BAGEL MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Bagel Market Size and Forecast – 2024 - 2031

The global bagel market is estimated to be valued at USD 5.99 Bn in 2024. The market expected to reach USD 8.45 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 4.6% from 2024 to 2031.

Key Takeaways of the Bagel Market

• The plain bagels segment is expected to contributes the highest market share of 40.6% in 2024.
• The supermarkets/hypermarkets segment based on distribution channel is projected to account for 40.9% share in 2024.
• North America to top the market with 38.5% share, followed by Asia Pacific with 35.7% share in 2024.

Market Overview:

The global bagel market is witnessing positive trends in the recent years. Consumers are increasingly preferring on-the-go breakfast and snack options which is driving the sales of bagels. Bagels are considered a healthy option compared to other snacks due to the presence of protein, fiber, and other essential nutrients. Leading manufacturers such as Noah's New York Bagels are focusing on introducing innovative flavor varieties of bagels such as gluten free, multigrain, etc. to meet consumer demand. Moreover, the growing popularity of western food culture worldwide has increased the consumption of bagels globally. Rising health consciousness coupled with changing lifestyle of people is expected to support the market growth of bagels over the forecast period.

Segmental Insights

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Product Type Insights - Plain Bagels Dominate Due to Versatility and Universal Appeal

In terms of product type, the plain bagels segment is expected to contribute 40.6% share in 2024, owing to their versatility and universal appeal. Plain bagels offer consumers a blank canvas that can be customized in countless ways to suit any taste or dietary preference. Whether enjoyed with cream cheese, peanut butter, or various savory fillings, the simplicity of plain bagels makes them highly adaptable for breakfast, lunch, snacks, or even sandwiches. Their lack of strong intrinsic flavors also means plain bagels pair well in mixed assortments.

Distribution Channel Insights – Supermarkets/Hypermarkets Offer Convenience and Varieties

In terms of distribution channel, the supermarkets/hypermarkets segment is expected to hold 40.9% of the market share of the global bagel sales in 2024, owing to their unparalleled convenience and variety. As daily one-stop shopping destinations, supermarkets provide ready access to bagels alongside all other grocery needs. Their scale allows dedicated cooler space to ensure consistently fresh inventory in higher volumes than smaller shops can manage. The depth and breadth of product selection possible in supermarket aisles also draws many customers.

Regional Insights

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North America Bagel Market Trends

North America is expected to lead the bagel market in 2024, commanding approximately 38.5% of the market share. This dominance can be credited to the region's strong brand loyalty and the widespread popularity of bagel chains. Renowned companies like Einstein Bros. Bagels and New York Bagel Co. have established a solid foothold across North America through strategic growth initiatives and franchising efforts. Moreover, the cultural influence of the Northeastern United States has played a significant role in making bagels a quintessential choice for breakfast and snacks.

Asia Pacific Bagel Market Trends

The Asia Pacific region is projected to experience the fastest growth in the bagel market, holding an anticipated 35.7% share in 2024. This growth is fueled by greater exposure to Western food trends and rising disposable incomes in emerging economies. Countries such as China and India have witnessed a boom in bagel cafes and bakeries as consumer demand for convenience and diverse options continues to grow. Additionally, local producers are launching innovative product lines designed to cater to Asian taste preferences, further enhancing market potential.

Bagel Market Outlook for Key Countries

U.S. Bagel Market Trends

The U.S. bagel market is evolving as established brands introduce specialty and artisanal varieties to attract modern consumers. Innovations in fillings, toppings, and baking techniques are central to this strategy. For instance, Einstein Bros. Bagels offers an Ancient Grain Bagel made with quinoa, amaranth, chia, and flax seeds, enhancing fiber and protein content. Similarly, Panera Bread has introduced avocado toasts, including the Classic Avo topped with everything bagel seasoning, and the Garden Avo with tomato slices and garlic aioli, providing healthier breakfast options.

Canadian Bagel Market Trends

In Canada, bagels indeed hold cultural and culinary significance, particularly in cities like Montreal, which is famed for its distinct style of bagels. Montreal-style bagels are smaller, denser, and slightly sweeter than their New York counterparts, typically boiled in honey-sweetened water and baked in wood-fired ovens. This style reflects the city's rich Jewish heritage and has become a symbol of its culinary identity.

U.K. Bagel Market Trends

The U.K. bagel market is growing as consumers increasingly favor convenient and diverse food choices. New York Bakery Co. has leveraged this trend by making a wide variety of bagels readily available in supermarkets, catering to at-home consumption. Additionally, the rising focus on health and wellness has driven the introduction of low-calorie and whole-grain bagel options, appealing to health-conscious buyers.

India’s Bagel Market Trends

In India, the bagel market is gradually gaining traction, driven by urbanization and a young demographic eager to embrace global culinary trends. As reported by Statista in July 2024, the Indian snack industry is projected to surpass US$14.17 billion USD by FY26, reflecting an increasing appetite for diverse snack options, including bagels. To appeal to local tastes, domestic manufacturers are innovating by incorporating Indian-inspired flavors, such as masala and paneer-filled bagels, blending traditional elements with a modern twist to cater to regional preferences.

Market Players, Key Devlopment, and Competitive Intelligence

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Key Developments:

• In August 2024, Bimbo Bakeries USA, a division of Grupo Bimbo, collaborated with WK Kellogg Co. to introduce Thomas’ Froot Loops Mini Bagels. This limited-edition product combines the iconic taste of Kellogg’s Froot Loops with the practicality of Thomas’ snack-sized Mini Bagels. These pre-sliced bagels were launched in major retail chains, including Walmart and Kroger, offering a convenient and flavorful snacking option.
• In April 2024, Bagels & Co., a U.S.-based hospitality group, unveiled a new location at Temple University in Philadelphia, Pennsylvania, U.S. The grand opening, held on April 29, offered the first 100 customers a complimentary bagel with cream cheese. Bagels & Co. is a prominent bakery and café chain recognized for its artisan-style bagels and gourmet offerings. The company blends traditional bagel-making techniques with modern innovations to cater to diverse consumer tastes. Known for its commitment to quality, Bagels & Co. uses high-grade ingredients to create bagels with distinct flavors and textures, appealing to both traditionalists and contemporary food enthusiasts.
• In March 2024, McDonald’s announced the revival of its bagel sandwiches on the breakfast menu, which had been discontinued during the COVID-19 pandemic. Initially, these breakfast offerings will be available exclusively at select restaurants in specific locations. McDonald’s, a global fast-food giant with a presence in over 100 countries, aims to capitalize on the growing demand for diverse breakfast options with this relaunch.
• In March 2024, Hella Bagels, a company known for its artisanal and hand-rolled bagels, transitioned from being a pandemic-born startup to opening its first brick-and-mortar store in Albany, U.S. This establishment marks a significant milestone for the brand, which gained popularity for its fresh, locally sourced bagels and innovative flavors.

Top Strategies Followed by Global Bagel Market Players

• Established Players: Large bagel companies such as Einstein Bros. Bagels focus heavily on research and development to drive innovation. Companies like Bruegger's Enterprises and Einstein Noah Restaurant Group plow significant capital into perfecting recipes, improving ingredient sourcing, and developing production processes. They leverage insights from test kitchens and consumer feedback to formulate new flavors and product lines that meet evolving tastes. Major industry leaders also pursue strategic partnerships for mutual benefit. Partnering with popular restaurant chains or grocery store brands expands their customer networks and visibility.
  • For instance, in 2023, Ess-a-Bagel partnered with Magnolia Bakery to create a banana pudding-inspired cream cheese, paired with a banana-colored plain bagel rolled in Nilla wafers. This collaboration combined iconic New York flavors, appealing to a broad customer base. Magnolia Bakery, in New York City's West Village, has become renowned for its classic American baked goods, particularly its cupcakes and banana pudding.
• Mid-Level Players: Medium-sized bagel producers such as Just Bagels emphasize offering quality goods at competitive prices. They source high-quality ingredients from reliable suppliers but keep overhead low through efficient manufacturing. This allows pricing bagels attractively for mainstream shoppers without compromising on taste or freshness. These companies also form important collaborations. Joint marketing campaigns boost brand awareness in untapped local markets.
  • For instance, in August 2024, Thomas’ collaborated with WK Kellogg Co to launch Froot Loops Mini Bagels, combining the fruity flavors of the popular cereal with snack-sized bagels. This limited-time offering targeted consumers seeking novel and nostalgic breakfast options.
• Small-Scale Players: Nimbler artisanal bakers leverage specialized skills. Focused on a niche, they craft unique flavors like whole grain, gluten-free, or herb-infused varieties. This draws a devoted customer base willing to pay a premium. Some also adopt cutting-edge kitchen technologies. For example, dedicated craft oven models allow for intricate dough designs impossible on larger equipment. Small bakeries also build strong community ties. Local store partnerships offer visibility while special orders and pop-ups open new routes.

Emerging Startups in the Global Bagel Market

• Innovative Technologies: Startups are revolutionizing bagel-making through advanced solutions. Bagera uses smart sensors to continuously monitor dough proofing for consistent results. Their AI system also optimizes recipes for preferred textures. Meanwhile, Bakebot is developing robotic arms to automate production, slashing labor costs. Such technological innovations could transform the industry, lowering item costs to reach new demographics while ensuring quality control.
• Sustainable Solutions: Others focus on eco-friendly bagels. Brooklyn Bagels utilizes biodegradable materials for packaging grown bags. Their dough incorporates spent grains from local breweries, reducing food waste. Meanwhile, Batard is pioneering compressed fresh bagels with 80% less packaging material. Through sustainable practices, these startups aim to shrink the industry's environmental footprint while appealing to ethically-conscious buyers.

Market Report Scope

Market Dynamics

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Increasing consumer demand for convenient and on-the-go breakfast options

Over the past decade, lifestyles around the world have gotten considerably busier and more fast-paced. Long commutes, packed work schedules, and a constant stream of demands on people's time have made it increasingly difficult for many consumers to sit down for a traditional breakfast each morning. At the same time, consumers are becoming more aware of the importance of eating something nutritious in the morning to start their day energized and focused. Their compact size and filling whole grain composition means bagels can easily be enjoyed on the go.

Opportunity: Expansion of product lines to include gluten-free and low-calorie options

The market presents opportunities for producers through expanding their product offerings. There is growing demand for gluten-free alternatives due to increasing rates of celiac disease and gluten sensitivity. While gluten-free baked goods often lack taste and texture compared to traditional varieties, innovation in ingredient formulations is improving quality. Meeting this demand through competitively priced, great-tasting gluten-free bagel options could open new customer segments. Similarly, low-calorie bagels featuring whole grains and protein could appeal to diet-conscious buyers.

Market Challenge - Competition from other baked goods and breakfast alternatives

The global bagel market faces strong competition from other popular baked goods and breakfast choices. Bagels have traditionally been viewed as an indulgent breakfast or snack item; however, consumers are increasingly shifting toward healthier options. Cereal, yogurt, and protein bars have gained widespread popularity as "on-the-go" breakfasts that are often perceived as more nutritious than a bagel. Even within the bread category, artisan breads and English muffins are growing competitors. They provide variety while still being sandwich or toast options. Retaining younger consumers who have more choice will be a challenge, as will shifting perceptions of bagels to be seen as a convenient and nutritious breakfast staple rather than an occasional treat. Producers will need innovative marketing strategies and new product lines emphasizing wholesome ingredients to attract and maintain market share among health-conscious buyers.

Analyst Opinion (Expert Opinion)

• The global bagel market continues to grow steadily driven by the increasing popularity of bagels as a breakfast food. The easy-to-handle and portable nature of bagels makes them very convenient to consume on-the-go. Bagels are gaining widespread acceptance among health-conscious consumers as they are considered a better option than white bread. However, the market faces restraint from consumers' preference for ethnic and specialty breads for breakfast in certain regions.
• North America dominates the global bagel market currently due to the strong roots of bagel culture in the U.S. and Canada. European countries are witnessing high demand for bagels influenced by the expanding ethnic food trend. Meanwhile, Asia Pacific is expected to emerge as the fastest growing regional market in the coming years supported by rising breakfast consumption and growing middle-class population in countries like China and India.
• There are opportunities for market players to come up with more innovative flavors and formats of bagels to cater to evolving consumer tastes globally. Offering bagels with added health benefits targeting fitness enthusiasts and diet-conscious consumers can expand the overall market reach. Bagel producers may also focus on enhancing their affordable product lines to attract price-sensitive customers in developing regions.

Market Segmentation

• By Product Type Insights (Revenue, USD Bn, 2019 - 2031)
• • Plain Bagels
  • Flavored Bagels
  • Whole Grain Bagels
  • Others
• By Distribution Channel Insights (Revenue, USD Bn, 2019 - 2031)
• • Supermarkets/Hypermarkets
  • Online Retail
  • Convenience Stores
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
• • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
• • Einstein Bros. Bagels
  • Bruegger's Enterprises, Inc. (Bruegger's Bagels)
  • Lender's Bagels (Pinnacle Foods, Inc.)
  • H&H Bagels, LLC
  • Bimbo Bakeries USA, Inc.
  • Manhattan Bagel Company, Inc.
  • New York Bagel
  • The Great American Bagel
  • Bruegger's Bagels
  • 4C Foods Corp.
  • Alvarado Street Bakery