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World Bread and bakery products market

22 December 201413 min reading

Bread and bakery products remaining as basic food products for human nutrition, continue the graphic of late years demonstrating the consumption in global market. Being accessible and nutritious of bread explains how it managed to reach today through ancient civilizations without losing its significance. The sales volume of bread in global market in 2006 is approximately 122 millions of tons; in 2011 it rose to 125 millions of tons. It is remarkable that bread proceed to grow in the market despite ongoing economic uncertainty during these years.

dosya Bread is one of the oldest basic food products of human being. Although it is not known when human being made the first bread, there are evidences showing it is as old as the history of civilization. The first agricultural activities appeared in the Neolithic (10000 BC. – 6000 BC.) that can be counted as a revolution for human nutrition. Also in that period, the early examples of wheat bread started to be made although they didn’t resemble today’s bread. According to archaeological finds; it is estimated that Egyptians used to make bread from fermented dough in the 2500s BC. In addition, milling and bakery used to be well known and breads used to be made in special bakeries in 4000s BC. It can be said that wheat bread is the most important food product today in sense of production and nutrition. Bread’s unsurprising sales diagram can be resulted from the fact that it has been consumed daily as a basic product in nearly every household for ages. However; influencing the world increasingly, some popular concepts like “Natural nutrition”, “Healthy living” and “organic products” significantly raised the consumers’ demand on whole wheat, light, 100% natural and additive-free products. Particularly in recent years, the growth in sales of packaged, whole wheat, whole meal, gluten-free and natural products is the most important sign of this new and healthy living sense. We can say that just as bread, the other bakery products have made a similar progress through the history. Dough making that started thousands of years ago has diversified in time and become a large market with several products today. It is known that Bakery was first perceived as a form of art and became a profession during The Roman Empire. The fact that bakery products started to be sold in the streets too as a result of the increase of interest led the opening of today’s bakeries, sweetshops and small shops selling bakery products that we see around. As a result of urbanization and worldwide increase of working population, the growth of out-of-home consumption and increased demand on instant and nutritious products are the main reasons of the continuous increase of bakery products. WORLD BREAD CONSUMPTION AND DEMAND Wheat bread is the only food product offering the human being more nutrients than any other food product in the world. Bread which is a source of carbohydrate, protein, Vitamin B and E is increasingly consumed particularly in developed countries. However, it is seen that this demand is mainly on the whole wheat products. The reason is that the population having healthy eating awareness minimalizes the carbohydrate, fat and cholesterol income in their meals and maximizes the complex carbohydrates, dietary fibers and vegetable protein income. According to data of Euromonitor International; World bread market’s total retail sales value of 170 billion Dollars in 2006 revealed nearly 50 billion Dollars increase and reached to the amount of 220 billion Dollars in 2011. Also it is specified that 70% of global bread sales in 2011 was packaged products and 30% was unpackaged. In addition, while the growth rate of consumption of packaged breads between 2006 and 2011 was 5%, there was 2% decrease in the unpackaged breads sales. Changes in the consumption of packaged and unpackaged breads are valuable to be able to foresee the consumption trends in the future. Packaged bread sales outnumbered unpackaged bread sales in North America, Australia, South America and Eastern Europe. It is also known that packaged bread consumption grows higher in the Middle East. Bread producers closely follow the trends like healthy nutrition, light and organic food, and dietary products and diversify their products. In addition, it is known that increasingly urbanized population head towards the packaged breads because of sensitivity about shelf life, easiness, hygiene and health. In the graphics of bread’s sales volume, it is seen that Middle Eastern and African countries have the biggest share in 2010. İt is possible to say that the sales volume of Middle Eastern and African countries have been stably growing since 2005. According to the data of Baker’s Federation representing the bread and bakery products producers in UK; Europe is stated to have a bread market worth nearly 32 million tons in a research made through 27 countries in The European Union in 2010. Average per capita bread consumption amount in EU is 50 kg. However this amount differs in every country. Although there has been a growth of consumption in Western Europe in 2009 and 2010, the graphic remains more stable in comparison to the other regions of the world. While Germans and Australians consuming annually 80 kg bread are on the top of the bread consumption list of Western Europe, British and İrish people consuming less than 50 kg in a year are at the bottom of the list. Similarly in USA, the total retail sales amount of bread in 2010 is 21,4 billion Dollars. There is 1,6% growth in retail sales from 2006 to 2010. According to the data of Agriculture and Agri-food Canada (AAFC); Americans prefer packaged bread. Packaged bread has 65% of the market. In regard to the data, it is possible to say that the demand on packaged White bread decreased between 2006 and 2011. Moreover, whole wheat bread sales outnumbered the White bread sales in 2010. The fact that producers diversified their products has a remarkable influence upon this. Following the increased self-awareness on nutrition, the minimization in high fructose corn syrup and sodium, also the production of different bread types by using ethnic ingredients influence the production and consumption graphics of bread. Also in developing countries, it seems that bread consumption diversifies depending on various factors like dependence of wheat market to the government, the degree of the differences between urban and rural population (food preferences, differences in tendency to processed or unprocessed food) and the rate of income growth especially in China, Southern Asia and Middle East. According to the data of Euromonitor, while bread sales volume in 2005 is approximately 31 million tons, it approached to 37 million tons in 2010. Similarly, sales value of 61 million Dollars in 2005 showed an increase of 14 million Dollars until 2010. However, there has been a growth of 18% in packaged products between 2010 and 2011. From this point, it can be derived that bread consumption in Middle East and Africa will continue mainly on packaged products in the coming years. As corn, sorghum and starchy plant roots are mainly preferred in Sub-Saharan Africa, particularly in rural regions, bread consumption is necessarily less. Based upon these amounts, the reason for the fact that large scaled changes are not seen in bread sales graphics is bread’s being consumed as a basic food in every household for a long time. However it is clear that demands on new bread types are increasing. There is a notable growth of interest in whole wheat breads with oat and bran, especially breads for breakfast. It can be derived that the consumption growth of these products could influence the sales graphic of White bread. WORLD BAKERY PRODUCTS TRADE AND DEMAND According to various industrial analyzes; it is expected that the market of bakery products globally exceed over 310 billion Dollars in 2015. Just as bread, bakery products market is affected by rapid urbanization and changing living conditions. In recent years, producers’ tendency towards healthy, instant and accessible products in bakery products market, which has rapidly come out of the economic uncertainty lately, continues. It can be said that Western Europe and North America have a steady bakery products industry of which primary products are cake, biscuit, pastry and pita bread. Innovative and healthy products are known to extend their market share in these regions. On the other hand, as western way of living and nutrition increase effectiveness in Latin America, Asia, Middle East and Africa, the market potential of these products also increases. According to the data of the United Nations, in comparison to the previous year, there has been an increase of 17,4% in imported bakery products in 2008. Accordingly, 16,454 million tons of total import volume in 2006 reached to 17,713 million tons in 2008. Similarly, the unit price which is 1,966 Dollars per ton increased to 2,566 Dollars in 2008. The products like biscuit and cake have the biggest share with their import value of 22,770 billion Dollars. Mixture, dough and infant formulas come right after that with the import value of 11 billion Dollars. The notable increase in number of working women in comparison to previous years and growing importance of practical options increased the need for infant formula. The leader of import in the developed and growing bakery products sector is USA. In 2006, the import value of 3,5 billion Dollars reached to 4,2 billion Dollars in 2008. With its 7,75% share, United Kingdom follows the USA. After UK, France comes with 7,6% share. The import share of EU countries in the bakery products market is quite large. 27 EU countries’ total value of import in 2006 is 16,6 billion Dollars. In 2008, this amount increased to 23,5 billion Dollars. Also the total share of EU countries in the market is 51,59%. According to the data of Global Industry Analysts’ report; world bakery products market showed a compound growth rate of 3,9% between 2001 and 2010. In bakery products market where Europe is dominant, Asia and Pacific area’s growth rate is 6,93%. This rapid growth is a sign of the fact that the potential in Asia and Pacific area as an emerging market catch the attention. In the world bakery products market where bread has nearly half of the total share, another significant growth is observed in instant products for breakfast. As the tendency to functional food products increases, the place of packaged sandwiches, whole wheat cookies and similar products in production also increases. Moreover, the fact that the products are offered to the consumers with different appearances and added flavors plays an important role in growing interest. BREAD AND BAKERY PRODUCTS IN TURKEY Turkey is one of the leading countries with its per capita consumption amount of bread in a year. Bread and bakery products market is also the leading sub-sector in the food and beverage market of Turkey. 65% of total foods companies operate in bakery products sub-sector which has an important place in the nutrition of Turkish people. The fact that the traditional nutrition style in Turkey remains without significant changes enabled Turkey to come out of the global crisis in 2009 and 2008 with minimum damage. The demand for instant, frozen and packaged products increased by growing incomes, increasing organized retail and rising number of working women. According to the data of Deloitte; Turkey has the minimum consumption of packaged products in Europe. By this fact, it can be said that Turkey has an important potential of bakery products market. The trends like healthy nutrition, whole wheat and whole meal, light products showed its effect also in Turkey. As a result of this, consumers’ interest on whole wheat, special bakery products with various contents increased too. Bread is known to have the largest share in consumption of bakery products in Turkey. According to the research by Euromonitor; the total consumption of bread is 10.540 million tons in 2006. It is 11.522 million tons in 2011. A growth of 0.9% is also expected in 2016. In consumption of packaged and unpackaged products, the consumption of packaged products in 2006 is 26,9 thousand and it is 10,511 thousand for unpackaged products. In 2011, the consumption of packaged products reached to 33,6 thousand tons. The consumption of packaged products with average growth of 25% is remarkable. Expected growth rate in 2016 is also 53,7%. The market of packaged products in bread consumption is interesting. There is a growth of 9,3% in the consumption of packaged and unpackaged products between 2006 and 2011. In the consumption of unpackaged product which was 11.486 million tons in 2011, the expected growth rate is 0.7%. By these facts, it is clear that the future of packaged products in Turkey is quite hopeful. There have been changes on bread preferences of consumers as a result of the fact that consumers headed towards the different products thanks to the new trends. The decrease of -1,72% in the consumption of packaged white bread between 2006 and 2011 can be observed. Consumers’ tendency to whole wheat and whole meal, light products is clearly showed in the rates. Between the years of 2006 and 2011, the consumption of packaged and whole wheat products increased 8,4%. The demand for instant, packaged and easy products is increasing thanks to the advertising campaigns, busy and intense lifestyles, growing number of working women and producers’ efforts to develop their products. Thanks to the same reasons, the consumption of unpackaged White bread is expected to decrease. BAKERY PRODUCTS IMPORT AND EXPORT IN TURKEY It is known that Turkey’s early significant export initiatives in bakery products market started in 1980. İt is possible to say that the export activities that operated mostly in Russia and Central Asia at the beginning are adversely affected by The Russian crisis in 1998 and the crisis of 2001 in Turkey. In the market of bakery products in Turkey, the rate of export is higher than the rate of import. According to the data of Turkish Statistical Institute (TUIK); while 562 thousand tons of bakery products export worth 715 million Dollars was realized in 2010, it reached to 957 million Dollars on value based and 712 thousand tons on quantity based in 2011. In 212, the export amount of bakery products 848 thousand tons on quantity based and 1.155 million Dollars on value based. Also in 2013, it is 1.100 thousand tons on quantity based and 1.435 on value based. The provisional data of 2014 shows the growth will continue. According to the data of TUIK; bread, biscuit, cake being represented with the code of 1905 GTIP form the value based share of 61% in the export of bakery products in 2013. Iraq, Germany, Saudi Arabia and Yemen are the leading countries of Turkey’s export of bakery products. The level is low in imports of bakery products in Turkey. The total amount of imported bakery products between 2010 and 2011 is around 29 thousand tons on quantity base. In 2012 this amount decreased to 24 thousand tons and in 2013 increased to 28 thousand tons. Upon the graphics of imported products, it is seen that roasted and swollen grains and similar products represented by the code of 1904 GTIP are the leaders of the import of bakery products. Right after these products, bread, biscuit, cake and similar products represented by the code of 1905 GTIP come. In comparison to the exported biscuits, the imported biscuits are on quite a low level. The most preferred countries in the import of biscuits are Poland, Germany and Belgium.  
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