The global bakery product market size is expected to reach USD 251.1 billion by 2025 registering a CAGR of 3.2%, according to a new report by Grand View Research, Inc. The market is majorly driven by the growing product demand owing to time-constrained lifestyles of customers resulting in increased on-the-go food consumption. The major companies are involved in continuous innovation and introduction of novel flavors owing to high industry rivalry. High demand for Ready-to-Eat (RTE) foods, owing to hectic lifestyle, is also contributing to the market growth. Cakes & pastries segment led the market in 2018, accounting for 27.4% of the global revenue share.
It was followed by cookies as the second-largest segment, owing to rapid urbanization, rising income levels, altering food experiences. Many bakery product manufacturers are doing backward integration, which would help ensure and enhance the product quality. In addition, demand for bakery products is growing on account of their ability to meet dietary requirements. Specialty stores was the largest distribution channel segment in 2018. It was followed by hypermarket & supermarket as the second-largest market, accounting for 30.5% of the global revenue share on account of easy availability of a variety of brands and flavors.
Authoritative Research with Graphs and Tables: https://www.grandviewresearch.com/industry-analysis/bakery-products-market
Asia Pacific is expected to witness the fastest CAGR over the forecast years due to strong the presence of key companies in emerging countries, such as China, India, Singapore, and Japan. Moreover, rising per-capita income in these countries will contribute to the growth of the regional market. Basic raw materials required for manufacturing bakery products include milk, emulsifiers, fat, stabilizer, flavors, sugar, and flour.
The pricing of bakery products is highly dependent on the prices of these materials as well as their availability. To combat supply-demand imbalances and uncertainty, numerous companies, such as Associated British Foods and Dawn Foods and Bakels, have integrated backward. The bakery product market involves high energy usage and logistics and storage costs as the product have to be transported in specially designed automotive components equipped with state-of-the-art refrigeration capabilities. These factors may restrain the market growth to some extent.
High entry barriers owing to brand loyalty and huge capital investments are likely to maintain intense competition. Major companies focus on achieving optimum business growth by implementing various growth strategies, such as joint ventures, mergers & acquisitions, strategic partnerships with regional manufacturers, and diversification of distribution channels. Some of the key companies present in the industry are Kraft Food Group, Inc.; Nestle S.A.; Bimbo Bakeries USA; Britannia Industries Ltd.; General Mills; Associated British Foods; and Campbell Soup Company.
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