The Cakes market is forecasted to reach USD 137 billion by 2024, registering a CAGR of 3.5% during the forecast period (2019 - 2024)
- Increasing consumption of ready-to-eat food and convenience products, with changing food preferences and demand for flavored food products, is pushing the revenue generation in the global cakes, pastries, and sweet pies market.
- Introduction of bakery products, including cakes, pastries, and sweet pies, with health claims, such as lower amounts of high-fructose corn syrup and sodium and higher amounts of fiber, is expected to attract consumers to such products, and thus, help the overall market to grow.
Scope of the Report
The scope of the market includes Cakes, pastries and Sweet Pies by Product type. By distribution channel, the market is categorized as supermarkets/ hypermarkets, Specialist Retailers, Convenience stores, and others.
Key Market Trends
Convenience Factor for Ready-To-Eat Products
The definition of convenience is evolving with dynamic demands from consumers. Cake mixes were one of the bakery products that gave birth to the concept of “convenience”. As evident from the graph, the ingredient level modification is driving the growth of the health category of bakery products in the developed market. The convenience that Cake products offer is increasingly turning multi-faceted, which is expected to continue to evolve in the foreseeable future. The bakery products are also witnessing additional attributes, such as being healthy, ethical, and comforting. In the United States and Western Europe, the bakery product market is a mature and fragmented one. Product innovation is, therefore, a key differentiator. Manufacturers are adapting their products to meet health-orientated consumer trends and developing higher-margin convenience formats.
Asia Pacific Accounts for Maximum Revenue Share
The consumption of cake in the developed regions is based on certain factors, like competition among brands, convenience, and health attribute. There is a growing demand in the decorated cake segment. This consumer shift is due to the rise in disposable income and preference for innovative products. In Europe, especially in United Kingdom cakes, pastries, and sweet goods dominated the market with the rise in number new-product launches in the past few years. Asia-Pacific is becoming a key market, as rising disposable income, urbanization, and the demand for western-style diets are supporting the growth in sales of baked goods and cakes in particular. China is set to become the second largest baked goods market globally by 2022, with cakes being one of the most popular segment. These markets are attractive to major corporates, which see the potential for significant sales growth.
The Cakes, Pastries and Sweet Pies market is fragmented and is at a stage of growth. The market vendors are developing new products with an emphasis on Organic and gluten-free variants to increase their market share. The major emerging markets players are targeting leading brands in the mature markets. The bakery manufacturers and brand owners who dominate the domestic markets, are making strategic acquisitions of the market leaders, and often iconic brands, in more mature and sophisticated markets. Acquiring these brands enables diversification and gives these players access to stable cash flows and further growth opportunities.
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