Originally Published on Technavio | Fresh Baked Products Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, Japan, India, Germany - Size and Forecast 2023-2027
The fresh baked products market is expected to experience a Compound Annual Growth Rate (CAGR) of 6.4% between 2022 and 2027, with a projected market size increase of USD 92.47 billion. The market's expansion is contingent on factors such as a robust distribution network between bakery product manufacturers and consumers, the increasing prevalence of gluten-free bakery products, and the utilization of functional ingredients.
Key Insights into the Fresh Baked Products Market
Size Projection: The report estimates a CAGR of 6.4% for the fresh baked products market, with a forecasted increase of USD 92.47 billion between 2022 and 2027.
Market Drivers: The strong distribution network between bakery product manufacturers and consumers is a pivotal driver of market growth, while raw material price volatility poses a potential challenge. The report offers a holistic analysis of drivers, helping companies refine marketing strategies for a competitive edge.
Key Market Drivers
1. Strong Distribution Network: The robust distribution network between bakery product manufacturers and consumers significantly propels market growth. Emphasizing customer partnerships is crucial for fresh baked goods manufacturers, with major retailers, supermarkets, and hypermarkets being primary buyers. Strengthening these networks, both offline and online, increases the availability of baked products, fostering market growth.
Example: Bimbo, with over 3.3 million points of sale globally, demonstrates a broad consumer base, spanning large customers to small convenience stores. Establishing a robust distribution network between e-commerce platforms further enhances market presence.
Prominent Market Trends
1. Increasing Online Presence: A key trend influencing market growth is the growing online presence of bakery product vendors. With smartphones and internet proliferation, online sales of baked goods have surged. Offering products through online platforms provides market accessibility, reduces overhead costs, and expands market share to previously inaccessible regions, contributing to market growth.
Example: Panera Bread uses a digital platform to deliver an omnichannel experience, showcasing the trend of leveraging online platforms for product distribution.
Major Market Challenge
1. Raw Material Price Volatility: The fresh baked products market faces a significant challenge due to the unpredictable prices of raw materials. Wheat flour, cocoa, dairy products, oils, sweeteners, flavors, and nuts, vital for bakery products, experience price fluctuations. Volatility in these commodity prices, influenced by factors like competition, tariffs, weather conditions, and more, poses a major obstacle to market growth.
Customer Landscape
The report encompasses the adoption lifecycle of the market, from innovators to laggards, focusing on adoption rates in different regions. Key purchase criteria and drivers of price sensitivity are explored to aid companies in evaluating and developing growth strategies.
Market Vendors
Leading vendors employ diverse strategies, including alliances, partnerships, mergers, acquisitions, geographical expansion, and product/service launches, to fortify their market presence. Examples include ANDRE BOUDIN BAKERIES INC, Atlanta Bread Co. International Inc., and Panera Bread Co.
Fastest-Growing Market Segment
The breads and rolls segment is poised for significant growth during the forecast period. Encompassing various products such as whole grain bread, sourdough, rye bread, and more, the segment benefits from increasing demand for gluten-free alternatives, contributing to its expansion.
Key Regional Contributor
APAC is projected to contribute 34% to the global fresh baked products market growth. China, Japan, India, and Australia are pivotal markets in the region, with factors like rising consumer disposable income, Westernization influence, and demand for healthier products fostering market growth.
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