Frozen Bakery Products Market

Frozen Bakery Products Market Outlook (2023 to 2033)

The global frozen bakery products market stands at US$ 31.78 billion in 2023 and is forecasted to reach a valuation of US$ 58.55 billion by the end of 2033. The market is predicted to expand at a CAGR of 6.3% from 2023 to 2033, according to a detailed study by Fact.MR, a market research and competitive intelligence provider.

The shelf life of frozen baked goods can be increased to 6 to 18 months by halting the internal water movement within the product and transforming it into ice crystals. This keeps food from deteriorating microbiologically.

The frozen bakery products market is projected to be driven by the rising number of working professionals and the appeal of convenience foods. Well-established in-store bakeries, coffeehouse chains, restaurants, and quick-service eateries are components of the frozen bakery industry.

Customers are given the choice between fresh and frozen baked products when they are looking for quick, scrumptious, on-the-go snacks. Demand for frozen bakery goods is growing due to consumers’ increasing preference for on-the-go snacks.

The availability of gluten-free frozen bakery products has contributed to the market's expansion. Increased urbanization, rising disposable incomes, and consumers’ demand for Western-style diets are driving sales of frozen bakery products.

• On March 20, 2021, Dawn Foods acquired JABEX, a family-owned company based in Bielsko-Biala, Poland, which specializes in premium fruit-based baking products.
• In December 2020, Dawn Foods, a multinational bakery manufacturer, divested its North American frozen manufacturing operation to Rise Baking Group to focus on expanding its core portfolio of bakery ingredients and future digital ingredients. Rise Baking Group, renowned for its expertise in producing frozen baked goods, acquired the operation.

Report Attributes	Details
Frozen Bakery Products Market Size (2022)	US$ 29.90 Billion
Estimated Market Value (2023)	US$ 31.78 Billion
Forecasted Market Value (2033)	US$ 58.55 Billion
Global Market Growth Rate (2023 to 2033)	6.3% CAGR
Japan Market Value (2033)	US$ 2.04 Billion
Japan Market Growth Rate (2023 to 2033)	3.9% CAGR
South Korea Market Value (2033)	US$ 2.16 Billion
South Korea Market Growth Rate (2023 to 2033)	5.2% CAGR
Key Companies Profiled	General Mills Inc. American Desserts Barilla Holdings Spa Cole's Quality Foods Inc. Kellogg Company Aryzta AG Grupo Bimbo S.A.B de C.V. Alpha Baking Company Inc. Premier Foods PLC Bridgford Foods Corporation

What are the Factors Contributing to the Growth of the Frozen Bakery Products Market?

“High Demand for Frozen Bakery Products Due to Their Extended Shelf Life and High Nutritional Value”

One of the key elements fueling the expansion of the market is consumers’ desire for convenience while purchasing food products. Due to the health advantages associated with frozen food products, their demand has increased over the last few years. Frozen food products have a longer shelf life and are packed with nutrients.

Food producers are actively working to develop products that meet the demands of their customers, with convenience being the key market trend for frozen bakery items.

“Expansion of Retail Industry and Growing Need for Frozen Bakery Products Made from Natural & Organic Ingredients”

Due to rapid urbanization, there are now more malls, hypermarkets, and supermarkets than ever before. These retail giants have the necessary tools to store frozen bakery products. Fast-paced lifestyles have boosted the demand for fast food.

Demand for frozen bakery products is being fueled by the attention that retail chains are placing on offering a diverse range of products, from muffins to pizza dough. Manufacturers put a lot of effort into creating products that are simple to prepare and require only defrosting.

Businesses and bakeries are focusing on low-fat and fat-free frozen bakery products. Organic ingredients and natural sweeteners are being produced in response to consumer’s evolving consumption habits.

What are the Hindrances to the Demand Growth for Frozen Bakery Products?

“Perception of Lower Quality and Freshness and Clean-label Constraints Associated with Frozen Bakery Products”

Some consumers may have concerns about the quality and freshness of frozen bakery products compared to their fresh counterparts. Despite advancements in freezing techniques and packaging, there is a perception that fresh bakery goods are of higher quality and taste better. Convincing consumers of the quality and taste of frozen bakery products can be a challenge.

Demand for clean-label products, which are free from artificial additives and preservatives, is growing among health-conscious consumers. Formulating frozen bakery products that meet clean label requirements while maintaining taste, texture, and shelf life can add to production costs. Ingredient limitations can affect the ability of these products to achieve the desired quality and taste, limiting the options available to manufacturers.

“Manufacturer’s Limited Ability to Maintain Tradeoff between Quality & Profitability”

Price sensitivity is a significant factor in the frozen bakery products market. Consumers often compare the prices of frozen bakery goods with their fresh counterparts or other competitive options. Manufacturers need to strike a balance between offering affordable products while maintaining quality and profitability. The market is also competitive, with various brands and private labels vying for market share, leading to price pressures.

Some consumers have concerns about consuming processed foods, including frozen bakery products, due to health and nutrition considerations. There is a growing demand for natural and minimally processed foods, which may pose challenges for manufacturers of frozen bakery products, which typically require processing to ensure prolonged shelf life.

Country-wise Insights

Why is China Considered a Lucrative Market for Frozen Bakery Product Manufacturers?

“Rising Demand for Western-style Food Products”

The market in China is anticipated to expand at a steady CAGR of 6.1% and reach US$ 13.11 billion by the end of 2033.

Increasing urbanization, rising disposable incomes, and consumers’ demand for Western-style diets are driving sales of bakery products in China. Production of processed foods is also expanding significantly. It has also prompted the release of a wide variety of cutting-edge frozen bakery items.

Due to factors such as a sedentary way of life and rising disposable income accessibility to ready-for-consumption food has significantly increased. An expanding working population in key regions of China has contributed to the growth of the market, and these factors are expected to drive increased consumption of frozen bakery products over the coming years.

What is the Demand Outlook for Frozen Bakery Products in the United Kingdom?

“Rising Focus of Manufacturers on Gluten-free Frozen Bakery Products and Expansion of Foodservice Industry”

The market in the United Kingdom is projected to reach US$ 6.09 billion by 2033, expanding at a moderate CAGR of 5.8%.

Companies that specialize in healthy baked goods use premium nutritional ingredients to satisfy the demand for gluten-free meals on the go have the most rapidly expanding markets in the established frozen bakery sectors. For breakfast, people want quick-to-prepare items, which contributes to the rising demand for frozen bakery products. Availability of gluten-free frozen items has contributed to market growth in the country.

Increased popularity of frozen foods, ready-to-eat meals, and comfort foods is fueling the expansion of this industry. The foodservice industry is anticipated to grow significantly in the coming years, which is expected to fuel the expansion of quick-service restaurants, cloud kitchen services, online meal delivery services, and other similar elements in the country.

Category-wise Insights

Why is Frozen Bread in Such High Demand?

“High Demand for Frozen Bread Due to its Convenience & Extended Shelf Life”

Sales of frozen bread are anticipated to rise at a steady CAGR of 5.7% during the forecast period.

Frozen bread is a significant section of the frozen bakery products market. One of the primary advantages of frozen bread is the convenience it provides. Consumers can easily access bread slices or loaves from the freezer and thaw or heat them as needed, eliminating the need for frequent trips to the bakery or grocery store.

Frozen bread has a longer shelf life compared to fresh bread. Freezing helps preserve the quality and freshness of the bread, allowing consumers to stock up on their favorite bread varieties and minimize food waste. It is particularly beneficial for those who consume bread in small quantities or live in households with fewer members.

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

“Efficient Distribution Networks Fueling Sales of Frozen Bakery Food Items”

Utilization of modern trade channels for sales of frozen bakery products is anticipated to increase at a CAGR of 6.4% over the projected period.

Modern trade is anticipated to emerge as one of the most lucrative sales channels. Modern trade refers to organized retail formats such as supermarkets, hypermarkets, and department stores. These sales channels play a crucial role in the distribution and sales of frozen bakery products.

These channels provide several benefits for frozen bakery products, such as wide product visibility, accessibility to a large customer base, and efficient distribution networks. They enable manufacturers and brands to reach a diverse audience and offer a range of options to cater to different tastes and preferences.

Competitive Landscape

The market is characterized by high fragmentation, with a mix of international and regional competitors. Major players in the market are focusing on providing consumers with unique and exotic flavors while ensuring convenient packaging and consumption.

Mergers and acquisitions are a key strategy for these players, allowing them to establish and maintain a dominant position in the market. By leveraging their strong market presence, these companies can effectively compete with other participants in the industry.

• In February 2022, Baker & Baker introduced its first line of vegan items. The products included biscuits, donuts, and cupcakes. The items have an expiry date ranging from 2 to 5 days and are served or baked directly from their frozen state.

Key Segments of Frozen Bakery Products Industry Research

• By Product Type :

  • Breads
  • Rolls
  • Pancakes
  • Muffins
  • Pound Cakes
  • Pizza Crusts
  • Donuts
  • Pastries

• By Sales Channel :

  • Modern Trade
  • Convenience Stores
  • Traditional Grocery Stores
  • Online Channels
  • Direct Sales

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa