Bakery and Pastry: Understanding Consumers’ Expectations

The frozen bakery & pastry market is just another to follow its consumers’ desire for healthier, cleaner products, as showcased in the Autumn edition of the Frozen Food Dossier, available here.

The global frozen bakery market has been steadily growing for the last few years, with estimates placing the value at around USD17.4bn, according to research company Marketsandmarkets. Frozen bakery products witness high demand as people prefer investing in ready-to-bake products, which are easy to prepare and time-saving. Also, a significant increase in demand for processed food products due to a shift in consumer preference for baked products is a key factor that is projected to drive the global market growth. The increase in acceptance of frozen bakery is due to factors such as convenience, speed of preparation, easy product availability, and low costs. The growth of the market is also supported by the increase in demand from coffee shops and small and large-scale food chains. The increase in consumer preference for clean labels and organic products due to the rise in health and wellness concerns is a key factor, offering potential growth opportunities for manufacturers to expand their product portfolio, drive the demand, and generate revenues.

Furthermore, Marketsandmarkets experts say, key manufactures are focusing on introducing various products in the frozen bakery category. Additionally, new companies are venturing into the frozen bakery segment to cater to the increase in demand from consumers, as well as foodservice providers. Hence, the availability of a wide range of products is projected to increase their popularity among consumers. The industrial frozen bakery products sector witnesses a faster growth than that of artisan food products, due to the change in the eating habits of consumers. The trend of enriched or fortified bakery products and goods perceived to offer health benefits and convenience has encouraged the growth of this sector.

An increasing demand for frozen dough products

Arabatzis Michail S.A. ‘Hellenic Dough’ is one of the leading producers of frozen dough products. “Our consumer proposition is unique, as we produce high-quality products with Greek – Mediterranean recipes: products like filo dough, bougatsa with cream, traditional country pies with spinach and Feta cheese (P.D.O.), puff pastries, and many more.” The consumers demand even more frozen bakery products, asking for new proposals. At the same time, the vegetarian recipes are part of a trend that is slowly growing, but the sales are not yet high enough. “Also, the bake-off sector in the supermarkets changes rapidly, with the buyers requesting new frozen ready-to-bake products, like the ones we produce.” Some of the most successful are the twirled pies with feta cheese, the spinach rolls, and the big traditional pies, the company said. “Our products are for sharing on a table full of quality foods among our family and our friends. It is at these valuable and social moments that we want our products to be served at and excite all our senses. For the Greek people and the millions of our tourists who visit Greece every year, we want to remind them of happy times, old family gatherings, and unforgettable tastes.”

The global frozen pastry market is growing year by year, and while this year the company registered a decrease in foodservice sales due to the coronavirus, the retail market continues to show increased sales for its products, representatives of Arabatzis explained. What they observed was an ever-increasing global demand for frozen dough products fueled by urbanization, more women entering the workforce, and the new generation’s desire for easy access, easy to prepare quality food. They are also seeking high-quality food at the lowest possible price, representatives add.

In 2020, Arabatzis continued its accelerated global growth, aiming to reach sales of EUR85m at the end of the year. “Global expansion is, and will be the key pillar of growth for our company, and for 2021 we expect to grow even more. In 2021 we will finish our fourth facility, a state-of-the-art factory, and we will add more production lines and expand our capacity.” As it expands globally, the company says it wants to increase its penetration in new consumer segments and to partner with local retailers so that they provide high-quality frozen dough products. Arabatzis’ strategy is very simple, they say: “We want to place our products where the consumer shops. So, our route-to-market strategy highlights that both mass-food retail stores and foodservice are key to reaching our consumers.”

To read this article and more, please access your complimentary e-copy of Frozen Food Dossier Autumn edition here.

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