USA | Global demand for bread is set to rise, as more businesses offer products suitable for health-conscious customers and adapt to consumer trends.
The global bread market size is estimated to grow by USD 116.1 billion from 2024 to 2028, according to Technavio. The market is estimated to grow at a CAGR of over 6.78 percent during the forecast period.
Rising urbanisation and changing consumer lifestyles is driving market growth, with a trend towards increasing demand for organic and gluten-free bakery products. However, fluctuating raw material prices poses a challenge.
The bakery industry is experiencing a trend towards the use of healthy baking ingredients, such as aluminium-free baking powder, gluten-free flour, and organic baking flour. Consumers are increasingly seeking out these options due to their health benefits.
Organic bread, made with these ingredients, is more expensive due to higher manufacturing costs and raw material prices. However, the popularity of organic bread among health-conscious consumers is expected to drive demand.
Gluten, a protein found in wheat, barley, and rye, is commonly used in bakery products, including bread. However, it is not suitable for those with gluten intolerance, who make up a significant consumer segment.
As a result, there is a growing preference for gluten-free and organic multigrain and wholegrain bread varieties. Manufacturers are responding to this trend by producing a range of gluten-free bread options. This focus on gluten-free products is essential for capturing market share and meeting consumer preferences.
Bread manufacturers are responding with value-added products such as fortified, clean-label, and organic bread. Regional specialties, made with natural ingredients like legumes (lentils), are also gaining traction due to their high protein content and functional food benefits.
Functional ingredients, such as Omega 9, are being added for cholesterol reduction and weight management. Fillings, like chickpeas and lentils, provide supplemental nutrients, vitamins, biotics, and wholesome flour blends.
Functional food products, made with natural ingredients, are in demand. Brands like Moulins Dumée and Moulins Bourgeois lead the way with artisanal bread and innovative dough, flour, and water combinations.
The production of bread and rolls involves the use of primary raw materials such as flour, sugar, salt, and milk. The escalating costs of these essential ingredients pose a significant challenge for bread manufacturers.
Factors like adverse weather conditions, strikes, governmental regulations, national emergencies, natural disasters, and supply shortages can impact the availability and price of these raw materials. As a result, the cost of production increases, leading to a rise in the price of products.
This trend makes it difficult for marketers to introduce new product varieties with unique ingredients that cater to consumer preferences and enhance taste. The increased product prices may influence consumer purchasing decisions, ultimately affecting the overall performance of the industry.
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