Middle East and Africa Bakery Product Market

Market Overview

The Middle East and Africa bakery product market size witnessed significant growth in the past and is expected to grow at a CAGR of 4.9% during the forecast period (2022-2030).

The use of bakery goods has increased significantly in formal and informal settings. They include bread, rolls, pies, cereals, and cakes and are manufactured from grains and prepared using dry heat in an oven or hot ashes. Baking has a rich history that dates back thousands of years, and demand for these goods has steadily increased. Bakers used to make baked products at home and sell them on the streets initially. Eventually, this resulted in specialized bakeries selling their wares to homes and businesses.

The rising trend of healthy living, natural nutrition, and organic products drives the Middle East and African bakery product market. High entry barriers due to brand loyalty and huge capital investments restrain the Middle East and African bakery product market. On the other hand growing confectionery markets apps as an opportunity for the Middle East and Africa bakery product market.

Market Dynamics

Middle East and Africa Bakery Product Market Drivers

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

In the Middle East and Africa, 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.

Middle East and Africa Bakery Product Market Restraints

High Entry Barriers Owing to Brand Loyalty and Huge Capital Investments

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.

Middle East and Africa Bakery Product Market Opportunities

Growing Confectionary Market

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 play a role in driving this upward trend.

Regional Analysis

The bakery product market is segmented by country: Saudi Arabia, South Africa, the Rest of The Middle East, and Africa. The Middle East and Africa dominated the market with a CAGR of 5.0% during the forecast period.

A regional analysis of the Middle East and Africa bakery product market reveals significant factors driving its growth. The market expansion is primarily attributed to the consumer preference for conveniently packaged food options. The Middle East and Africa region is experiencing increased packaged food consumption due to consumers' preference for convenient options. The expanding middle class also influences the growth in this region in Africa. Turkey is a significant market for bakery food products in the region, with domestic and international markets showing strong demand for these products.

Segmental Analysis

The Middle East and Africa 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, etc.

The biscuits hold the major share of the market and are expected to register a CAGR of 6.4% over the forecast period. The biscuit sector is one of the fastest-growing markets for fast-moving consumer goods (FMCG). Sweet biscuits are the most popular and fastest-growing segment of the worldwide biscuit market. As more people buy sweet biscuits and other varieties of biscuits, sweet biscuits are expected to dominate the global market. The cookies (sweet biscuits) market consists of the retail sales of assortment cookies, butter cookies, chocolate cookies, cream-filled cookies, plain cookies, wafer cookies, artisanal cookies, in-store bakery cookies, and egg cookies.

The biscuits market type is further segmented into rolled, drop biscuits, scones, shortcakes, and others. The drop biscuits hold the major share of the market and are expected to register a CAGR of 7.5% over the forecast period.

The cake market type is further segmented into cupcakes, dessert cakes, and sponge cakes. 

Dessert cakes hold the major share of the market and are expected to register a CAGR of 3.1% over the forecast period. Dessert cakes are expected to keep up their lead over the anticipated period because they are commonly consumed fresh on various occasions. In many countries, it is also consumed as part of the dessert after meals. The product category that is expected to grow the fastest is sponge cakes. This is a result of their expanding appeal to young people worldwide. These sponge cakes have a lengthy shelf life in comparison to other desserts. These goods can be enjoyed both when they are still fresh and after a week. As a result, Young people worldwide are boosting the demand for these products.

The pastries market type is further segmented into shortcrust, filo, and puff pastry.

The puff pastry holds the major share of the market and is expected to register a CAGR of 6.0% over the forecast period. The majority of patisserie is utilized in numerous ceremonies across the U.S. as desserts or customized cakes for weddings. During the anticipated term, rising product consumption at various events and festivals would generally support the market for Patisserie baking products. The final product is often made from fresh or frozen dough and eaten as a sweet dessert.

The bread and rolls market type is further segmented into baguettes, loaves, rolls, burger buns, ciabattas, sandwich slices, frozen bread, and others.

The rolls hold the major share of the market and are expected to register a CAGR of 6.3% 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 hold the major share of the market and are expected to register a CAGR of 7.2% over the forecast period. It is described as a flat, baked sweet dessert produced using oil or fat, flour, raisins, chocolate chips, oats, nuts, and other ingredients to enhance flavor and act as garnish. Sugar or sugar-free sweeteners may be used as desired. There are various types of biscuits, such as sandwiches and chocolate-filled biscuits. Both grocery stores and convenience stores and bakeries provide freshly baked cookies. The population's increasing demand for products created in bakeries is the primary factor driving the market's growth. The primary forces behind market increase also include changing lifestyles and work patterns, the availability of nutritious, gluten-free, digestible cookies, etc. The improving economy and increased disposable income further drive the market's rise.

The distribution channel is further segmented into convenience stores, specialty stores, hypermarkets and supermarkets, online retailing, and others.

Online retailing holds the major share of the market and is expected to register a CAGR of 6.0% over the forecast period. Due to the widespread use of smartphones and the internet, online sales channels will experience rapid growth during the forecasted period. Local small businesses frequently competed against major brands and internet start-ups in the Bake-Off Bakery industry, particularly those creative and quick-moving firms. Businesses that operate in physical locations have a problem due to the explosive rise of online retailing over the past ten years. While online retailing keeps expanding, physical shops are having trouble. If bakeries could benefit from e-commerce, this shifting shopping tendency could represent a chance for the industry.

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

The low calories hold the major share of the market and are expected to register a CAGR of 6.0% over the forecast period. The demand for low-calorie bakery goods has experienced a noticeable increase in size and valuation over the last few years. Additionally, the millennial age has made high-fiber, multigrain bakery items the trendiest because they focus on health and fitness and are responsible for expanding low-calorie bakery products. Additionally, the demand for low-calorie cake is rising due to the increased knowledge of calorie-free products that satisfy cake desires without increasing calorie consumption, propelling the global market for low-calorie bakery products to develop significantly.

A regional analysis of the Middle East and Africa bakery product market reveals significant factors driving its growth. The market expansion is primarily attributed to the consumer preference for conveniently packaged food options. The Middle East and Africa region is experiencing an increase in packaged food consumption due to consumers' preference for convenient options. The expanding middle class also influences the growth in this region in Africa. Turkey is a significant market for bakery food products in the region, with domestic and international markets showing strong demand for these products.

Recent Developments

• January 2021- Chipita SA, a global baker of packaged cakes and pastries, was acquired by Mondelez International Inc. Croissants bagel chips, cake bars, biscuits, and spreads were among the company’s products, which were largely offered under the 7Days, Chipicao, and Fineti names. Mondelez plans to use Chipita’s Central and Eastern European distribution network to expand its regional distribution while introducing its brands to new nations in the region and beyond.