Market Trends of Bread Industry
This section covers the major market trends shaping the Bread Market according to our research experts:
Rising Demand for Functional and Clean Label Food Products
The demand for functional ingredients in bakery products is rising, owing to their nutritional benefits. Bread, being a staple food that constitutes a major part of the daily diet, caters to a more functional demand. New low-carb, high-fiber, multigrain, and fortified bread that appeals to health-conscious consumers has triggered market growth. In addition to functional health benefits, incorporating natural ingredients, such as natural preservatives, antioxidants, and enzymes in bread, is on the rise. Companies are targeting to replace shortenings and fat with Omega-9 and Omega-3, which improve the fatty acid profile and support performance. Cholesterol reduction, weight management, high protein, and sugar control are the key consumer trends.
Following the latest trends in the market, manufacturers are launching fortified bread to increase their customer base; manufacturers like French mills are incorporating more wholesome flour blends in addition to their traditional white and rustic loaves. Among the most desired components are chickpeas and lentils because of their higher protein and fiber content. Supplemental nutrients, including vitamins, biotics, and useful substances like caffeine, are also making their way into the market. For example, in 2022, the Chanvrine flour blend for bakeries was introduced by Moulins Dumée. Chanvre is a French term that means "hemp." Additionally, Moulins Bourgeois introduced its flaxseed-and-hemp-fortified bread. It offers two sources of protein, fiber, and omega-3 fatty acids.
Europe Continues to Dominate the Market
Europe holds the largest share of the global bread market by volume. The increasing aging population seeking healthier bakery products has supported the market growth. In terms of trends, Europe is witnessing a rise in demand for quality bread from local and specialty bakeries, new business models and innovations (such as "from baker to consumer"), sustainable labeling and packaging, and the adoption of organic bread. Rising consumer preference for value-added, ethnic, fresh, and artisanal bread is the primary factor driving sales.
The primary forces affecting bread consumption across Europe are mostly health-related (e.g., perceptions of health and wellness from products like fortified bread, organic bread, and other such products), monetary variables affecting demographic purchasing power, and consumer lifestyle changes. Bread consumption is also being affected by modern lifestyles, which include flexibility, mobility, cultural diversity, and understanding of other cultures. However, the bread market in Europe has been impacted by the Russia-Ukraine war, as European countries imported raw materials from these regions. Hence, the average price of bread across Europe was 18% higher in August 2022 compared to August 2021.
