The frozen bakery market is expected to grow substantially by 2027 owing to mounting demand for ready-to-eat convenience food products across the globe.
Frozen bakery products are ready-to-consume, long-lasting food products that have a shelf life of up to 18 months. These products are stored in a natural way by deep freezing, which prevents their microbiological degradation. Sophisticated technologies involved in the production, storage, and distribution of these products ensure easy shipment across different geographies.
The freezing technology facilitates the production of a wide variety of baked goods while limiting wastage, which has positively influenced the product outlook. Moreover, increasing demand for safe and sustainable convenience bakery products has propelled industry expansion in recent years.
Notably, major industry participants are employing lucrative strategies to cater to emerging market trends, which has been favorable for the global business landscape. For instance, in June 2021, Flower Foods, Inc., a key producer of packaged bakery products, announced the acquisition of assets of Koffee Kup Bakery, Inc. (KKB), a major supplier of bakery products. The acquisition allowed Flower Foods to expand its production capacity and extend its product offerings to Koffee Kup’s consumer base.
To cite another instance, in August 2021, Tyson Foods, Inc., a global food company, announced a significant investment of USD 300 million towards the construction of a 325,000-square-foot manufacturing plant in Danville, Virginia. Tyson Foods aimed to expand its production capabilities to accommodate rising demand in the region.
The global frozen bakery market has been categorized on the basis of product, recipe, end-user, and region. In terms of recipe, the market has further been bifurcated into patisserie, bread, viennoiserie, and savory snacks.
The patisserie sub-segment is slated to amass considerable gains by 2027, registering a CAGR of around 4.7% over the analysis period. Mounting demand for gluten-free foods, natural ingredients, and organic products is likely to fuel segmental growth in the coming years.
Based on product, the frozen bakery market has been segmented into ready-to-bake, ready-to-prove, and fully baked. The fully baked sub-segment is calculated to expand at a CAGR of approximately 4.5% over the assessment timeframe. Fully baked products include fermented and baked dough products that solely need heating prior to consumption. Bakery chains, hotels, and food service restaurants are the major end-users of fully baked products.
Based on end-user, the market has been segregated into artisan bakers, convenience stores, hypermarkets & supermarkets, bakery chains, and hotels, restaurants, and catering (HORECA). The convenience stores sub-segment held a market share of more than 9.0% in 2020 and is anticipated to progress at a considerable pace over 2021-2027. Some prominent convenience stores are Wal-Mart, Mom and Pops, Montserrat, and SMU, among others.
Meanwhile, the bakery chains sub-segment is estimated to progress at over 4.5% CAGR through the review period driven by the surging demand for bread and other bakery products from average households.
From the regional perspective, the Middle East & Africa frozen bakery market is foreseen to grow at a CAGR of above 5.5% over the forecast timeline. Product consumption in restaurants is speculated to be more than consumption in households across MEA, which is set to impact regional market growth through the study timeframe.