The baked goods market report from Technavio forecasts the market to grow by US$165.4 billion between 2020 and 2025. The market saw a year-over-year growth of 5.43% in 2021, and it is expected to grow at a CAGR of 6.12% during this forecast period.
The global baked goods market is categorised as part of the global packaged foods and meats under the global food, beverage and tobacco market. It is segmented into bread and rolls, cakes and pastries, cookies and others.
Currently, the market is fragmented, due to a number of small and large manufacturers competing for quality, price, service, brand image, distribution and marketing, with 25 vendors operating in the baked goods market. Major vendors are currently focusing on acquiring other, smaller brands to increase their market presence, with increasing competition expected to lead to vendors reducing their product prices which may badly affect profit margins and market growth.
Major players identified include Associated British Foods, Britannia Industries, Campbell Soup Co, Flower Foods, and others. Rising prominence of in-store bakeries in supermarkets offers growth opportunities for these companies, but fluctuating raw material prices will challenge this growth. Technavio also reported a rise in private labels, where vendors must distinguish their product offerings in order to survive in the market.
Consumption of bread and rolls is significant in the market including whole wheat brad, sourdough, ye bread, pita bread, white rolls, hot dog rolls and sub rolls. The growth of this is driven by increasing demand for gluten-free bread and rolls.
Exploring the geographic regions shows that 34% of the market growth will come from APAC during the forecast period. Growth of this market is driven by expansion of major players as well as the increasing demand for clean-label baked goods is contributing to the growth of the baked goods market in APAC.
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