Bread Market is expected to reach US$ 350.17 billion by 2030

Increasing Demand for Convenience and Ready-To-Eat Products Drives Bread Market

According to our new research study titled "Bread Market to Forecast 2030 – COVID-19 Impact and Global Analysis – by Type, Category, Distribution Channel, and Geography," the market was valued at US$ 266.33 billion in 2022 and is projected to reach US$ 350.17 billion by 2030; it is expected to register a CAGR of 3.4% from 2022 to 2030.

The global bread market is experiencing a surge in demand due to the increasing preference for convenience and ready to eat products. The hectic lifestyle of modern consumers, coupled with the need for quick and easy meal solutions, has led to a significant rise in the consumption of bread. Owing to convenience-driven factors such as ease of preparation, longer shelf life, and portability, bread has become a popular choice among working individuals. Additionally, the availability of a wide variety of bread options, including loaves, sandwich bread, baguettes, burger buns, etc., caters to diverse consumer preferences and dietary requirements, further fueling the global bread market growth.

Bread Market Breakdown – by Region

Furthermore, the COVID-19 pandemic has also contributed to the bread market growth. During lockdowns and restrictions, consumers turned to staple foods such as bread, which are easy to store and have a longer shelf life. The pandemic led to a rise in home baking and cooking activities, which boosted the demand for bread as people sought comfort in homemade meals and snacks. As a result, bakeries and bread manufacturers experienced increased sales and expanded their product offerings to cater to changing consumer preferences. Hence, the increasing demand for convenience and ready to eat products, coupled with the impact of the COVID-19 pandemic, has significantly contributed to the growth of the global bread market. With consumers seeking quick and easy meal solutions, the demand for a variety of bread products continues to rise. As the market evolves, manufacturers are likely to innovate further to meet the changing needs and preferences of consumers, driving the expansion of the bread market worldwide.

Bread production requires several ingredients such as whole grain flour (e.g., wheat, rye, and barley), yeast, sugar, salt, and various natural additives and preservatives. As these ingredients are agricultural produce, they are subject to fluctuations in prices due to weather conditions, global supply and demand dynamics, and the seasonality nature of these agricultural products. When the prices of ingredients increase, it directly impacts the cost of bread production, leading to reduced profit margins for bread manufacturers. Price fluctuation makes it difficult for bread manufacturers to maintain stable pricing. Consumers easily shift toward cheaper alternatives when the bread price increases.

Three Bakers Gluten-Free Bakery, Dr Schar AG, FGF Brands Inc, Dimpflmeier Bakery Ltd, Vibrant Health Products Inc, Wonder Brands Inc, Bakers Delight Holdings Ltd, Grey Matlock Bakery Inc, Grupo Bimbo SAB de CV, and Campbell Soup Co. are among the key players operating in the global bread market. These companies have a widespread global presence, which allows them to serve a large range of customers, subsequently contributing to the expansion of their bread market share. They focus on product launches and geographical expansion to expand their product range in specialty portfolios. Thus, strategic product developments by major players further drive the bread market growth. For instance, in August 2021, Wonder Brands was an aggregator and operator of digital brands co-founded by Federico and Nicolas.  They partner with successful companies and entrepreneurs to invest in their businesses and boost their growth in online channels throughout Latin America. In their seed funding round, they raised US$ 20 million from top global investors, including Endeavor Catalyst. On the other hand, in May 2021, Bakers Delight Holdings Ltd adopted Sisence, the leading AI-driven platform for infusing analytics; the company uses the Sisense Fusion Platform to help capture, surface, and analyze its data as part of its digital transformation journey. The price volatility in ingredients has posed a challenge for bread manufacturers as it disrupts the procurement process, resulting in supply shortages, delays, or increased inventory costs. According to Statistics Canada, Canadian shoppers paid more for wheat-based food products, bread, rolls and buns, and breakfast cereal products in 2022, as Canada recorded lower production of wheat, i.e., down by 37.1% in 2021 due to drought conditions that arrived in Prairies. Therefore, Canadian food manufacturers paid 63.8% more for raw wheat in March 2022. Also, according to USDA, consumer prices for wheat-based products were up substantially in 2022 compared to 2021, as indicated by the Consumer Price Index (CPI) data published by the U.S. Department of Labor, Bureau of Labor Statistics. The average price level across the cereals and bakery products category was up 13% in 2022. Also, prices for flour and prepared flour mixes were ~19% higher in 2022. The reduced wheat production resulted in bread manufacturers' failure to anticipate and respond to these fluctuations, thus leading to inventory imbalances, excess waste, and missed market opportunities.

Impact of COVID-19 Pandemic on Bread Market

The COVID-19 pandemic disrupted global supply chains, including those in the bread industry. Factors such as restrictions on movement, shutdown of manufacturing facilities, and labor shortages affected global bread production, raw material procurement, distribution, and availability of bread across the country. With the shutdown of restaurants, cafes, and food service establishments, there was a shift in consumers' behavior toward home cooking. This increased the demand for bread in retail stores, as consumers relied on homemade meals and convenience foods such as buns, rolls, and sandwiches. Bakeries and bread manufacturers across the globe had to adapt to the changing consumer preferences. There was an increased demand for long-lasting and packaged bread products, such as sliced and frozen bread, as consumers aimed to minimize grocery store visits.

The report segments of bread market as follows:

Based on type, the bread market is segmented loaves, sandwich bread, baguettes, burger buns, and others. Based on category, the bread market is bifurcated into organic and conventional. Based on distribution channel, the bread market is segmented into supermarkets and hypermarkets, convenience stores, online retail, and others. Based on geography, the bread market is segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America.

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com