APAC is a strong growth market for bakery & pastry.
What are the key themes to consider as you create the bakery/pastry products of tomorrow?
We have reviewed our own proprietary research, tracked new product launches, and synthesized various industry data sources to determine the most important trends influencing Asian bakery and pastry today. In this article, Pritish Kumar Halder describes home baking business benefits and its trends.
Sugar Reduction
Launches of bakery products with lower sugar claims have been increasing over the last 4 years, especially in South East Asia where low/reduced sugar claims has become more popular .
65% of APAC consumers agreed that Chocolate cookies with ‘baddies’ removed are the best cookies.
Dove launches 0 Sugar Belgian dark chocolate in China.
Gut-health solutions
Consumers are falling well short of recommended daily dietary fibre intake. This is a great opportunity for brands to fulfill unmet needs with fortified fibre, gut enzymes etc.
70% of APAC consumers agreed that the best chocolate cookies is one where healthy or good-for-you ingredients are added in. For more information please visit Pritish Kumar Halder ‘s page.
In South East Asia, Glico launched 2 goodness variants under Pocky Wholesome made of whole wheat that is high in nutrients, fibre, and also supports healthy digestion!
Homebaking
The booming homebaking trend is here to stay because not only does it provide comfort at tough times but it has a healthy perception of being ‘less processed’.
Brands are extending the product line to home-baking solutions such as pre-mix, decoration ingredients and DIY bakery kit.
57% of Chinese adults prefer home-baked or home-cooked food because it makes their daily diets healthier.
Marvellous Mug Cakes from Australia is free from added sugar, dairy and loaded with plant based protein and wholesome oats. This no-fail plant-based mug cake is ready in 1 minute, home-baked by anyone!
Emotional Wellbeing
Whether consumers are seeking comfort, moments to celebrate, or escapism. Bakery & pastry offers a great source of comfort and indulgence.
76% of APAC consumers want to try new and exciting cookies containing chocolatey experiences.
Family Mart has released adorable macarons that look like bite-sized burgers, layered with several ingredients to resemble the components of a typical burger. It’s a perfect indulgent treat for those who can’t decide between sweet and savoury !
Extraordinary Experiences
More brands are creating new sensations via textural innovation to offer a multi-sensorial eating experience.
67% of APAC consumers actively explore rare, unique or even crazy flavors in bakery products.
Pulmuone Foodmerce Pul’s Care Steamed Rice Ring Doughnut from South Korea has an unusual mugwort flavour, interesting soft fluffy dough texture and intriguing dark green colour which comes from mugwort, an asian herb known for many health benefits.
Report Overview
The global cake market size was valued at USD 42.94 billion in 2019 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.3% from 2020 to 2027. The high popularity of celebrating various types of special occasions and success through cake cutting is expected to remain a key driving force over the next few years.
Moreover, the rising demand for cakes as desserts post meals during dine-out and weekend parties among millennials and Generation Z consumers across the globe is projected to expand the industry size in the near future. Over the past few years, the trend of celebrating various types of special occasions, success or any festivals, such as birthdays, weddings, marriage anniversaries, valentine’s day, Christmas, pet’s birthday, work anniversary, mother’s day, and children’s day, has been increasing significantly across the globe. Consumers have been increasing spending on purchasing occasion-specific cakes, which is expanding the market scope.
Market demand
Demand for bakery products is also increasing significantly across the globe as they are instant, accessible, and delicious food in this rapidly urbanizing and changing lifestyle. Europe and North America have enjoyed a strong consumer base of bakery products, including cake, pastry, biscuit, and pita bread.
The market share for innovative as well as healthy products has been rising in the above-mentioned regions as a result of a growing number of health-conscious people at the domestic level. Furthermore, with the rising adoption of western lifestyle and nutrition, demand for cakes is increasing in developing economies of Asia and the Middle East.
The bakery industry has been witnessing new gains owing to changing preferences among consumers toward advanced baked variants. For instance, the increasing adoption of western-style bakeries in Asian countries, including China, Japan, and South Korea, is expected to remain a favorable factor. It was estimated that the Asia Pacific accounted for almost half of the global revenue in 2019, which offers huge growth opportunities for the local as well as international bakers to launch new variants, including cakes and pastries.
Product Insights
Dessert cakes were the largest product segment with a share of 50.5% in 2019 and are expected to maintain their lead over the forecast period as these products are widely consumed fresh on various occasions. Moreover, it is consumed after meals in various countries as a part of the dessert.
Sponge cakes are anticipated to be the fastest-growing product segment with a CAGR of 3.7% from 2020 to 2027 on account of their rising popularity among young consumers across the globe. These sponge cakes have a high shelf life as compared to their dessert counterparts. These products are consumed fresh as well as they can be consumed after a week. Hence, the demand for these products is also increasing among the young generation across the world. Moreover, in some Asian countries such as Japan and South Korea, few local players are very popular for their sponge cotton cakes.
Distribution Channel Insights
Specialist retailers emerged as the largest product segment with a share of over 50.0% in 2019 and are anticipated to maintain its lead over the next few years. Various domestic players have their own specialty stores with a wide range of artesian cakes, dessert cakes, and sponge cakes. In addition, cupcakes and other types of high-shelf life baked goods are widely available in the largest chain of supermarkets, such as Walmart, Sainsbury’s, Tesco, 7Eleven, Apar, and Aldi. These deep-pocket industry participants are expanding their product offerings in order to attract customers.
Key Companies & Market Share Insights
Leading manufacturers hold a significant market share in Europe, North America, and some parts of Asia. A growing trend of healthy intake is anticipated to increase the focus on quality and low-calorie products. A large number of bakers are offering healthy alternatives to high-calorie and high sugar products, which is anticipated to be a primary factor for market growth. The addition of new flavors in the market is also anticipated to positively impact industry growth. Some of the prominent players operating in the global cake market include:
Finsbury Food Group Plc
- Yamazaki Baking Co., Ltd.
- MCKEE FOODS
- Grupo Bimbo
- BreadTalk Group Limited
- Hostess Brands, LLC.
- Monginis
- George Weston Limited
- Campbell Soup Company (Pepperidge Farm)
- Britannia Industries Limited
Segments Covered in the Report
This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global cakes market report on the basis of product, distribution channel, and region:
Product Outlook (Revenue, USD Million, 2016 – 2027)
- Cupcakes
- Dessert
- Sponge
- Others
Distribution Channel Outlook (Revenue, USD Million, 2016 – 2027)
- Supermarket/Hypermarket
- Specialist Retailers
- Convenience Stores
- Others
Regional Outlook (Revenue, USD Million, 2016 – 2027)
- North America
- The U.S.
- Europe
- The U.K.
- Germany
- France
- Asia Pacific
- China
- Japan
- Central & South America
- Brazil
- Middle East & Africa
Reference
https://www.grandviewresearch.com/industry-analysis/cakes-market
https://www.barry-callebaut.com/en-IN/manufacturers/trends-insights/top-6-trends-watch-bakery
