The Rise of Bakery and Confectionery Industry Globally

Growing hang around over confectionery stores and bakeries themselves exhibit fair opportunities in the market. Its potential for growth is clearly reflected in consumer sentiments associated with confectionery products. Global chocolate market, for instance, is expected to grow at a CAGR of 4.78% over the forecast period and is currently worth US$ 105 billion. The bakery and confectionery industry’s success is the result of the companies’ strategic choices and their incredible power to comprehend consumer behavior fast.

The growing inclination towards multi-sensory food experience will play a crucial role in thriving the growth of the bakery and confectionary industry globally. For instance, dried rose petals in chocolate bars create memorable experiences beyond taste. Traditionally, only foodies and so-called adventurous consumers were a part of bakery products. But the worldwide lockdowns have changed the market landscape. People’s containment during the pandemic has created ripple effects. There is a significant uptick in the creative food and beverage preparation at home – by mixologists, baristas, and home bakers. Simultaneously, the viewership of the food channel has surged drastically. However, the lockdowns left a long-lasting effect on consumer behavior. Companies are pioneering to develop innovative products to expand their customer base and increase revenue. 

As a result, the global market is projected to witness these upcoming global trends-

Seeds and seed flavors- People demand healthier alternative ingredients in bakery products. Seeds have emerged as an ideal alternative to wheat that is gluten-free and also enhances bakery products with exotic flavors and textures.

Oat products- The market for oats products is growing indefinitely due to the increasing awareness among people regarding the health benefits of oats. Additionally, it offers muddy flavor to bakery products which also enhances texture.

Gluten-free and healthy oils- Gluten-free products are rising, and around 28% of US consumers check for gluten-free labels before adopting edible products. Also, people have now switched to healthier unsaturated fats for healthier living.

Instagrammable creations- Bold and bright items are much in popularity, and the visual appeal is a crucial factor propelling the demand for bakery and confectionery products. Bakers are trying to bring some cheerful and innovative products that are quite appealing for the photoshoot to enhance people’s digital presence. 

Apart from these, there is a high demand for fortified bakery foods globally due to the increasing health consciousness among people. Fortified bakery products include pancakes, cupcakes, biscuits, cookies, and cakes. Fortified bakery products enhance the therapeutic and nutritional value.

The on-the-go product segment anticipates being the most lucrative growth opportunity in the market

The increase in the global working population, particularly the women population, is augmenting the demand for on-the-go products. Companies are taking advantage of the exponential potential of these products, and the hectic lifestyle people are further promoting the on-the-go trend. Additionally, the innovation of healthier snacking and breakfast options is likely to expand the market for bakery and confectionery products.

The growing influence of social media platforms is expanding the market base significantly

Social media has become a vital part of people’s lives. They update pictures of their social gatherings and dine-outs to get more visibility and influence power. Therefore, in today’s era, feeding the consumer’s stomach isn’t the only goal. Additionally, they should also serve consumers’ social feed. However, the trend has significantly expanded the market base for bakery products as more and more people are becoming socially active. Also, growing social gatherings with friends and family to celebrate big and small moments is further paving the way for the exponential growth of the bakery and confectionery sector globally.

Let’s see the upcoming products likely to go big-

  • Snackfections- The snack-confectionary hybrid is likely to dominate the market due to the growing carving of consumers towards comfort foods.
  • Pretzel sticks- With the creator’s experiments, this product is touted to be perfect for sharing treats.

The surge in popularity of plant-based and low-calorie bakery products is revolutionizing the industry

Going vegan is the biggest challenge for the industry. But companies are strategizing their manufacturing process and products portfolio to cater to the increasing demands for plant-based bakery products. Additionally, people are looking forward to low-calorie products. Therefore, the demand for such bakery products is at the brim, and it is influencing the companies to make huge transformations in their operations. Few companies have already strategized their makings by introducing organic chocolates and candies in their products portfolio. 

Consumers want manufacturing transparency and clean label products

Consumer intrigue regarding the manufacturing process and clean label products is another growth wave rising in the market. People want to know – what they are eating, where it comes from, etc. However, this has emerged as a huge challenge for companies. But many profiled market players have taken advantage of this to capture a larger customer base by offering the same. It has also boosted brand loyalty and customer satisfaction.

Overall, the global industry will likely experience exponential growth in the forthcoming years. A few challenges are arising within the industry, like innovating products more frequently, manufacturing vegan bakery products, opting for healthier oils and fats, etc. But companies are boosting their research and tech capabilities to overcome these challenges swiftly. 

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