Market Size of South America Bakery Products Industry
| 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
*Disclaimer: Major Players sorted in no particular order |
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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.
