Market Trends of North America Bakery Products Industry
Demand For Convenient and Healthy On-The-Go Snacking
The demand for convenience snack products is growing at a faster pace due to changes in consumption patterns, as well as increased awareness about concepts like portion control. Moreover, a calorie deficit dietary preference is also driving a more significant number of brands to offer small/ on-the-go consumption packs of bakery products. North American consumers are increasingly focused on taste, health, and convenience, and grab-and-go bakery snacks are often picked by consumers to quench appetites on busy days or to replace their meals on hectic days. Moreover, the United States has become a nation of grazers, with people looking for solutions that fit their on-the-go lifestyles and elevated tastes. According to the state of a snacking report published by Mondelez International in 2021, 64% of consumers prefer snacking as a regular eating behavior over traditional mealtime. Hence, the key players are introducing varieties of on-the-go baking products in the market. For instance, in September 2022, Hostess Brands launched on-the-go bouncers, which are bite-sized snack cakes with cream filling. The Hostess Bouncers are available in three flavors: glazed twinkies, chocolate ding-dongs, and cinnamon donuts.
On the other hand, bakery products claiming to contain natural and organic ingredients have witnessed increased demand in the United States. This concept has been evolving across other markets as well. Product launches with various label claims, such as no artificial additives, no preservatives, non-GMO, and reduced sugar, are becoming increasingly popular. As a result, the increased consumer demand for nutritious products and the rising clean-label claims on products have accelerated the market growth in this region. Thus, the change in eating patterns and the growing preference for on-the-go snacks among North American consumers due to the evolution of work and home life are propelling the growth of bakery products in the region.
United States Market to Dominate the Regional Market
Health consciousness and indulgence are two parallel trends dominating the United States bakery products market. The demand for bakery products that can be rapidly prepared at home or grabbed on the go has increased in the United States due to an increase in busy lives and the desire for quick and simple meals. The market is expanding due to the convenience offered in terms of time savings and the low effort required for meal preparation. Furthermore, the growing working population and improving consumer lifestyles have enhanced the consumption of ready-to-eat (RTE) food products such as healthy bread, pizza rolls, chicken puffs, and muffins throughout the country. The health orientation is catered to with the launch of products that contain wholegrain, high fiber, or other health-promoting ingredients. For instance, in January 2023, Bimbo Bakeries United States brand Sara Lee launched new white bread made with veggies. According to the company's claim, the product is baked with the equivalent of one cup of veggies per loaf and fortified with vitamins A, D, and E.
Baked goods have very high permissibility, and American consumers prefer the occasional baked treat as part of daily life. In July 2022, the American Bakers Association reported that 84% of Americans consider it acceptable to occasionally treat themselves to baked goods like cookies, cupcakes, doughnuts, or pie. American Gen Z and Millennial customers preferred baked goods, including pizza, flatbreads, wraps, and tortillas. Almost 90% have purchased a selection of these products, according to the American Bakers Association. There is an increasing need for convenience and frozen bakery products, driving market expansion.
