Bakery products have become a vital part of several formal and non-formal events. They are grain-based food prepared by using dry heat in an oven or hot ashes that includes rolls, bread, pies, cereals, cakes, etc. The art of baking was developed thousands of years ago, and the demand for them since is on the rise. Bakers used to make baked goods at home and sell them on the streets. Gradually, this prompted them to set up an established place where they could sell their goods to households as well as to other commercial stores.
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One of the advantages bakery businesses have over other food-centric businesses is the ability to market their businesses. The bakery products demand is driven by consumer preferences and by the extent to which grocery stores choose to operate their own bakeries rather than buying from commercial bakeries. The profitability for companies is determined by their marketing efforts as well as the efficiency of operations. Gluten-free, organic products, whole-grain, an ancient grain, and additive-free ultimatums, are forces that are driving the global bakery industry. There is an increase in demand for healthy, instant, and nutritious baked products. Modern retail-channels are providing heavy discounts on the products to attract consumers.
Innovations and Diversified Products in the Bakery Industry
The bakery product market is experiencing innovations in frozen bakery products such as pastries, fruit pies, and semi baked and unbaked doughnuts, croissants, and baked goodies packed in sharing packages that double up as a serving bowl. Brands are innovating with niche and novel ingredients to boost the nutritional value. Novel ingredients such as insect protein and cauliflower flour have been recently used in other food categories. The addition of fiber to gluten-free bakery products is a common strategy to increase their nutritional value while improving mouth-feel.
There are products with different variations in their flavors, ingredients, and taste. Bakery categories like bars, bread (bagels, rolls, biscuits, buns, and loaf bread), cookies, desserts (cheesecakes, cakes, and pies), muffins, snack cakes, sweet goods (doughnuts, sweet rolls, cinnamon rolls, and coffee cake), and many more.
Strict Quality Control and Health Regulations
There are strict quality control norms and hygienic conditions as per health regulations that have to be followed at every stage in the production process of bakery products in the manufacturing industries. All ingredients used and expiry date have to be clearly mentioned on each packed food.
According to PUBLIC HEALTH (BAKERIES AND BREAD VENDORS) REGULATIONS 1940, there are some directives to the satisfaction of Medical Officer of Health:
New Frontiers for Health-Based
Among the top trends in the bakery sector, the predominant one is the demand for low-calorie or low sugar. Polyols or sugar alcohol, a group of reduced-calorie sweeteners, are used in food as sweeteners and bulking agents. They are available as either in solid crystalline form or syrups. They are emerging as a sugar replacer and substitute in the bakery industry. They offer the bakers with a versatile range of ingredients to enhance the available portfolio of products. They provide functional benefits to bakery goods when the sugars are replaced with polyols.
The table and the graph below depicts different types of polyols and their sweetness score:
Other trends in the market include rising concerns over the health risks posed by gluten consumption and demand for gluten-free bakery products and ingredients, rising demand for whole grain-based baked foods rich in fiber, Vitamin-B, antioxidants, protein and trace minerals. As a result, there is increased consumption of premium designer baked desserts and sweets, supporting demand for in-store fresh baked products.
Bread have Achieved Greater Market Penetration and Visibility
Bread holds the primary market share in the baking industry. The dominance of the bread segment is challenged by other bakery products, including pastries and doughnuts, that is experiencing rapid growth. Bread containing whole grain and high fiber and gluten-free contents are in high demand. There is a growing consumer focus on a protein-rich diet that has led to the development of protein fortification of the bread segment.
Dough workability and bread volume are important factors included in the process of bread making. Products like these are increasing popularity among consumers that are more inclined towards a healthy lifestyle.
Expanding the Product Portfolio and Launching New Products
Bakeries around the world are continuously looking for transformations to expand the product portfolio, launching new products, and adapting packaging-level modifications such as environment-friendly packaging, increased shelf lives of baked products. Besides, while manufacturing baked goods, convenience to carry the products is taken into consideration. They are also looking for well-made, highly-reliable equipment for efficient operations and to reduce the labor input needs.
Germany: The European Bakery Market Leader
Bakery goods are consumed as staple food in European countries. The market is well established in terms of product range, distribution channels, supply chain, regulations, innovation platforms, and consumer preferences. Also, there is an evident change being observed in the bakery sector on account of healthy food concerns, rising disposable income, and high demand for convenient food products. Germany is the market leader of European baked products and also has maximum share in export of bakery goods (12%), followed by Canada, France, Italy, and Belgium.
The graph below shows the share of countries that export bread, pastries, cakes, biscuits and other bakers’ wares suitable for pharmaceutical use and other similar products:
Asia-Pacific Ranks: The Fastest-Growing Bakery Product Market
The bakery product market in Asia-Pacific is led by factors such as growing population and shifting consumer appetite away from rice in favor of wheat-based foods such as bread, largely due to growing affluence of emerging middle-class population and their preference for convenient packages baked cookies.
Regional Growth Insights Request Sample Pages
The below info-graph depicts the region dominating the bakery product market for the forecast period, 2017-–2029.
The bakery product market is dominated by many global and regional players in the industry that are known for their innovations and developments. There is a cost differentiation that is prevailing to provide a competitive advantage to the existing and new entry players.
|Market Size||USD in Billion By 2031|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
|Segments Covered||by Type and Product Range, Form (Organic, Sugar-Free), Distribution Channel (Convenient Stores)|
|Geographies Covered||North America, Europe, Asia-Pacific, LAME and Rest of the World|
|Key Companies Profiled/Vendors||Archer Daniels Midland Company, Associated British Foods Plc, Cargill, Corbion, IFFCO Ingredients Solution, Ingredion Incorporated, Kerry Group, Koninklijke DSM N.V, Lesaffre, Bakels Group|
|Key Market Opportunities||The Food & Beverages Industry'S Substantial Growth Fuels The Bakery Product Market|
By Product Range
By Distribution Channel