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South America Bakery Products Market Size (2024 - 2029)

The South American bakery products market is experiencing growth driven by factors such as convenience, accessibility, and nutritional value, which are increasingly important due to urbanization and a rising working population. The market's expansion is further supported by a shift from artisanal to industrial goods in indulgent categories like cakes and pastries, as manufacturers respond to consumer demand for organic, healthier, and 'free-from' products. Despite challenges like raw material costs and the need for low-calorie options, the market continues to adapt, aiming to capture and maintain its market share.

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Market Size of South America Bakery Products Industry

South America Bakery Products Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 3.11 %
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

South America Bakery Products Market Analysis

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 bakers had to close their businesses during the peak of the pandemic due to insufficient sales of bakery products and a shortage of workers. Brazil witnessed an unprecedented rise in the number of coronavirus cases, which led to the 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. A similar trend was observed in other South American countries such as Argentina, Colombia, Peru, Chile, and Ecuador.

The market is primarily driven by their convenience, accessibility, and nutrition profile. Moreover, as a result of urbanization and the worldwide increase in the working population, the growth of out-of-home consumption, and increased demand for 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 shifting from artisanal to industrial goods. This trend is expected to strengthen during the forecast period. With the continuation of this shift, the region will act as an emphatic driver of growth in the retail bakery. However, the higher prices of raw materials 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.

South America Bakery Products Industry Segmentation

Bakery products are prepared from flour or meal derived from grains and are available in a wide range. The South American 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 the distribution channel, the market is segmented into hypermarkets/supermarkets, convenience stores, specialty stores, and online retailing. 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
Bread
Morning Goods
Pizza Crust
Others
By Distribution Channel
Supermarkets/Hypermarkets
Convenience Stores
Specialist Stores
Online Retailers
Others
Geography
Brazil
Argentina
Rest of South America
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South America Bakery Products Market Size Summary

The South American bakery products market is experiencing a steady growth trajectory, driven by factors such as urbanization, an expanding working population, and a rising demand for convenient and nutritious food options. The market's expansion is further supported by the increasing popularity of out-of-home consumption and the introduction of innovative products like organic baked goods and 'free-from' items. Despite the challenges posed by the COVID-19 pandemic, which disrupted production and supply chains, the market is rebounding as consumer preferences shift towards industrial goods in indulgent categories like cakes and pastries. This shift is expected to bolster the retail bakery sector, although manufacturers face challenges such as high raw material costs and the need to cater to the demand for low-calorie and sugar-free products.

The South American bakery market is characterized by a fragmented landscape with numerous regional and domestic players. Key companies are focusing on strategic initiatives such as mergers, acquisitions, and new product development to enhance their market presence. Specialty stores, including artisanal and home-based bakers, are witnessing rapid growth, serving as hubs for product innovation and consumer engagement. These stores, along with online distribution channels, are crucial for expanding geographic reach and meeting diverse consumer demands. Major players like PepsiCo, Europastry, and Grupo Bimbo are actively introducing new products and solutions to cater to evolving consumer preferences, further driving market growth.

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South America Bakery Products Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Product Type

      1. 2.1.1 Cakes and Pastries

      2. 2.1.2 Biscuits & Cookies

      3. 2.1.3 Bread

      4. 2.1.4 Morning Goods

      5. 2.1.5 Pizza Crust

      6. 2.1.6 Others

    2. 2.2 By Distribution Channel

      1. 2.2.1 Supermarkets/Hypermarkets

      2. 2.2.2 Convenience Stores

      3. 2.2.3 Specialist Stores

      4. 2.2.4 Online Retailers

      5. 2.2.5 Others

    3. 2.3 Geography

      1. 2.3.1 Brazil

      2. 2.3.2 Argentina

      3. 2.3.3 Rest of South America

South America Bakery Products Market Size FAQs

The South America Bakery Products Market is projected to register a CAGR of 3.11% during the forecast period (2024-2029)

Europastry, S.A., PepsiCo, Inc., Wickbold, Grupo Bimbo and Bagley Argentina SA are the major companies operating in the South America Bakery Products Market.

South America Bakery Products Market Report Snapshots

South American Bakery Products Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)