Southeast Asia Bakery Products Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.60 % |
| Market Concentration | Low |
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*Disclaimer: Major Players sorted in no particular order |
Southeast Asia Bakery Products Market Analysis
The Southeast Asia Bakery Products Market size is expected to grow from USD 10.89 billion in 2023 to USD 14.99 billion by 2028, at a CAGR of 6.60% during the forecast period (2023-2028).
- The South East Asian bakery products market is seeing an increasing demand for value-added products, particularly those that offer health benefits, specific certifications such as halal and kosher, freshness, and innovative flavors. In response to rising concerns about obesity, many companies in the region have begun to offer healthier baked goods, including high-fiber bread, gluten-free ranges, and low-fat flatbreads. Additionally, busy lifestyles and rising incomes, particularly among millennials, have led to increased demand for on-the-go snack sizes, prompting companies to offer products in convenient sizes and packaging.
- Consumers are increasingly becoming more conscious of the ingredients in their food and are seeking high-quality, better-for-you options. Many consumers also prefer simple and plain meals for snacks, which has driven demand for healthy bakery products with minimal flavors. As a result, products such as digestive biscuits, plain crackers, and other similar items are perceived as healthier alternatives, further driving the market growth. Many companies are launching healthier products in response to this trend, such as Nextar's new wheat digestive biscuits, which contain nutritional fiber and come in two varieties: chocolate and cheese.
- The growth of urbanization and the working population has significantly increased the importance of bakery products as a significant portion of the diet, particularly among the middle and lower segments of the population. The trend towards out-of-the-home consumption and the demand for instant and nutritious products are driving the need for bakery products across the South Asia bakery products market.
Southeast Asia Bakery Products Market Trends
Surge in Demand for Specialty and Healthy Bakery Products
- There has been a significant increase in the demand for natural and organic food products as consumers become more aware of the adverse health effects of consuming synthetic food ingredients that do not comply with governmental standards. In Southeast Asia, consumers are adopting Western-style diets that contain wheat and high protein content.
- Thai consumers, in particular, are seeking healthier diets, which has prompted companies to produce gluten-free baked goods and natural bakery products. Mondelez launched its gluten-free Oreo chocolate sandwich cookies in 2021, and this increased consumer demand for nutritious products and clean-label claims has accelerated market growth in the region.
- Consumers perceive their food as an opportunity to experience various tastes and textures, and they are more inclined to products that position themselves as natural and healthy. Market players are responding to this trend by incorporating "superfood" seeds into their offerings, such as chia seeds, which are rich in proteins and calcium. Oat Krunch, a brand of Munchy's group, offers healthy crackers made using oats and chia seeds. Oat Krunch is a source of fiber, is trans-fat-free, has no preservatives, and is available in dark chocolate, strawberry, and blackcurrant variants.
- The bakery industry has recently witnessed the establishment of a combination of bakeries, restaurants, cafes, and catering services. These bakery cafes or cake houses offer various products in different flavors, and the increasing demand for artisanal and healthy bakery products is further driving the bakery products in the market.
Indonesia as the Dominant Region in the Market
- The demand for bakery products in Indonesia is steadily increasing as consumers recognize them as a meal rather than just a snack. This rising consumption can be attributed to changing lifestyles, improving incomes, urbanization, and westernization.
- Consumers are now seeking unique offerings that fulfill halal requirements and offer authentic Indonesian flavors. Despite various factors affecting purchase decisions, such as cost, healthfulness, convenience, and sustainability, taste remains the primary motivator for food and beverage purchases across different baked product categories, according to the International Food Information Council Foundation.
- The German-Indonesian Chamber of Industry and Commerce reported that as of 2021, there were more than 640 registered bakery product companies operating in Indonesia, which includes both small and large enterprises. This highlights the significant growth of the bakery industry in Indonesia and the increasing competition in the market.
- Additionally, the increasing popularity of online food delivery services is contributing significantly to the growth of bakery product sales in the country. This has led to the emergence of new players in the e-commerce bakery market. One such example is Paris Baguette, a bakery company owned by SPC Group, which entered Indonesia in October 2021 and opened its first franchise location in Jakarta. The South Korean bakery and food manufacturer established a joint venture with Erajaya Group in Indonesia to tap into this market trend.
Southeast Asia Bakery Products Industry Overview
The Southeast Asia bakery products market is characterized by a high degree of fragmentation, with many organized and unorganized players offering a variety of products. Among the key players in the market are QAF Limited, President Bakery Public Company Limited, PT Nippon Indosari Corpindo TBK, CP All Public Company Limited, and Mondelēz International, Inc.
One of the primary strategies adopted by these leading bakeries and companies operating in the bakery products market is product innovation. They focus on developing new flavors, attractive cakes, artisanal product designs, and eye-catching packaging to increase brand sales and attract target consumers.
To maintain their position in the market, companies are increasing their investments in research and development (R&D) and marketing and expanding their distribution channels. They are also adopting competitive strategies by investing in the development of low-calorie and low-sugar bakery goods to attract consumers with health issues.
Southeast Asia Bakery Products Market Leaders
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QAF Limited
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President Bakery Public Company Limited
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PT Nippon Indosari Corpindo TBK
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CP All Public Company Limited
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Mondelēz International, Inc
*Disclaimer: Major Players sorted in no particular order
Southeast Asia Bakery Products Market News
- July 2022: In accordance with the "Agreement on the Promotion of Domestic Wheat Consumption signed with the Ministry of Agriculture Food and Rural Affairs," SPC Samlip introduced four different types of domestic wheat bakeries. The new item is available in Nonghyup Hanaromat and e-mart locations nationwide.
- February 2022: Mondelez expanded its production line of Oreo biscuits in Indonesia's Cikarang. The company revealed that it invested USD 23 Million in the production facility. The company claimed the new production line had cutting-edge technology and boasted a low carbon emission footprint.
- July 2021: President Bakery Public Company collaborated with Ovaltine to launch two new co-branded products under its Farmhouse brand, featuring Ovaltine, to deliver a crunchy texture. The new products include dorayaki, biscuits, ice creams, and a bun filled with Ovaltine.
- June 2021: SPC Group has opened its first Paris Baguette bakery franchise in Cambodia, with the first branch being launched in the country's capital city. This Korean bakery brand has gained a reputation for quality and is owned by the well-established firm SPC Group. The partnership with Cambodia's HSC Group to open the first Paris Baguette store in Phnom Penh is a promising development, given the country's growing economy and expanding middle class.
Southeast Asia Bakery Products Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Product Type
- 5.1.1 Bread
- 5.1.2 Sweet Biscuit
- 5.1.3 Crackers and Savory Biscuits
- 5.1.4 Cakes, Pastries and Sweet Pies
- 5.1.5 Morning Goods
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5.2 Distribution Channel
- 5.2.1 Supermarkets/ Hypermarkets
- 5.2.2 Specialty Stores
- 5.2.3 Convenience/Grocery Stores
- 5.2.4 Online Retail Stores
- 5.2.5 Other Distribution Channels
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5.3 Geography
- 5.3.1 Indonesia
- 5.3.2 Malaysia
- 5.3.3 Vietnam
- 5.3.4 Thailand
- 5.3.5 Philippines
- 5.3.6 Myanmar
- 5.3.7 Singapore
- 5.3.8 Rest of Southeast Asia
6. COMPETITIVE LANDSCAPE
- 6.1 Strategies Adopted by Leading Players
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 PT Nippon Indosari Corpindo TBK
- 6.3.2 President Bakery Public Company Limited
- 6.3.3 Mighty Bakery SDN BHD
- 6.3.4 Mondelēz International, Inc.
- 6.3.5 QAF Limited (Gardenia Bakery KL SDN BHD)
- 6.3.6 Variety Foods International Company Limited
- 6.3.7 Lotte Confectionery Co. Ltd
- 6.3.8 JG Summit Holdings (Universal Robina Corporation)
- 6.3.9 PPB Group Bhd
- 6.3.10 CP All Public Company Limited
- 6.3.11 SPC Samlip Co. Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablitySoutheast Asia Bakery Products Industry Segmentation
Bakery products include a range of products like bread, rolls, cookies, pies, pastries, and muffins are typically made with flour or meal that comes from grains of some kind.
The Southeast Asia bakery products market has been segmented by product type, distribution channel, and geography. By product type, the market studied is segmented into bread, sweet biscuits, crackers and savory biscuits, cakes, pastries, sweet pies, and morning goods. By distribution channel, the market has been divided into supermarkets/hypermarkets, specialty stores, convenience/grocery stores, online retail stores, and other distribution channels. By geography, the market is segmented into Indonesia, Malaysia, Philippines, Vietnam, Thailand, Singapore, Myanmar, and the Rest of Southeast Asia.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Product Type | Bread |
| Sweet Biscuit | |
| Crackers and Savory Biscuits | |
| Cakes, Pastries and Sweet Pies | |
| Morning Goods | |
| Distribution Channel | Supermarkets/ Hypermarkets |
| Specialty Stores | |
| Convenience/Grocery Stores | |
| Online Retail Stores | |
| Other Distribution Channels | |
| Geography | Indonesia |
| Malaysia | |
| Vietnam | |
| Thailand | |
| Philippines | |
| Myanmar | |
| Singapore | |
| Rest of Southeast Asia |
Southeast Asia Bakery Products Market Research FAQs
What is the current Southeast Asia Bakery Products Market size?
The Southeast Asia Bakery Products Market is projected to register a CAGR of 6.60% during the forecast period (2024-2029)
Who are the key players in Southeast Asia Bakery Products Market?
QAF Limited , President Bakery Public Company Limited, PT Nippon Indosari Corpindo TBK, CP All Public Company Limited and Mondelēz International, Inc are the major companies operating in the Southeast Asia Bakery Products Market.
What years does this Southeast Asia Bakery Products Market cover?
The report covers the Southeast Asia Bakery Products Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Southeast Asia Bakery Products Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key distribution channels for bakery products in Southeast Asia?
The key distribution channels for bakery products in Southeast Asia are a) Traditional stores b) Modern supermarkets c) E-commerce platforms
Southeast Asia Bakery Products Industry Report
The Southeast Asia Bakery Products Market is experiencing significant growth, driven by evolving consumer preferences and demographic shifts. The market is segmented by product type, including bread, sweet biscuits, crackers and savory biscuits, cakes, pastries, sweet pies, and morning goods. Distribution channels include supermarkets/hypermarkets, specialty stores, convenience/grocery stores, online retail stores, and other distribution channels, covering regions such as Indonesia, Malaysia, Vietnam, Thailand, Philippines, Myanmar, Singapore, and the rest of Southeast Asia.
Increasing health awareness among consumers is leading to a rising demand for bakery products that offer health benefits and meet criteria such as halal and kosher. High-fiber, gluten-free, and low-fat options are increasingly popular among health-conscious individuals. The market size is expanding as urbanization and rising incomes make bakery products a staple in daily diets across various segments. The trend towards healthier snack options and natural ingredients like chia seeds and oats is evident.
Innovation in flavors and sizes is catering to the fast-paced lifestyles of consumers. The fusion of bakeries with cafes and restaurants is broadening product offerings and enhancing the customer experience. Online food delivery services are also widening market access, contributing to market growth. Despite a fragmented competitive landscape, continual innovation in product development and packaging aims to meet diverse consumer preferences, emphasizing the market’s readiness to adapt to sustainable and innovative practices.
The market report highlights the growth rate and industry analysis, providing valuable industry information and an industry outlook. Industry reports and industry research offer insights into industry sales, industry size, industry statistics, and industry trends. Market data and market forecast are crucial for understanding market growth and identifying market leaders. The market outlook and market overview provide a comprehensive view of market predictions, market review, market segmentation, and market value. For detailed industry insights, a report example or report pdf can be downloaded. Research companies are actively involved in providing market analysis and market trends, ensuring that the industry remains dynamic and responsive to consumer needs.
