Frozen Bakery Market

Global Frozen Bakery Market Overview

Frozen Bakery Market Size was valued at USD 19.59 billion in 2023. The frozen bakery industry is projected to grow from USD 20.30 Billion in 2024 to USD 34.94 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.02% during the forecast period (2024 - 2032). Due to their attributes like low cost, simplicity of preparation, and wide availability, frozen bakery products are becoming more and more popular, which is a primary market driver for the expansion of the market.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Frozen Bakery Market Trends

• Growing Urbanization and Preference for Convenience Foods to Accelerate Market Growth

More than half of the world's population now resides in cities, and nearly every nation on the planet is urbanizing more and more. In 2018, there were 4.2 billion people living in urban areas around the world, up from 751 million in 1950, according to the United Nations World Urbanization Report. This means that nearly 55% of the world's population currently resides in urban areas, and by 2050, that number is projected to rise to 68%. As a result, compared to consumers in rural regions, urban consumers have access to a considerably greater selection and better availability of food. Furthermore, this urbanization trend greatly raises living standards and earnings, which has a stronger impact on the affordability of frozen bakery goods. The demand for convenience food products is also developing quickly in tandem with urbanization, mostly as a result of changing lifestyles, an increase in nuclear families, a rise in the percentage of working women, and a reduction in the amount of time spent on meal preparation. Due to their portability and lengthy shelf lives, frozen bakery products have a strong argument for their market to increase at an accelerated rate. Thus, this factor is driving the market CAGR for frozen bakery.

However, consumers are striving to lead healthier lives in keeping with their evolving lifestyles. Customers are looking for particular healthy, convenient, and light foods, such as slices of bread, etc., due to busy schedules and lengthening work shifts. Almost all industrial bakers in Europe now have bake-off bakery output as one of their main objectives. Baking from scratch is time- and labor-consuming. Traditional baking is being replaced by Bake-Off technology in the business (BOT). Unfermented frozen dough (UFD) partially baked frozen bread (PBF), and partially baked unfrozen bread are the three main BOTs (PBUF). In particular for the hotel and catering industries, frozen semi-baked items and ready-to-bake goods are significant product categories for the food business. The majority of bakery goods, such as bread, rolls, and bagels, are sold in ready-to-thaw form, whereas croissants and pastries are sold in ready-to-bake form. Agriculture and Agri-Food Canada predicted that 4.1 thousand metric tonnes of frozen baked goods would be sold in retail in 2021. This was an increase of 100 metric tonnes compared to numbers forecast for 2020, and it represents an increase of about 8% compared to predictions from 2017. Thus, it is anticipated that this aspect will accelerate frozen bakery market revenue.

Segment Insights

Frozen Bakery Product Type Insights

The frozen bakery market segmentation, based on product type, includes breads & rolls, pizza & pizza crust, cakes & pastries, cookies & biscuits and others. The breads & rolls segment held the majority share in 2022 in the frozen bakery industry data. ly expanding bread consumption, growing popularity of fast food coupled with changing lifestyles, and an increase in QSRs and chains of ready-to-eat food stores are all reasons that contribute to this segment's significant market share. Further growth of the frozen bread and rolls segment is anticipated to be supported by rising consumer desire for healthy products.

Frozen Bakery Category Insights

The frozen bakery market segmentation, based on category, includes gluten-free and conventional. The gluten-free segment dominated the market growth for frozen bakery in 2022 and is projected to be the faster-growing segment during the forecast period. Products from frozen bakeries that are gluten-free are gluten-free. To help the dough or batter rise, makers of frozen baked products employ chemicals like guar gum or xanthan gum. The public's growing knowledge that gluten can cause celiac disease and other digestive health problems is encouraging people to adopt gluten-free eating practices.

Frozen Bakery Distribution Channel Insights

The frozen bakery market data, based on distribution channel, includes store-based and non-store-based. The store-based segment dominated the frozen bakery industry revenue for frozen bakery in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Supermarkets and hypermarkets are types of stores that offer self-service and have a wide selection of frozen baked goods. Supermarkets and hypermarkets offer a specific department for frozen bakery goods. Frozen bakery goods such cakes and pastries, pizza crusts, waffles, and cookies are purchased by supermarkets and hypermarkets to sell to homeowners.

Figure 1:  Frozen Bakery Market, by Distribution Channel, 2022 & 2030 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Frozen Bakery Regional Insights

By region, the study provides the market insights for frozen bakery into North America, Europe, Asia-Pacific and Rest of the World. Europe frozen bakery market accounted for USD 8.7 billion in 2022 with a share of around 45.80% and is expected to exhibit a significant CAGR growth during the study period. In the upcoming years, there are anticipated to be significant growth potential due to the expansion of the catering and tourism industries in European nations including Germany, Italy, and the U.K. Breakfast menu preferences among consumers favor ready-to-eat items, which has increased product demand. The availability of gluten-free baked goods for health-conscious consumers has also contributed to the region's rise.

Further, the major countries studied in the market report for frozen bakery are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  FROZEN BAKERY MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Asia Pacific market of frozen bakery accounts for the second-largest market share due to things including a sedentary lifestyle, growing discretionary wealth, and developing economies. Traditional household dynamics have changed as a result of the rising number of working women, and convenience and ready-to-eat food preferences have increased noticeably as a result. Moreover, China frozen bakery market held the largest market share, and the India frozen bakery industry was the fastest growing market in the region.

North America market of frozen bakery is expected to grow at the fastest CAGR from 2022 to 2030. Due to the fact that frozen bakery goods have a significantly longer shelf life than traditional goods, there is a greater demand for these goods in the area. In response to the growing consumer demand for organic and healthy products, market competitors are concentrating on offering goods with healthy and organic ingredients and less artificial preservatives. Further, the US frozen bakery industry held the largest market share, and the Canada frozen bakery industry was the fastest growing market in the region.

Frozen Bakery Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the frozen bakery market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the frozen bakery industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies adopted by manufacturers in the frozen bakery industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, frozen bakery industry has provided medicine with some of the most significant benefits. The frozen bakery market major player such as Grupo Bimbo S.A.B. De C.V., Associated British Foods Plc, Aryzta AG. Dawn Food Products Inc., Lantmannen Unibake International, Rich Products Corporation, Europastry S.A., General Mills Inc., Kellogg Company and Conagra Brands Inc.

Products for baked food are offered by Europastry SA. The business sells bread, croissants, muffins, cakes, rolls, pastries, and desserts. Customers from Spain are served by Europastry. In December 2022, Europastry SA announced the acquisition of Dawn Foods, a  distributor and manufacturer of baked goods, along with its frozen bread production operations in Asia, the Middle East, Europe, and the Pacific. The sale comprised all of Dawn's client relationships in the region that purchased frozen items produced by Dawn, as well as its baking and research & development facilities in Steenbergen, the Netherlands, and Evesham, the United Kingdom.

The American wholesale maker and distributor of breads, baked goods, mixes, and other culinary products is called Dawn Foods (formerly known as the Dawn Donut Company). The business has a  reach and is headquartered in Jackson, Michigan. In North America, the corporation runs sixteen distribution centers. In July 2021, Dawn Food Products Inc. purchased Icopa, a significant Portuguese distributor of bakery goods. The acquisition aims to preserve the company's supply chain and strengthen distribution networks. Furthermore, the company wants to grow since it can quickly deliver its goods to a wide customer base.

Key Companies in the frozen bakery market includes

• Grupo Bimbo S.A.B. De C.V.
• Associated British Foods Plc
• Aryzta AG
• Dawn Food Products Inc.
• Lantmannen Unibake International
• Rich Products Corporation
• Europastry S.A.
• General Mills Inc.
• Kellogg Company
• Conagra Brands Inc.

Frozen Bakery Industry Developments

On March 10, 2024, Aryzta AG announced the addition of a new bakery line to its frozen selection whereby gluten free and vegan frozen pastries would be produced. This new offering will help to meet the growth in the markets for plant based and allergen free pastries in particular for the retail and foodservice sectors.

In February of 2024, Grupo Bimbo has grown its frozen bakery offering in North America under the Sara Lee brand adding into the portfolio a variety of frozen ready to bake croissants and pastries.

In December 2023, one of the biggest U.S. bakery companies, Flowers Foods, launched a new range of artisan target frozen breads under the Dave’s Killer Bread brand. The company is looking to fit into the strong tendency to quality frozen bread with little preparation needed but looking to taste freshly baked bread.

In November 2023, CSM Bakery Solutions, a major global player in the frozen bakery domain, accentuated on organic ingredients to win a significant share in the frozen dough market. This range of offerings aimed at both food service distribution and retail approaches is branded as a more healthy and environmentally conscious frozen bread replacement.

In October 2023, McCain Foods, a frozen food company operating globally, presented a brand-new assortment of frozen dough for pizzas and baked goods, which has been designed to meet the growing demand for a home replacement of Pizza and other bakery goods.

In September 2023, a bunch of Europe’s frozen bakery leaders in manufacturing, including Europastry in Spain, launched and marketed frozen croissants, muffins, Danish and other pastries that are about to sensibly break the awakening breakfast market for ready to eat frozen croissants that are in great increase of demand for heat and serve options.

Apr-2023: Flowers Foods Inc. released four new bread and snack items under Nature’s Own®, Tastykake®, and Wonder® brands, including Nature’s Own Keto Net One Loaf, Nature’s Own Perfectly Crafted® Artisan Style Everything Bun, Tastykake Dipp’n Sticks and Wonder Bread Hawaiian Bun in a bid to meet consumer choices. Chief Brand Officer Mark Courtney highlighted the alignment of these additions with the rest of the existing portfolio.

Mar-2023: Cubiq Foods, a Spanish food-tech start-up joined forces with Cargill Incorporated to sign an agreement towards developing and commercializing fat technology. The deal intended to deliver healthier, more sustainable and tastier plant-based protein options.

Feb-2023: Papa Pita Bakery was purchased by Flowers Foods Inc., which is known for its premium quality bread products. As it acquired this company, the expectation was that it would help create more production and distribution synergies for the firm.

Frozen Bakery Market Segmentation

Frozen Bakery Product Type Outlook (USD Billion, 2019-2030)

• Breads & Rolls
• Pizza & Pizza Crust
• Cakes & Pastries
• Cookies & Biscuits
• Others

Frozen Bakery Category Outlook (USD Billion, 2019-2030)

• Gluten-Free
• Conventional

Frozen Bakery Distribution Channel Outlook (USD Billion, 2019-2030)

• Store-Based
• Non-Store-Based

Frozen Bakery Regional Outlook (USD Billion, 2019-2030)

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific
• Rest of the World
  • Middle East
  • Africa
  • Latin America