What you need to know
The bakery house market has been growing at double digits in the past five years. As with most foodservice sectors, the bakery house category was significantly impacted by the COVID-19 lockdown. As a result, sales shrunk greatly in the first quarter of the year. However, the market is projected to rebound steadily in the next five years, with an annual growth rate of between 7% and 8%.
Over the years, bakery houses have shifted from just providing bread and cakes to adding drinks to their menu and catering to consumers’ social needs. This means bakery houses have become another competitor in the foodservice sector alongside coffee houses, tea shops and other similar business operators. In order to stand out in a crowded foodservice arena, many bakery houses are reviewing their ranges and developing more innovative bread and cake products, and many operator brands are driving distribution in lower-tier cities.
Given that younger, affluent women have a higher propensity to be interested in the latest trends, and are also more willing to pay for higher quality offerings, it is likely that bakery products and brand formats that appeal the most to this cohort have the best chance of future success.
Key issues covered in this Report
How the bakery industry will react to the COVID-19 slowdown
What changes in consumer behaviour may arise from COVID-19
The future of bakery houses rolling out staple meal choices
New business strategies sparkled by the trend of “snacking on everything”
What recipe and product innovations may dominate the market
Report Scope
Bakery house in this Report refers to bakery chains, independent bakery shops and bakery sections located in hypermarkets or supermarkets, tea shops and coffee houses. Bakery products in the Report cover freshly-made and short shelf life bread, cake, sandwich and biscuits/cookies sold in bakery houses. Packaged bakery products with barcodes sold at retail channels are excluded.
