Global Cake Market - Growth, Trends, and Forecast (2018 - 2023)
The global cake market is expected to witness a CAGR of 3.3%, during the period 2018-2023, and is expected to value at USD 75 billion, by 2023. Manufacturers are including healthy ingredients in their cake products in order to gain competitive advantage. The sale of large cakes have been on the decline, as customers are favoring of smaller ones.
As a major development in the marketplace, at the end of October 2014, Fletchers became a part of Finsbury, largest supplier of premium cakes in UK, and contributed GBP 16 million to sales in two months.
The increasing popularity of customizable cakes is the driver for global cake market. With the rise of in-store bakeries and innovative product offerings from the small, regional, and international suppliers, the cake market is making its presence felt, globally. The recent trends of designer cakes and continuous innovations in cakes are likely to boost the market.
Health issues in line with the growing concern for obesity, other related diseases, and regulatory constraints pertaining to the product labelling pose a threat to the global cake market. The increase in home bakers further reduces the demand for packaged cakes. Food perishability remains a key challenge for the cake industry.
The increase in online sales and demand for innovation would further help in cake market growth in the future. In addition to this, there is an increased demand for affordable, healthier and freshly baked cakes. Cake pops, a snack, is gaining popularity and is available in grocery stores and coffee shops. The idea of customizable cakes is a key factor contributing to the growth of this market.
The global cake market is segmented based on flavors, product type, distribution channels, and geography. Decorated cakes and dessert cakes together account for the majority of the market demand for cakes, globally. The chocolate cakes are preferred to other flavors, and contribute the most to revenue generation. The market for cakes is highly fragmented, due to the presence of a large number of regional and international suppliers. The vendors compete for innovation, pricing, and distribution.
Globally, the North American and European economies have been the key revenue generators in the global cake market, followed by Asia-Pacific.
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