Bakery Products Market Size, Share & Industry Analysis, By Product Type (Bread, Cakes and Pastries, Biscuits and Cookies, and Other Bakery Products), By Form (Frozen and Fresh), By Product Range (Specialty {Gluten-free, Organic, and Others} and Conventional), By Distribution Channel (Supermarkets/Hypermarkets, Specialty Stores, Convenience Stores, and Others), and Regional Forecast, 2024-2032

The global bakery products market size was valued at USD 457.40 billion in 2023 and is projected to grow from USD 480.23 billion in 2024 to USD 731.69 billion by 2032, growing at a CAGR of 5.40% during the forecast period. Moreover, the bakery products market size in the U.S. is projected to grow significantly, reaching an estimated value of USD 148.98 billion by 2032, driven by high consumption of bread, cakes, and pastries.

Bakery products include cakes, pastries, bread, biscuits, cookies, and other bakery items that are meant to be distributed through several distribution channels, including supermarkets/hypermarkets, specialty stores, convenience stores, and other channels. In addition, these products can be further distributed based on their ingredient and production methods, such as specialty and conventional, where the specialty products include gluten-free, organic, and others. Whether the product is a specialty or conventional, it is sold either fresh or frozen where fresh holds a significant market share.

Over time, the bakery industry has significantly changed with the rising influence of Western diets in developing economies and increasing demand for convenience food products with the rapid growth in urbanization, dual-income households, busy lifestyles, and participation of women in the workforce. In addition, the industry has displayed significant development in terms of the launch of new and innovative product ranges such as gluten-free, organic, and others. Thus, the global market has been showing significant growth, with the changing consumption patterns and consumer trends.

These rapid advancements in technology and changing consumer demand are resulting in the development of new products in the global market. Consumers' increased awareness of health and wellness products has resulted in expansion of their product offerings by companies with the launch of healthy and natural ingredient based bakery products, resulting in new growth opportunities.

Industries, including bakeries, faced a significant impact due to the COVID-19 pandemic. The shutdown of manufacturing plants by governments was one of the significant factors which contributed to a negative impact on the global market. Furthermore, with the rise in cases across countries, the government further imposed the closing of borders and restricted trade between countries, thus disrupting the global supply chain of the bakery industry. In addition, as consumers started to stockpile products such as bread, biscuits, and others in the initial phase of the pandemic, it led to an increase in sales in the initial period, although it further increased the supply and demand gap. For instance, as per Mondelēz International, Inc., revenue of its biscuits segment was around USD 12.81 billion in 2020, which was previously recorded to be approximately USD 11.43 billion in 2019.

Bakery Products Market Trends

Rapid Growth in Digitization and Advancement in Technology of Bakery Industry

The bakery sector has been substantially advancing with the adoption of new and advanced technology in the production and supply of bakery products. Automation in the manufacturing process is one of the leading trends. The artisanal and innovative bakery goods industry has showcased significant growth, which is a significant factor driving the demand for automation. In addition, automation has further contributed to multiple benefits, such as higher output, faster production, and others that contribute to the overall growth of the industry.

Thus, owing to the multiple benefits offered by automation, a significant number of manufacturers are planning to invest in new machinery and are focused on automation. For instance, as per Statistics Canada’s Survey conducted in 2022, the baking industry is on the edge of embarking on automation, with around 46% of participants of the survey inclined toward investing in new machinery and innovative products. In addition, around 32% are inclined toward investing in automation.

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Bakery Products Market Growth Factors

Rise in Demand for Convenient Food Products to Fuel Market Growth

The bakery industry is driven significantly owing to the higher convenience offered by these products. The increase in fast-paced lifestyles owing to rapid urbanization and the increase in working-class people and dual-income households has been driving the demand for convenient food products such as ready-to-eat and ready-to-bake. Furthermore, the increase in spending capacity and fast-paced lifestyle also drives the demand for food products such as doughnut, which is one of the staple foods in the U.S. and is often consumed as a snack.

Rising Number of Working Women to Positively Influence Market Growth

The participation of women in the workforce has shown rapid growth in recent times. This increased participation of women in the workforce significantly contributes to an increase in demand for convenience and easy-to-cook food products such as bakery food products, including bread, pancakes, and others. The increasing demand for convenient baked goods is credited to the availability of limited time among women to cook; thus, they prefer frozen food products to ease meal preparation. For instance, as per the World Bank, women recorded a share of 47% of the total workforce in 2019. Furthermore, the employment rate of women was 46% in the U.S., followed by China, which was around 44%. Thus, half of the workforce is considered to be women in these countries.

RESTRAINING FACTORS

Growing Health Issues from Bakery Food Consumption May Obstruct Market Growth

One of the most significantly consumed bakery foods is bread, as it is considered a staple food in the U.S. and the majority of European countries. However, bread consumption has been recording a significant decline in these countries owing to the rising number of obese individuals. Awareness related to obesity and diabetes is restraining the growth of the global bread market.

Furthermore, excess consumption of refined flour has been linked to various health issues, including obesity, and it is one of the most common ingredients in baked goods, further restraining market growth. In addition, baked goods are inclusive of higher sugar and carbs and are not balanced foods, making them unhealthy.

Bakery Products Market Segmentation Analysis

By Product Type Analysis

Bread Segment to Dominate Owing to its High Consumption

Based on product type, the market is segmented into bread, cakes and pastries, biscuits and cookies, and other bakery products. The bread segment holds the largest bakery products market share and its dominance is due to its high consumption among consumers of varied age groups. The high nutritional value, price, and convenience are primary factors that increase bread consumption in Western diets. Moreover, nowadays, bread is available in various categories, such as gluten-free, whole grain, and high-fiber products. Thus, the availability of these new bread products is likely to boost their consumption among consumers who prefer to consume healthy diets.

The biscuits and cookies segment is projected to grow at the highest CAGR during the forecast period due to increasing consumer preferences in developed and developing countries. In addition, many manufacturers are coming up with healthy options such as oats and whole-grain-containing cookies. For instance, in April 2021, U.S.-based Famous 4^th Street Cookie Company launched two new oatmeal cookies, Orange Cranberry and Sunrise Granola. The snacking culture further influences the consumption of cookies and biscuits.

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By Product Range Analysis

Conventional Segment to Dominate Due to Higher Availability of Diverse Product Portfolios

By product range, the market is divided into specialty and conventional, where the conventional segment has a dominant share owing to the higher availability of diverse product portfolios in the market. Conventional bakery products such as bread and others are staple foods in Germany, the U.S., and other countries, thus further contributing toward its higher share in the global market.

The specialty segment is expected to have a higher CAGR growth in the global market during the forecast period. The segment is further divided into gluten-free, organic, and others, of which the organic segment holds the dominant share owing to the rising awareness among individuals of the health benefits of organic food consumption. Gluten-free bakery products are expected to show a significant CAGR growth during the forecast period owing to the rising prevalence of celiac disease and rising awareness of celiac disease among individuals.

By Form Analysis

Higher Demand for Products Such as Bread to Foster the Fresh Segment Growth

By form, the market is segregated into fresh and frozen. The fresh segment held a dominant share of the global market in 2023, owing to the higher demand for products such as bread, biscuits, and others, which are considered to be staple foods in many countries. In addition, consumers are inclined toward healthy food consumption, especially post-pandemic, and thus are looking to increase at-home food consumption. Thus, the demand for freshly baked and adequate portion foods has been driving the market growth. For instance, in December 2022, as per the survey conducted by Rich Products Corporation, shoppers are significantly inclined toward the purchase of fresh bakery products for at-home consumption, where premium bakery products have the highest preference.

Furthermore, the frozen segment is expected to have a higher CAGR during the forecast period with the rising demand for the ready-to-bake product range in the developing regions such as Asia Pacific. The region’s growth is significantly driven by China, India, and other countries which have displayed rapid growth in urbanization and participation of women in the workforce.

By Distribution Channel Analysis

Supermarkets/Hypermarkets Segment to Remain Dominant Due to Availability of Wider Product Range

The distribution channel segment is fragmented into supermarkets/hypermarkets, specialty stores, convenience stores, and others from which the supermarkets/hypermarkets segment is expected to hold the largest revenue share. This higher share of supermarkets/hypermarkets is credited to the proximity, accessibility, and affordability provided by this segment to customers. Furthermore, the dedicated shelf for bakery products in this segment further contributes towards its higher sales.

The other retail channels, such as convenience stores and online platforms, would showcase stronger growth in the coming years owing to the wide range of products and increasing investments by major players in further expansion to cater the rising demand for enhanced shopping experience. Therefore, the strengthening network of distribution channels and ecommerce platforms is expected to flourish the bakery market.

REGIONAL INSIGHTS

By region, the market is divided into North America, Asia Pacific, South America, Europe, and the Middle East & Africa.

Europe holds the dominant revenue share in the global market owing to the higher demand for baked goods in Germany, France, Italy, the U.K., and other countries. Products such as cakes, bread, pastries, and others are some of the staple foods in these countries, thus resulting in higher per capita consumption. In addition, the region is said to further showcase a rising demand for gluten-free and organic product ranges owing to the increasing demand for health and wellness food products. The countries in the European region have shown rapid growth in awareness related to healthy food consumption, specifically post-pandemic, which further contributes to its higher growth rate. The bakery products market growth in Europe is further supported by the presence of more than 150 bakery companies and the growing trend of snacking culture. Due to the high consumption of the product in the region, consumers constantly seek healthier alternatives such as bread with whole grains, high-fiber, and omega-3 content.

In Italy, many consumers buy gluten-free bread to support the health and wellness trend in the country. In addition, gluten-free bread is easy to digest and better for health.

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Followed by Europe, North America holds a significant share of the global market. One of the prominent factors driving the demand in the region is convenience offered by the product. Market leaders such as Mondelez International, General Mills, and Grupo Bimbo are focused on the development of new product ranges focusing on health and wellness owing to the increasing consumer awareness of healthy bakery consumption, which is said to fuel market growth further. The U.S. leads the regional market owing to the high consumption of bread, cakes, and pastries. Mexico's heavy reliance on bakery products makes it the fastest-growing country in the region.

Asia Pacific is expected to show prominent growth during the forecast period, which is significantly driven by the rapid growth in the participation of women in the workforce, increasing dual-income households, and urbanization. These factors are said to fuel the demand for convenient food products among individuals, thus resulting in the increasing consumption of products such as bread. The region's high growth is supported by the increasing adoption of Western diets in China, India, and other Southeast Asian countries. The rising number of working women in the region and the growing disposable income support the market growth. Moreover, the growing healthy living trend in China and Japan boosts the demand for reduced sugar and low-carb bread, cakes, and pastries.

Brazil leads the South American bakery market, owing to the high inclusion of bakery items in their daily diet. In Brazil, Argentina, Chile, and Columbia bakery food consumers are also seeking packaged bread with healthier ingredients. Moreover, snacking trends influence the consumption of biscuits among adults and children.

In the Middle East & Africa, the market is propelled by rising consumption of packaged foods due to their convenience. In Africa, the growing middle-class population also supports the region's growth. Turkey is a key market for bakery food products in the region, and their sales are driven by high demand in local and foreign markets.

List of Key Companies in Bakery Products Market

Key Players Launching Innovative Bakery Products to Gain Largest Market Share

Mondelez International, the Kellogg Company, Associated British Foods, General Mills, and Grupo Bimbo are major players operating in the market. With the rising health concerns, major players are focusing on launching innovative and healthy baked products. For instance, in November 2021, Bimbo Bakeries USA, a subsidiary of Grupo Bimbo, launched soft & smooth wheat bread under its Sara Lee Delightful variety line. This new product is made using whole grains and contains no added sugar. Citing another instance, in September 2021, Mondelez International launched Limited Edition Pokemon x Oreo cookies. This new launch would attract kids and the younger generation.

LIST OF KEY COMPANIES PROFILED:

• Mondelez International, Inc. (U.S.)


• Associated British Foods plc (U.K.)


• The Kellogg Company (U.S.)


• Grupo Bimbo, S.A.B. de C.V. (Mexico)


• Yamazaki Baking Company, Ltd. (Japan)


• Campbell Soup Company (U.S.)


• Britannia Industries Limited (India)


• General Mills, Inc. (U.S.)


• Dunkin' Donuts LLC (U.S.)


• Flower Foods (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: Base Culture, one of the well-known frozen bakery goods manufacturers, announced the launch of its new simply bread line to expand its gluten-free product range. The new product line is said to be a clean label and gluten-free product range.


• June 2023: Arva Flour Mills, one of North America’s prominent commercial bakery mills, announced the acquisition of the Full of Beans gluten-free products brand. The company aims to launch a gluten-free product range under the Arva Flour Mills to expand its consumer base further.


• April 2023: Britannia, one of the prominent bakery product manufacturers in India, announced the launch of its millet bread, which does not contain refined flour. With this launch, the company has become the first company to launch health and wellness organic bread in the regularized bread market in India.


• March 2021: U.S.-based Mmmly launched plant-based reimagined cookies. These cookies comprise clean ingredients such as prebiotic fiber, root vegetables, fruits, and healthy fats that fuel the brain and support gut health and overall well-being.


• September 2020: Nestlé Professional signed a partnership contract with Dawn Foods to launch KitKat muffins in Europe and the Middle East countries.

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

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