Frozen Bakery Products Market Size to Hit USD16.53bn by 2031
According to a new comprehensive report from The Insight Partners, the global frozen bakery products market is growing due to the increasing demand for frozen and convenience baked goods through e-commerce platforms.
The report carries out an in-depth analysis of market trends, key players, and future opportunities. The multicultural composition of many societies highlights various cultural preferences. As individuals from different cultural backgrounds share culinary experiences, there is an increased desire for products that align with specific cultural tastes, contributing to the demand for frozen bakery products.
Market Growth: The frozen bakery products market is expected to reach USD16.53bn by 2031 from USD11.10bn in 2023; it is anticipated to record a CAGR of 5.1% from 2023 to 2031. Hectic work schedules are changing the lifestyle and eating habits of consumers, thereby increasing their dependency on convenience food products, such as frozen bakery products. These products allow consumers to save time and effort associated with ingredient shopping and baking preparation. The food industry is witnessing a surge in the consumption of high-quality convenience food.
According to the ‘2023 Power of Frozen in Retail’ by The Food Industry Association and the American Frozen Food Institute, frozen food sales in the US increased by 7.9%, reaching USD74.2bn in July 2023. The Millennial and Gen X populations are the major consumers of these products, shopping mostly in supermarkets and through online channels. As per the Government of Canada, the retail sales of frozen bakery products in the country were reported to be USD280.8m in 2022. The sales of frozen foods in Germany increased by 3.6% in volume, reaching 3.91 million metric tons in 2022, compared to 3.77 million metric tons in 2021, as per the International Institute of Refrigeration.
Prominent market players offer frozen bakery products, including bread and rolls, biscuits and cookies, donuts, and muffins. These products have extended product shelf-life due to the blast-freezing process. According to the ‘2023 Food and Health Survey’ conducted by the International Food Information Council, out of 1,022 Americans (aged between 18 and 80 years), 61% of participants chose convenience as a major factor impacting food buying decisions in 2023, which was 56% in 2022. Preprocessed food allows consumers to save time and effort associated with food preparation and reduces baking time. Thus, the rising demand for frozen and convenience food drives the frozen bakery products market.
Expansion of E-Commerce: The emergence of e-commerce has transformed the way people purchase food products. Increasing penetration of the internet and smartphones, growing purchasing power of consumers, rising convenience provided by online retail shopping platforms, and rapid access to emerging technologies are the key factors bolstering e-commerce. According to the US Department of Commerce Retail Indicator Division, e-commerce sales in the US reached USD870bn in 2021, which is 14.2% more than 2020. Furthermore, online grocery sales increased by 170% in 2021 than 2020, accounting for 9.6% of total grocery sales in the US. The online sales of food and beverages increased during the COVID-19 outbreak due to the shutdown of brick-and-mortar stores and the imposition of social restrictions by governments of various countries across the globe. Consumers continue to prefer buying frozen food via online retail channels. According to the ‘2023 Power of Frozen in Retail’ by The Food Industry Association and the American Frozen Food Institute, the number of online grocery shoppers who purchase frozen food through e-commerce channels is rising. The research also revealed that 86% of shoppers in the US who bought groceries online purchased frozen products in 2023, indicating a rise of 82% from 2020.
Increasing Product Innovations and Launches by Key Market Players:Consumers seek convenience, nutrition, and artisanal quality while preparing or purchasing baked goods, prompting manufacturers to enhance product quality and develop innovative products to cater to evolving consumer demands. Manufacturers are investing significantly in strategic development initiatives, such as product innovation, research and development, mergers and acquisitions, and business expansion, to attract a broad customer base and enhance their market position. In August 2024, T. Marzetti Co. (a subsidiary of Lancaster Colony Corp) launched New York Bakery gluten-free frozen bread that includes Garlic Texas Toast and Five Cheese Texas Toast. Innovative ingredient sourcing and processing have allowed manufacturers to offer high-quality, allergen-free, and gluten-free baked goods that align with these dietary restrictions. For instance, in October 2022, Cappello’s introduced the Low Carb Lifestyle Uncured Pepperoni Pizza. This frozen pizza is gluten-free and keto-friendly, containing high-fiber and a crust crafted with turnips, flaxseed, and almond flour for diet-conscious consumers. Thus, increasing product innovations and launches by key players drive the frozen bakery products market.
Geographical Insights: Europe led the market in 2023 with a substantial revenue share, followed by North America and Asia Pacific. Further, Asia Pacific is expected to register the highest CAGR during the forecast period.