San Jose, CA (Vocus/PRWEB) January 10, 2011
The global baking industry is currently facing opportunities as well as challenges created by the economic crisis. The still volatile financial scenario is changing the way bakers approach their businesses. On the consumption front, similar to the US, the bakery industry in Europe is witnessing a decline in traditional bakery products. However, the decrease in demand is being offset by rising purchase of bite-sized sweet goods, on-the-go breads, between-meal snacks, easy-to-carry sandwiches and such other products. There is an increase in the number of on-the-go bakery product introductions and new flavors to meet the requirements of the extremely mobile population of today.
With consumer preferences undergoing tremendous changes, bakers are literally on their toes suiting the product rollouts to the dynamic consumer preferences. Meeting the demands of the fast paced consumer lifestyles are single-serve, small-size bakery products, leading to an increasing demand for breads and rolls, donuts and pastries. There has also been a noticeable shift towards natural and healthy bakery products comprising of vitamins, whole grains and fibers. Bakers introduced organic baked goods, breakfast cereals, breads and biscuits, enriched with nutritional and natural ingredients in single-serve and portable packaging. Private label products gained considerable importance in retailing strategy of savory snacks, in spite of the disadvantage of ownership and management of inventory. In recent years, however, the bakery industry has been plagued with high costs of production and increase in raw material costs in real terms in many markets. Intense price pressure is another feature of the bakery products marketplace in many developed markets of the world.
Product appearance significantly influences impulse purchases of bakery items, and therefore constitutes an important consideration in the purchase of bakery products. Next to appearance is the aroma and price. Attractive displays play a vital role in making a purchase decision. Pre baked and freshly delivered products are among the fastest growing segments, while frozen dough and scratch mix products exhibit slow growth. On the regional front, the bakery industry in the US underwent significant changes owing to steady changes in consumer trends, which primarily leaned towards health, convenience and indulgence. Bakers were able to leverage these pockets of growth by capitalizing on the indulgence trend of consumers through suitable product innovations that focused on health and included functional variants. In-store bakeries are increasingly gaining significance in the bakery products market, especially in the sale of fresh, unwrapped bakery items. This trend is obvious in the continued expansion of major food retailing chains such as Tesco in the UK, and Carrefour in France. In developed countries the increased demand for functional foods has prompted companies to develop value-added baked goods. The global market for bakery products is being increasingly consolidated through the penetration of major multinational food companies. As a result, international brands like Oreos of Nabisco are expected to explore into hitherto unexplored territories.
With the tumbling of the global economy in the year 2009, an increasing number of consumers are pinching pennies and looking for low prices that would allow them to stretch their finances The recession resulted in price increase of bakery raw materials in the last few years. This coupled with rise in energy costs, resulted in the subsequent increase of bakery product prices. The market for bread and other bakery products suffered marginal decline during 2008. On the other hand, recession brought forth opportunities for cereals. Consumers looking for best value preferred the more reasonably priced breakfast cereal to other morning goods. Several bakers adopted a more careful approach during the recessionary period in terms of product innovations, as consumers were hesitant about spending money on new, unknown and untried products.
Several companies eliminated preservatives and artificial flavors in their products in a bid towards image changeover as makers of healthier and natural bakery products. About 35% of the global cereal product launches in the year 2009 claimed to be functional cereals with health benefits. The market for breakfast products in the UK sailed past the recession with ease, and the country witnessed an increase in the number of bakery businesses during the period. Baking industry in the US remained moderately unaffected by the economic crisis. Bakers did however, experience decline in sales in private labels, particularly for products that were not promoted.
Europe, driven by Germany, France, Italy, Spain, Finland and Sweden among others constitutes the largest regional market worldwide, as stated by the new market research report on Bakery Products. The United States and Latin America trail behind as the next important market in terms of overall size. However, with respect to long term growth potential, the Asia-Pacific market is projected to take the lead, expanding at the highest CAGR of more than 5.0% through 2015. The segment Bread/Rolls represents the largest and most popular bakery product, while the Morning Goods segment is likely to emerge as the fastest growing market over the assessment period 2007-2015.
Key market participants in the report include Bahlsen GmbH & Co. KG, BAB, Inc, Britannia Industries Ltd, Bruegger’s Enterprises, Inc, Einstein Noah Restaurant Group Inc, George Weston Foods Ltd, Grupo Bimbo, S.A.B. de C.V, Hostess Brands, Inc, Kellogg Company, McDonald's Corporation, Nestle Chile, Riviana Foods Inc, Sara Lee Corporation, Strauss Group Ltd, The Great Canadian Bagel Ltd, Parle Products Pvt. Ltd, United Biscuits and Yamazaki Baking Co., Ltd.
The research report titled “Bakery Products: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides comprehensive industry overview, market trends, product overview, product innovations, recent industry activity and profiles of market players worldwide. Analysis and overview is provided for major geographic markets such as US, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World. Market analytics are provided in terms of value (US$) for product segments including Bread/Rolls, Morning Goods, Cakes/Pastries, Savory Biscuits, Sweet Biscuits and Other Bakery Products. The study also provides historic data for an insight into market evolution over the period 2000 through 2006.
For more details about this comprehensive market research report, please visit – http://www.strategyr.com/Bakery_Products_Market_Report.asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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