Bakery industry trends header

Bakery industry trends: a paradox of preferences

Bakery industry trends

The outlook for the bakery industry is generally positive, with the value of global sales expected to grow at a CAGR of 6% to reach $521 billion in 2020.

Bread and biscuits remain the dominant categories, with cakes and pastries the fastest growing. Geographically, growth in the industry is driven by increased consumption in emerging and developing countries.

In mature markets, demand for traditional bakery products or the staples is declining, while sales of “healthy” baked goods with natural and organic ingredients are growing.

Changing preferences are shaping the future

Among the key trends impacting the industry in recent times have been increased health consciousness among consumers and, paradoxically, growth in consumption of indulgence food. Many consumers view bakery products as unhealthy.

Yet this isn’t slowing consumption; instead it presents an opportunity to strike the right balance within the consumer’s perception. They prefer freshness, taste/flavour and price over health benefits.

This indicates that despite the ever-increasing importance of health benefits, bakery products are at the pleasure end of the pleasure-sustenance spectrum in the minds of consumers. Companies will need to ensure that their products fit within that spectrum.

Influenced by rising health consciousness, demand for healthier and nutritional fortified bread has increased, and the fastest growing brands are those that specialise in innovative “healthy” bakery products, made from high-quality ingredients and that target demand for “free-from” and convenience food.

Staying on top of the game

In the full report, we take an in-depth look at the bakery industry, examining the main factors driving growth in the market and providing our expert perspective on how companies can stay on top of the competition.

Bakery industry trends: the latest insights

Employing technical innovations that improve processes and help reduce costs can be just as important as tailored product innovations in the bakery industry, and companies must explore all bases from product to process innovations to ensure growth in sales and profits.

At Farrelly Mitchell, we provide in-depth analysis of consumer preferences and market trends in the bakery & confectionery industry, as well as the broader agrifood landscape. Our consultants hold decades of experience throughout the food value chain, supporting business growth strategies from farm to fork, and including foodservice & retail, processing & manufacturing, and sales & distribution processes. We can correctly identify growth opportunities and trends and develop strategies to seize them for maximum business growth and customer satisfaction. Get in touch with our team today to learn more.


Related services and expertise

Download our Agribusiness Report

Bakery industry trends: a paradox of preferences


Managing Partner
Trending insights

✎ Subscribe today

Stay up to date with the latest agribusiness publications.

More insights

7 min read
  • CEA
  • Agtech
Vertical farming systems promise to make massive changes to global food production, however challenges remain for investors and operators. . . .
6 min read
Our agribusiness expert discuss how agribusiness marketing strategies can drive sustainability and meet consumer demand for ethical, eco-friendly, and local . . .

Subscribe to our newsletter

Receive the latest updates from the agribusiness world, including fresh insights and more, directly in your inbox.

Get in touch

Our team are ready to help you on the pathway to achieving your goals in food or agribusiness.

This form collects your name, email address and contact number so that Farrelly Mitchell can communicate with you and provide assistance. Please check our privacy policy to see how we protect and manage your submitted data.

Speak with our food & agribusiness experts

Want to call us directly? We’d love to hear from you.
Here’s how you can reach us.
Office Location
Unit 5A, Fingal Bay Business Park, Balbriggan Co. Dublin Ireland. K32 EH70