The history of bakery products dates back to the Roman Empire, from where these products have achieved a phenomenal transformation. Baked goods, once delicious during parties and weddings, have now taken over the shelves and storage of almost every home. Subsistence-focused cooking that was prominent during the medieval period has essentially occupied a choice-based approach. Today’s modern bakery market owes much to globalization. The accompanying economic growth boosted the emerging middle class; the indulgent baked varieties, such as cakes and pies, ‘filter’ to commoners. The global bakery market is driven by the rise in popularity of free and value-added categories, making the market incredibly resilient to economic fluctuations and other global uncertainties. Intense competition has made the baking industry more dynamic.
Innovation and new product development are the important strategic tools that manufacturers adopt to remain competitive in such a market scenario. The rise of powerful regional brands and artisan bakeries has introduced extensive diversification in baked goods to meet growing demand from a variety of adventurous consumer base. The global market for baked goods was valued at USD 454.41 billion in 2016 and is projected to reach USD 529.33 billion by 2022, with an estimated CAGR of around 2.6% over the next five years (2018-2023) , according to the Hyderabad-based market. intelligence company.
Innovation sustains the growth of the bakery products market
Bread is considered a staple diet of many local cuisines, all over the world, due to its accessibility, affordability, and convenience. However, sales of plain bread have seen a significant decline due to increased health awareness. An increasing number of consumers, particularly in mature developed country markets, have reduced their consumption of bread or eliminated it entirely from their meals due to concerns about fat, sugar and condoms that are perceived every day. more and more harmful to health. Innovation, in terms of health and quality, is expected to dominate the bakery market scenario. The prioritization towards nutritious bakery products has led manufacturers to launch organic and gluten-free varieties, such as gluten-free bread, organic cookies, etc. The growing demand for innovation has been further met by the incorporation of premium quality ingredients resulting in a more advanced and diverse range of value-added bakery products.
Bakery product innovation has dynamically evolved to encompass non-GMO, all-natural, organic, healthy and even artisanal baked goods from leading bakery establishments. The increasing popularity of specialized bakery products that are customized and tailored according to specific requirements is driving the growth of the market comprehensively. Furthermore, the fortification of baked goods is another radical advance that has the potential to contribute to public health goals set globally by governments and regulatory authorities. Protein fortification of baked goods is on the rise due to strong demand for high protein food products. Micronutrient deficiency is also addressed by incorporating vitamins and minerals into baked goods. Functional baked goods are expected to emerge as a stand-alone category in the coming years.
The growing influence of Westernized lifestyle drives the growth of bakery products in Asia-Pacific
The 21st century has been correctly called an Asian century, due to rapid economic growth, particularly in the world’s two largest economies: India and China. Asian countries have witnessed major benefits of globalization, in terms of trade and investment. The bakery industry in Asian countries has witnessed a paradigm shift in the way of quality and taste of bakery products. Although the bakery market has become largely fragmented with the dominance of local players, the market is expected to gradually organize with the penetration of key global giants offering high-quality baked goods at affordable prices. Additionally, regional brands have accelerated their baking process by optimizing their operations in line with global trends. The Asian market, along with the Middle East and South America, has a strong preference for indulgent baked varieties such as pastries, cakes, croissants, etc. Leading manufacturers in these emerging markets are embarking on combining nutrition with indulgence. The “healthy indulgence” is expected to drive sales of baked goods, not only in developing markets but also in mature markets, due to increased awareness of ingredients, packaging, and added value that improves overall nutrition. value of final products.
The way to follow
Future growth in bakery products can be retained by adding sustainable value, in terms of ingredient formulations and packaging level modifications. Healthy indulgence coupled with clean labeling is expected to drive the growth of the baked goods market.
