Market Trends of Frozen Bakery Industry
Demand for Convenient and Healthy On-the-go Snacking
Convenient frozen bakery goods, such as pastries, croissants, muffins, and pies, are becoming increasingly popular, particularly among the working population and students owing to their hectic lifestyles. Furthermore, the increased consumer demand for nutritious and clean-label products has led to increased product launches with various label claims, such as no artificial additives, no preservatives, non-GMO, and reduced sugar. For instance, in January 2024, Gâteaux, a frozen dessert company, launched its new petit-sized cake line. The small-size cake line offers gourmet desserts in a convenient and smaller configuration. The company aimed to bring the taste of French pâtisserie to consumers and offer a combination of convenience, a clean label, and exceptional flavor through the launch of a small-sized frozen cake. Furthermore, frozen bakery products are witnessing high demand compared to conventional products due to their extended shelf life.
North America is the Largest Market
Frozen bakery product sales in the United States are driven by the expanding food service sector and the increasing demand for convenience food products. The rapidly growing hotel and restaurant market in the United States is a major contributor to the growth of frozen bakery products, as food service chains prefer to use readily available bakery goods. Additionally, though rising food prices have become a primary concern for Canadian families, the relative affordability of baked goods, particularly when compared to bigger-ticket grocery items such as meat and seafood, is driving consumers to consider frozen bakery foods in their daily diets. Moreover, consumers are willing to pay more for bakery items, particularly those featuring higher-quality flour, chocolate, and other ingredients. This allows manufacturers to develop new products with specific ingredients offering additional health benefits. Therefore, the market studied in the region is majorly driven by the increasing consumer spending on restaurants and cafes and the number of players offering frozen bakery products in convenient and ready-to-eat packaging formats.
