Frozen Bakery Products Market

Frozen Bakery Products Market Outlook

Fact.MR, a market research and competitive intelligence provider, surpassed a market value of US$ 28.1 Bn by the end of 2021. Increasing inclination towards instant food is leading to a growth in sales of frozen bakery products. The market is expected to witness a positive growth by registering a 6.3% CAGR by garnering a market value of US$ 51.6 Bn through the forecast period 2021-2031.

Key Points Covered in Frozen Bakery Products Industry Analysis

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Frozen Bakery Products and How to Navigate
• Recommendation on Key Winning Strategies

Frozen Bakery Products Consumption Analysis 2016-2020 in Comparison to Future Outlook 2021-2031

Historically, over the last five years, from 2016 to 2020, the sales of frozen bakery products exceeded US$ 27 Bn by the end of the aforementioned period, expanding at a CAGR of 2.4%. Manufacturers of frozen bakery products are focusing on producing healthy frozen products by offering gluten-free and fat-free food products.

During the COVID-19 pandemic, sales increased dramatically, attributed to rising inclination towards consuming instant foodstuffs. As per the American Frozen Food Institute (AFFI), frozen food sales increased by 18.2% in 2020, generating US$ 66 billion in sales in the U.S. Declining footfalls across conventional grocery stores and supermarkets prompted consumers to shop frozen foods during the pandemic.

Increasing convenience factor is expected to drive future market demand for frozen bakery products. Due to the aforementioned factors, the sales of frozen bakery products are expected to accumulate US$ 51.6 Bn by registering a healthy CAGR of 6.3% in the assessment period 2021-2031.

Which Factors are influencing the Growth of Frozen Bakery Products?

Frozen bakery products include cakes, pancakes, doughnuts, etc. The wide variety and availability of these products is making them popular among masses. Storage of frozen bakery products at a proper temperature is necessary to ensure safety and to reduce wastage. This not only helps for the product to be safe but also helps the product to last longer without losing its taste.

Frozen bakery products such as cakes, pastries, cookies, pancakes, bread and muffins have accelerated the sales of frozen bakery products. These products are consumed while they are fresh and are bought in less quantity. Also, this has pushed café, hotel and restaurant owners to add frozen bakery products to their menu. This, in turn, is influencing the frozen bakery market positively.

Meanwhile, increasing population and rising health concerns has spurred the demand for healthy sugar-free and gluten-free bakery products. Frozen bakery products are focusing on including natural ingredients and sweeteners that would not be a threat to the human health.

Preference for Healthy Foods Spurring Frozen Bakery Products Demand?

As an increasing number of people become health conscious, manufacturers are investing in fat-free and cholesterol-free frozen bakery products. Thus, newer recipes that are healthy have given a boost to the sales of frozen bakery products industry.

The COVID-19 pandemic boosted sales of various food products due to easy availability of online ordering. Thus, the market is anticipated to witness a positive growth. Hectic lifestyle is another major factor for rising inclination towards frozen bakery products.

Moreover, frozen bakery products are convenient to cook and save time. Consumers across the globe have shown an increasing inclination due to their taste and variety. All these factors are leading to the increasing consumption of frozen bakery products.

How are Retail Chains Spurring the Sales of Frozen Bakery Products?

Rapid urbanization has led to the growing presence of malls, hypermarkets and supermarkets. These retail chains have adequate equipment which helps stock frozen bakery products. In addition, a fast-paced lifestyle has made convenient food popular.

Retail chains are also focusing on including different varieties of products; from pizza crust to muffins, products having various flavours are spurring the demand for frozen bakery products. Manufacturers of frozen bakery products are focusing on offering easy-to-cook food that require no effort except for defrosting the food. Thus, convenience of frozen bakery products is pushing the growth of the same.

Furthermore, companies and bakeries are moving towards producing fat-free and low-fat frozen bakery products. In order to respond to changing consumption patterns, new products are being introduced to including natural sweeteners, organic ingredients to meet the customer demand for a healthier lifestyle.

Country-wise Analysis

Why is Asia Attracting Frozen Bakery Products Manufacturers?

Asia is expected to remain dominant in the global frozen bakery products industry, with significant demand rising from India and China. Rapid urbanization and inclination towards fast food from the millennial and generation Z is influencing the demand for frozen bakery products.

Thus, the market is expected to create an incremental opportunity of over US$ 1 Bn between 2021 and 2031. According to Fact.MR, the market for frozen bakery products in Asia is expected to capture 60% of global revenues across the aforementioned forecast period.  

What Growth Prospects Abound Across Europe?

Consumption of bread in countries like Germany and Italy is high as it is an everyday regular breakfast. Thus, demand for bread is constantly increasing. In addition, growing preference towards fast food like pizza, pastries and muffins has boosted the sales of frozen bakery products.

Thus, according to Fact.MR’s report, Europe is expected to possess nearly 40% of market share for frozen bakery products.

Category-wise Insights

Why are Pizza Crusts and Breads Gaining Popularity?

The pizza crust food type is anticipated to be one of the top selling products in the global frozen bakery products market during 2021-2031.Sales of pizza crust are expected to register a CAGR exceeding 6% by 2031 end. This is largely due to an inclination towards fast food and a variety of pizza toppings.

Furthermore, bread as a frozen bakery product is projected to create an incremental opportunity of over US$ 600 Mn until 2022, as it is largely used for everyday breakfast. Especially in European countries, and American countries bread is expected to possess a market share of more than 35% across the forecast period.

How is Modern Trade Influencing the Sales of Frozen Bakery Products?

Owing to rapid urbanization, modern trade held more than 1/4th of the revenue share in 2020. Modern trade such as hypermarkets, minimarkets and supermarkets are anticipated to emerge as one of the most lucrative sales channels.

Towards the end of 2031, modern trade is expected to reach close to US$ 7 Bn in revenue. Thus, modern trade is expected to accumulate nearly 60% market share. Meanwhile, direct sales channel is projected to be the second biggest sales channel for frozen bakery products.

Why are Fresh Frozen Bakery Products Most Sought After?

The fresh frozen bakery products will gain nearly 66% revenue share by the end of 2031. By 2031 end, the sales of fresh bakery products will surpass US$ 15 Bn in revenue.

Increasing customer preference for freshly baked products is driving the demand for fresh frozen bakery products. While the pre-packed baked frozen bakery products are expected to account for more than 25% of the revenue share by the end of 2031.

Competitive Landscape

Prominent food & beverage companies are reliant on introducing new products compatible with consumer’s tastes and preferences across key regions. In addition, acquisitions, collaborations and capacity expansions to broad base business prospects are also witnessed. Notable developments in the domain are as follows:

• In June 2021, Flowers Foods acquired assets of Koffee Kup Bakery Inc., in Burlington, Vermont. The acquisition is expected to increase market growth in North East America for the company. The acquisition includes three closed bakeries located in Burlington and Brattleboro, Vermont and North Grosvenor Dale, Connecticut, and the Koffee Kup Bakery and Vermont Bread Company brands
• In May 2021, General Mills Inc. introduced six new bakery products in its Pillsbury brand line. These include the Pillsbury Money Bread Pull-Apart Kit, Pillsbury Garlic Bread Pull-Part Kit, Pillsbury Mini Cinni Stix, Pillsbury Mini Pizza Crusts, Pillsbury Birthday Cake Dough Poppins and Pillsbury Chocolate Chip Cookie Dough Poppins

Report Scope

Attribute	Details
Market size value in 2020	USD 28.1 Billion
Market forecast value in 2031	USD 51.6 Billion
Growth Rate	CAGR of 6.3% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania  Middle East & Africa
Key Countries Covered	U.S Canada Brazil Mexico Argentina Germany U.K Spain France Italy Nordics India China Japan ASEAN Australia GCC South Africa Nigeria
Key Market Segments Covered	Product Type Sales Channel Sales Format Region
Key Companies Profiled	Cole’s Quality Foods Inc. General Mills Inc. Flowers Foods Europastry S.A. Barilla Holdings Spa General Waffel Manufactory Vandemoortele NV American Desserts Associated British Foods plc Bridgford Foods Corporation Premier Foods plc Cargill Incorporated Conagra Brands Inc. Alpha Baking Company Inc. Kellogg Company Lantmannen Unibake International Grupo Bimbo S.A.B. de C.V.  Aryzta AG.
Pricing	Available upon Request

Key Segments Covered

• Product Type

  • Frozen Bread
  • Frozen Rolls
  • Frozen Pancakes
  • Frozen Muffins
  • Frozen Pound Cakes
  • Frozen Pizza Crust
  • Frozen Donuts
  • Frozen Pastries

• Sales Channel

  • Frozen Bakery Product Sales via Modern Trade
  • Frozen Bakery Product Sales via Traditional Grocery Stores
  • Frozen Bakery Product Sales via Convenience Stores
  • Frozen Bakery Product Sales via Online Channels
  • Frozen Bakery Product Sales via Direct Sales
  • Frozen Bakery Product Sales via Other Retail Formats

• Sales Format

  • Fresh Frozen Bakery Products
  • Pre-Packed Frozen Baked Products
  • Pre-Packed Frozen Part-Baked Products