The U.S. frozen bakery market is expected to exceed by USD9.3bn by 2024. According to data from Global Market Insights, the rapidly growing hotel chain business in the US will be a major factor fueling frozen bakery market demand over the forecast timeframe.
Hotel and large-scale restaurants prefer frozen dough as there is always a need for such ready-made ingredients, which can be quickly used for preparing food dishes and bakery items. What’s more, the growing popularity of convenience food will be fueling the frozen bakery market during the forecast timespan. Frozen bakery products are attracting consumers’ attention due to their ease of baking, and this factor will emerge as a prime buying factor for consumers in the upcoming years.
Growth in the category is encouraged by several other factors. For example, the US government has reduced the corporate tax which will propel the retail industry growth in the country over the next few years. Economic conditions in the U.S. are improving and inflation rate in the country is stable, owing to consumer spending, which increased for the past few years. This trend will accelerate the retail industry growth during the forecast period, which shall propel the U.S. frozen bakery market forward by 2024.
In the US, the bread recipe segment will witness the highest CAGR and bread has applications in many food products, so it held the largest market share in the US in 2017. Fast food demand is increasing swiftly, since bread is used as an integral part of many bakery items, which in turn will propel the frozen bakery market.
As busy work schedules are leaving little time for people to prepare proper meals, bread and baked snack products such as wraps, burgers, sandwiches, and rolls have become an easy alternative to regular meals. However, these food products have always been targeted as the root of many health problems and today, consumers’ preferences are leaning more towards natural and healthier food. This may hamper the frozen bakery market size growth for the forecast period.
The retail industry is a major growth driver for the frozen bakery market in recent years, as it ensures the easy availability of the products to the consumers. Many times, frozen bakery products are bought as impulse purchases, that time easy availability of the product is crucial. The U.S. has well-established distribution channels for all types of retail companies.
The ready-to-bake segment is one of the fastest-growing segments in the frozen bakery market due to the drifting consumer preferences towards convenience food products. Frozen bakery products are known for their preserved taste and longer shelf life. These attributes are the main drivers in frozen bakery products sales. Ready-to-bake products also allow outlets the freedom to offer a range of quality bakery products with minimal labor requirements.