Bakery Products Market size was valued at USD 360.96 billion in 2023. The bakery products industry is projected to grow from USD 372.42 Billion in 2024 to USD 479.29 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.20% during the forecast period (2024 - 2032). Growing consumption of ready-to-eat foods across the globe owing to hectic lifestyles and growing preference for ethnic food, along with the success of Thai and Mexican food in restaurants, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Convenience is the primary driver for the bakery market. The fast-paced lifestyle increases the need to adopt convenient solutions in all aspects of life. Long working hours make it difficult for consumers to spend more time cooking. Thus, a hectic lifestyle boosts the consumption of ready-to-eat bakery products such as bread, cookies, cakes, tortillas, frozen pizza, and biscuits. Furthermore, high spending capacity and growing urbanization that results in a fast-paced lifestyle also play an essential role in surging the demand for convenient food. For example, in the US, doughnuts are considered anytime food and are often eaten as a meal substitute, whereas cakes are usually consumed as snacks.
Further, increasing consumer preference for convenience bakery products indirectly encourages the demand for frozen bakery products as they require less time and effort. The processed food market is driven by the increase in the need for convenience due to busy customer lifestyles. This, in turn, has led to an expansion in demand for frozen bakery products. In addition, the high growth of the frozen food industry due to the fast-growing urban households of developing countries is projected to drive the demand for frozen bakery products. The rise in per capita income and increased snacking between meals are the key factors encouraging the demand for frozen bakery products. The development of retail channels in supermarkets, hypermarkets, convenience stores, and specialty stores has enhanced the bakery products market CAGR across the globe in recent years.
The bakery products market segmentation, based on product type, includes breads, cakes & pastries, cookies & biscuits, bagels, donuts, pizza & pizza crust, pies & tarts, and brownies. The breads segment held the majority share in 2022 in the bakery products industry revenue. This is primarily due to its high consumption among consumers of various ages. The high nutritional value, price, and convenience are primary factors that increase bread consumption in Western diets. However, cookies & biscuits is the fastest-growing category due to increasing consumer preferences in developed and developing countries.
April 2021: 4th Street Cookie Company launched two new oatmeal cookies, Orange Cranberry and Sunrise Granola. The snacking culture further influences the consumption of cookies and biscuits.
The bakery products market data has been bifurcated by category into fresh and frozen. The fresh segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is attributed due to increasing consumer demand for freshly baked products. However, frozen is the fastest-growing category due to rising demand for frozen bakery products such as cakes, pastries, ready-to-eat-muffins, and croissants owing to their long shelf life. Hence, changing lifestyles and increased work hours have positively impacted the market growth.
Figure 1: Bakery Products Market, by Category, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on the distribution channel, the bakery products industry has been segmented into food retail and food service. Food retail held the largest segment share in 2022 due to its convenience and enhanced shopping experience. However, food service is the fastest-growing category due to its proximity, accessibility, and affordability.
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The Europe bakery products market accounted for USD 0.23 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the high demand for bakery products, such as gluten-free, high-fiber, and Trans-fat products, which staple foods across the region.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: BAKERY PRODUCTS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America bakery products market accounts for the second-largest market share owing to the high consumption of bread, cakes, and pastries. Leading players such as Mondelez International, General Mills, and Grupo Bimboo support the market growth in this region. Further, the US market of bakery products held the largest market share, and the Canada bakery products industry was the fastest-growing market in the North America region.
The Asia-Pacific bakery products Market is expected to grow at the fastest CAGR from 2022 to 2030. The increasing adoption of western diets in China, India, and other Southeast Asian countries supports the region's high growth. The rising number of women working for the population in the region and the growing disposable income support the market growth. Moreover, China market of bakery products held the largest market share, and the India bakery products industry was the fastest-growing market in the Asia-Pacific region.
Major market players are spending a huge amount of money on R&D to increase their product lines, which will help the bakery products market grow even more. Market participants are also taking various strategic initiatives to grow their footprint globally, with key market developments such as recent product launches, contractual agreements, increased investments, mergers and acquisitions, and collaboration with other organizations. Competitors in the bakery products industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers adopt in the bakery products industry to benefit clients and expand the market sector. The bakery products markets major players such as Grupo Bimbo SAB de CV (Mexico), Barilla Holding S.p.A. (Italy), Britannia Industries Limited (India), and others are working on expanding the market demand by investing in research and development activities.
The Kraft Heinz Company (KHC), commonly known as Kraft Heinz, is an American multinational food company formed by the merger of Kraft Foods and Heinz, co-headquartered in Chicago and Pittsburgh. Kraft Heinz is North America's third-largest food and beverage company and the fifth-largest in the world, with over $26.0 billion in annual sales as of 2021. In April 2022, the Kraft Heinz Company declared that it had completed the acquisition of Companhia Hemmer Indústria e Comércio, also known as 'Hemmer', a food firm located in Santa Catarina, Brazil. The acquisition is anticipated to enable the development of both companies in the future.
Also, Finsbury Food Group plc operates a specialty foods business that supplies boxed cakes to supermarkets throughout the United Kingdom. The Group's products include novelty and celebration cakes, chocolate cakes, and muffins. In September 2021, Finsbury Food Group expanded its Mary Berry supermarket cake range with the launch of Bundt cakes. The Bundt cakes come in two flavors, lemon sponge cake with lemon icing, lemon curd drizzle, hand-decorated Belgian white chocolate curls, and chocolate sponge cake featuring chocolate icing and hand-decorated Belgian dark and white chocolate.
Bakery Products Industry Developments
April 2022: Walker’s Shortbread partnered with retailer Dufry to launch a new Travel Retailer range at more than 55 travel sites worldwide. The bakery products range will include several types of shortbreads and other bakery products in it.
February 2022: The Kraft Heinz Company and TheNotCompany declared a joint venture to concentrate on sustainability in the coming years. This investment is intended to drive innovations by using the strengths of both companies.
June 2021: With two new additions to its gluten-free lineup, Warburtons entered the free-from-cake market. Warburtons Gluten Free Cake Squares are offered in three packs and two flavors: Raspberry & Hazelnut and Chocolate Orange & Gingerbread.
January 2021: Chipita SA, a baker of packaged cakes and pastries, was acquired by Mondelez International Inc. Croissants, bagel chips, cake bars, biscuits, and spreads were among the company's products, which were largely offered under the 7Days, Chipicao, and Fineti names. Mondelez plans to use Chipita's Central and Eastern European distribution network to expand its regional distribution while introducing its brands to new nations in the region and beyond.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 360.96 billion |
| Market Size 2024 | USD 372.42 billion |
| Market Size 2032 | USD 479.29 billion |
| Compound Annual Growth Rate (CAGR) | 3.20% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019 - 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Category, Product Type, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Grupo Bimbo, SAB de CV (Mexico), Barilla Holding S.p.A. (Italy), Britannia Industries Limited (India), Dunkin' Donuts LLC (US), Mondelez International, Inc. (US), Cole's Quality Foods Inc. (MI), Dawn Food Products Inc (MI), General Mills, Inc. (US), and United Biscuits (UK). |
| Key Market Opportunities | Increasing consumption of ready-to-eat foods across the globe owing to hectic lifestyle |
| Key Market Dynamics | Due to their long shelf life, there is rising demand for frozen bakery products such as cakes, pastries, ready-to-eat-muffins, and croissants. |
Bakery Products Market Highlights:
Frequently Asked Questions (FAQ) :
The bakery products market size was valued at USD 360.96 Billion in 2023.
The market is projected to grow at a CAGR of 3.20% during the forecast period 2024-2032.
Europe had the largest share of the market.
The key players in the market are Grupo Bimbo, SAB de CV (Mexico), Barilla Holding S.p.A. (Italy), Britannia Industries Limited (India), Dunkin' Donuts LLC (US), Dawn Food Products Inc (MI), and General Mills, Inc. (US.)
The breads category dominated the market in 2023.
Fresh had the largest share in the market.
Food retail had the largest share of the market.
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