Global Baked Food & Cereals Market - Segmented by Product Type, Distribution Channel and Geography - Growth, Trends, and Forecast (2018 - 2023)
The global Baked food & cereals Market is expected to reach USD 587 billion by 2023 at a CAGR of 4.2%, during the forecast period. The global Baked food & cereals sale has surpassed 83,000 million Kg in 2017, registering a volume CAGR of 1.2%, during the forecast period. The consumption of Baked food & cereals has observed a stable growth during the past five year.
Change in baked food & cereals consumption pattern and inclination towards healthier products are the primary factor affecting the market. Asia-Pacific is the fastest growing market driven by changing lifestyle and increased consumer taste for nutritional Baked food & cereals. Consumers demand for new varieties of Baked food & cereals and rolls from different region and culture are accelerating the market growth.
Functional and Clean Label on Rise
The demand for functional ingredients in bakery products is rising, owing to its nutritional benefits. Baked food & cereals being a staple food that constitutes major part of daily diet, has catered more functional demand. New low carb, high fiber, multigrain and fortified Baked food & cereals that appeal to health-conscious consumers have triggered the market growth. In addition to functional health benefits, incorporating natural ingredients, such as natural preservatives, antioxidants, and enzymes in Baked food & cereals are on rise. Companies have focused on organic and natural products launch to sustain market competition as many small players with innovative products. About 56% of the global consumers are looking for “no artificial preservatives or additives” products. Companies are targeting to replace shortenings and fat with Omega-9, Omega 3, which improves the fatty acid profile and support performance. Cholesterol reduction, weight management, high protein and sugar control are the key consumer trend. New products focus on millet grains, exotic grains and functional grain, such as quinoa; oats in Baked food & cereals has achieved a great success in recent year. Modern Baked food & cereals has introduced multigrain supersede Baked food & cereals enriched with Omega 3 and dietary fiber in 2017 to meet the increasingly demand from health-conscious consumer.
Europe dominate the Market
European Baked food & cereals and roll market accounts for over 45% of the global consumption by volume. However, the market is expected to decline over the forecast period due to consumer shift to healthier alternatives. Spain is the largest market, which surpasses a volume consumption of 4463 million Kg in 2015, which is expected to reach 4495 million Kg by 2023. Organic, natural and health claim on Baked food & cereals are the key trend in the region. Increased aging population that is seeking for healthier bakery products has supported the market growth. Rising consumer preference for value added, ethnic, fresh, and artisanal Baked food & cereals are the primary factor driving sales. Baked food & cereals with olives, nuts, seeds, and exotic ingredients are on high demand owing to health conscious consumer. Increased competition from artisanal, food service offering varieties of fresh Baked food & cereals have affected the packaged baked food & cereals sale.
Artisanal baked goods are more popular in Italy and France compared to other European countries. Baked food & cereals Loaves holds the dominant share in the market with a volume share of 20% followed by rolls and Sandwich Slices. Loaves has observed a slow growth rate overall in Europe due to high calorie content. However, loaves is the biggest category which observed a downfall from past five years is continue to decline in UK and Italy. Frozen Baked food & cereals continue to benefit from the strong demand in Germany, France, and Poland.