South America Bakery Products Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The South American Bakery Products Market is segmented by Product Type (Cakes and Pastries, Biscuits & Cookies, Bread, and Pizza Crust); Distribution Channel (Hypermarkets/Supermarkets, Convenience Stores, Specialty Stores, Online Retailing, Others); Geography ( Brazil, Argentina and Rest of South America). The report offers market size and forecasts for the bakery products market in value (USD million) for all the above segments.

Market Snapshot

South America Bakery Products Market Summary
Study Period: 2016 -2027
Base Year: 2021
CAGR: 3.11 %

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Market Overview

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.

Scope of the Report

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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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 many informal channels producing bread. Moreover, packaged bread sales outnumbered 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 giants 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.

South America Bakery Products Market1

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 markets, offices, and general consumers. Specialty stores also became gathering places for enthusiasts, especially for conducting any special events or 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. Specialty stores sell only within a given category, which can sell a much wider range of goods. A specialty store can carry more goods within its chosen category. The specialty stores will likely witness significant growth during the forecast period.

South America Bakery Products Market2

Competitive Landscape

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 mergers, expansions, acquisitions, and partnerships 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 to expand their geographic reach and increase their customer base.

Recent Developments

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 with unique textures and tastes to cater to 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 specialty 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, 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. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Cakes and Pastries

      2. 5.1.2 Biscuits & Cookies

      3. 5.1.3 Bread

      4. 5.1.4 Morning Goods

      5. 5.1.5 Pizza Crust

      6. 5.1.6 Others

    2. 5.2 By Distribution Channel

      1. 5.2.1 Supermarkets/Hypermarkets

      2. 5.2.2 Convenience Stores

      3. 5.2.3 Specialist Stores

      4. 5.2.4 Online Retailers

      5. 5.2.5 Others

    3. 5.3 Geography

      1. 5.3.1 Brazil

      2. 5.3.2 Argentina

      3. 5.3.3 Rest of South America

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Europastry, S.A.

      2. 6.4.2 PepsiCo Inc.

      3. 6.4.3 Wickbold

      4. 6.4.4 Grupo Bimbo

      5. 6.4.5 Bagley Argentina SA

      6. 6.4.6 La Casa Alfajores

      7. 6.4.7 Mondelez International

      8. 6.4.8 General Mills Inc.

      9. 6.4.9 Associated British Foods PLC

      10. 6.4.10 Bakers Delight Holdings Limited

      11. 6.4.11 Group Bimbo

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The South America Bakery Products Market market is studied from 2016 - 2027.

The South America Bakery Products Market is growing at a CAGR of 3.11% over the next 5 years.

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

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