The FINANCIAL — Global bakery is facing a crisis of identity, with two opposing forces driving the industry.
On the one hand, consumers are demanding innovative products that provide indulgence and can be eaten as treats, while on the other they may perceive bakery products as unhealthy and demand items less laden with salt and fat. Bakery manufacturers face the challenge of how to satisfy such divergent consumer demands. Over 2006-2011, global bakery grew steadily at a 1% CAGR to reach value sales of US$459 billion.
Regional consumer perceptions in bakery
In 2011, emerging economies experienced the strongest retail growth across most bakery categories. Static or negative growth in bakery volumes within developed markets was offset by impressive growth in emerging regions, particularly Latin America and Asia Pacific. Regionally, Asia Pacific appears insatiable in its demand for bakery products, which is primarily due to growing consumption in China, but also increasingly in India.
In Western Europe and North America, manufacturers have tried to boost or maintain bakery retail value sales by means of a split focus on health and indulgence. This contradictory trend is now emerging in Asia Pacific and Latin America, where high-fibre bakery products are appearing alongside decadent cookies and pastries. In a fragmented market such as bakery, both objectives are achievable.
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