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The cakes market size is forecast to increase by USD 10,046.9 billion and is estimated to grow at a CAGR of 3.6% between 2023 and 2028. The cake market is experiencing significant growth, driven by several key trends and factors. The increasing population of millennials, who are more inclined toward convenience foods, is fueling the demand for cakes. Additionally, the rising preference for sugar-free bakery products due to health consciousness is another growth factor. However, the market may face restraints due to the increasing obesity rates, leading to a growing awareness of healthier food options. Furthermore, the market is witnessing innovation with the introduction of vegan and gluten-free cakes, catering to diverse consumer preferences. Overall, the cake market is expected to continue its growth trajectory, driven by these trends and factors.
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The market is a significant segment of the bakery industry, encompassing custom cakes, ready-to-eat food, and various baked goods. This market is witnessing growth due to increasing consumer preferences for healthier options, including sugar-free baked goods and vegan pastries. Millennials and Generation Z are driving the demand for convenience food and healthy food options, leading to innovative product launches and corporate strategies. Custom cakes continue to be popular for various occasions, while the artisanal bakery sector emphasizes clean-label and gluten-free products. Health claims and healthy food options are increasingly influencing consumer choices, with an emphasis on natural and organic ingredients. Morrisons and other retailers are capitalizing on these trends by expanding their offerings in this area. Product innovations, such as sugar-free and vegan cake alternatives, are expected to further fuel market growth. Overall, the market is poised for continued growth, driven by changing consumer preferences and innovative product offerings. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The growing millennial population is more inclined toward convenience foods is notably driving market growth. The bakery industry is experiencing a shift towards custom cakes and ready-to-eat food items that cater to consumers' increasing demand for healthy, personalized, and natural options. This trend is particularly prevalent among millennials and Generation Z, who prioritize food quality, taste, and appearance while being pressed for time.
Moreover, these consumers seek transparency and simpler ingredient labeling, with a growing preference for companies that align with their values, such as supporting ethical supply chains and giving back to the environment and community. As a result, manufacturers and retailers in the bakery sector are adopting strategies to meet these demands, including product innovations in the areas of sugar-free baked goods, vegan pastries, and gluten-free options. Thus, such factors are driving the growth of the market during the forecast period.
Rising demand for sugar-free bakery products is the key trend in the market. The bakery industry is witnessing significant growth due to the increasing demand for custom cakes and ready-to-eat food items. With the rise of health-conscious consumers, particularly among millennials and Generation Z, there is a growing preference for health claims in baked goods.
Moreover, supermarkets like Morrisons are responding to this trend by offering a wider range of vegan pastries, sugar-free baked goods, and healthy food options. Product innovations in the bakery sector include the adoption of clean-label and gluten-free ingredients, catering to the diverse dietary needs of consumers. Thus, such trends will shape the growth of the market during the forecast period.
Increasing obesity may cause restrain to market is the major challenge that affects the growth of the market. The bakery industry is witnessing significant shifts in consumer preferences towards healthier options, as obesity and related health issues become a major global concern. Custom cakes and ready-to-eat food items are giving way to vegan pastries, sugar-free baked goods, and gluten-free alternatives.
Moreover, millennials and Generation Z are leading this trend, with a growing demand for product innovations that cater to their clean-label and healthy food options. Participants in the bakery market, including Morrisons and convenience stores, are adopting strategies to meet this demand. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
American Baking Co: The company offers cakes such as vanilla cake, carrot cake and chocolate cake.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The dessert cakes segment is estimated to witness significant growth during the forecast period. The bakery industry is witnessing significant growth, particularly in the custom cakes segment, as consumers seek unique and personalized offerings for various celebrations.
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The dessert cakes segment was the largest segment and valued at USD 23,697.53 billion in 2018. Ready-to-eat food continues to be a popular trend, with health claims driving demand for vegan pastries, sugar-free baked goods, and gluten-free options. Millennials and Generation Z are key consumers in this market, favoring convenience food and product innovations that align with their health-conscious lifestyles. Major retailers like Morrisons are responding by expanding their bakery offerings to cater to these trends. The artisanal bakery sector is also thriving, with a focus on clean-label and healthy food options. Hence, such factors are fuelling the growth of this segment during the forecast period.
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Europe is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The bakery industry is witnessing significant growth, particularly in the custom cakes segment, as consumers seek unique and personalized offerings for various celebrations. Ready-to-eat food continues to be a popular trend, with health claims driving demand for vegan pastries, sugar-free baked goods, and healthy food options. Major retailers like Morrisons are adopting strategies to cater to the millennial and Generation Z demographics by offering product innovations in the convenience food sector. Hence, such factors are driving the market in Europe during the forecast period.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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The rise of artisanal bakery products has transformed the way consumers indulge their cravings for freshly baked goods. As changing lifestyles and cafe culture evolve, there's a growing demand for health-conscious options that cater to the diabetic population and those with dietary restrictions. Innovative food options now include fusion desserts that blend traditional flavors with modern twists, satisfying diverse tastes. Incorporating natural ingredients like fruit, nuts, and caramel, many specialist retailers and artisanal bakeries are moving away from additives like high-fructose corn syrup and excess sodium. Instead, they focus on customization in bakery products, offering choices in flour, sugar, eggs, milk, butter, and even shortening. Additionally, the influence of celebrity chefs and digital media has led to food experiments that inspire unique and innovative products. The availability of online stores and ecommerce platforms has made it easier for consumers to access instore bakery products, frozen cakes and pastries, and bulk packs. With the convenience of online food delivery services, supermarkets and hypermarkets can meet the needs of children, adults, and seniors alike, offering a variety of individual servings and family packs for every occasion.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.6% |
Market growth 2024-2028 |
USD 10,046.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.33 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
Europe at 30% |
Key countries |
US, China, Italy, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
American Baking Co., ARYZTA AG, Barilla G. e R. Fratelli Spa, BreadTalk Group Pte Ltd., Britannia Industries Ltd., Campbell Soup Co., Corporativo Bimbo SA de CV, Dan Cake AS, EDEKA ZENTRALE Stiftung and Co. KG, Edwards Cake and Candy Supplies LLC, EUROPASTRY SA, Finsbury Food Group Plc, Flowers Foods Inc., General Mills Inc., McKee Foods, Premier Foods Plc, The J.M Smucker Co., WW International Inc., Yamazaki Baking Co. Ltd., and Yildiz Holding AS |
Market dynamics |
Parent market analysis, market report , market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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