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From the ever-popular pizzas to delicious desserts, the bakery section has always been a favorite among consumers. But what products are highest on their shopping list?

To help bakery manufacturers capitalize on the most in-demand products, let’s look at five of the fastest-growing bakery segments.

1. Bread — especially artisan

Whether as a toast for breakfast, a side for soups, or the outside of a sandwich, bread is a household staple that’s not likely to go out of style. 

Artisan-style breads, in particular, have gained popularity as consumers seek freshness, authenticity, and a nostalgic, homemade taste. Since they’ve been baking more at home, consumers have also become more familiar with the ingredients and bread-making process, which has sparked interest in clean-label products and immune-boosting breads like sourdough.

And now’s the time to give consumers more of the breads they’re craving. The global bread market is projected to have a CAGR of over 6% between 2021 and 2025, with growth in 2021 expected to be higher than 2020.

2. Cakes and pastries

Consumers may have been reluctant to throw parties and host celebrations last year, but they’re eager to make up for lost opportunities, especially as the holiday season approaches. And cakes and pastries are VIP guests on such occasions.  

But consumers are also looking out for their health, opting for cakes and pastries in smaller sizes when available. Mini cupcakes and muffins, personal-sized pies, and other “permissible indulgences” may find more success in the bakery aisle.

Cakes and pastries are on track to be the fastest-growing bakery segment through 2025.

3. Frozen products

Due to their convenience and long shelf life, frozen foods have been the breadwinner of the pandemic. And frozen bakery products are benefiting. The global frozen bakery products market is expected to reach $29.5 billion by 2026, with an average annual growth rate of 5.8%.  

Within this sector, frozen cakes and pastries will likely achieve the fastest growth, while experts predict that ready-to-bake products will hold the largest market share between 2021 and 2026.

4. Sweets and snacks

Whether to combat boredom and stress or to seek out familiar comforts, snacking has been on the rise — 35% of consumers say they’ve been snacking more often. They’ve also been opting for healthy, pre-portioned options when allowing themselves to indulge, with 25% selecting healthier snacks since the pandemic started.

And it shows in the numbers. The bakery snacks category reached $3.5 billion in sales in 2020, increasing 1.4% over 2019. For the 52-week period ending April 18, 2021, sales came in at $3.6 billion, up 2.2% from the previous year.

5. In-store bakery channel

Due to concerns about shelf life and out-of-stocks, in-store bakeries took a hit at the start of the pandemic. But that’s since changed — in fact, consumers have been spending more at in-store bakeries than they did pre-pandemic.

In-store bakery sales jumped by 21% from April 2020 to April 2021. Much of this growth came from specialty desserts (up 52.6%), cakes (up 42.2%), brownies/squares/bars (up 39.6%), and donuts (up 34.6%).  

And since they meet consumer cravings for comfort foods and freshness, in-store bakery products are likely to continue to see month-over-month growth.

Are you looking to ramp up your production or introduce new bakery products to your lineup? We have the equipment you need to optimize your process. Contact us to discuss your upcoming projects.

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Naegele Bakery Systems
5661 W 120th Street
Alsip, IL 60803



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