacturers, such as Grupo Bimbo and others are launching new, attractive, and innovative bakery premix products. For instance, in February 2020, Grupo Bimbo announced the launch of its new gluten-free products as part of its New York Bakery Co. brand and included a plain and seeded (with sesame, brown linseed, and poppy) bagel.

DRIVING FACTORS

Mounting Demand for Shelf-Stable and Convenient Food Products to Drive Market Growth

Convenience foods are those food products that save time in preparation, consumption, and cleanup. Several factors have affected the demand for convenience foods. These factors change according to regions.

In recent years, there have been several socioeconomic changes in emerging economies such as increasing disposable income, population, growing employment, rising rural-to-urban movement, and high rural per-capita productivity. These factors have significantly contributed to the rising demand for RTE baked products and bakery premixes. For instance, as per the Indian Ministry of Statistics and Program Implementation report, the migration rate across the country from July 2020 to June 2021 was 28.9%.

Increase in Home Baking and Availability of Healthy Bakery Premixes to Support Market Growth

In recent years, home baking has observed substantial growth. Various factors are contributing to the rapid growth in people’s participation in home baking. These factors include social media influence, rising inclination toward healthy baked products, new product innovation by using healthy raw materials, and novel launches in the bakery premixes market.

There was a rise in participation on social media platforms, such as Instagram and Pinterest where home bakers showcased their creations to a broader audience. Furthermore, local and international chefs have been posting new recipes, contributing to the widespread reach of home baking. Thus, social media participation has influenced more people to participate in home baking activities, and thus increase the demand for RTE baked products and bakery premixes.

For instance, in August 2020, following the rapid rise in the number of home bakers, Amit Gupta, a digital marketing entrepreneur based in India, joined hands with London-based entrepreneur Mohan Lath and launched Bakedemy, an online academy designed for home bakers.

RESTRAINING FACTORS

Growing Health Issues from Bakery Food Consumption to Negatively Impact Market Growth

Bakery products, such as bread, cakes, casseroles, pizzas, lasagnas, and others have become essential parts of the modern-day diet. These baked products are usually prepared using refined flour, eggs, milk or cream, and sugar. These ingredients, if consumed excessively, have adverse effects on human health. In addition, most ready-to-eat baked products and bakery premixes have preservatives, artificial sweeteners, additives, and multiple chemicals, such as Sorbic Plus and encapsulated calcium propionate to extend their shelf life. Consuming such foods can threaten human health. For instance, as per Vinmec International Hospital Joint Stock Company, calcium propionate has been linked with increased production of insulin and glucagon. These hormones stimulate the release of insulin (sugar), leading to type 2 diabetes. Thus, the rising awareness of side effects of consuming bakery products is restraining the market growth.

SEGMENTATION

By Product Type Analysis

Bakery Products Being Staple Food in Several Regions to Fuel Sales of Breads

Based on product type, the market is segmented into baked products and bakery premixes. The baked products segment is further divided into cakes, breads, casseroles, lasagnas, and pizzas. The bakery premixes segment is also bifurcated into bread mix, cookie mix, cake and pastry mix, and other mixes.

The bread segment accounted for the majority of RTE baked products and bakery premixes market share. Bread is a staple diet in several countries worldwide and is consumed regularly. The product has remained popular among consumers and manufacturers are launching new varieties targeted toward different consumer segments. Furthermore, packaged bread products ensure that safety and hygiene are maintained in the final product, supporting the global market’s growth. Apart from North America and Europe, where bread is an integral part of their cuisine, the Asia Pacific and Middle East are also witnessing rapid growth in the consumption of RTE baked products and bakery premixes.

Bread is the staple food in multiple regions, attracting most consumers, thus resulting in its higher global market share. In addition, the cake and pastry mix segment accounted for the highest market share owing to new product launches and variety of flavors available to cater to the rising demand for home baking post-pandemic.

 By Distribution Channel Analysis

Wide Variety of Products to Increase Customer Footfall in Supermarkets/Hypermarkets

Supermarkets/hypermarkets, specialty stores, online retail, and others are some of the major distribution channels analyzed in this report.

The supermarket/hypermarket segment is anticipated to dominate the market. Supermarkets/hypermarkets offer consumers a wide variety of flavors and appealing products. Several products imported from other countries are also available in supermarkets and hypermarkets, and they provide promotional offers and discounts on bulk purchases of baked products and bakery premixes. The daily demand for products, such as breads and casseroles, and their shorter shelf life will contribute to the dominance of supermarkets/hypermarkets in the global market. However, the launch of faster delivery services by multiple food service providers contributed to the growth of online retail channels during the post-pandemic period.

REGIONAL INSIGHTS

Europe to Dominate Market Due to Increasing Consumer Purchasing Power

Europe is one of the largest producers of baked products and bakery premixes in the world. Germany, France, the U.K., and Italy are some of the region's major producers and consumers of baked products. The region's heritage, geography, and local climate have positively influenced the bread consumption tradition in these countries. Various grains, such as wheat and rye, are used to make different types of breads for different regions. Bread is the major product consumed by the European population. For instance, as per U.K. Flour Millers, bread is consumed by 99.8% of British households, with 60-70% of the sales recorded by white bread. Moreover, as per the U.K. government's National Diet and Nutrition Survey, the average bread consumption per person in the country is 80 grams daily.

Food consumption in North America, especially in the U.S., is significantly influenced by the demographic changes in the country's population. The influx of people from other countries is impacting the U.S. market's food consumption and purchase pattern, and influencing product sales. Such changes in the demographics are expected to impact the sales of baked goods, such as bread and cakes in the country. Bread is a staple diet of consumers in North American countries. In recent years, the overall consumption of bread has been declining at a steady rate as consumers seek a calorie-free diet to reduce obesity and other diseases caused by consumption of high-calorie foods. As per a survey conducted on the U.S. population and published in StudyFinds in 2022, 72% of the respondents prioritized health and spent USD 827 on fitness apparel and equipment.

The bakery sector in Asia Pacific is undergoing significant change, with demand for RTE baked products and bakery premixes for cakes, breads, and other products increasing rapidly in the market. Visually appealing and flavorful baked products, especially cakes, are becoming popular in the region. Some manufacturers align their product launches with government initiatives to improve the nutrition level of consumers. For instance, in May 2023, Bonn Group of Industries, a manufacturer of FMCG products in India, launched millet bread in the market. The year 2023 was declared Millet Year by the World Health Organization (WHO), and the company undertook the initiative to support the event by launching nutrient-rich millet-based breads in the market.

Trade associations, such as the Brazilian Manufacturers Association of Biscuits, Pasta, and Industrialized Breads & Cakes (ABIMAPI) have helped the South American market grow. The association holds annual events to strengthen the country's industrialized cakes and bread market. In 2018, the association played a crucial role in reducing the sugar content in industrialized food products sold in Brazil and became a part of the Brazilian Labeling Network, which aimed to improve the nutritional information shown on packed food items. Such measures enable the cake and bread manufacturers to share transparent data with their consumers. In the Middle East and Africa, the COVID-19 pandemic impacted the purchasing behavior of consumers. The outbreak influenced consumers to switch from purchasing cakes from retail stores to baking the products at home. A significant proportion of the consumer base had increased its preference for cooking and baking at their home, which caused an increase in demand for bakery premixes in the region.

KEY INDUSTRY PLAYERS

Grupo Bimbo to Focus on Filling Demand and Supply Gap in the Market

Grupo Bimbo, a leading market player, is focused on the sustainable development of its organization and more clean-label products. For instance, in March 2022, the company announced its new sustainability strategy, through which the company will be developing a baked-for-you product line to cater to the rising demand for sustainable and healthy food products.

Other key players in the market, such as Aryzta AG, General Mills, Inc., Associated British Foods plc, Britannia Industries, and others, are focusing on new product developments, innovations, and partnerships to strengthen their presence in the market.

LIST OF KEY COMPANIES PROFILED:

• Grupo Bimbo (Mexico)


• General Mills Inc. (U.S.)


• Puratos Group (Belgium)


• Associated British Foods plc (U.K.)


• Aryzta AG (Switzerland)


• Bakels Group (Switzerland)


• Oy Karl Fazer Ab. (Finland)


• Wm Morrison Supermarkets Limited (U.K.)


• Bob's Red Mill Natural Foods, Inc. (U.S.)


• Britannia Industries Limited (India)

KEY INDUSTRY DEVELOPMENTS:

• April 2023 – Britannia, a sliced bread manufacturer in India, launched millet bread in the country. The product is composed of finger millet (ragi), sorghum (jowar), pearl millet (bajra), and oats. The company became the first bread manufacturer to launch millet bread in India.


• January 2023 – Hero Bread, a U.S.-based bread and baked goods manufacturer, expanded its product availability in Chicago through retail stores. The company also expanded its online presence through Walmart and Amazon.


• January 2023 – Grupo Bimbo acquired a Romanian bakery company named Vel Pltar SA by acquiring 100% shares of NCH Capital New Century Holdings in the company. Such acquisition helped the company expand its market presence.


• December 2022 – Kalory, a manufacturer of packaged bread in India, launched a 500g white bread for consumers. The company is launching new products to meet the country's growing demand for packaged bread products.


• November 2022 – Skinny Food Co., a U.K.-based manufacturer, launched a healthy version of bread loaves named NEW Skinny Food Co. High Protein and Low Carb Bread. The product can be used to make breakfast, lunch, and dinner sandwiches. The company aims to cater to the rising demand for healthy bakery products to have a competitive edge.

REPORT COVERAGE

The market research report provides a detailed analysis of the industry and focuses on key aspects such as leading companies, product types, and leading distribution channels of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that contributed to the growth of the market in recent years.

Report Scope & Segmentation: