Frozen Bakery - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Frozen Bakery Market size is estimated at USD 33.08 billion in 2024, and is expected to reach USD 41.42 billion by 2029, growing at a CAGR of 4.60% during the forecast period (2024-2029).

Key factors contributing to the growth of frozen bakeries include a rising preference for convenient food and the popularity of specialty frozen bakery products. Intra-industry competitiveness is high and affects the market. The cake and pastry segment is on the rise in the frozen bakery products market. With the growing demand for premium and customized cakes, the overall cake market witnesses increased demand. The demand for healthy and convenient food that can be consumed instantly is on the rise due to the fast-paced lifestyle and the need for quick meals or snacks among adults. Frozen bakery products are considered to provide these benefits, as most of them can be cooked quickly for consumption. These factors propel the market growth.

On-the-go snacking is becoming extremely popular, especially among the working-class , teenagers, people living in hostels, and bachelors, due to their hectic lifestyles. Moreover, the on-the-go snacking concept is closely associated with the easy consumption and handling of products. Thus, the demand for frozen bakery products is increasing due to the linked convenience of consumption, aided by innovative flavors and ingredients and the taste preference of consumers. The frozen bakery industry is driven by the increasing demand for specialty goods, constituting functional ingredients. Oats, legumes, nuts, probiotics, cereals, and fortified margarine are some of the functional ingredients used to enhance the nutritional value of frozen bakery products. Almost every bakery product can be customized per the customer's needs and requirements. Thus, the flexibility and the ease of customization make the specialty frozen baked products market more lucrative.

Frozen Bakery Market Trends

Growing Demand for Ready-to-Bake Bakery Products

In line with their changing lifestyles, consumers are also working toward maintaining a healthier life. Owing to busy routines in line with increasing working shifts, consumers are looking for certain healthy, convenient, and light food, such as slices of bread, etc. Bake-off bakery production has become one of the key targets for almost all industrial bakers in Europe. Scratch baking is labor-intensive and requires a long time. The industry is shifting from traditional baking to Bake-off technologies (BOT). Three key BOTs are unfermented frozen dough (UFD), partially-baked frozen bread (PBF), and partially-baked unfrozen bread (PBUF). Frozen semi-baked goods and ready-to-bake goods are also important product segments for the food sector, especially for hotels and the catering industry. Pre-proofed frozen dough is also a convenient alternative to fresh-baked bread. Bakery products, like bread, rolls, and bagels, are majorly served as ready-to-thaw products, while croissants and pastries are available in the ready-to-bake form. According to Agriculture and Agri-Food Canada, in 2021, 4.1 thousand metric tons of frozen baked goods were projected to be sold in retail. When compared to numbers predicted for 2020, this was an increase of 100 metric tons, and when compared to projections from 2017, it represents an increase of almost 8%.

Europe is the Largest Regional Market

Europe leads the bakery market globally, and so does its frozen bakery industry. The Western European frozen bakery products market is matured and saturated, as compared to the emerging markets of Eastern Europe, which are driving the sales of biscuits and bread, in particular, owing to the high demand for convenient food products. The European frozen bakery market is well-established in terms of the supply chain, product array, distribution channels, and consumer preferences. Innovation and new product developments are gaining prominence in the indulgence category, which includes cakes, pastries, and cookies. Co-operatives and industrial baking companies dominate the European frozen bakery market, especially due to their ability to produce high-quality and consistent part-baked products.

Frozen Bakery Industry Overview

The market studied is highly competitive in nature due to the presence of both domestic and international players. The major players in the industry include Europastry SA, General Mills, Inc., Conagra Brands, Inc., Aryzta AG, and Rhodes International, Inc. Key players are majorly focusing on product development and product innovation to meet consumers' needs by offering a variety in taste and in the product's quality to maintain premiumization. Some of the major players use mergers and acquisitions as their key strategy to sustain and secure a leading position in the industry. This will enable companies to maintain dominance over other players and ensure strong competition in the market.

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