The history of bakery products dates back to the Roman Empire, from where these products have attained phenomenal transformation. The baked goods, which were delicacies during feasts and weddings, have now occupied the shelves and storage of almost every household. The subsistence-focused baking that was prominent during the medieval period has essentially occupied a choice-based approach. The current modern bakery market owes a lot to globalization. The accompanied economic growth prompted the emerging middle-class; the indulgent baked varieties, like cakes and pastries, ‘trickle down’ to the commoners. The global bakery market is driven by the surge in the popularity of free-from and value-added categories, making the market incredibly resilient to the economic fluctuations and other global uncertainties. The intense competition has made the baking industry more dynamic.
Innovation and new product development are the important strategic tools that the manufacturers adopt in order to remain competitive in such a market scenario. The emergence of powerful regional brands and artisanal bakery shops have introduced extensive diversification in baked goods to cater to the increasing demand for a variety of adventurous consumer base. The global bakery products market was valued at USD 454.41 billion in 2016 and is projected to reach USD 529.33 billion by 2022, at an estimated CAGR of around 2.6% during the next five years (2018-2023), according to the Hyderabad-based market intelligence firm.
Innovation Sustains the Growth of the Bakery Products Market
Bread is considered as a staple diet of many local cuisines, worldwide, owing to its accessibility, affordability, and convenience. However, the plain bread sales have recorded a significant decline in the wake of increasing health consciousness. Increasing number of consumers, particularly in the mature markets of developed countries, have reduced their bread intake or out-rightly eliminated it from their meals over the concerns of fat, sugar, and preservatives that are increasingly perceived as unhealthy. Innovation, in terms of health and quality, is expected to be dominating the market scenario of bakery products. The prioritization toward nutritious bakery products have prompted manufacturers to launch organic and free-from varieties, such as gluten-free bread, organic cookies, etc. The increasing demand for innovation has been further catered by incorporating premium ingredients giving rise to more advanced and diverse range of value-added bakery products.
The innovation in bakery products has dynamically evolved to encompass non-GMO, all-natural, organic, healthy, and even artisanal bakery products by major baking establishments. The growing popularity of specialty bakery products that are customized and tailor-made according to specific requirements is fueling the market growth holistically. Moreover, the fortification of bakery products is another radical advancement that has the potential to contribute to public health targets that are set globally by governments and regulatory authorities. Protein fortification of bakery products is on the rise, owing to the robust demand for protein-rich food products. Micronutrient deficiency is also targeted with the incorporation of vitamins and minerals in the baked goods. Functional baked goods are expected to emerge as an independent category in the upcoming years.
Growing Influence of Westernized Lifestyle Boosts the Growth of Bakery Products in Asia-Pacific
The 21st century has been rightly termed as an Asian century, due to rapid economic growth, particularly in the two major economies of the world – India, and China. The Asian countries have witnessed greater advantages of globalization, in terms of trade and investments. The bakery industry in Asian countries has witnessed a paradigm shift in the form of quality and taste of bakery products. Although the bakery market has been largely fragmented with the dominance of local players, the market is expected to organize gradually with the penetration of key global giants that offer high-quality baked goods at affordable prices. Moreover, the regional brands have ramped up their baking process by streamlining their operations in line with the global trends. The Asian market, along with the Middle East and South America, has strong preference for indulgent baked varieties, such as pastries, cakes, croissant, etc. The key manufacturers in these emerging markets are embarking on blending nutrition with indulgence. The “healthy-indulgence” is expected to drive the sales of baked goods, not only in the developing markets but also in the mature markets, owing to the heightened awareness regarding ingredients, packaging as well as the value-addition that enhances the overall nutritional value of the final products.
The Way Ahead
The future growth of bakery products can be retained by sustainable value-addition, in terms of ingredient formulations and packaging level modifications. Healthy-indulgence, along with clean-labeling, is expected to fuel the market growth of bakery products.