Europe Bakery Product Market

Market Overview

The Europe bakery product market size witnessed significant growth in the past and is expected to grow at a CAGR of 4.6 % during the forecast period (2022-2030).

Highlights

• Biscuits dominated the market by product range.
• Online retailing dominates the market by distribution channel.
• The low calories segment dominates the market by form.
• France dominates the market by region. 

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.

Europe holds the largest market share for bakery goods and is projected to maintain its leading position. The presence of over 150 bakeries and the growing snacking culture contribute to expanding the European market. As bakery products are widely consumed in the region, there is a constant demand for healthier alternatives, such as whole-grain bread enriched with high fiber and omega-3. In Italy, consumers are particularly inclined towards gluten-free bread to align with their focus on health and wellness. Furthermore, gluten-free bread is beneficial for health and easy to digest.

Market Dynamics

Europe Bakery Product Market Drivers

Rising Trend of Healthy Living, Natural Nutrition, and Organic Products

In Europe, the increasing popularity of natural nutrition, healthy lifestyles, and organic products has significantly contributed to the demand for food items that are whole wheat, light, natural, and free from additives. The recent increase in sales of packaged products, including whole wheat, whole meals, gluten-free, and natural options, reflects the growing preference for healthier food choices. Bakery products have long played a crucial role in human nutrition, offering convenience, accessibility, and nutritional value, which are important factors for their continued presence in the modern market. These products hold significant importance in middle- to lower-income countries’ diets. Bread, a staple food in various local cuisines worldwide, has shown impressive growth even during periods of global economic downturn.

Bread Remains the Strength in the Bakery Industry

While bread remains a significant player in the European bakery products industry, it faces competition from other items, such as pastries and doughnuts, which have seen rapid growth and are projected to continue expanding. The increasing demand for bread variants that are whole grain, high in fiber, gluten-free, or deemed healthy and fortified is driving growth in the bread segment. These bread products have gained popularity among consumers adopting a healthier lifestyle. However, competition in the bread market varies in developed countries due to the wide range of product options and the involvement of numerous informal channels in bread production.

Europe Bakery Product Market Restraints

High Entry Barriers Owing to Brand Loyalty and Huge Capital Investments

The bakery industry encounters notable competition due to strong customer loyalty to specific brands and substantial financial investment requirements, leading to considerable entry barriers. Major companies employ diverse approaches to attain maximum business growth, including forming partnerships, engaging in mergers and acquisitions, establishing strategic alliances with local manufacturers, and expanding their distribution networks.

Europe Bakery Product Market Opportunities

Growing Confectionary Market

The confectionery market in the United States is poised to benefit from the positive prospects of the overall confectionery industry. The growing demand for convenient snacks is driving the expansion of the confectionery products market in the country. Product innovation, including introducing low-fat, low-calorie, sugar-free chocolates, and non-chocolate confections, is fueling market growth. Promotional activities and social media marketing are also contributing to this upward trend. The market research indicates that the confectionery market in the US is expected to experience a compound annual growth rate (CAGR) of 4.3% from 2017 to 2022, reaching a market value of USD 46.4 billion. The volume of confectionery consumption is projected to increase from 2,844.9 million kg in 2017 to 3,164.6 million kg by 2022, with a CAGR of 2.2%. Additionally, the per capita consumption of confectionery in the US is predicted to rise from 8.7 kg in 2017 to 9.3 kg by 2022. Chocolate holds the largest market share, generating sales of USD 21.2 billion in 2017, followed by sugar confectionery (USD 13.1 billion) and gum (USD 3.4 billion).

Segmental Analysis

The Europe 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 6.0% over the forecast period.

The biscuits market type is further segmented into rolled, drop biscuits, scones, shortcakes, and others. The drop biscuits dominate the market and are expected to register a CAGR of 7.2% 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 2.8% over the forecast period.

The pastries market type is further segmented into shortcrust pastry, filo pastry, and puff pastry. The puff pastry dominates the market and is expected to register a CAGR of 5.5% 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 5.9% 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 6.9% 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 5.6% over the forecast period.

It is further segmented by form into organic, gluten-free, sugar-free, low-calorie, and others.

The low calories dominate the market and are expected to register a CAGR of 5.6% over the forecast period.

Regional Analysis

The Europe bakery product market is segmented by country: Germany, France, The U.K., Italy, Spain, Rest of Europe.  France dominated the market with a CAGR of 5.8% during the forecast period.

The Europe bakery product market can be analyzed regionally, with different countries exhibiting unique characteristics. Germany holds a prominent position, driven by a strong bakery culture and a wide range of traditional and artisanal products. France is known for its exquisite pastries and bread, reflecting its culinary heritage. Italy excels in bread varieties, focusing on quality and regional specialties. Scandinavian countries emphasize health-conscious options, while Eastern European markets prefer sweet pastries. The regional variations in tastes and preferences shape the dynamics of the Europe bakery product market.

Germany is estimated to dominate the bakery goods market in Europe. Baked goods are significant in the British diet, making them a household staple and driving sales. Despite a preference for toast/rusk as a breakfast option, the United Kingdom has one of the lowest per capita bread consumption rates globally. However, nearly 70% of households in the U.K. regularly incorporate bread into their lunches or breakfasts, supporting the local market for bakery goods.

Recent Developments

• September 2021- Finsbury Food Group expanded its Mary Berry supermarket cake range with the launch of Bundt cakes. The Bundt cakes come in two flavors, lemon sponge cake with lemon icing, lemon curd drizzle, and hand-decorated Belgian with chocolate curls, and chocolate sponge cake featuring chocolate icing and hand-decorated Belgian dark and white chocolate.