The history of baked goods dates back to the Roman Empire, from where these products have achieved a phenomenal transformation. Baked goods, once delicious during holidays and weddings, have now occupied the shelves and storage of almost every home. The subsistence-focused cooking that was prominent during the medieval period has essentially taken over a choice-based approach. Today’s modern bakery market owes a lot to globalization. The accompanied economic growth boosted the emerging middle class; the indulgent baked varieties such as cakes and pastries ‘trick out’ to the 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 a broad diversification into baked goods to meet the growing demand of a variety of adventurous consumer base. The global market for bakery products 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, around the world, due to its accessibility, affordability, and convenience. However, plain bread sales have seen a significant decline on the back of increased health awareness. An increasing number of consumers, particularly in mature markets in developed countries, have reduced their consumption of bread or eliminated it entirely from their meals due to increasingly perceived concerns about fat, sugar and condoms. more like unhealthy. Innovation, in terms of health and quality, is expected to dominate the bakery products 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 through the incorporation of premium quality ingredients resulting in a more advanced and diverse range of value-added bakery products.

Innovation in baked goods has dynamically evolved to encompass non-GMO, all-natural, organic, healthy, and even artisanal baked goods from leading bakery establishments. The growing popularity of specialty bakery products that are customized and made to order according to specific requirements is driving the growth of the market in a holistic way. In addition, the fortification of bakery products is another breakthrough that has the potential to contribute to public health goals set globally by governments and regulatory authorities. Protein fortification of bakery products is on the rise due to strong demand for protein-rich food products. Micronutrient deficiency is also addressed with the incorporation of vitamins and minerals into baked goods. Functional baked goods are expected to emerge as a separate category in the coming years.

Rising influence of westernized lifestyle fuels growth of bakery products in Asia-Pacific

The 21st century has been rightly dubbed an Asian century, due to rapid economic growth, particularly in the world’s two largest economies: India and China. Asian countries have witnessed greater benefits from globalization, in terms of trade and investment. 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 gradually become organized with the penetration of key global giants offering high-quality baked goods at affordable prices. Additionally, regional brands have sped up their baking process by streamlining 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 cakes, cakes, croissants, etc. Leading manufacturers in these emerging markets are embarking on combining nutrition with indulgence. “Healthy indulgence” is expected to boost 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 through sustainable value addition, in terms of ingredient formulations and packaging level modifications. Healthy indulgence coupled with clean labeling is expected to fuel the growth of the bakery goods market.