The global frozen bakery industry has been witnessing a high growth trajectory for the last few years, while the global frozen bakery products market in 2020 is estimated to be valued at approximately USD17.4bn, with a projected growth rate between 4% to 5% until 2025.
By Reshma Raut – Jagtap, & Suraj Nagvenkar, research analysts – Food & Beverage, MarketsandMarkets Research.
Frozen bakery products witness high demand as people prefer investing in ready-to-bake products, which are easy to prepare and time-saving. In addition, 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.
Trends & consumer behavior
The increase in preference of consumers for convenience food products is one of the major factors that encourage the growth of the global frozen bakery products market. It is important for the consumer, particularly when it comes to food consumption, as these food products help to cut down the time for daily chores. Thus, frozen food products are gaining traction among target customers. Over the past couple of years, there has been a rise in demand for various types of frozen food products, which is attributable to various health benefits associated with these products. Frozen food products are packed with nutrients and have a longer shelf life. This has led to an increase in demand for various types of frozen food products, simultaneously creating growth opportunities for manufacturers in the global frozen bakery products market. As a result, different food manufacturers are undertaking strategies to develop products that cater to the needs of their customers. As a result, developing convenience products is being considered as one of the most influential frozen bakery product market trends. A major part of the population from various demographic segments has been following a healthy diet plan due to the rise in awareness on various benefits associated with the adoption of a healthy lifestyle. Consumers are looking out for food products that are rich in nutrition and promote other health benefits. Frozen food products have properties that help to preserve their nutrition content for longer periods.
As a result, with the rise in trends of food fortification, the frozen bakery products industry witnesses opportunities to gain traction among health-conscious customers and simultaneously generate sales. With the rise in trend pertaining to the vegan diet among customers, some of the key manufacturers are now undertaking strategies for developing pizza crust accordingly. For instance, in 2018, B&G Foods launched cauliflower pizza crust for the North American market. Similarly, Mealtime Stories, L.L.C., a joint venture between Kraft Heinz Co. based in Pittsburgh and Oprah Winfrey, added to the O, That’s Good! brand lineup with three new frozen thin-crust pizza options and frozen skillet meals. The pizza crust is partially made with cauliflower and is used as an ingredient that is becoming more popular in packaged foods.
The rapid economic development in the emerging and developed countries has led to a highly dynamic market scenario for consumer goods, wherein bakery products are no exception. The hectic schedules of consumers and the increase in the number of working women are the key factors that have led to an increase in the popularity of specialty frozen baked products. The increase in health concerns among consumers has created growth opportunities for specialty bakery product manufacturers to incorporate functional bakery ingredients, such as oats, legumes, probiotics, cereals, and fortified margarine, to broaden their consumer base. 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 increase in trend of enriched or fortified bakery products and products perceived to offer health benefits and convenience has encouraged the growth of this sector.
To read the entire article, please click here to access the September October issue of Frozen Food Europe magazine.