Market Trends of Cakes Industry
Increase in Number Of Social Event Celebration
A cake-cutting ceremony has become integral to social event celebrations, such as birthdays, weddings, anniversaries, graduation farewells, holidays, and cultural festivals. The rising frequency of occasions for indulgence and celebrations is a significant driver propelling the global cake market. With a growing emphasis on creating memorable experiences and marking special moments, consumers are willing to invest in high-quality, customized cakes that elevate the celebration. For instance, according to the Department for Environment, Food & Rural Affairs (DEFRA), the average expenditure per person per week on cakes, buns, and pastries in the United Kingdom accounted for 94 pence in 2021/2022, which increased from 83 pence in 2020/2021.
Additionally, social media platforms catalyze cake trends, inspiring consumers with creative designs, innovative decorating techniques, and viral cake challenges. Therefore, bakeries and cake manufacturers are promoting their businesses on social media by offering theme-based cakes for special occasions. Brands like Marks and Spencer offer caterpillar-themed wedding cakes, Colin the Groom, and Connie the Bride. Hence, the increasing occasions for indulgence and celebrations, along with the growing number of bakeries offering occasion-specific or differentiated products to cater to the demand of consumers, is expected to propel the market’s growth in the studied period.
The Consumption of Cake Products is Burgeoning in the Asia-Pacific Region
China is one of the most prominent markets for cakes in the Asia-Pacific region, and the market is expected to keep flourishing over the forecast period. Some of the traditional cake offerings in the country are mooncakes – flaky cakes with sweet paste fillings that are mostly seasonally consumed during the fall season. Aesthetic presentation is among the most critical factors in cake purchases among Chinese consumers. The current trend leans towards intricate decorations – 3D designs and vibrant colors.
Moreover, social media platforms like Xiaohongshu (RED) are filled with attractive bakery creations, including cakes, driving the demand for visually appealing treats. In Japan, fusion and seasonal limited-edition flavors have mainly garnered consumer tastes and preferences. For instance, in December 2023, Starbucks Coffee Japan made a new addition to the plant-based menu series with matcha cake. The matcha roll cake boasts a subtle bitterness from the matcha cream, perfectly complemented by a light and airy plant-based whipped cream, resulting in a delightfully fluffy confection. Also, the Indian consumer palate has always been demanding a fusion of traditions and innovations. Bakeries like Theobroma and Just Cakes have been catering to this by offering cakes that blend classic Indian flavors like kesar pista with modern evolutions like red velvet or hazelnut chocolate.
