Published in Marketing
“Freshly baked”: a desirable attribute

According the latest report by Research and Markets company, the global market for Bakery Products is projected to exceed US$570 billion by 2024, driven by transforming health, indulgence, and convenience needs of consumers across the world and the resulting popularity of healthy, organic, and all natural baked goods.

Once perceived as food of a sick man, bakery products comprising bread, breakfast cereals, biscuits, cakes and pastries, among others, eventually evolved to become important food items among a vast population globally. These products are even witnessing increasing popularity among consumers in countries where rice has been a staple food for several decades. After sweeping through the developed economies, the convenience food trend is presently benefiting penetration through the developing economies.

Growth in the market is attributed to various factors including availability of broad range of products at reasonable price points, convenience of ready-to-eat products, rapid urbanization, hectic lifestyles, vast product offerings with different tastes and textures, and growing health benefits of baked goods over other food options. Bakery products with clean labels and health and wellness claims, frozen finished products and artisanal products are currently recording healthy growth with significant number of consumers, particularly millennials and health freaks, viewing a clean label as a key factor in their purchase decision making.

Future growth in the market will be driven by the ever-evolving health, indulgence, and convenience needs of the consumer. Transforming consumer trends over the years include the renewed interest in food preparation from the hitherto enjoyment of convenient processed food, and rising awareness about health and quality issues from the disconnected attitude towards food and food origins of previous decades. Other major consumer trends influencing demand for bakery products include growing prominence of locally sourced, environment friendly, free-from, multi-grain and whole grain based baked goods that are low-fat, low calorie, organic, and enriched with vitamins and minerals; rising sophistication in flavour preferences; growing consumption of bread supported by robust demand for western styled bread products in majority of the populous Asian markets; and the gradual shift towards brown bread, whole wheat bread, multi grain bread and other healthy varieties.

Additional growth drivers benefiting market expansion in the near term include growing preference for fortified, functional, sugar-free, and gluten-free bakery products; and steady demand for doughnuts purely driven by the indulgence factor.

While bread continues to remain the most consumed bakery product worldwide, future demand is expected to be supported by cakes and pastries, which represent the fastest expanding category in the market. Demand for cakes and pastries is fuelled by indulgence, introduction of innovative flavours, and increasing penetration in some of the fastest growing regions such as Latin America and Asia-Pacific.

 

 

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