the Global Frozen Baking Goods Industry is forecast to record a CAGR of 7.50 percent and to hit USD 26,366.8 Million by 2027.
According to MRFR, the Global Frozen Baking Goods Industry is forecast to record a CAGR of 7.50 percent and to hit USD 26,366.8 Mn by 2027. The growing demand for convenience food, the rising number of working women and the fast development of the integrated retail industry are the main factors for the growth of the global market for frozen bakery items.
The consumer food & beverage industry first encountered high demand for kitchen staples, nutritious food items, and long shelf-life consumables in the wake of the global pandemic crisis and the unending lockdown across countries. In the early stages of the crisis, demand for frozen food products, fruits and vegetables, eggs, flour and whole grains, among others, saw a significant increase. Many businesses in the sector are currently faced with low consumption of their products and issues with the supply chain. Businesses focus more on changing their supply chains in order to boost their web presence and logistics programmes in an attempt to adapt to the current market environment. Changes in consumer buying behaviour and dynamic changes in online and D2C sales networks may have significant repercussions for the industry's near-future growth. In order to better package their frozen goods, Hudson Bread teamed up with Niverplast. For almost 35 years, New York City and New Jersey's foodservice industry have relied on Hudson Bread as their artisan bread source. By introducing Niverplast's CombiPlast, an automatic case erecting and bag inserting machine, and Niverplast's VarioSeal, an automatic uncuffing and sealing machine that can adapt to different-sized boxes, Hudson Bread was able to meet the changing needs of its customers during the COVID-19 pandemic by expanding its product line to include frozen bread.
Growing Adoption of Convenience Foods to Drive Market Growth
The rising wave of consumption of convenience food started in the western world and expanded quickly to other regions across the globe. Consumers choose convenience foods because they are easy to eat and have nutritious content, versatility and appeal to the commodity. Due to evolving habits, consumers spend less time planning and cooking at home as they perceive preparing food at home to be a time-consuming and energy-consuming operation. Increasing intake of comfort food is motivated by the desire to build more spare time, which means that customers are searching for choices that will help them optimise their free time and do the things they enjoy more. This, along with an increase in disposable per capita income, is projected to increase demand for frozen bakery goods. As a result, growing demand for convenience food is projected to fuel the growth of the global market for frozen bakery items during the review period.
Launch of New Products to Create Growth Avenues
Along with the rising prevalence of convenience foods, the growing number of job practitioners is expected to drive the demand for frozen baking items. Well-established in-store bakeries, coffee shops, cafes, and quick-service restaurants are on offer in the frozen bakery market. The opportunity associated with frozen baked goods is rapidly grasped by these outlets: greater comfort, affordability, and a wide variety of product variability. Development in the demand for frozen baking products is also paving the way for tremendous growth in the packaged food industry and vice versa. The launch of a diverse variety of groundbreaking frozen baking products has also contributed to that.
High Production Costs to Impede Market Growth
However, during the forecast period, the high manufacturing costs of frozen bakery products are projected to limit the growth of the global demand for frozen bakery products.The Mexican baking giant Grupo Bimbo has announced that it will invest roughly $630 million to establish facilities in the states of Ohio and Georgia. The vast product line at this Mexican corporation includes everything from fresh and frozen sliced bread to cakes and salty snacks. As of now, Bimbo has an excellent presence in 33 countries thanks to its more than 200 facilities and more than 1,700 sales centers. The Grupo Bimbo brand is synonymous with quality and excellence, and the company itself has earned a stellar reputation among consumers and business professionals alike.
By Product Type
The Global Frozen Baking Products Market was categorized into breads & rolls, pizza & pizza crust, cakes & pastries, cookies & biscuits, among others, based on product type. In 2019, the breads & rolls segment accounted for the largest market share in the global market for frozen bakery products and expected to maintain its domination during the 2020-2027 forecast period. However, during the forecast period, the pizza & pizza crust segment is expected to experience the highest CAGR of 7.96%.
By category, the global market has been divided into conventional and gluten-free. The highest market share in 2018 was accounted for by the traditional segment. In preparing baking products, the superiority of the traditional segment can be due to the high intake of wheat flour.
By Distribution Channel
The global demand for frozen bakery products has been divided into store-based and non-store-based products, depending on the distribution channel. Supermarkets & hypermarkets, convenience stores, and others are further segmented into the store-based section. The greater market share was compensated for in 2018 by the store. As they have a one-stop shopping experience, customers favour store-based outlets. However, the non-store-based segment is expected to grow during the forecast period at a higher CAGR.Wrights Food Group has introduced their most extensive catalogue with Marks & Spencers, which includes year-round specials and seasonal delicacies including British Beef Bourguignon & Dauphinoise Pie. The maker has also unveiled the Panettonut, a panettone-inspired doughnut that will be sold at M&S's in-store bakeries this holiday season. According to a statement released by M&S, the company has noticed a rise in demand for fancy main courses that can be prepared quickly from frozen because customers continue to place a premium on simple at-home entertaining.
Four main regions, including the Asia Pacific, North America, Europe, and the rest of the world, have been given a geographical description of the global economy.
APAC market to Register the Highest CAGR
During the forecast period, the Asia-Pacific market is expected to expand at the fastest CAGR. In developing countries such as India and China, frozen bakery goods are projected to gain potential demand due to the growth in disposable income and purchasing power parity (PPP) of the increasing population of these nations. Raw material price fluctuations and preference for freshly baked goods are constraints for industry participants in frozen bakery products.
Growing Expansion of End-Use Sectors to Drive Europe Market Growth
During the forecast period, Europe is projected to represent the dominant share of the demand for frozen bakery goods. In 2018, the region accounted for a 39.71% share of the market. In the European zone, developed markets limit further development and producers are forced to search for new business prospects in emerging economies. The preference for conventional, freshly baked goods, the fragmented business situation and the uncertainty of raw material prices serve as constraints on the development of the frozen baking products market. The United Kingdom is the main contributor to the European market's growth. During the forecast period from 2020 to 2026, the demand in the area is expected to report a CAGR of 7.28 percent. The intake of frozen bakery items is high in all European countries.
U.S. accounted to Lead the North America Market
Consumption of frozen bakery products is also high in North America, and a modest growth rate of 7.35 percent during the forecast period is expected for the industry. Asia-Pacific, however, is expected to encounter the highest CAGR during the 2020-2027 projection period.South Korean millennials and generation Z increasingly prefer bakery products to rice, so it's no surprise that frozen bakery products released by Shinsegae Food, a food firm linked with South Korea's retail powerhouse Shinsegae Group, are becoming increasingly popular. In South Korea, rice forms the backbone of the diet. According to a statement released by Shinsegae Food in August, online sales of parbaked and frozen bakery items increased by 102 percent in the first half of 2022 compared to the same period in the previous year. Parbaked goods are breads and other dough products that are baked only partially and then frozen immediately. Shinsegae plans to expand its selection of baked goods aimed at teenagers.
Growing R&D Initiatives to Drive the Market Growth
With the considerable involvement of various global and regional players, the industry examined is highly fragmented. There are various competitors in the industry for retail and foodservice networks. Through expanding and introducing new products, the players operating in the Global Frozen Bakery Products Industry are focused on improving their regional footprints. The main tactics embraced by players to ensure their growth in this market are new product releases, acquisitions, partnerships, and extensions.
By Product Type
By Distribution Channel
|Market Size||USD 26,366.8 Million|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Product Type, Category, Distribution Channel|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Grupo Bimbo S.A.B.de C.V.(Mexico), Conagra Brands, Inc.(US),Associated British Foods PLC (UK), General Mills Inc. (US), Lantmännen Unibake (Denmark), Kellogg Company (US), Aryzta AG (Switzerland), Vandemoortele NV (Belgium), Europastry S.A. (Spain), Cole’s Quality Food Inc.(US)|
|Key Market Opportunities||Launch of New Products to Create Growth Avenues|
|Key Market Drivers||Growing Adoption of Convenience Foods to Drive Market Growth|
Frozen Bakery Products Industry Size is Expected to Reach USD 26,366.8 Million by 2027
Frozen Bakery Products Market is anticipated to grow at a 7.50 % CAGR during the forecast period of 2020–2027
Grupo Bimbo S.A.B.de C.V.(Mexico), Conagra Brands Inc.(US), Associated British Foods PLC (UK), General Mills Inc. (US), Lantmännen Unibake (Denmark), Kellogg Company (US), Aryzta AG (Switzerland), Vandemoortele NV (Belgium), Europastry S.A. (Spain), Cole’s Quality Food Inc.(US)
Europe will lead the Frozen Bakery Products Market