South America Cake Market Outlook, 2030

Cultural exchange, urbanization, and increasing consumer expectations have all contributed to the transformation of the South American cake market from its strong traditional roots to the rising popularity of Western-style cakes. Historically, nations like Brazil and Argentina favored upscale, locally inspired desserts that were typically made at home using regional ingredients, such as bolo de fubá (cornmeal cake), torta rogel, and pastelitos. These traditional sweets were gradually influenced by European colonization and globalization, coexisting with and adapting to foreign cake varieties such as frosted birthday cakes, layered sponge cakes, and chocolate gateaux.

Since food is a form of celebration and cultural expression, cakes have historically been a mainstay of family reunions, birthdays, and festivals in South America. For example, in Argentina, cakes frequently include fruits, meringue, and dulce de leche to reflect local tastes, whereas in Brazil, bright cakes covered in colorful icing are a must for children's celebrations and festa junina. These classic ingredients are now often combined with Western baking methods to produce hybrid cake forms that combine a nostalgic familiarity with a contemporary charm. The development of cakes in the area has been greatly influenced by the use of local ingredients.

More and more bakers are using indigenous nuts, tropical fruits, coconut, and cassava flour in their recipes, not just for cultural authenticity, but also to appeal to customers who are gluten-sensitive or health-conscious. These changes have resulted in a distinct taste profile that sets South American cakes apart in the worldwide market. Research and development have also concentrated on improving packing technology and shelf life, allowing cakes to be distributed more widely and safely throughout the continent. In order to strike a balance between freshness and sustainability, manufacturers are looking at vacuum packing, modified atmosphere packaging, and biodegradable materials. The cake industry in South America is still being driven by this combination of tradition, innovation, and localization.

According to the research report, "South America Cake Market Outlook, 2030," the South America Cake Market is anticipated to grow at more than 4.73% CAGR from 2025 to 2030. The increase in demand in urban areas, where growing incomes, quick urbanization, and exposure to Western culinary trends are changing consumer preferences, is the major driver behind the remarkable rise of the South American cake industry. The market for both freshly baked and ready-to-eat or frozen cake formats has grown significantly as more people in metropolitan areas look for convenient indulgences and celebration necessities.

Manufacturers are investing in frozen storage, cutting-edge baking methods, and novel packaging options in response to consumers' growing demand for cake alternatives that are both durable and portable without sacrificing taste or quality. The expansion efforts in the area are being spearheaded by firms like Grupo Bimbo and a growing number of independent artisan bakeries.

By offering a diverse range of product lines, such as family-sized desserts and individually wrapped snack cakes, adapted to regional preferences, Bimbo has increased its presence in South America. In the meanwhile, handmade bakeries are utilizing their understanding of premium components and classic tastes to provide a more unique and culturally grounded cake experience.

This combination of mass production and artisanal baking guarantees broad availability while maintaining cultural diversity in cake consumption. The middle class has grown, increasing the need for high-quality culinary experiences, which is one of the main social and economic factors driving this trend. The popularity of layered cakes, frosted birthday cakes, and fusion desserts has grown due to Western influence through the media, culinary programs, and foreign travel. These items are now widely available in grocery stores and cafes in Brazil, Argentina, and Chile.

To ensure food safety and consumer confidence, regulatory organizations like the Codex Alimentarius and Brazil's National Health Surveillance Agency (ANVISA) have established strict guidelines covering everything from hygiene practices to ingredient labeling. These frameworks help to sustain quality as well as promote export possibilities, since South American cakes are becoming more popular in both domestic and foreign markets.

Market Drivers

• Urbanization and the Rise of the Middle Class: The demand for high-quality, convenient baked products is being driven by the expansion of the urban population in nations such as Brazil, Argentina, and Colombia. As incomes rise, more consumers are prepared to spend money on treats and festive goods, such as cakes. The adoption of Western-style cakes in birthdays, weddings, and holidays is a result of the growth of the middle class. Furthermore, the availability and consumption of cake goods in urban areas is increasing as a result of the expanding variety offered by supermarket chains and cafés.
• The Rise of Supermarkets and Contemporary Retail Models: The increasing number of hypermarkets and supermarkets in South America has greatly improved access to cakes. These stores sell both packaged cakes from well-known companies like Bimbo and freshly baked goods from in-store bakeries. Large-scale distribution, longer shelf life, and impulsive purchasing behavior are all supported by contemporary retail formats. Retail growth, when combined with in-store marketing and better cold chain logistics, is a major factor in market penetration.

Market Challenges

• Storage and Infrastructure for the Supply Chain: The fragmented cold chain and transportation network in South America makes it difficult to preserve the freshness of cakes, particularly in rural and isolated regions. The distribution of frozen and perishable cake goods is hampered by an erratic power supply and a lack of refrigerated delivery systems. These restrictions limit regional scalability for producers and retailers, lower product quality, and increase waste.
• Compliance Expenses and Regulatory Variation: South American nations adhere to diverse food safety and labeling regulations, such as the Codex Alimentarius and ANVISA standards. Particularly for exporters, compliance with these rules requires continuous documentation, testing, and certification. Due to the burden of regulatory expenses, small and medium-sized bakeries frequently have difficulty growing or innovating at will.

Market Trends

• The emergence of alternative and health-conscious cakes: The increase in gluten-free, low-sugar, and plant-based cakes is a result of consumer demand for more nutritious choices. Healthier substitutes for processed ingredients include cassava flour, oats, and tropical fruits. This tendency accommodates dietary limits and lifestyle adjustments while maintaining taste and texture. In particular, artisanal bakeries are leading the way in this shift.
• Regional Twists and Fusion Flavors: Western-style cakes are now incorporating traditional ingredients like passionfruit, guava, coconut, and dulce de leche. This combination produces distinct taste profiles that appeal to people of all ages. Cheesecakes, Swiss rolls, and tiramisu are now available in both packaged and artisanal versions in various locations. Social media and consumer interest in culinary experimentation are driving this trend.

Due to their cultural integration into everyday meals and celebration events throughout the area, dessert cakes constitute the biggest product category in the South American cake industry.

The South American cake market is mostly made up of dessert cakes due to their well-established place in both regular meals and festive customs. Dessert cakes, in contrast to cupcakes or snack cakes, are frequently shared among families and guests at significant events, making them a crucial component of the eating experience. In nations like Brazil, Argentina, and Colombia, meals frequently finish with a sweet dessert, and cakes that are layered, frosted, or filled with fruit are popular because they are delicious and can feed a large group. Dessert cakes are the focal point of every celebration, whether it be a birthday party, a Sunday family dinner, or a holiday like Christmas (Natal) or New Year's Eve (Ano Novo).

Due to the regional proclivity for dessert cakes made in the homemade style with strong tastes like dulce de leche, coconut, passion fruit, and guava, they have gained widespread popularity. In response to this demand, local bakeries and supermarkets provide both classic and contemporary variations, ranging from flan-style cakes and fruit-topped cheesecakes to bolo de brigadeiro. Because they are frequently bigger and made for slicing, their function in group sharing and hospitality is highlighted. Furthermore, dessert cakes have a higher perceived value and indulgence, which appeals to middle- and higher-income consumers seeking premium experiences.

This demand has led to breakthroughs in packaging, multi-layered fillings, and cake decoration that maintains freshness during shipping and storage. Dessert cakes have been transformed into refrigerated, ready-to-buy formats by bakeries and shops to meet the demands of today's convenience-obsessed consumers. Dessert cakes are the most popular and widely used cake category in South America due to their versatility, beauty, and cultural importance in a society where food is central to social interaction.

The quickest-growing distribution channel in the South American cake market is online retail stores because of increased smartphone usage and rising demand for home delivery services.

Due to the quick digitalization of commerce and shifting consumer habits, the online retail sector is becoming the fastest-growing distribution channel in the South American cake market. Customers now like the ease of buying cakes online over going to actual stores, due to the increase in internet connectivity and smartphone use in metropolitan and semi-urban areas.

This trend has been particularly noticeable in major cities like São Paulo, Buenos Aires, and Santiago, where traffic congestion and hectic schedules make doorstep delivery more desirable. Ecommerce platforms like specialized bakery apps, Mercado Libre, Rappi, and iFood have been instrumental in helping local bakeries and major cake businesses connect directly with customers.

These platforms are perfect for last-minute cake purchases for birthdays, anniversaries, or events because they provide simple browsing, customization choices, and same-day delivery. As customers got used to digital payments and contactless delivery, the pandemic only hastened this trend. Furthermore, many boutique and artisan bakeries have made use of social media platforms like Instagram and WhatsApp to accept specialized orders and provide hyperlocal delivery services. The visual character of cake marketing on these platforms promotes impulsive purchases, particularly for visually appealing cakes intended for special occasions or personal giving.

These small businesses have adopted e-commerce as a way to broaden their customer base without the expense of running big brick-and-mortar establishments. The rising number of tech-savvy middle-class and younger consumers who favor online communication over traditional shopping is another factor. The dependability and quality of online cake deliveries are also rising along with improvements in payment gateways, logistics, and cold-chain delivery. These elements combine to make online retail the fastest-growing channel in South America's cake industry, giving contemporary consumers unparalleled convenience, customization, and accessibility.

The quickest-growing cake taste in the South American market is cheese, which appeals to both modern and classic palate preferences due to its rich, creamy texture and versatility.

The increased popularity of cakes with cheese flavor throughout South America mirrors a larger trend among consumers towards decadent, rich, and recognizable flavor profiles. Cheese, which has been a staple of traditional South American cuisine for centuries, is now being creatively used in cakes, both savory and sweet. This trend has been greatly influenced by the rising popularity of cheesecake, in particular. Both younger and older consumers are attracted to its smooth, thick texture and regional twists like guava paste toppings or dulce de leche layers. Due to its adaptability, the taste has been able to transcend events, including joyous parties, café menus, and even informal sweets.

Compared to chocolate or iced options, cheese-based cakes are seen by health-conscious customers as more natural and less sugary. As a result, urban bakeries have begun to provide a wide selection of cheese-based cakes, ranging from no-bake and mousse varieties to Japanese-style cotton cheesecakes, which have caught the attention of this group. In addition, the flavor has become more locally relevant thanks to handmade cheesecakes made with regional ingredients like passion fruit, mango, or cassava crusts. The popularity of cheese-flavored cakes has increased in cities like Buenos Aires, Lima, and São Paulo thanks to dessert cafes and café culture.

Customers regard these cakes as a high-end, gourmet item that strikes a balance between pleasure and a refined taste. In response to this perspective, bakeries and foodservice firms have continued to innovate, introducing hybrid dishes such cheese-filled pastries and flans, as well as customized cheesecakes and smaller serving sizes for individual use. cheese has become a mainstream cake flavor in South America in part because of the impact of dessert trends from North America and Europe, where cheesecake is a popular dish. Consequently, cheese has established itself as the fastest-growing flavor in the local cake sector due to its gourmet positioning, sensory appeal, and cultural adaptability.

Due to its robust local bakery culture and a desire for fresh, unique, and culturally appropriate goods, unpackaged/artisan cakes dominate the South American market.

The biggest and fastest-expanding share of the South American cake market is in the unpackaged/artisan cake sector, which is fueled by the region's strong value for freshness, handmade quality, and customized culinary experiences. In nations like Brazil, Argentina, Peru, and Colombia, neighborhood bakeries and home-based cake businesses are essential to daily life, acting as reliable providers of birthday cakes, religious festival desserts, and simple treats. These bakeries prioritize cakes that are freshly made and made to order, frequently customized to local preferences by using seasonal fruits, dairy products, and traditional fillings like coconut cream or dulce de leche.

Compared to mass-produced options, cakes that showcase handmade quality and visual appeal are favored by consumers in the area, who value authenticity and craftsmanship. Unpackaged/artisanal cakes are perfect for events like weddings, baptisms, and family parties because they offer more customization in terms of size, flavor, decor, and dietary needs.

Since customers frequently choose these cakes right from bakery displays, it strengthens the bond between the baker and the customer. The expanding micro-entrepreneurship in the food industry is another factor driving this sector. Here, people and small firms run their operations from their homes or tiny establishments, selling artisanal cakes through social media and local networks.

These business owners have been able to connect with larger audiences through platforms like Instagram and WhatsApp, fostering a cake market that is very local and adaptive. Artisan cake producers are more appealing because of their flexibility in utilizing local ingredients and adapting to changing consumer tastes, such as vegan, gluten-free, or lactose-free recipes.

Unlike packaged cakes, unpackaged/artisanal kinds have a "fresh today, sold today" reputation, which appeals to South American consumers who equate freshness with quality. This makes the unpackaged/artisanal format the largest and fastest-growing segment in the regional cake market, reflecting both cultural tradition and changing lifestyle preferences.

Due to its vast population, varied regional cake culture, and fast-growing bakery and food service businesses, Brazil dominates the South American cake market.

Due to its mix of its large population, expanding economy, and cultural affection for baked products, Brazil leads the South American cake industry. Being the most populous nation in the area, Brazil obviously has the greatest cake consumption base in a variety of formats, including handmade, packaged, and frozen. But the wide range of cake consumption in the nation is also supported by the size of the population and its lively and varied food scene. Brazil's diverse range of flavors and textures continues to grow, from the North's use of cassava flour in traditional baking to the South's European-inspired cakes.

Thousands of formal and informal bakeries are spread throughout the country's urban and rural regions, making up a booming bakery and confectionery industry. These establishments provide for everyday requirements like breakfast and afternoon coffee, as well as for big occasions when elaborate cakes serve as the focal point of birthdays, weddings, and religious festivities. Cake culture is inextricably linked to social life, particularly through events like Sunday family get-togethers, quinceañera-style celebrations, and festa junina, all of which increase the need for special cakes.

Improvements in Brazil's food production and logistics have allowed both domestic and foreign companies to increase their operations, guaranteeing product availability in supermarkets, hypermarkets, and convenience stores. This change has been driven by the expanding middle class, which has been looking for both affordable and high-end cake choices. Meanwhile, new consumer categories are still being drawn in by creative flavors like chocolate brigadeiro cakes, passionfruit cheesecakes, and layered coconut cakes. Brazil has become the undisputed leader in South America's cake market, driving trends, volume, and value throughout the region, thanks to its robust domestic demand, cultural affinity for cakes, and vibrant baking industry.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Cake Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product

• Cupcakes
• Sponge Cakes
• Dessert Cakes
• others

By Distribution Channel

• Supermarkets/Hypermarkets
• Bakery
• Convenience Stores
• Online Retail Stores
• Other Distribution Channels

By Form

• Packaged
• Unpackaged/Artisanal

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.