Italy: Convenience and Health-conscious Foods Win Italians’ Hearts

While many people’s first thought of Italy, when it comes to baked goods, is pizza, the truth is that the ancient land of the Romans offers a plethora of pastries, breads and other baked goods. From the delicate sfogliatelle of Campania to the piadine from Romagna, from the enduring biscotti to the raspberry jam filled bomboloni (donuts), the Italian bakers show their mastery in many forms baked and fried dough can take. In 2022, there was a clear winner.

Italy was one of the most affected European countries when the COVID-19 pandemic started in 2020. The high prevalence of the virus led to lasting movement restrictions which impacted the lives of all and the livelihood of many baking industry workers. With people working from home, restaurants closed, family gatherings annulled, the industry took a severe hit. In a country where most people’s breakfast was a coffee and a pastry on the go, businesses struggled when people started working from home and forgoing their ancestral habits.

However, 2022 marked a return to life before the pandemic. Maybe shy and incomplete – there are still people working at home – but the consumer habits returned too. 

Packaged Piadina, a Clear Winner

According to Euromonitor International, packaged flatbread remained the strongest performer in baked goods in Italy in 2022 in current value terms. This type of product became more appealing during the COVID-19 crisis, partly due to the fact that it was seen as more hygienic than unpackaged varieties. One of the most popular types of packaged flatbread is piadina, an unleavened variety that is part of the gastronomic tradition of the Emilia-Romagna region but which is enjoyed across the country. During the pandemic, consumers rediscovered the convenience and versatility of piadina, which can be consumed for breakfast, lunch or as a snack, and also as an accompaniment to dinner. Moreover, given an increase in home-based working, some Italians became more inclined to buy piadina so they could easily recreate the kind of gourmet-style wraps and sandwiches they were accustomed to ordering in cafés or restaurants.

New product development activity also helped to maintain strong consumer interest for packaged flatbread in 2022. In particular, experimenting with wholegrain-based products allowed manufacturers to meet the demands of health-conscious consumers.

Consumers are also increasingly attentive as to the origin of raw materials, with a preference for using 100% Italian ingredients from a short and controlled supply chain. This was particularly evident in packaged focaccia, where IGP (Protected Geographical Indication) products grew in popularity in 2022.

Reformulation for Better-for-you Pastry

One lasting effect of the pandemic was an increase in the numbers of health-conscious consumers worldwide. Facing health scares and limited movement, many looked at food as a way to improve their health. In practice, that translated into looking for products with less sugar, salt and fat. That could’ve negatively impacted the baking industry, but bakers found a way to allow for a recovery for cakes and pastries.

Pastries and cakes saw positive growth in 2022, according to Euromonitor International, with pastries being especially dynamic, seeing a double-digit rise in volume terms. Both products suffered a decline in volume sales during the COVID-19 pandemic, due to increasing levels of health-consciousness, which led to a shift towards more nutritious alternatives. In addition, fewer opportunities for home entertaining, as a result of successive lockdowns, and a rise in home-baking, led to a reduction in demand. 

In view of a growing consumer interest in health and nutrition, manufacturers adapted their existing recipes accordingly in 2022. This included reducing the sugar or fat content of their products or increasing the fiber content, with lactose and gluten-free options also being increasingly available. With consumers unwilling to compromise on taste, there was also a growing demand for packaged cakes and pastries combining health benefits with rich, luxurious flavors. 

What’s in Store for 2023

The Italian bakery market will be influenced in 2023 by the same global trends as the rest of the world. Euromonitor International’s landmark “Top 10 Global Consumer Trends 2023” report, launched in January 2023, identifies and explains these trends and how they will impact the market.

On the backdrop of inflation, supply chain vows and climate change threats, Euromonitor says that some of the factors that will define global consumer trends in 2023 will be: consumers spending responsibly but emotionally, the role of digitisation in purchasing processes, female equality demands, and a disruptive Gen Z.

You can read the rest of this article in the January-February issue of European Baker & Biscuit, which you can access by clicking here. 

Market analysis based on data provided by Euromonitor International.