The market of bakery is well established in terms of product array, distribution channels, regulations, innovation platforms and consumer preferences. However, the sector is undergoing significant changes due to increasing health concerns, rising disposable income and high demand for convenient food products.
Apart from convenience, European consumers are looking for instant and nutritious food products to help them reducing their calorie and sugar intake, without lessening of taste or pleasure. The most consumed bakery products include biscuits and breads while the demand for other bakery items such as cakes, pastries and cookies are also increasing. Breads and rolls have dominated the baked goods segment, while pizzas have the highest potential growth due to higher demand for frozen as well as chilled pizzas.
Trends & developments in bakery products
Currently the trends in this market are: changing consumer lifestyles for a healthy living drives the growth of bakery products, developments and innovation are geared towards the addition of healthy and specialty ingredients in bakery products, the key trends include gluten-free, wholegrain and ancient grain and additive free bakery products and finally elderly population prefers to consume low calorie, low sodium and high-fiber breakfast cereals.
Challenges and opportunities
There are good opportunities like aging population and focus on health are driving EU consumers to look for healthier alternatives such as fresh, organic, artisan, added-value and ethnic baked goods, gluten-free and organic products are other forces driving the bakery market to meet the increasing nutritional demands, environmentally friendly packaging are set to impact the consumer choices as well as manufacturer’s product mix and promotional strategies, the premium segment and low-price products are growing and by last reducing food waste and an emphasis on local production are attracting attention in almost all countries.