NEW YORK, NY — The global specialty bakery market is expected to grow by $10.54 billion at a 4% CAGR from 2021 to 2026, according to a report from research firm Technavio.
The report defines the specialty bakery market as specialty bread, cakes, pastries, cookies, crackers, pretzels and other specialty bakery items. It also included North America, Europe, Asia-Pacific, South America, and Middle East and Africa.
More than a third (37%) of the growth is estimated to originate from North America.
Major drivers for growth, according to Technavio, are a growing demand for functional ingredients. Examples of popular functional ingredients include oats, legumes, nuts and probiotics. While functional ingredients convey healthy attributes, they also contribute to product quality with features such as tenderness and structural strength. These types of ingredients have also been found to help with machinability in areas like mixing and depositing, according to the study.
Technavio also identified demand for “free from” claims in food as a growth driver, stating that ingredients such as aluminum-free baking powder and gluten-free and organic flours are gaining traction with consumers willing to pay higher prices for these types of products.
However, increased indulgence consumption is also identified as a major growth driver, so specialty bakers will be challenged to create decadent products that also come with a health halo.
Other headwinds include fluctuating raw material prices and increased government regulations. Additionally, the report suggested that specialty bakery items may not be as popular with consumers as other bakery items.
In another study, Technavio reported that the bakery products market share in Europe is expected to reach $41.49 million by 2026 at a 3.28% CAGR.
More information on Technavio market studies can be found at www.technavio.com.
