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Innovation and Market Drivers in Bakery and Cereals: Fast growth markets and strategies for adding value

Published by: Business Insights

Published: May. 1, 2009 - 104 Pages


Table of Contents


Innovation and Market Drivers in Bakery and Cereals Executive summary
Market drivers
Emerging bakery and cereals markets
Innovation and NPD in bakery and cereals
Key trends
Chapter 1 Introduction
The bakery and cereals market
Scope of the report
Report structure
Chapter 2 Market drivers
Summary
Introduction
Increase in raw material prices
Private label
High levels of disposable income
Changes in working patterns
Drive for personalization
Legislation
Article 13
Reduction of sugar, salt and fat
Nutritional labeling
Ageing population
Adding value
Maturity and traditionalism
Chapter 3 Emerging bakery and cereals markets
Summary
Introduction
Market value
By category
Bread and rolls
Cakes and pastries
Cookies
Breakfast cereals
Morning goods
Crackers
By region
Emerging markets
Brand shares
Chapter 4 Key trends
Summary
Introduction
Health
Weight management
Satiety
Heart health
Bone health and osteoporosis
Oat based products
Plant sterols and stanols
Convenience
Food intake reduction or portion control
Ethical
Locally sourced food
Ecofriendly packaging
Indulgent
Premiumization, upscale, gourmet
Healthy indulgence, “guilt free” indulgence
Chocolate
Superfruit
Chapter 5 Innovation and NPD in bakery and cereals
Summary
Introduction
Growth of bakery and cereals NPD
Category analysis
Bakery snacks
Bread
Cakes mixes
Cereals
Cookies
Crackers
Other baking mixes
Pastries and baked products
Regional analysis
The key regions
Innovative bakery and cereals
Innovation in formulation
Unusual ingredients and flavors
Differentiated texture combinations that enhance taste
Personalized nutrition
Energy infused food
Innovation in packaging
Convenient packaging
Shelf-life increasing packaging
Eco-friendly packaging
Innovation in positioning
Meal replacement positioning
Kids
Leading tags on bakery and cereals
Leading flavors in bakery and cereals
Chapter 6 Conclusions
Summary
Introduction
Adding value
Health
Opportunities for ingredient manufacturers
Indulgence
Flavors
Personalization
Finding the right strategy
Index
List of Figures
Figure 2.1: Factors driving the bakery and cereals market
Figure 2.2: U.S. and foreign wheat prices ($ per metric ton), 2003-2009
Figure 2.3: Bakery and cereals overall market and private label growth (%) 2002-2007
Figure 2.4: EU retail spend as % of total consumer expenditure, 2002 & 2007
Figure 2.5: Nestlé Cereal product Guideline Daily Amount (GDA) label
Figure 2.6: Smart Choice logo
Figure 2.7: Population aged 65 and over, US, m, 2000-2050
Figure 2.8: Adding value vs. cutting back strategies
Figure 2.9: Growth areas in the bakery and cereals market
Figure 3.10: Bakery and cereals market value by category, ($m), 2004-2012
Figure 3.11: Bakery and cereals market value and CAGR by category, ($m), 2004-2012
Figure 3.12: Wholly Wholesome - Whole Grain Crumble Cake - Harvest Berry, 2008.
Figure 3.13: Market value ($m) and CAGR, by country, 2008
Figure 3.14: Linseed sliced bread, Bimbo S.A de C.V, 2007
Figure 3.15: Albany Superior - Bread - White Low GI, 2008
Figure 4.16: Growth areas in the bakery and cereals market
Figure 5.17: Percentage growth in bakery and cereals launched, by category, 2005-2008
Figure 5.18: Share of bakery and cereals products launched globally, by category, 2005 and
Figure 5.19: Level of innovation in products launched, by category, 2005-2008
Figure 5.20: Bimbo Bakeries US, 2006
Figure 5.21: 123 Naehrmittel GmbH , 2008
Figure 5.22: Ruth's Chia Goodness, 2007
Figure 5.23: Monkey Brains Oatmeal , Shrky LLC, 2008
Figure 5.24: Special K Crackers, Kellogg, 2008
Figure 5.25: Alixir Regularis Cracker, Barilla G. e R. F.lli S.p.A, 2008
Figure 5.26: Pizza mix, Bob's Red Mill Natural Foods, 2008
Figure 5.27: Frozen Dulce de Leche Roulade from the James Skinner Baking Company, 2008
Figure 5.28: Share of bakery and cereal products launched globally, by region, 2005-2008
Figure 5.29: Mary Louise Butters Brownie Butts & Topinchen - Dr. Quendt 2008.
Figure 5.30: Multi-textured chocolate bar, by Yamazaki Nabisco, 2008
Figure 5.31: Baker Organic, US, 2007
Figure 5.32: Sturm Foods, 2007
Figure 5.33: Pie Oh My, LifeStream brand, 2007
Figure 5.34: Nestlé Buitoni and Archers Farms Cereals, 2008
Figure 5.35: Eat Local, US
Figure 5.36: Meal replacement by Asahi Food and Health, 2007
Figure 5.37: Examples of products targeted at children, 2007
Figure 6.38: Me & Goji, 2008
List of Tables
Table 2.1: US and foreign wheat prices ($ per metric ton), 2003-2009
Table 3.2: Bakery and cereals market value by category ($m), 2004-2012
Table 3.3: Value of the bakery and cereals market in Europe and the US ($m), 2004-2012
Table 3.4: Market value ($m) and CAGR, by country, 2008
Table 3.5: Top 5 bakery and cereals companies in each region, market share, %, 2005
Table 5.6: Percentage of types of innovation within innovative bakery and cereals, 2005-2008
Table 5.7: Top 20 product tags on new product packaging, % of all bakery and cereals products launched, 2005-2008
Table 5.8: Top 20 product flavors on new product packaging, % of all bakery and cereals products launched, 2005-2008

Abstract

The global bakery and cereals market is predicted to value $364bn by 2012. This expansion is being driven by fast growth markets such as China and India. The European and North American markets are now highly mature and low growth, and bakery and cereals have reached a level of saturation in many markets. To counter both this and the high levels of private label saturation, bakery and cereals manufacturers are attempting to differentiate their brands, especially in growth areas such as healthy and convenient bakery products. Ownership of a niche segment or proprietary ingredients is a key way bakery and cereals manufacturers can add value to their products and increase their market share.

‘Innovation and Market Drivers in Bakery and Cereals: Fast growth markets and strategies for adding value’ is a management report published by Business Insights that analyzes key trends in the bakery and cereals market and forecasts future growth opportunities. This report provides a detailed examination of the bakery and cereals market by region, category and maturity to provide unique insights into the factors shaping the market now and in the future.

Key Highlights

The largest category in the bakery and cereals market is bread and rolls, which reached $171bn in 2008. The bread and rolls segment, showed the slowest rate of growth.

The key emerging bakery and cereals markets are China, Russia, Brazi, Mexico, Saudi Arabia, South Africa, Indonesia, Columbia, Chile and India.

In the US, the number of people aged 65 and over is projected to increase from 39m in 2010 to 69m in 2030. About 20% of the total population will be over 65 in 2030, compared to about 13% currently.

Personalized products have experienced a large growth since 2006. These products correspond to the individual taste of consumers incorporating their nutritional needs and personality.

Use this report to...
  • Improve the targeting and effectiveness of your NPD strategy using this report’s analysis of product launch data of 18,000 bakery and cereals products launched globally between 2005-2008.
  • Predict future growth areas in bakery and cereals using this report's forecasts to 2012 of market values and volumes by category and sub-category.
  • Gain insight into future opportunities in the bakery and cereals market and examine the most innovative product launches and potential areas of opportunity for manufacturers.
  • Identify key trends that are shaping the bakery and cereals market, and examine the key drivers for the market to 2012 detailing key trends in demographics,
Key issues...

Impact of changing population profiles. The older population (aged 65 and over) provides a key opportunity for bakery and cereals manufacturers to address products which directly target the nutrient needs of older needs, as this population is increasing rapidly. Increase in Private Label products.

The increase of private label in bakery and cereal products has increased the pressure for manufacturers to differentiate their brands, especially in growth areas such as healthy and convenient bakery products.

NPD in bakery and cereals market. This market is still being dominated by health concerns, including increasing diabetes and obesity rates, particularly among children. The health trend is overlapping both indulgence and convenience trends as consumers drive innovation in healthy indulgent and healthy convenient products.

The growth of Premiumization. In mature markets, where artisanal bakery takes a very low share, there is significant activity in very premium artisanal bakery - as more affluent consumers turn away from industrially produced bread and purchase high end bread as a treat, fostering a new wave of premiumization in in-store bakery as it tries to compete.

Your questions answered...
  • How can bakery and cereals manufacturers minimize the threat of private label brands?
  • What were the most innovative new bakery and cereals products launched in the last year?
  • How are leading bakery and cereals manufacturers reacting to ethical issues such as sustainability and recyclable packaging?
  • Who are the key players in the bakery and cereals market? • What are the key trends likely to impact bakery and cereals NPD over the next three years?
  • How can bakery and cereals manufacturers position their products to reflect changing consumer demands?


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