|Base Year Market Size
|USD XX Billion
|Forecast Year Market Size
|USD XX Billion
|Fastest Growing Market
The global frozen bakery product market is estimated to grow at a CAGR of 4.08% during the forecast period (2023–2031). In recent years, there has been a surge in demand for convenience food owing to changing lifestyle preferences and a shift towards a hectic schedule, which is, in turn, boosting the global frozen bakery product market growth. The key players are also innovating the products in this market and introducing gluten-free, healthy, and clean-label alternatives, thereby augmenting the market expansion.
Frozen bakery products refer to baked goods that undergo freezing and are subsequently preserved for future consumption. The products encompass bread, pizza crust, cakes, pastries, morning goodies, and other items. These products are often parbaked or fully baked before freezing, enabling consumers to prepare them conveniently and expeditiously at home by completing the baking process. Cryogenic freezing aids in maintaining the optimal quality, taste, and consistency of the baked goods.
Frozen bakery products offer convenience, extended shelf life, and the opportunity to savor freshly baked goods without elaborate preparation. These products are readily accessible at grocery shops and provide a simple choice for those seeking the flavor of freshly baked dishes while allowing for easy storage for future use.
The rising customer inclination towards convenient food products indirectly stimulates the demand for frozen bakery products due to their time and effort-saving attributes. The growth of the processed food market is fueled by the rising need for convenience, driven by the hectic lifestyles of consumers. Thus, there has been a surge in the demand for frozen bakery products.
Furthermore, the rapid expansion of the frozen food sector, fueled by the increasing number of urban households in developing nations, is expected to boost the market demand for frozen bakery items. According to the Asian Development Bank, Asian cities are seeing tremendous growth. Within the next two decades, an additional 1.1 billion individuals will inhabit the urban areas of this region. Urbanization in Asia is projected to reach above 55% by 2030. The surge in average income per person and the growing prevalence of snacking outside of regular meals are the primary drivers fueling the demand for frozen bakery products.
Manufacturers consistently launch innovative frozen bakery products to cater to evolving consumer demands. This encompasses products containing more nutritious components, alternatives without gluten, and those tailored to meet specific dietary requirements. For instance, in May 2021, Canyon Bakehouse®, the leading gluten-free bread brand in the U.S., will introduce two new appetizing choices to its range of frozen bread. Stores will be receiving artisan-inspired gluten-free Sub Rolls and an 18-oz. Hawaiian Sweet Bread during the summer.
In October 2023, Rudi's Bakery, renowned for its assortment of organic and gluten-free breads, will launch the inaugural nationally accessible clean-label Texas Toast. This new product will be available in multiple flavors, including garlic, three cheese with garlic, gluten-free garlic, and gluten-free three cheese with garlic. This signifies the brand's initial venture into frozen ready-to-eat dishes and is exclusively accessible at Whole Foods Market. The implementation will commence in October with the introduction of gluten-free Free Garlic, and subsequently, the remaining assortments will be introduced later this year. These advancements are expected to enhance the market expansion.
The primary constraints on expanding the frozen bakery product market are the substantial capital investment and maintenance expenses and the customer inclination for freshly baked goods. The manufacturing of frozen baked products necessitates sophisticated machinery, cutting-edge technology, and robust infrastructure, alongside adherence to rigorous food safety and quality standards.
The volatility in the prices of primary materials, such as wheat, corn, sugar, and butter, also impacts the participants' profitability. Moreover, some consumers view frozen bakery products as less nourishing and enticing than fresh bakery products, impeding the market's expansion to a certain degree. These problems may hinder the long-term growth of the frozen bakery products market.
The actions and strategies of prominent market participants, such as introducing new products, forming partnerships, expanding operations, acquiring other companies, and merging with others, can significantly influence the market dynamics. In March 2022, Wonder Bakery, an industrial-grade bakery, opened a technologically advanced manufacturing and distribution facility worth Dh50 million in Dubai Industrial City, one of the area's largest industrial centers. The newly established plant will be able to manufacture a maximum of 50,000 tons of bakery items and kitchen products, both fresh and frozen, yearly. These products will be sold to food and beverage enterprises throughout the United Arab Emirates and the surrounding region.
In July 2022, Klosterman Baking Co. was acquired by New Water Capital Partners LP, a private equity group based in Boca Raton, Florida, specializing in investing in lower-middle market enterprises. Since its establishment in 1892, the Cincinnati-based producer of fresh and frozen baked goods has been in the ownership and management of the Klosterman family. The company manufactures various bakery products, including fresh and frozen bread, buns, flatbread, organic bread, artisan bread, doughnuts, and other baked goods. This is anticipated to generate opportunities for market growth.
Based on region, the global frozen bakery product market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
Europe is the most significant global frozen bakery product market shareholder and is expected to expand substantially during the forecast period. The European market dominates the frozen bakery products industry due to bread and baked goods consumption. The market in Europe is seeing expansion because of the rising demand for convenient and high-quality products, as well as the existence of key industry players, including Lantmannen Unibake, Aryzta, and Vandemoortele. Moreover, the prominent market participants in this region are utilizing strategies such as collaborative partnerships, introduction of new products, acquisitions, and business expansion, among other techniques.
For instance, in December 2022, Europastry, a Spanish bakery supplier, acquired Dawn Foods' frozen bakery production operations over Europe, Africa, the Middle East, and Asia-Pacific. The agreement includes Dawn Foods' production facility in the Dutch municipality of Steenbergen and a research and development center in the British town of Evesham for an undisclosed sum. Similarly, in April 2023, Nestlé and private equity firm PAI Partners are forming a collaborative enterprise to manage Nestlé's frozen pizza operations in Europe. The company will establish its headquarters in Germany and operate two sites, one in Nonnweiler, Germany, and the other in Benevento, Italy. All these aspects are projected to facilitate the expansion of the market.
The North American market for frozen bakery products is the second largest globally, driven by the region's strong consumer demand for pizza, cakes, pastries, and morning foods. The market in North America is influenced by increasing health awareness and the surging demand for gluten-free products, which is driven by the rise in celiac disease and the demand for organic products due to the increasing preference for natural components. Approximately 1 in 133 Americans, or 1% of the population, suffer from celiac disease. However, new screening tests indicate a potentially greater frequency than 1% in the United States. This demographic contributes to a rise in the need for gluten-free frozen baked products. Moreover, the prominent stakeholders in this region are creating plans for novel initiatives such as introducing new products, forming partnerships, making acquisitions, and expanding their operations, among other activities.
For instance, in February 2023, Tom Cat Bakery, a local artisan bakery, partnered with Dot Foods, Inc., a food redistributor, to distribute its handcrafted, completely baked frozen bread across North America. Tom Cat Bakery offers a diverse selection of bread in various forms and shapes, such as buns, baguettes, and Pullman loaves. The bakery allows distributors to purchase either a single case or many pallets of its bread with a short waiting period. In October 2021, George Weston Ltd., the parent company of Loblaw Cos., a Canadian public company, intends to sell its fresh and frozen bakery division, Weston Foods, to FGF Brands Inc., a baked goods maker, for a cash amount of USD 1.2 billion (Canadian). The news of the agreement follows around six months after George Weston initiated the sale of Weston Foods to enhance its focus on its Loblaw retail and Choice Properties real estate enterprises. These activities are expected to improve frozen bakery product market growth in the North American area.
|By Product Type
|By Distribution Channel
|Grupo Bimbo S.A.B.de C.V. Conagra Brands Inc. Associated British Foods Plc General Mills Inc. Lantmännen Unibake Kellogg Company Vandemoortele NV Aryzta AG Europastry S.A. Cole's Quality Food Inc.
|U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
|China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
|Middle East and Africa
|UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
|Brazil Mexico Argentina Chile Colombia Rest of LATAM
|Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports
The global frozen bakery product market is segmented by product type, category, and distribution channel.
Based on product type, the global frozen bakery product market is divided into bread, pizza and pizza crust, cakes and pastries, cookies and biscuits, and others.
The bread segment dominates the global market. Frozen breads are bread products that have undergone pre-baking and subsequent freezing to maintain freshness and prolong their shelf life. These products are commonly located in the frozen food aisle of supermarkets and can consist of wide varieties of bread, such as white, whole wheat, multigrain, and specialty bread, along with rolls and buns. Chilling impedes the development of microorganisms and reduces the rate of chemical reactions that may result in staleness.
Additionally, it enables consumers to prolong bread storage and utilize it as necessary, thereby minimizing waste. Frozen bread is frequently defrosted and then reheated in an oven or toaster to make it ready to eat. Frozen bread products offer convenience to anyone seeking to own freshly-tasting bread readily available, eliminating the necessity of visiting a bakery or engaging in baking from raw ingredients. Moreover, diverse designs and tastes are frequently offered to cater to various preferences.
Based on category, the global frozen bakery product market is bifurcated into conventional and gluten-free.
Gluten-free frozen bakery products are food items commonly located in the frozen area of grocery stores or specialized stores. These items are specifically formulated for people who require gluten-free options for diseases such as celiac disease, wheat allergy, or gluten sensitivity. It is a protein found in wheat, barley, rye, and their derivatives. These items are crafted using flours derived from rice, chickpeas, almonds, tapioca, or a blend of gluten-free grains.
Based on distribution channels, the global frozen bakery product market is divided into supermarkets/hypermarkets, convenience stores, cafes and bakery shops, online, and others.
Supermarkets and hypermarkets are retail establishments that offer a diverse range of goods, encompassing groceries, household goods, and frequently other commodities. A supermarket is a retail establishment that operates on a self-service model and provides diverse food and non-food items. Generally, supermarkets are of lesser magnitude as compared to hypermarkets. On the other hand, a hypermarket is a more expansive retail establishment that integrates features from a supermarket and a department store. Hypermarkets are distinguished by their wide assortment of products, encompassing groceries, apparel, electronics, household items, etc.