In a market that more and more requires baked goods to be fresh, artisanal, organic, authentic, and to improve health, there is growing pressure on pastry manufacturers to create better-for-you products. By Jo Ilie
A few trends have been dominating the market in the past years: clean label, packaged goods (especially since the pandemic), plant-based, and positive nutrition.
Frozen pastries embody both convenience and extended shelf-life, which is paramount for less resource waste. They allow for standardized production, innovation in terms of functional ingredients, and fast delivery of fresh baked goods. And they appeal both to retailers and their clients alike.
So it’s no wonder it’s a growing market, both in established areas, such as Europe, and in emerging ones, such as Asia Pacific. Frozen pastry – pastries and cakes – is part of the larger frozen bakery market, which also includes breads and rolls, cookies and biscuits, and others.
It is a market expected to reach USD39bn by the end of 2032 and to show a steady rise at above 7% CAGR between 2022 and 2032, according to a study by Future Market Insights, or to USD33.3bn by 2028, according to a study by The Insight Partners. Recent data from MarketsandMarkets breaks down the market in different regions, showing that in Europe, which accounts for approximately 60% of the global frozen pastries market, there is still room for growth.
Germany is a market leader – it has been an early adopter of frozen bakeries, the study argues, because time-pressed Germans are inclined towards frozen goods as staple, replacing the conventional meals. Frozen pastries include an extensive range of pastry products, including basic types of frozen pastries and viennoiseries, chocolate pastries that account for the most share, and Danish products. The largest growth is expected though in Asia Pacific.
According to The Insight Partners, the frozen bakery products market in Asia Pacific is expected to grow at the highest CAGR by 2028. “The region is witnessing rapid economic growth, rise in the number of manufacturing companies, and growth in the organized retail and service sector, owing to the rise in population, favorable government regulations, liberal trade policies, availability of abundant resources, and cheap labor and manufacturing facilities”, says the study.
Frozen bakery products, which are either ready-to-bake or thaw-and-serve, require minimum preparation and baking time, thus being preferred by busy urbanites.
Less Sugar
The biggest challenge for pastries and sweet confectionery in general is that these products are high in calories and contain fats and sugar, which is at odds with the health-forward mainstream discourse. This, however, allowed for change and progress within the industry, which looked at new product development and packaging innovations to appeal to the public.
As sugar-free or reduced-sugar baked goods requests are on the rise, there is a high demand for prebiotic chicory fiber, according to MarketsandMarkets. For example, Sensus expanded its chicory root fiber (inulin) manufacturing capacity in 2022 and functional ingredient manufacturer Beneo unveiled a multi-million Euro investment program to increase the production capacity for chicory root fiber, which is slated to play a pivotal role in the future nutrition profile.