Pastries Market Report

The increasing interest of nutritional pastries with specialty ingredients such as whole-grain flour, concentrates and sugar blends has been observed among the population and the demand of clean labelled ingredients products making them suitable for sugar patients, therefore, companies are launching nutritional products to accommodate increasing every customer need and increasing preference for portable food items. For instance, in June 2022, King Arthur Baking Company introduced clean-label, gluten-free pizza dough suitable for keto diet, Including yellow cake mix, chocolate cake mix, all-purpose muffin mix and pizza crust, certified non-genetically modified and low in calories resulting in more attraction of consumer people offering healthy option and driving the market demand.

In addition, increasing demand for indulgent food products and rising disposable income increase sales and broad consumer base for ready-to-eat items such as cakes, pies and pastries enabling collaboration between companies to introduce wide range of novel pastry flavours. For instance, in September 2022, Finsbury Food Group partnered with chocolatier Thorntons and introduced orange Brownie bites available in chocolate orange caramel shortcake, toffee apple caramel shortcake, hot cross bun caramel, peppermint crème brownie and strawberry dream brownie providing sweet pastry demands.

Maintaining shelf life of most of the pastries is a significant challenge, freshness is a key selling point and maintaining them requires inventory control, precise production and efficient distribution. Unpreserved products can quickly lead to waste if not manged properly resulting into loss of revenue and impacting the market growth.  In addition, the rising health issue such as high blood pressure and obesity associated with the consumption of high-calorie foods such as pastries are hampering the market growth. According to WHO, 1 in 8 people are living with obesity, 2.5 billion adults are overweight and around 890 million are obese, this led consumers to shift towards low calorie and fat-free diet which negatively affect the global pastry market. However, many companies do not follow the regulatory guidelines leading to health complications and affecting the market growth. For instance, in May 2024, FDA warned McClure’s Lancaster Old Fashion LLC for violating hazard analysis, risk-based preventive controls and good manufacturing practices on their ready-to-eat sticky buns, pies and cakes.

The growing demand for customized pastries and increasing product varieties are anticipated to propel the market growth. The incorporation of specific dietary to suit the specific dietary needs of customers such as gluten-free, organic and natural ingredients mostly plant-based products are increasing. For instance, in March 2024, nestle launched puff pastries in Malaysia that is a fusion of gourmet pastries and plant-based proteins source with lower carbon foot print and easy to prepared facility. Available in flavors such as creamy curry, Korean Gochujang and Oriental BBQ, provides a good source of protein-made soya, wheat-based mince, and spices without added preservatives.

Many market players are focusing on increasing their distribution network and customer reach using online delivery services, digital and e-commerce platform, specialty stores and supermarkets to increase customers convenience for ordering cakes and pastries with flexible buying channels contributing to market expansion.   For instance, in April 2024, Le Macaron French Pastries announced to expand it distribution by opening new branches in 75 locations by introducing more kiosks, pastry shops and food trucks to new communities. In addition, in February 2023, McKeen Food Corporation launched new website named mcKeenfoodservice.com for non-commercial food service making it easy for customer to get all the product information through single website and improving online presence. However, companies are developing AI to solve the forecasting challenges using digital transformation and minimize the wastage encouraging market players to invest in digital platform and expanding the market growth. For instance, in September 2023, Bimbo Bakeries USA in collaboration with zebra launched antuit.ai software which improves the order accuracy and minimize waste up to 30% as well as achieving forecast efficiency for more than five years using intelligence leveraging of internal as well external data including local and weather events.

Increasing consumers demand in USA for nutritious ready-to-eat food that provide added health advantages and offer functional benefits and suit the specific dietary requirements of consumers, including gluten-free, kosher, organic, and natural ingredients is expanding the pastry market growth. Innovation is an important driver in the bakery products market, with manufacturers continuously partnered to develop new products to cater to changing consumer tastes and dietary needs.  For instance, in April 2023, Bimbo Bakeries partnered with Sorrisa Group Inc., to launch a line of novel ice creams sandwiches under Entenmann’s name including brownie cookie salted caramel, chocolate chip cookie, chocolatey glazed cookie donut chocolate and salted caramel.  Hence, resulting into market expansion and increasing online sales due to the increasing demand for pastries and cookies.

However, inclination towards traditional favorites and innovative new offerings for healthier bakery products with continuous growing interest in premium and artisanal bakery items led to continued expansion of the pastries market in Europe.  Several bakeries and bakery product manufacturers in this region are introducing vegan options to fulfil the increasing demand of rich and spicy vegan pastries, is driving sales and expanding the market growth. For instance, in April 2022, the Wright Food Group launched new range of vegan savoury pastries including vegan peppered steaks, vegan 6-inch sausage roll and vegan chicken and mushroom pie. In addition, in June 2024, Finsbury launched three-year scheme in collaboration with Graduate Recruitment Bureau to support students to set their career in food industry. Offering in-depth commercial functioning understanding on developing customer demands understanding therefore, expanding the market growth.

Asia-pacific is witnessing growth due to shifting customers preference towards convenience food products due rapid urbanisation and wide acceptance of western food culture creating opportunities for bakery products as these contains protein, dietary fibres, calcium present in diverse flavour options mostly plant based free from synthetic chemicals and pesticides making them healthier and contributing to markets robust performance.