Consumers in developing countries prefer homemade bakery products
The global bread and rolls market was valued USD 187 billion in 2015 and is expected to reach almost USD 216 billion by 2020, according to a report on food and beverage industry from Technavio.
The market will grow slowly at a CAGR of slightly less than 3 per cent during the forecast period. The growing number of fast food chains has increased the consumption of bread and rolls and a wide assortment of products available at hypermarkets, supermarkets and mini marts is currently driving the market. Supermarkets and hypermarkets accounted for 28.05per cent of the sales of the breads and rolls in 2015.
Consumers in developing countries are starting to prefer homemade bakery products over packaged bakery products because there is a common perception among consumers that packaged foods are unhealthy, since they contain preservatives, artificial colorants, and sweeteners that lead to obesity and other health issues. These homemade food items will obstruct the demand for packaged bread and rolls products, creating a negative impact on market growth.
“The market is likely to slow down 2017 onwards, because of slightly decreased product innovations compared to previous years. This will affect the buying behavior of consumers and may result in low consumptions of bread and rolls,” says Technavio lead food industry research analyst Vijay Sirathi.
Europe dominated the market in 2015 with a market share of 53 per cent
The bread and rolls market in Europe was valued at USD 99 billion in 2015 and is expected to reach USD 115 billion by 2020, growing at a CAGR of just over 3 per cent. Europe accounted for 53 per cent of the market in 2015 and is expected to slightly increase its market share by 2020.
Rise of private labels in this region, especially in Western Europe and the discounts offered by grocery retailers on bread and rolls, have fueled the sales of both existing and new private labels in the region. Preservatives or additives-free and gluten-free bread and rolls are driving market demand in Europe.
Artisanal bakery is also popular in France, Turkey, and Italy. Consumers in Europe prefer bread and rolls that are made with natural ingredients and have unique shapes and a new taste. Vendors have started producing organic breads to retain consumer loyalty and the production of these premium breads and rolls is significantly influencing consumer purchase patterns.
Similar patterns are happening in the Americas, anticipating that by 2050, more than one third of the region’s population may be affected by diabetes. Manufacturers are concentrating more on producing low-caloric foods, fortified with nutrient values, to meet consumer health requirements.
High demand for gluten-free products
Gluten is a form of protein found in wheat, barley, and rye, which are used in the manufacturing of bread. Gluten gives pliability to the dough, and also helps in keeping the form and shape of bread and rolls, however, it can cause inflammation in the small intestine, which leads to celiac disease.
Consumers increasing awareness of this disease is leading manufacturers to concentrate more on gluten-free products to capture the maximum market share. Companies like King Arthur Flour are capitalizing on this trend by manufacturing gluten-free banana bread with coconut and flax and gluten-free sorghum sandwich bread.
Top vendors covered in this report are Associated British Foods, Almarai Company, Barilla Holding, Grupo Bimbo, Goodman Fielder and Yamazaki Baking.
The global bread and rolls market was valued USD 187 billion in 2015 and is expected to reach almost USD 216 billion by 2020, according to a report on food and beverage industry report from Technavio.
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