Ready to bake products have seen a tremendous growth over the last years, especially since they offer something that can’t really be priced: time. Whether sweet or salty, the variety seen in this segment is truly impressive.
One of the consequences of the increased demand for ready-to-bake products is that the frozen bakery market value is anticipated to cross USD55bn by 2027. According to a new research study published by Global Market Insights Inc. The strengthening of food distribution channels coupled with increasing online food deliveries should drive the global frozen bakery industry demand. Growing demand for ready-to-eat and ready-to-bake products in developed or developing economies will drive products landscape. Increasing number of bakeries globally over the past few years coupled with rising consumer preference for frozen products over traditional products will further open new revenue streams.
Additionally, the demand for frozen dough has been increasing in the last decade as it allows bakers to bake bread in small bakeries and neighbourhood supermarkets without the need for skilled personnel for the dough making process. Western lifestyle influences and the presence of many artisan bakers & baking chains in most of the developing countries will boost the consumption of pastries, cakes, etc. Demand for frozen bakery products in developing regions is driven by the increase in disposable income, a Marketsandmarkets 2021 report also shows. By distribution channel, conventional stores have the potential to be a prominent channel for frozen bakery products. Niche retailers among these stores have also realized the opportunity to establish an effective retail chain. Earlier, these companies marketed their line of products only through exclusive stores situated in prime locations. However, these companies now understand the dynamic changes in consumer preferences for healthier food products.
Region-wise, Asia Pacific is among the fastest-growing regions for frozen bakery products. The food & beverage industry has contributed significantly to the market growth in this region. Due to the growing population, rising incomes, and increasing urbanization the market growth is significant. These factors are projected to support the growth of niche markets, such as frozen bakery products. The market is driven by the increase in demand for convenience food products in developing countries such as India, China, Japan, and Australia. In the Asia Pacific region, China accounted for the largest share in the frozen bakery products market in 2020.
Another region that seems to be thriving as far as plant-based innovations go is Latin America. According to Mintel, the NotCo company in Chile has become one of the leading food tech companies in the world, raising USD235m in its latest funding round and reversing a trend of US companies bringing plant-based foods to LATAM. The research company also mentions Fazenda Futuro, another vegan startup based in Brazil that has set up a presence on international markets, including in Chile, Mexico, and Uruguay by offering a line of meat alternatives that includes burgers, meatballs, and sausages. “Even with such powerful leaders in the market, there is a lot more potential for plant-based innovation. Brands can help consumers see plant-based substitutes as everyday foods. With current brands focused on burgers and sausages, which are not staples in many LATAM cuisines, there’s room for competition to explore formats that will resonate in local markets,” the report shows.
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