Global bakery industry set to reach $410bn by 2015
According to a new report by Global Industry Analysts, there has also been a noticeable shift towards value-added natural and healthy bakery comprising of vitamins, whole grains and fibres, and this functional aspect is being seen across baked goods, breakfast cereals, breads and biscuits.
There is also a growing emphasis on single-serve and portable packaging, the analysts continue.
However, the researchers in “Bakery Products: A Global Strategic Business Report" note that several bakers adopted a more careful approach during the recessionary period in terms of product innovations, with consumers hesitant about spending money on new, unknown and untried products.
They comment, however, that about 35 per cent of the global cereal product launches in the year 2009 claimed to be functional cereals with health benefits. The analysts also observed that private label savoury snack products have gained considerable importance in terms of retailing strategy.
On the regional front, the industry specialists said that bakery manufacture in the US underwent significant changes owing to steady changes in consumer trends, which primarily leaned towards health, convenience and indulgence.
“Bakers were able to leverage these pockets of growth by capitalizing on the indulgence trend of consumers through suitable product innovations that focused on health and included functional variants,” note the analysts.
On the consumption front, similar to the US, the analysts comment that the bakery industry in Europe is witnessing a decline in traditional bakery products.
However, they said that this decrease in demand is being offset by rising purchase of bite-sized sweet goods, on-the-go breads, between-meal snacks, easy-to-carry sandwiches and such other products.
The researchers comment that the market for breakfast products in the UK sailed past the recession with ease, and the country witnessed an increase in the number of bakery businesses during the period, with consumers seeking out the more reasonably priced breakfast cereal to other morning goods.
In-store bakeries are increasingly gaining significance in the bakery products market, especially in the sale of fresh, unwrapped bakery items: “This trend is obvious in the continued expansion of major food retailing chains such as Tesco in the UK, and Carrefour in France.”
Furthermore, observed the researchers, the global market for bakery products is being increasingly consolidated through the penetration of major multinational food companies: “As a result, international brands like Oreos of Nabisco are expected to explore into hitherto unexplored territories.”