The Asia Pacific bakery product market witnessed significant growth in the past and is expected to grow at a CAGR of 6.5% during the forecast period (2022-2030).
Bakery products have gained immense importance in both formal and informal occasions. They are made from grains and cooked using dry heat in an oven or hot ashes, encompassing bread, rolls, pies, cereals, and cakes. Baking has a long history, dating back thousands of years, and the demand for these products has consistently grown over time. Initially, bakers would create baked goods at home and sell them on the streets. This eventually led to dedicated bakeries providing their goods to households and commercial establishments.
In the coming years, the Asia-Pacific region is expected to witness substantial growth in its market, driven by the increasing adoption of Western diets in countries such as China, India, and Southeast Asian nations. Factors like population growth, higher female employment rates, and rising disposable income contribute to the market's development. The growing health-conscious trend in China and Japan further boosts the demand for low-carb and reduced-sugar bread, cakes, and pastries.
In Asia-Pacific, while bread continues to hold a prominent position in the bakery products industry of the Asia-Pacific region, it faces stiff competition from rapidly growing items like pastries and doughnuts. This competition is expected to persist and drive further growth in these alternative categories. The bread segment is experiencing growth primarily due to the increasing demand for bread variants that cater to specific dietary preferences, such as whole grain, high fiber, gluten-free, and those considered healthy and fortified. These types of bread products have gained popularity among consumers who are embracing a healthier lifestyle. However, the competitive landscape in the bread market varies across developed countries due to the wide array of product options available and the involvement of numerous informal channels in bread production.
In Asia-Pacific, the growing demand for natural nutrition, healthy lifestyles, and organic products has significantly impacted the market for food items that prioritize characteristics like whole wheat, lightness, natural ingredients, and freedom from additives. The increased sales of packaged products, including options such as whole wheat, whole meal, gluten-free, and natural alternatives, indicate a rising preference for healthier food choices. Bakery products have historically played a crucial role in human nutrition, offering convenience, availability, and nutritional value, which are key factors contributing to their continued presence in today's market. These products hold significant importance in the diets of countries with middle to lower-income groups. Despite global economic downturns, bread, a staple food in many local cuisines worldwide, has demonstrated impressive growth, showcasing its resilience in the face of challenging times.
The bakery industry faces significant competition due to customers' strong loyalty towards specific brands and the substantial financial investments required, creating significant barriers to entry. To achieve optimal business growth, major companies adopt various strategies such as forming partnerships, engaging in mergers and acquisitions, establishing strategic alliances with local manufacturers, and expanding their distribution networks.
The confectionery market in the United States is expected to benefit from the positive outlook of the overall confectionery industry. The increasing demand for convenient snacks is driving the expansion of the confectionery products market in the country. Market growth is fueled by product innovation, such as introducing low-fat, low-calorie, sugar-free chocolates and non-chocolate confections. Promotional activities and social media marketing also plays a role in driving this upward trend.
The Asia Pacific bakery product market is segmented into product range, type, distribution channel, and form.
It is further segmented by product range into cakes, pastries, bread and rolls, cookies, biscuits, pretzels, tortillas, and others.
The biscuits dominated the market and are expected to register a CAGR of 8.0% over the forecast period.
The biscuits market type is further segmented into rolled biscuits, drop biscuits, scones, shortcakes, and others. The drop biscuits dominate the market and are expected to register a CAGR of 9.1% over the forecast period.
The cake market type is further segmented into cupcakes, dessert cakes, and sponge cakes. Dessert cakes dominate the market and are expected to register a CAGR of 4.5% over the forecast period.
The pastries market type is further segmented into shortcrust, filo, and puff pastry. The puff pastry dominates the market and is expected to register a CAGR of 7.6% over the forecast period.
The bread and rolls market type is further segmented into baguettes, loaves, rolls, burger buns, ciabattas, sandwich slices, frozen bread, and others. The rolls dominate the market and are expected to register a CAGR of 7.9% over the forecast period.
By cookies market type, it is further segmented into molded cookies, drop cookies, bar cookies, rolled, refrigerator (icebox), sandwich cookies, and others. Bar cookies dominate the market and are expected to register a CAGR of 8.8% over the forecast period.
The distribution channel is further segmented into convenience stores, specialty stores, hypermarkets and supermarkets, online retailing, and others.
Online retailing dominates the market and is expected to register a CAGR of 7.5% over the forecast period.
By form, it is further segmented into organic, gluten-free, sugar-free, low-calorie, and other.
The low calories dominate the market and are expected to register a CAGR of 7.5% over the forecast period.
The Asia Pacific bakery product market is segmented by country: China, Japan, India, South Korea, Southeast Asia, Rest of Asia-Pacific. India dominated the market with a CAGR of 7.9% during the forecast period.
A regional analysis of the bakery product market in the Asia-Pacific reveals significant trends and patterns. The market in this region is experiencing notable growth, driven by factors such as the rising popularity of Western diets, population expansion, increasing employment rates for women, and growing disposable income. China's bakery sector is witnessing rapid development, while the Indian market is seeing the emergence of bakery café chains and a diverse range of bakery products. The demand for healthier options and the influence of Western innovations are also shaping the market in this region.
China's bakery sector has experienced rapid expansion due to changing dietary and lifestyle preferences. Increasing disposable income and introducing new varieties have bridged the gap between consumers and businesses. The presence of bakeries in retail, e-commerce, hypermarkets, supermarkets, and other platforms has replaced traditional bread items with Western innovations.
Likewise, the Indian bakery ingredient market is witnessing significant growth. While several large- and small-scale organized operations produce bread and biscuits, most bakery products in India are made by unorganized small family units. However, the market is diversifying beyond bread, cake, and biscuits with the emergence of additional bakery products. Competition has intensified with the initiatives of a few enterprises like Britannia, Bisk Farm, and Morish, while bakery café chains such as Barista, Café Coffee & Monginis are also gaining popularity. The younger generation's preference for independent bakeries has increased demand for snacks, muffins, puff pastries, and savory dishes.
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