|Study Period:||2016 -2027|
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The South American bakery products market is projected to grow at a CAGR of 3.11% during the forecast period (2022- 2027).
COVID-19 had a significant impact on the bakery products market all over the world. Many bakerts had to close their businesses during the peak of pandemic due to insufficient sales of bakery products and a shortage of workers. Brazil witnessed an unprecedented rise in number of coronavirus cases, which led to discontinuation of bakery products manufacturing units. Downfall in other food & beverages has also impacted the demand for bakery products. Moreover, the inaccessibility of raw materials hampered the production in the market during the lockdown. Similar trend was observed in other South American countries such as Argentina, Colombia, Peru, Chile and Equador.
The market is primarily driven by the convenience, accessibility and nutrition profile associated with them. Moreover, as a result of urbanization and worldwide increase of working population, the growth of out-of-home consumption and increased demand on instant and nutritious products, this trend has been fueling the continuous increase of bakery products. Therefore, manufacturers are catering to this demand by launching organic baked goods, healthier morning goods, and ‘free-from’ products and retaining consumer loyalty.
In the indulgent categories, such as cake, pastries, croissants, etc., the region is undergoing a shift from artisanal to industrial goods and this trend is expected to strengthen during the forecast period. With the continuation of this shift, the region will act as emphatic drivers of growth in the retail bakeryHowever, the higher prices of raw material and increasing demand for low-calorie and sugar-free products from emerging economies in South America have made manufacturers diversify their assortments in order to capture and retain market share.
Scope of the report
Bakery products are prepared from flour or meal derived from grains and are available in a wide range. The South America bakery products market is segmented based on product type, distribution channel and geography. Based on product type, the market has been segmented into cakes and pastries, biscuits & cookies, bread, and pizza crust. Based on distribution channel the market is segmented into hypermarkets/supermarkets, convenience stores, specialty stores, online retailing, others. Also, the study provides an analysis of the bakery products market in the emerging and established markets across the South America region, including Brazil, Argentina, and the Rest of South America. For each segment, the market sizing and forecasts have been done on the basis of value in (USD million).
|By Product Type|
|Cakes and Pastries|
|Biscuits & Cookies|
|By Distribution Channel|
|Rest of South America|
Key Market Trends
Demand for Convenience Food Products Drives the Market
The consumer demand for convenience foods is evolving with dynamic demands from consumers. The primary driver for the growth of the bread segment in the South American countries is the increasing demand for bread, cookies, fruit and organic flavored cakes containing whole grain, high in fiber, gluten-free, or healthy and fortified bread. Such products are becoming increasingly popular with consumers, due to enhanced uptake of the healthy lifestyle concept. Moreover, the competition is uneven, due to product diversity and a large number of informal channels that produce bread. Moreover, pacakaged bread sales out numbered unpackaged bread sales in South American countries. South American people prefer having convenience food products in their day to day life thus, bakery products are considered feasible and easily accessible options among all other products. Furthermore, several gaint or private label manufacturers are providing different types of bread such as gluten-free bread, anadama bread, cookies, cakes, whole wheat bread, multi grain biscuits and bread as per consumer demand.
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Specialty Stores to Become The Fastest Growing Segment
The specialty stores have recorded to have the fastest growth in the South American market. These mainly include artisanal bakers/small bakeries/home-based bakers, which supply the products to café chains, kiosks, traditional trade/wet market, offices, and general consumers. Speciality stores also became gathering places for enthusiasts, especially for conducting any special events, parties. Constant product innovation is a major challenge for specialist retailers. Given that many of the product types offered at artisanal bakeries are best enjoyed absolutely fresh, efficient production and inventory management is a must-tackle challenge. Speciality stores sell only within a given category, which can sell a much wider range of goods. A speciality store can carry more goods within its chosen category. The speciality stores are likely to witness a significant growth during the forecast period.
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The South American market for bakery products is fragmented, owing to the presence of large regional and domestic players in different countries. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the regional market include PepsiCo, Inc., Europastry, S.A., Grupo Bimbo, Wickbold, and Bagley Argentina SA, among others. Several manufacturers are focusing on online distribution channels for their online promotion, marketing and branding of their products, in order to expand their geographic reach and increase their customer base.
In August 2021, Archer Daniels Midland Company and Coribon launched a new variety of bakery premixes across Brazil and Argentina to meet the demand for bakery products that have unique textures and tastes to cater the changing consumer demands and preferences of domestic consumers offering customized taste preferences.
In June 2021, Bimbo Bakeries entered sandwich wars with the launch of five new speciality buns. The company taps into the latest menu and flavor trends to deliver the perfect product lineup for food service operations and in-store business. The new products include Traditional brioche bun, Chipotle brioche bun, Everything pretzel bun, Cuban Bread and Wholesome harvest everything bread.
In June 2021, IFF, a leading food ingredient supplier, has unveiled a new, innovative bakery solution aimed at helping South American bakers produce clean label bread and pastries. known as GRINDSTED, the new solution is a blend of soy lecithin, enzymes and natural soluble fiber and is an alternative to the dough strengtheners currently used in bread formulations.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Cakes and Pastries
5.1.2 Biscuits & Cookies
5.1.4 Morning Goods
5.1.5 Pizza Crust
5.2 By Distribution Channel
5.2.2 Convenience Stores
5.2.3 Specialist Stores
5.2.4 Online Retailers
5.3.3 Rest of South America
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Most Active Companies
6.2 Most Adopted Strategies
6.3 Market Share Analysis
6.4 Company Profiles
6.4.1 Europastry, S.A.
6.4.2 PepsiCo, Inc.
6.4.4 Grupo Bimbo
6.4.5 Bagley Argentina SA
6.4.6 La Casa Alfajores
6.4.7 Mondelez International
6.4.8 General Mills Inc.
6.4.9 Associated British Foods PLC
6.4.10 Bakers Delight Holdings Limited
6.4.11 Group Bimbo
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The South America Bakery Products Market market is studied from 2016 - 2027.
What is the growth rate of South America Bakery Products Market?
The South America Bakery Products Market is growing at a CAGR of 3.11% over the next 5 years.
Who are the key players in South America Bakery Products Market?
Europastry, S.A., PepsiCo, Inc., Wickbold, Grupo Bimbo, Bagley Argentina SA are the major companies operating in South America Bakery Products Market.