Market Trends of Asia-Pacific Bakery Products Industry
This section covers the major market trends shaping the APAC Bakery Products Market according to our research experts:
Surge in Demand of Clean Label and Free-From Foods
There has been a significant increase in the demand for natural, organic, and good-for-health food products among Asia-Pacific consumers in recent years. Free-from, natural, and organic-claim products have started to witness soaring demands in countries like China, Japan, and Australia, and the concept has been invading other countries as well. Increased consumer demand for nutritious products and the rising clean-label claims due to the rise in consumption of organic bakery products by consumers due to their growing environmental concerns and improvement in the standard of living have propelled the market's growth. Further, the increased support from the government to promote organic food product consumption due to their associated health benefits is anticipated to boost market growth. Product launches with various label claims, such as organic, no artificial additives, non-GMO, and reduced sugar, have quietly benefited customers in recent years.
Health and wellness issues have a significant influence on the baking industry, driving innovations and novel product developments. Gluten-free bakery products are witnessing robust growth owing to the rising trend of free-from foods. Free-from foods such as gluten-free, lactose-free, and chemical-free are perceived to be healthier and safer as compared to traditional products. Gluten is believed to contribute to lifestyle-related health conditions such as obesity, diabetes, and cardiovascular diseases. The various health benefits associated with the consumption of gluten-free and organic products are expected to drive the growth of the clean-label and free-form products market in the foreseeable future. For instance, in May 2022, Arnott introduced new gluten-free products. As part of the gluten-free range, three new biscuit products were available on the shelves. Mint Slice, Shortbread Cream, and TeeVee Snacks Original are gluten-free options for individuals who want to avoid gluten. The new range is made in Australia with a gluten-free flour blend of maize, tapioca, rice, sorghum, and soy.
China Continues to Dominate the Regional Market
China's bakery industry has been expanding rapidly with changing lifestyles and diets. It is the world's second-most significant baking goods retail market. The robust economic growth that China witnessed in the last decade led to rising affluence, urbanization, and the growing influence of Western culture, all of which collectively contributed to the overall demand for baked goods. Chinese consumers are known to prefer cakes, pastries, and sweet pies; their attraction to bread and bread rolls is comparatively lower than that of western consumers. Rising disposable income combined with new varieties and an expanding bakery presence in retail, e-commerce, hypermarkets, supermarkets, and other platforms are filling the gap between consumers and companies. In China, introducing Western innovations is replacing traditional bakery items. The rising popularity of "snacking-on-the-go" and "pick-me-up" products also makes China a potential market for baked snacks. In addition, a growing number of Western restaurants offering baked goods in cities in the second and third ranges is also emerging rapidly, giving an overall boost to the demand for bakery products. The rapid expansion of artisanal bakeries in the last few years has made Chinese consumers opt for fresh baked goods, such as cakes and bread. Unpackaged and artisanal baked goods are mostly sold through bakeries. However, their share is decreasing in the wake of emerging packaged and industrial players having well-established distribution networks and deeper market penetration.
