“The bread manufacturers are leveraging the acceptance of regional bread specialties to create value-added products, in order to diversify their assortments. Fortified, clean label, and organic bread are the preferred bread categories across the world, with the rise in health conscious consumers.”
The bread and bakery products market consists of sales of bread and bakery products by entities that produce bread and bakery products. The companies in the bread and bakery products industry process flour into bread and bakery products not for immediate consumption on the premises, and package and distribute them through various distribution channels to both individual customers and commercial establishments.
The main types of bread and bakery products are bread, cake and pastries, other bread and bakery product. Bread is a basic food made from flour and water dough that is baked. The different origins include whole wheat flour, multigrain flour and are distributed through various channels such as supermarkets/hypermarkets, convenience stores, e-commerce, and others.
According to the data of The Business Research Company the global bread and bakery products market size is expected to grow from $208.19 billion in 2021 to $228.41 billion in 2022 at a compound annual growth rate (CAGR) of 9.7%. The global bread and bakery market size is expected to grow to $315.63 billion in 2026 at a CAGR of 8.4%.
The world population is growing and is expected to reach 10 billion by 2050. An increase in population creates more demand for food. Supply for material used in bread and bakery product manufacturing and trade volumes will have to increase in order to meet the increased population. Therefore, companies in this market are expected to benefit from rising demand for bakery & confectionery products due to the rising population, during the forecast period.
The outbreak of the Coronavirus disease (COVID-19) has acted as a massive restraint on the bread and bakery product manufacturing market in 2020 as supply chains were disrupted due to trade restrictions and consumption declined due to lockdowns imposed by governments globally. COVID-19 is an infectious disease with flu-like symptoms including fever, cough, and difficulty in breathing. The virus was first identified in 2019 in Wuhan, Hubei province of the People’s Republic of China, and spread globally including Western Europe, North America, and Asia. Food and beverage manufacturers depend on the supply of raw materials from domestic and international suppliers. As many governments restricted the movement of goods across countries and locally, manufacturers had to halt production due to a lack of raw materials. Also, restrictions on the trade of non-essential goods and fear of contamination through manufacturing facilities contributed to the decline. The outbreak had a negative impact on businesses throughout 2020 and into 2021. However, it is expected that the bread and bakery product manufacturing market will recover from the shock across the forecast period as it is a 'black swan' event and not related to ongoing or fundamental weaknesses in the market or the global economy
Bread and bakery product manufacturers are increasingly depending on social media to market their products. As more consumers share their dining experiences on social media websites such as Instagram, Pinterest, and Facebook, bread, and bakery product manufacturers are creating innovative and artistic bakery products to gain popularity. According to a study, 69% of millennials take a photograph or video of their food before eating.
Major companies in the bread and bakery products market include Grupo Bimbo, S.A.B. de C.V., Wm Morrison Supermarkets plc, Bimbo Bakeries USA, Yamazaki Baking Co. Ltd, Flowers Foods Inc., ARYZTA AG, Barilla Group, Harry-Brot GmbH, George Weston Ltd, and McKee Foods Corporation.
Asia Pacific was the largest region in the bread and bakery products market in 2021. North America was the second-largest region in the bread and bakery products market. The regions covered in the global bread and bakery products market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The global bread market is expected to reach a CAGR of 3.12% during the forecast period. The COVID-19 pandemic had an unprecedented impact on the bread market in the region, as its ramification on sales led to lower volumes, with other problems including supply-side issues linked to quality and certification. Bread products have had most of their sales in the region through convenience stores and specialty outlets. Due to lockdown, an increasing number of supermarket remained closed for an extended period of time, resulting in lower volume consumption of bread. But it could regain its sales through retail stores which remained opened amid covid.
There has been an increasing demand for greater variety of bread with ethnic breads and greater varieties of whole-meal breads, like oats, bran, seeds, etc. Baked goods, such as bread and biscuits, continue to enjoy the status as household staples, and their sales are driven by the fact that they constitute an essential diet of the time poor consumers.
The bread manufacturers are leveraging the acceptance of regional bread specialties to create value-added products, in order to diversify their assortments. Fortified, clean label, and organic bread are the preferred bread categories across the world, with the rise in health conscious consumers.
RİSİNG DEMAND FOR FUNCTİONAL AND CLEAN LABEL FOOD PRODUCTS
The demand for functional ingredients in bakery products is rising, owing to their nutritional benefits. Bread, being a staple food that constitutes a major part of the daily diet, has catered to more functional demand. New low-carb, high-fiber, multigrain, and fortified bread that appeals to health-conscious consumers has triggered the market growth. In addition to functional health benefits, incorporating natural ingredients, such as natural preservatives, antioxidants, and enzymes in bread is on the rise. Companies are targeting to replace shortenings and fat with Omega-9, and Omega-3, which improve the fatty acid profile and support performance. Cholesterol reduction, weight management, high protein, and sugar control are the key consumer trends.
EUROPE CONTİNUES TO DOMİNATE THE MARKET
Europe holds the largest share in the global bread market, by volume. Organic, natural, and health claims on bread are the key trends in the region. Increased aging population that is seeking for healthier bakery products has supported the market growth. Rising consumer preference for value-added, ethnic, fresh, and artisanal bread is the primary factor driving the sales. Asia-Pacific is also witnessing a significant growth in bread market as consumers in Asia and the Middle East have an increasing appetite for indulgence. Asia-Pacific has the highest pastry sales globally and accounts for the majority of global growth within pastries. The rise of Western-style bakeries, which have been increasing their presence across the region is helping to drive the growth in pastries.
BREAD MARKET FORECAST
According to latest research by Fact.MR., bread market is set to witness steady growth during 2021-2031. Demand for bread will witness steady recovery in short-term, with optimistic growth outlook in the long-run.
Changing habits of consumers towards consumption of food, busy lifestyle, aiming to get healthy lifestyle & wellness, increasing disposable income of millennials are some major factors which have changed the eating lifestyle of consumers and shift it towards bakery food products & baked convenience food products. Frozen dough is the new attraction of consumers which has triggered the global market.
It is made up of low-carb content, high-fiber, multi-vitamins, fortified, high antioxidant content, Omega3 and are the main attraction of the health-conscious consumers which is expected to drive the market growth.
Rising demand for clean label, gluten-free and baked from sodium-reduced flour product has triggered the global market. There is a high demand for bread which is made from the ingredients like whole wheat, multi-gains, etc. Moreover, salt-free, gluten-free bread & trans-fat free bread are the main attraction of consumers.
SHELF LIFE & PRODUCTION TECHNICS LIKELY TO AUGMENT BREAD SALES
Less shelf time of this products was the major problem that was being faced by consumers as well as manufacturers. To improve shelf life, to make better protein network in dough, to give better texture and crumb structure, to give more strength to dough various enzymes are being used.
Nowadays, Manufactures provide products having long shelf life, frozen dough, packaged and half backed products which have increased the popularity and sales. It has been observed that to meet the high demand of the various types of breads, to decrease the wastage of these products key players have made change in the traditional way of making breads and have started adopting new technics which ensure the long shelf life of breads to increase the sales of bread.
Due to COVID-19 outbreak manufacturing industries, market had to shut down the production, sales of products, etc. The global food and beverage industry is one of the most important industries which plays important role to the global economy, which has also been affected by COVID 19 crisis. It is the most consuming food product in the world wide, it is expected that this market has experienced moderate level crisis.
US AND CANADA BREAD MARKET OUTLOOK
US is the 2nd largest producer and consumer of the bread products. Variety of confectionary and conventional food products, more than 15+ types of breads due to wide applications of these products has increased the demand and consumption in US and Canada. Organic, gluten-free and healthy products are the main factor which drives this industry in the North America region.
Some factors affecting the American bread market because high cost of raw material leads to high cost of final products, rising costs of transportation, energy and lower margins profits by plant bakers. Increasing number of aging people in the US & Canada demands for healthier bread products containing whole grain, fibre and omega 3 that drives this market.
Busy life style, trend of consumption of more convenience food, ready to meal products, healthy lifestyle has increased the demand for baked bread products in countries like US & Canada.
EUROPE DEMAND OUTLOOK FOR BREAD
It is the daily diet of the consumers of the European countries. It is expected that Europe is the largest producer and consumer of this market globally. Report from the ‘federation of bankers Ltd’ on the topic of European bread market indicates that around 32 million tons of breads have been consumed in the EU 27 countries. Increasing trend of frozen dough has affected the global bread market because it is the alternative backed food product of the bread.
The European countries like UK, France, Spain, Italy, and Germany are the major contributors to the bread market where people mostly eat sandwiches, buns and burgers, etc. Key manufacturers of EU are focusing on developing innovative products that meet consumer preferences for non-GMO, gluten-free, and low-carb bakery products.
The European bakery market is well established in terms of the supply chain, consumer preferences and distribution channels. New product development & Innovations are observed in the indulgence-categories such cakes, pastries, cookies, etc. German bakers provide 300+ bread products in Europe.