The global frozen bakery products market is expected to reach USD 53.36 billion by 2028, at a CAGR of 7.26% from 2021 to 2028. The growing demand for frozen bakery products in the food service industry, the rising popularity of convenience foods, the expanding urban population, and the increasing preference for ready-to-eat food products are some of the major factors driving the growth of this market.
Frozen bakery products are convenient and easy to use, as they do not require any additional preparation. They are available in various forms, such as dough, cakes, pastries, pies, and bread. The increasing demand for frozen bakery products from food service outlets, such as restaurants, cafes, and hotels, is fueling the growth of the frozen bakery products market.
The expanding urban population and the growing disposable incomes of consumers are some of the key factors driving the demand for convenience foods. This, in turn, is expected to bolster the growth of the frozen bakery products market. In addition, the increasing awareness of the health benefits of consuming bakery products is expected to drive the demand for frozen bakery products, as they contain fewer preservatives and are free from artificial colors and flavors.
The growing preference for ready-to-eat food products among consumers is anticipated to be one of the major factors driving the demand for frozen bakery products. The growing number of working women and their increasing demand for convenience foods are also expected to drive the growth of the frozen bakery products market.
The increasing demand for organic and healthy bakery products is also expected to drive the growth of the frozen bakery products market. Moreover, the rising number of health-conscious consumers is expected to boost the demand for organic and gluten-free bakery products, which is anticipated to drive the growth of the frozen bakery products market.
The emergence of online retail channels is also expected to fuel the growth of the frozen bakery products market. The increasing availability of frozen bakery products through online retail outlets is expected to bolster the growth of the frozen bakery products market.
Restraints of the Frozen Bakery Products Market
- High Capital Investment: Frozen bakery products require high capital investments for the production and distribution process. The high capital investments include the cost of raw materials, machinery, packaging materials, labor, etc. This can be a major restriction for small and medium-sized enterprises.
- Refrigeration and Transportation Issues: Refrigeration and transportation of frozen bakery products can be a major challenge. The products have to be stored in cold temperatures, which requires regular maintenance and monitoring. Furthermore, the transportation of frozen bakery products needs special equipment and vehicles to ensure that the products remain cold.
- Seasonality: The sale of frozen bakery products is affected by the seasonality of the product. For instance, the sale of frozen cakes, pies, and pastries is higher during the winter and summer holidays. This can pose a challenge for producers as they have to increase production to meet the seasonal demand.
The global frozen bakery products market is highly competitive, with major players such as General Mills, Inc., Kraft Heinz Company, Mondelez International, Inc., Nestle S.A., and Unilever PLC operating in the market. These companies are focusing on product innovation and new product launches to gain a competitive edge in the market.