Ovens On! Global Baked Goods Sector Attracts Investment

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Written by Jennis Jacob for Industrial Info Resources (New Delhi, India)

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Summary

The global bakery products market is evolving due to rising consumer demand, developing lifestyles, and innovation across conventional and artisanal bakeries. Globally, the sector is forecast to reach US$734.5 billion by 2030, at a growth rate of 4.6% from 2023 to 2030.

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Demand Up for Baked Goods

As lifestyles become busier and disposable incomes rise, aspirational buying is driving stronger demand for ready-to-eat and grab-and-go bakery products. For example, frozen baked goods are rising in popularity as they offer cost-saving convenience and extended shelf life without compromising on taste or quality. E-commerce is further accelerating baked-goods demand as fast-growing online sales rise through direct-to-customer platforms and rapid-delivery logistics.

At the same time, health consciousness is reshaping bakery product development with significant innovation around whole grains, reduced-sugar formulations, gluten-free lines, high-protein and fiber-rich baked goods. Additionally, a veganism-inspired surge in plant-based, fortified and alternative-protein baked goods has contributed to the sector's growth.

While industrial-scale bakeries remain central to the market, the rise of artisan, organic and locally sourced baked goods is adding to the sector's overall demand. Furthermore, bakeries are now adopting eco-friendly packaging, clean-label recipes and responsible sourcing, which resonates with younger, more environmentally conscious consumers.

Across the Globe

Industrial Info is tracking 1,116 active capital baked goods projects across the globe, worth more than US$17 billion. While 30% of the spending is going toward equipment additions, 28% is focused on grassroot developments, and 27% on plant expansions. Subscribers to Industrial Info's Global Market Intelligence (GMI) Food & Beverage Project Database can learn more from a list of detailed project reports.

By segment, about 67% of the overall spending is focused on bread and bakery products (except cookies and crackers). A significant amount of investment is going toward production of cookies and crackers (10%) and frozen bakery products (4%).

Europe is attracting about 45% of the total spending, equivalent to more than US$7 billion. Asia and North America account for more than US$4 billion (28%) and US$3 billion (21%), respectively.

By country, the most potential spending is in France, equivalent to more than US$4 billion. The U.S. accounts for more than US$3 billion, and China more than US$2 billion. Countries like Germany, Brazil, South Korea, Kazakhstan, the U.K. and Japan also are attracting potential spending.

With an aggregate spending of more than US$5 billion, La Fournee Doree (Pays de la Loire, France), Groupe Le Duff (Bretagne, France), Lotte Group (Seoul, South Korea) and Grupo Bimbo SAB de CV (Distrito Federal, Mexico) are emerging as the key players in the market.

Overall, 66% of the spending is in the planning phase, 14% is in the engineering phase, and 20% is under construction. A majority of the projects are expected to reach fruition by April 2030, with the remaining getting completed by March 2032.

By the Numbers

• 1,116: Active capital baked goods projects being tracked across the globe
• 67%: The portion of the spending focused on bread and bakery products
• US$4 billion: The amount of potential spending in France

While the baked goods sector continues its gradual expansion, the industry faces challenges including volatile raw material prices and regulatory hurdles for healthier formulations. However, by sustainably balancing cost and innovation, investors are likely to meet future consumers where they are--both in stores and online.

Key Takeaways

• Frozen baked goods are rising in popularity.
• Artisan, organic and locally sourced baked goods is adding to the sector.
• France is responsible for the largest amount of potential investments.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).