LONDON, ENGLAND — The global bread and rolls market was valued at $187 billion in 2015, and it is expected to reach nearly $216 billion by 2020, according to a new report from Technavio, a global technology research and advisory company.
Market revenue for the global bread and rolls market is expected to grow at a compound annual growth rate of less than 3%, the firm said.
According to Technavio, the growing number of fast-food chains has increased the consumption of bread and rolls, and a wide assortment of products available at hypermarkets, supermarkets and mini marts is driving the market. Supermarkets and hypermarkets accounted for more than 28% of the sales of bread and rolls in 2015, Technavio said.
Meanwhile, consumers in developing countries have shown a preference for homemade bakery products over packaged bakery products because of a perception among consumers that packaged foods are unhealthy due to their inclusion of preservatives, artificial colors and sweeteners. As a result, homemade food items may limit the demand for packaged bread and rolls products, creating a negative impact on market growth, Technavio said.
“The market is likely to slow down 2017 onwards, because of slightly decreased product innovations compared to previous years,” said Vijay Sirathi, lead food industry research analyst for Technavio. “This will affect the buying behavior of consumers and may result in low consumption of bread and rolls.”
Bread and rolls were especially popular in Europe, where the market was valued at $99 billion in 2015 and is expected to reach $115 billion by 2020, according to Technavio. The research firm said the rise of private labels in the region, especially in Western Europe, and the discounts offered by grocery retailers on bread and rolls have fueled the sales of both existing and new private labels in the region. Additionally, preservatives or additives-free and gluten-free bread and rolls are driving market demand in Europe, while artisanal bakery is popular in France, Turkey and Italy.
“Consumers in Europe prefer bread and rolls that are made with natural ingredients and have unique shapes and a new taste,” Technavio said. “Vendors have started producing organic breads to retain consumer loyalty and the production of these premium breads and rolls is significantly influencing consumer purchase patterns.”
Technavio noted that similar trends are developing in the Americas. As a result, manufacturers are concentrating more on producing low-caloric foods, fortified with nutrient values, to meet consumer health requirements.
Gluten-free products remain in the spotlight. Consumers’ increasing awareness of celiac disease is leading manufacturers to concentrate more on gluten-free products to capture the maximum market share. Companies such as King Arthur Flour are capitalizing on this trend by manufacturing gluten-free banana bread with coconut and flax and gluten-free sorghum sandwich bread.
To read more of the report click here.