The frozen bakery market is anticipated to record a CAGR of 5.6% during 2020 – 2025, and some of the key factors that have contributed to the growth are a rising preference toward convenience food and the popularity of specialty frozen bakery products.
By Dan Orehov
Intra-industry competitiveness is high and affects the market, however, consumer demand is impacted by quality and health concerns. The cake and pastry segments are on a rise with respect to the frozen bakery market. With the growing demand for premium and customized cakes, the overall cake market is also witnessing an increase in demand, according to research company Marketsandmarkets. The COVID-19 pandemic placed unprecedented stress on food supply chains, with bottlenecks in farm labor, processing, transport and logistics, and momentous shifts in demand. Additionally, the market was impacted due to the closure of foodservice channels in many countries. However, in the last quarter of 2020, food supply chains demonstrated remarkable resilience in the face of these stresses.
Rising Demand for Ready to Bake Bakery Products
Bake-off bakery production has become one of the key targets for almost all industrial bakers in Europe. Scratch baking is labor-intensive and requires a long time. The industry is shifting from traditional baking to Bake-off technologies (BOT). Three key BOT are unfermented frozen dough (UFD), partially-baked frozen bread (PBF), and partially-baked unfrozen bread (PBUF). Frozen semi-baked goods and ready-to-bake goods are also important product segments for the food industry, especially for hotels and the catering industry. Pre-proofed frozen dough is also a convenient alternative to fresh-baked bread. Bakery products, like bread, rolls, and bagels are majorly served as ready-to-thaw products, while croissants and pastries are available in the ready-to-bake form.
The global frozen bakery products market, based on distribution channel, has been segmented into artisan bakers, retail, and catering & industrial. Retail is expected to be the largest segment through the forecast period, whereas catering & industrial is projected to be the fastest growing segment. Certain factors pertaining to an increased interest in frozen bakery products impact the retail market dynamics significantly, while the catering & industrial channel is driven by the growing demand for frozen and par-baked products from restaurants and other institutional food services. On the basis of technology, the frozen bakery products market is segmented into raw products, ready-to-bake, and ready baked & frozen. The ready baked & frozen segment is projected to grow at the highest CAGR, according to the research company. Factors such as wide scale of application, versatility, convenient products and quick to use continue to drive the ready baked & frozen segment.
To read more, please access your complimentary e-copy of Frozen Food Europe Jan-Feb issue here.