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Bread Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

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  • 145 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4534353
The bread market is expected to register a CAGR of 3.55% during the next five years.

There has been an increasing demand for greater varieties of bread, such as ethnic bread, and whole-meal bread, like oats, bran, seeds, etc. Baked goods, such as bread and biscuits, continue to enjoy their status as household staples, and their sales are driven by the fact that they constitute an essential diet of time-poor consumers. Regardless of the consumer's income, bread is a product that may be consumed without putting much thought into it. The consumption of bakery items can also be impacted by substituting products depending solely on money.

The bread manufacturers are leveraging the acceptance of regional bread specialties to create value-added products to diversify their assortments. Fortified, clean-label, and organic bread are the preferred bread categories worldwide, with the rise in health-conscious consumers. Additionally, consumers are demanding a wider range of bread products. Hence, bread manufacturers are innovating new products to meet the changing demands of consumers, and bakeries are offering bread with additional veggies like carrots, beetroot, or spinach.

These bread products are becoming more popular because of their supposed health advantages and vibrant appearance. Legumes like lentils or chickpeas can be added to increase the protein content. These innovations are driving the bread market across the globe. Adding fillings to bread is another potential innovation. Both sweet and savory fillings are possible for these fillings. For the majority of filling types, fat is crucial. Fat with an additional emulsifier can give fillings co-extruded with dough before baking the desired bake stability.

Bread Market Trends

Rising Demand for Functional and Clean Label Food Products

The demand for functional ingredients in bakery products is rising, owing to their nutritional benefits. Bread, being a staple food that constitutes a major part of the daily diet, caters to a more functional demand. New low-carb, high-fiber, multigrain, and fortified bread that appeals to health-conscious consumers has triggered market growth. In addition to functional health benefits, incorporating natural ingredients, such as natural preservatives, antioxidants, and enzymes in bread, is on the rise. Companies are targeting to replace shortenings and fat with Omega-9 and Omega-3, which improve the fatty acid profile and support performance. Cholesterol reduction, weight management, high protein, and sugar control are the key consumer trends.

Following the latest trends in the market, manufacturers are launching fortified bread to increase their customer base; manufacturers like French mills are incorporating more wholesome flour blends in addition to their traditional white and rustic loaves. Among the most desired components are chickpeas and lentils because of their higher protein and fiber content. Supplemental nutrients, including vitamins, biotics, and useful substances like caffeine, are also making their way into the market. For example, in 2022, the Chanvrine flour blend for bakeries was introduced by Moulins Dumée. Chanvre is a French term that means 'hemp.' Additionally, Moulins Bourgeois introduced its flaxseed-and-hemp-fortified bread. It offers two sources of protein, fiber, and omega-3 fatty acids.

Europe Continues to Dominate the Market

Europe holds the largest share of the global bread market by volume. The increasing aging population seeking healthier bakery products has supported the market growth. In terms of trends, Europe is witnessing a rise in demand for quality bread from local and specialty bakeries, new business models and innovations (such as 'from baker to consumer'), sustainable labeling and packaging, and the adoption of organic bread. Rising consumer preference for value-added, ethnic, fresh, and artisanal bread is the primary factor driving sales.

The primary forces affecting bread consumption across Europe are mostly health-related (e.g., perceptions of health and wellness from products like fortified bread, organic bread, and other such products), monetary variables affecting demographic purchasing power, and consumer lifestyle changes. Bread consumption is also being affected by modern lifestyles, which include flexibility, mobility, cultural diversity, and understanding of other cultures. However, the bread market in Europe has been impacted by the Russia-Ukraine war, as European countries imported raw materials from these regions. Hence, the average price of bread across Europe was 18% higher in August 2022 compared to August 2021.

Bread Market Competitor Analysis

The global bread market is highly fragmented, with a large number of domestic and multinational players competing for market share. Companies are focusing on new product launches, with healthier ingredients/organic claims as their key marketing strategy. Increased private-label brands are posing tough competition to the existing players. Some of the major players in the bread market are Dan Cake, Barilla Group, Grupo Bimbo, SAB de CV, Associated British Foods PLC, Almarai, Campbell’s Soup Company, and Premier Foods Group Limited.

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Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 By Product Type
5.1.1 Loaves
5.1.2 Baguettes
5.1.3 Rolls
5.1.4 Burger Buns
5.1.5 Sandwich Slices
5.1.6 Ciabatta
5.1.7 Frozen Bread
5.1.8 Other Product Types
5.2 By Distribution Channel
5.2.1 Convenience Stores
5.2.2 Specialist Retailers
5.2.3 Supermarkets and Hypermarkets
5.2.4 Online Retail
5.2.5 Variety Stores
5.2.6 Other Distribution Channels
5.3 By Geography
5.3.1 North America United States Canada Mexico Rest of North America
5.3.2 Europe United Kingdom Germany France Russia Italy Spain Rest of Europe
5.3.3 Asia-Pacific India China Japan Australia Rest of Asia-Pacific
5.3.4 South America Brazil Argentina Rest of South America
5.3.5 Middle East and Africa South Africa Saudi Arabia Rest of Middle East and Africa
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Barilla Group
6.3.2 Grupo Bimbo S.A.B. de CV
6.3.3 Associated British Foods PLC
6.3.4 Almarai Company
6.3.5 Campbells Soup Company
6.3.6 Goodman Fielder
6.3.7 Yamazaki Baking Co. Ltd
6.3.8 Premier Foods Group Limited
6.3.9 Aryzta AG
6.3.10 Finsbury Food Group

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Barilla Group
  • Grupo Bimbo S.A.B. de CV
  • Associated British Foods PLC
  • Almarai Company
  • Campbells Soup Company
  • Goodman Fielder
  • Yamazaki Baking Co. Ltd
  • Premier Foods Group Limited
  • Aryzta AG
  • Finsbury Food Group