Forecast: the Global Bakery Market until 2020
Technavio analysts forecast the global bakery market to grow at a CAGR of more than 6% between 2016 and 2020. The report segments the market into the following four categories:breads and rolls, cakes and pastries,cookies and others.
According to Manjunath Reddy, a lead analyst at Technavio for food research: “The numerous health benefits of gluten-free bakery products have increased their popularity in the Americas and Europe. Vendors have gradually begun to split their focus into health and indulgence cakes and pastries in Western Europe and North America. High-fiber bakery products are witnessing robust retail sales in Latin America and Asia-Pacific (APAC).”
Increase in indulgent consumption
There is high demand for cakes as a result of an increase in indulgent consumption. The demand for on-the-go snacks is also contributing to the demand for cakes and pastries. The sales of chocolate-based cakes increased by 19% between 2007 and 2012. Consumption of these products is usually unaffected by the prevailing economic conditions. Premium varieties in unique flavors are also much in demand and drive the snacks and pastries market. This is further supported by innovation in packaging, enabling easier on-the-go consumption.
Despite growing health consciousness, there exists a steady market for premium, indulgent foods.
Demand for functional ingredients
Due to the increasing demand for bakery products suited for specific dietary needs, such as gluten-free, innovation has become an important driver. Functional ingredients are being used to enhance products and make them healthier. Increasing innovation is apparent in the Canadian bakery market. Products containing flours other than wheat (rice flour and chia flour) have been launched in recent years. Out of the new products launched in Canada in 2014, an increasing number of bakery products claimed to have rice flour. Cakes and pastries and sweet goods constituted around 13% of these products.
Rise in in-store supermarket bakeries
In-store bakeries are found in grocery stores and are relatively small but offer a substantial range of fresh baked products, with increasing amounts of wholegrain bread being produced. Artisanal and industrial bakeries have had to contend with rising competition from the growing number of in-store supermarket bakeries that have their own offerings with competitive pricing. In-store bakeries are gaining prominence due to their lower prices and the convenience of one-stop shopping. Value-conscious customers are increasingly opting for private-label offerings of supermarkets.
“Par bakery items are frozen to increase their shelf life and lower temperature also retains the texture of crumbs and reduces the rate of crumb hardening that results from staling. These cakes also provide an easy and fast way to offer consumers fresh bread and rolls,” says Manjunath.