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Bread, Bakery and Cakes Market - Global Annual Review - 2016

Global growth potential for the bakery market is significant, but there is no doubting that some of the biggest bakery players in the Western world continue to struggle in what is a challenging environment. Whilst bakery products will always be a staple part of the human diet and benefit especially from their relative affordability, in many of the developed packaged bread markets of the West especially, consumption is in long-term decline as dietary patterns change. Dieting trends, including reduced carbohydrate diets and wheat avoidance, as well as the proliferation of on-the-go eating occasions and substitute products to bakery, continue to place pressure on consumption levels.

Acquisition opportunities are likely to be the main source of growth for the major players in the industry, as they are plentiful in what is still one of the least consolidated food sectors. In addition, it will be vital for producers to move to more added value product offerings, especially focussed around health and naturalness. Important too, will be the requirement to cater to a more experimental Millennial consumer with more snacking/convenience-orientated products and with offerings that provide new taste experiences.

From a geographic perspective, Latin America and Asia, where packaged bakery product penetration is still low, represent major growth opportunities. Changing consumer diets in these regions is leading to more wheat-based products being available, while rising disposable incomes have allowed consumers to purchase a greater variety of discretionary packaged bakery products.

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Bread, Bakery and Cakes Market - Global Annual Review - 2016

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