According to Future market Insights, the global Frozen Bakery market size is estimated to be valued at USD 23billion in 2021 and is projected to reach USD 49 billion by 2032, recording a CAGR of 7.4% during the forecast period. Key factors that have contributed to the growth of frozen bakery products are a spiralling preference toward convenient food and the popularity of specialty frozen bakery goods. Intra-industry competitiveness is high and affects the market positively.
The upsurge in demand for healthier frozen bread and frozen pizza crust over the past few years coupled with an increase in bread usage by popular food chains like Pizza Hut, Dominos, Subway will further open new opportunities for frozen bakery goods and frozen bakery product companies over the coming years.
Online frozen bakery sales have been booming for the past few years. Viennoiserie, patisserie, and bread in frozen form have a longer shelf life, making them ideal for selling on the Internet.
FMI provides an evaluation and comparison of the market growth rates and future development possibilities on a half-yearly basis for the global market. Under the subjective influence of macro and industry factors, some demographic and innovation factors have a significant influence on the market.
There have been a number of recent changes in this market, including:
- The most well-liked current bakery trends are chilled and frozen baked items, which aren't even in the bakery aisle. The popularity of these so-called "bake-off" formats has increased recently as people seek out that "just-baked" flavour at home.
- A binding contract has been signed by the Minnesota-based food conglomerate to buy TNT Crust, a producer of healthier frozen pizza crusts. TNT Crust creates pizza crusts that are partially cooked, self-rising, gluten-free, and made from plants, which are a great compliment to General Mills' current line of frozen baked foods.
- Leading bakery and food ingredient company SwissBake recently announced aspirations to enter the frozen foods market in 2022.
The Frozen Bakery Products Market has grown by 7.3% globally in the first half of 2021. However, this growth is not uniformly distributed across all geographical areas, with the developing markets registering greater growth rates of 6.4%. Thus, there will be a 92.6 BPS point difference between the predicted and projected growth in H1 2022.
The primary causes of this variation in growth rate are ascribed to the market's slow or rapid uptake during the first half of the projected period as a result of improving end user demand in important economies and their expanding populations.
China and India in particular are both experiencing a growth in their consumption patterns, which is driving up demand for Frozen Bakery Products Market. Numerous other market segments should also perform well and have bright development potential in the second half of the projected period.
Despite these promising developments, the business is still expected to face significant obstacles, such as shifting customer preferences, strict trade restrictions, and a lack of security in the supply of raw materials and other manufacturing inputs.
Rising Demand for Processed Food and Changing Consumer Preferences to Boost Growth
Processed food has become one of the preferred choices of convenient foods complementing todays hectic lifestyle. As a result, there is an inevitable rise in the demand for Ready to Sell & Frozen Bakery Products. This has in turn led to the growing acceptance of frozen bakery since it is easily available and can be prepared for meals in much lesser time. Low cost of frozen bakery goods makes it ideal for consumption among millennials.
The adaption of IQF- Individual Quick Frozen technology to maintain the fresh frozen bakery goods will drive the augmentation. The frozen bakery product companies will especially gain from the rising demand from small and large-scale food chains and coffee shops.
The advancement of the frozen food industry due to the fast-growing urban households of developing countries is projected to drive the demand for frozen bakery products. The expansion of catering and hotel industries, which also happen to be among leading end-users to drive the frozen bakery market.
Region-wise analysis
Expansion of Tourism & Catering Industries Aiding Growth in Europe
Regionally, Europe currently holds the leading frozen bakery products market share. Expansion of tourism and catering industries will support the frozen bakery products market growth in the region. In Europe, countries such as the U.K., Italy, France, Spain and Germany have emerged as the most lucrative markets for frozen bakeries. The market now has several variants in gluten-free products, which has enabled it to gain momentum around the world.
The rising demand for convenient, ready-to-eat, ready to sell and frozen bakery products especially for their breakfast menu is favoring the growth of the frozen bakery market in the region. The growing demand for European delicacies like Pains aux Raisins, Pain au Chocolat, plain & filled croissants, and savory dishes from cafes, restaurants, and bakeries is another factor driving proliferation of frozen bakery goods.
Western Influences in Lifestyle Supporting Expansion in the Asia Pacific
In the coming years, the frozen bakery products market will witness high demand in developing nations as well. For instance, FMI projects the Asia Pacific market for frozen bakeries to rise considerably in the coming years. Much of this is attributable to the increasing western influence on lifestyle of common men and women. Besides this, the rising disposable income of consumers and their willingness to spend on ready-to-eat food will bode well for the overall market.
Online frozen bakery products sales to abet the growth
The expansion of existing distribution channels has considerably influenced the growth witnessed in frozen bakery market. Frozen bakery is now available across supermarkets/hypermarkets, convenience stores and bakery stores. In the last couple of years, producers have made it a point to make their products available across online stores giving a major impetus to online frozen bakery revenue. Aided by increasing penetration of smartphones and internet at a pocket-friendly cost has bolstered the overall consumer base online.
Competitive Landscape
Major frozen bakery product companies are Grupo Bimbo, Dr. Oetker, Lantmannen Unibake International, General Mills, Kellogg Company, Vandemoortele Nv, Cargill, Associated British Foods Plc, Pan Pa Ya Ltda, Premier Foods Group Ltd., Don Maíz SAS, Weston Foods, Europastry, Cole's Quality Foods Inc., Dawn Food Products Inc., Rhodes bake-n-serve, RYZTA AG among others.
The frozen bakery market is consolidated regionally by a few large corporations. These frozen bakery product companies are undertaking strategic actions like new product developments, launches, and divestments to improve their market positions and extend their competitive advantage.
