Frozen Bakery Market Analysis Report By Product, By Distribution Channel And Segment Forecasts From 2019 To 2025

Industry Insights

The global frozen bakery market size was estimated at USD 7.54 billion, in 2018 and is projected to grow at a CAGR of 4.8% from 2018 to 2025. The significant rise in demand for processed food driven by preference towards baked goods due to changing consumer expectations is projected to increase the growth of the market. Owing to factors such as time required for cooking the food, convenience, easy availability of goods, and low cost is expected to drive the global market. Furthermore, the growing demand from food chains and coffee shops, both small and large are also helping in market growth.

Busy lifestyles and hectic schedules have pushed customers to embrace healthy food and ready-to-eat items. The factors have driven global market growth positively. Frozen products offer rapid service along with taste and freshness. Through selling these items through various foodservice channels such as bakery shops, coffee chains, and QSRs, manufacturers have made profits. Moreover, the easy availability of these products, which is anticipated to complement the growing demand of the market. The manufacturers are also focused on bringing product variations into the group of frozen bakeries. Further, new businesses are joining this market intending to meet the growing demand from both providers of food service and customers. Consequently, the easy availability in grocery shops with a large variety of products is anticipated to increase market demand. For example, Davars launched frozen bakery products under the Svenson brand name. This brand is launched primarily for fast service restaurants in the Indian market. The items include naming a few, pizza tarts, savory muffins, marble brownies, and Choco lava. This brand's main aim is to provide the customers with ready-to-serve foreign and domestic products.

Significant upgrades and improvements in the retail sector, especially in emerging economies, result in higher accessibility and visibility of the goods. This trend is further contributing to the growth of the bakery industry. Increasing consumer preference for organic products and clean labels as a result of increasing health issues are providing manufacturers potential opportunities to expand and increase the company’s product portfolio, to increase their profitability.

Product Insights

In 2018, frozen bread constituted the highest market share for more than 32.0% of the overall market. Growth in the U.S segment is estimated to stimulate increased demand for frozen food items across the world. It is the biggest consumer of goods for frozen bread. New varieties are being introduced by manufacturers, such as natural and organic bread. The growth is projected to be further driven by the growing international population who prefer healthy bakery products.

Frozen pizzas are projected to post the fastest CAGR of 6% between, 2019 to 2025. This growth is anticipated to be powered by higher consumption in Western European countries like Germany, France, and developing countries such as Mexico, India, and China. The rise in the demand for fast & convenient food, particularly for younger professionals, is met by bakery products like frozen pizza. Besides, the launch of a special pizza product, including gluten-free is also projected to increase the market growth.

Distribution Channel Insights

The frozen bakery market is divided into online stores, convenience shops, and hypermarket supermarkets, and grocery stores, depending on the distribution channel. In 2018, the hypermarkets and supermarkets segment constituted the highest share of over 55% in the market. This medium dominated the market, since consumers prefer to accurately check items for quality, authenticity, before purchasing a product.

The growing proliferation of internet networks and smartphones along with better convenience offered by e-commerce platforms is gaining traction among consumers. For example, online grocery shops such as FreshDirect and eButler offer a variety of frozen bakery products. Thus, the availability of a wide range of products is encouraging consumers to purchase frozen food products. In April 2019, 56% of the world population use internet connectivity and this trend is expected to surge in the forecast period. These factors are anticipated to foster the demand for frozen bakery products.

Regional Insights 

In 2018, Europe contributed to a significant market share of 34.5% in the overall market.  Germany held the largest share in Europe, in the same year. It is expected that the catering industries and tourism expansion in European countries such as the UK, Italy, and Germany will offer substantial growth opportunities over the next few years. Customers prefer easy and ready-to-use items for breakfast, which has helped to drive the demand for the product. Additionally, the availability of bakery products with zero gluten has led to the growth of the product among health-conscious consumers.  

Owing to the presence of developing economies such as China, and India, the Asia Pacific region is expected to have the highest growth over the forecast period. Furthermore, the rising influence of modern culture and increasing disposable income are also expected to proliferate the market growth.

Frozen Bakery Market Share Insights

Leading players in the market include Kellogg Company; General Mills, Inc.; Cargill Corporation; Conagra Brands Inc.; Custom Foods, Inc.; Bridgford Foods Corporation; Vandemoortele N.V.; Associated British Foods plc; Cole’s Quality Foods Inc.; Europastry; and Flowers Foods; and others.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For this study, Million Insights has segmented the global frozen bakery market report based on Product, constituent, distribution channel, and region:

• Product Outlook (Revenue, USD Billion, 2015 - 2025)
    • Bread
    • Cakes & Pastries
    • Doughnuts & Pies
    • Pizza
    • Novelties

• Distribution Channel Outlook (Revenue, USD Billion, 2015 - 2025)
    • Supermarkets & Hypermarkets
    • Bakery Stores
    • Convenience Stores
    • Online

• Regional Outlook (Revenue, USD Billion, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Germany
        • U.K.
        • France
    • the Asia Pacific
        • China
        • India
        • Japan
    • Central & South America
    • Middle East & Africa (MEA)