At Magnacool, we supply to large scale bakeries across the globe. With us being an international company, and with having explored the UK commercial bakery market in our last blog, we wanted to take time to look at the global bakery market.
With rising urbanisation and changing consumer lifestyles, for example, looking to live more healthily and be more conscious about food eaten, the global bakery market is tapping into that and meeting the increased demand for gluten free and organic bakery items. Young people are the prime demographic and their increased disposable income is helping to boost what has become a versatile industry. With that said, fluctuating raw material prices will continue to challenge the market.
This growing demand for organic and gluten-free products will prove to be one of the significant bakery market trends expected to stimulate market growth.
‘Health-conscious consumers prefer organic baking products and ingredients like aluminium-free baking powder, gluten-free flour, and organic baking flour. To capitalize on this opportunity, several market vendors are launching new products in organic variants. Organic coconut flour, whole-wheat, and multigrain based products are gaining popularity. Gluten-free banana bread, gluten-free sorghum bread, and several other varieties of gluten-free bread are being launched to target customers with gluten allergies. The bakery market forecast report predicts that fuelled by these factors; the market will grow at a CAGR of over 4% during the forecast period.’ Bakery Market by Product and Geography - Forecast and Analysis 2020-2024 (Technavio.com)
Whilst it is well known that Europeans have always loved bread, APAC (Asian Pacific) was the largest bakery market in 2019.
‘Over 34% of the market’s growth will originate from APAC during the forecast period. China and Japan are the key markets for bakery in APAC. Market growth in this region will be faster than the growth of the market in other regions.’ Bakery Market by Product and Geography - Forecast and Analysis 2020-2024 (Technavio.com)
Europe showed it was strong and resilient with a market share of close to 40%. Major vendors in the baking industry are also trying to expand their base into the EMEA (Europe, Middle East & Africa) & APAC regions. We also saw a surge in demand for bakery items in South America as ready to eat food sees an increase in popularity.
A key trend in the baking industry is the increase of in-store bakeries in supermarkets which is one of the major factors driving the bakery market growth across the globe. With them being situated within a supermarket, they are the preferred one-stop shop destinations for consumers since they offer good quality, fresh produce at a reasonable price point.
‘Supermarkets and hypermarkets are also introducing their in-store bakeries which produce private label bakery products and sell them at lower prices. Subsequently, they have become a preferred option among price-conscious customers. The growing prominence of these in-store bakeries is expected to contribute significantly to the growth of the global bakery market size in the coming years.’ (Technavio.com)
In terms of baking equipment, even amid the COVID-19 crisis and predicted economic recession, the commercial baking equipment market will grow by a projected US$548.6 Million between 2020-2027.
‘An unusual period in history, the coronavirus pandemic has unleashed a series of unprecedented events affecting every industry. The commercial baking equipment market will be reset to a new normal which going forwards in a post COVID-19 era will be continuously redefined and redesigned.' Research & Markets – Commercial Baking Equipment – Global Market Trajectory & Analysis
If you’d like to speak to a member of our team about how Magnacool can benefit your baking business, you can get in touch by calling us on +44 (0) 1159 659539 or email us at firstname.lastname@example.org