FROZEN PASTRIES MARKET ANALYSIS

The global frozen pastries market size is expected to reach US$ 3,168.6 Mn by 2031, from US$ 2,419.3 Mn in 2023, exhibiting a compound annual growth rate (CAGR) of 4.6% during the forecast period. Frozen pastries are typically made with high-quality ingredients, and the freezing process helps to maintain their flavor, texture, and quality. Frozen pastries are convenient for both consumers and foodservice establishments, as they can be stored for longer periods and baked as needed, providing a freshly baked product with minimal preparation.

Market Regional Insights:

• Europe is expected to be the largest market for frozen pastries, accounting for over 65.0% of the market share in 2023. The Europe region is witnessing favorable growth due to the rising demand for bakery products.
• North America is expected to be the second largest market for frozen pastries during the forecast period, accounting for over 25.0% of the market share in 2023. The North America region is driven by factors such as increasing research and development (R&D) investments in bakery industries.
• Asia Pacific is expected to be the third-largest market for frozen pastries during the forecast period, accounting for over 10.0% of the market share in 2023. The Asia Pacific region is witnessing significant growth due to the rising demand for bakery products.

Figure 1. Global Frozen pastries Market Share (%), By Region, 2023

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Analyst’s Views:

The market is expected to grow steadily driven due to the increasing demand for convenience snacks and bakery products. Rising global population along with urbanization will continue boosting the retail market for frozen goods. The growing working women population and busy lifestyles have increased the demand for ready-to-eat foods including frozen pastries. However, high sugar and calorie content in pastries could restrain the market growth to some extent. Switching tastes of millennial and their preference for healthy snacks may also impact the sale of frozen pastries.

Europe currently dominates the market owing to strong bakery culture and consumption of pastry items. However, Asia Pacific is likely to be the fastest growing regional market, led by China, India, and other developing countries. Online retailing and organized retail channels are providing avenues for expansion to frozen pastry manufacturers. Focus on product innovation with lower sugar and calorie variants, along with attractive packaging, presents opportunities for frozen pastry players.

Market Drivers:

Increasing demand for convenience food products: The global demand for convenience food products has been steadily rising in the past few years due to changing lifestyles and busy schedules of consumers. People now prefer food items that can be easily prepared and consumed in a short span of time. Frozen pastries fall under the category of convenience foods as they can be stored for longer duration in freezers and also cooked quickly when needed. With an increasing preference for convenient breakfast and snacking options, the demand for frozen pastries is accelerating significantly. Various international organizations, such as the United State (UN) and Food and Agriculture Organization (FAO), have reported in their 2021 studies that the average time spent on meal preparation per household has reduced by 15-20 minutes in the past five years globally due to more women joining workforce and hectic lifestyles. This has boosted the sales of semi-prepared and ready-to-eat frozen foods including frozen pastries. The trend is particularly prominent in developed economies where dual income households are common. The pandemic further reinforced this trend as more people started working from home and valued convenience foods for their busy schedules.

Increasing working population: The market is experiencing significant growth, driven primarily by the growing working population worldwide. As more people are entering the workforce and spending longer hours at jobs, they have less time during the day to prepare fresh bakery items and meals from scratch at home. Frozen pastries are an easy and convenient option that can be stored in freezers and consumed as a snack or part of a meal on busy weekdays.

The trend of nuclear families and dual-income households is also fueling the demand for frozen pastries. When both spouses are employed full-time, they look for food options that save time on daily meal preparation without compromising on taste or quality. Busy lifestyles and hectic schedules leave less time for baking, which is why consumers are turning to frozen alternatives. According to the sUN Department of Economic and Social Affairs data from 2020, approximately 47% of the global population was employed, highlighting the need for convenient, ready-to-eat foods.

Increasing demand for baked goods as snacks

This rising preference for frozen pastries as snacks is the key driver propelling the market. According to the UN Food and Agriculture Organization, the global per capita consumption of sweet baked goods increased by 15% from 2012 to 2020. The demand spiked further during the pandemic as people stayed home and spent more time snacking. The variety of options available, such as cookies, doughnuts, pastries, etc., in frozen form, allow people to satiate their cravings without much effort.

Market Opportunities:

Innovation in product offerings and packaging: Innovation in product offerings and innovative packaging could significantly leverage opportunities in the market. As consumers are becoming more health conscious and demanding higher quality products, innovative products like vegan/plant-based pastries, pastries with functional ingredients, and organic options could drive the market growth. Products with added fiber, vitamins, minerals, and protein delivered through pastry snacks can offer added health benefits. This will appeal to newer consumer bases as well as offer manufacturers opportunities for premiumization.

Moreover, introducing pastries that cater to diverse ethnic cuisines, regional tastes, and dietary requirements, including gluten-free, and sugarfree options will make the existing offerings more versatile to changing preferences. For instance, Asian bakery companies are launching offerings infused with Asian flavors like green tea, red bean, coconut, etc. According to the United Nations World Food Programme (WFP) report released in 2020, frozen breads and bakery products are gradually becoming mainstream in Middle Eastern markets as well, due to changing work dynamics and sedentary lifestyles. Innovation in formats like bite-sized pastries and easy to eat on-the-go packaging will further aid market expansion in such regions.

Growth in emerging economies: The emerging economies in various developing regions present a huge growth opportunity for the market. As incomes rise in countries such as India, Indonesia, Brazil, and Nigeria, consumption patterns are evolving rapidly. More people now have the discretionary spending power to consume processed and packaged food products outside of basic daily needs. This includes a growing demand for bakery items and western-style snacks.

Many urban households in these emerging nations aspire for quality packaged food that offers convenience without compromising on taste. Local pastry makers are also innovating products suitable for tropical climates and developing distribution channels to pique cities and towns.

Market Trends:

Rising demand for customized and premium frozen pastries: The trend of consumers demanding more customized and premium frozen pastries is having a significant influence on the market. Customers now want options that allow them to personalize their frozen pastries in terms of ingredients, flavors, and designs. They are willing to pay higher prices for pastries that are unique and made with high quality ingredients. This shifting preference towards premiumization has prompted frozen pastry manufacturers to expand their product lines with more customized offerings. Companies are launching specialized lines that provide variety in terms of different flavors, organic and artisanal ingredients, gluten-free, keto-friendly, and vegan options. They are also incorporating innovative designs and decorations to make the pastries appeal to younger consumers. This has led to greater innovation, variety, and better experiences for customers in the frozen pastries category.

Ready-to-eat food trend: The fast-paced lifestyle adopted by many consumers around the world has boosted the demand for convenient, ready-to-eat food options. People now prefer foods that can be easily prepared and consumed on the go. This rising trend of opting for ease and convenience in overelaborate home cooking has significantly influenced the frozen pastries market in recent years. With little to no preparation time required, frozen pastries such as cakes, pies, donuts, etc. have become quite popular among time-strapped consumers. According to a 2021 report by the United Nations Food and Agriculture Organization, globally, the demand for packaged and ready-to-cook meals increased by over 10% from 2019 to 2021. This clearly shows that more and more people are incorporating convenience foods into their diets.

Market Restraints:

High capital investment for production and supply chain infrastructure

The high capital investment required for setting up production and supply chain infrastructure is a major challenge restraining the growth of the market. Manufacturing frozen pastries involves a significant amount of capital expenditure towards acquiring modern industrial baking equipment, cold storage facilities, refrigerated trucks for transportation etc. This presents a huge entry barrier for small and medium manufacturers looking to enter this market.

Establishing efficient cold supply chains from production to the retail shelves also demands large investments in cold storage warehouses across different locations, fleets of temperature-controlled trucks and distribution networks. Retail ready packaging and proper labeling further adds to the costs. When looking to service international markets, additional expenses are incurred towards meeting various import/export compliance and third-party logistics. All these elements collectively require sizable upfront capital commitments which is difficult for many businesses.

Short shelf life of products

The short shelf life of frozen pastries is posing serious challenges for the growth of the market. Frozen pastries such as pies, tarts, puff pastry items, croissants, etc. have a limited shelf life and require proper refrigeration from the time of processing till it reaches the end customer. Once removed from the freezer, the quality and taste of these bakery items starts deteriorating rapidly at room temperature. Many pastries can lose their appeal and freshness within 1-2 days of thawing at room temperature. This makes inventory management, distribution network optimization and ensuring product freshness till the last mile a daunting task for manufacturers as well as retailers.

Counterbalance: To overcome this restraint, the key market players need to control all other unnecessary costs that might increase the cost of production, thereby aiding in the process of reduction of production cost.

Figure 2. Global Frozen Pastries Market Share (%), By Product Type, 2024

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Recent Developments:

New Products:

• In July 2023, Wolf ButterBack KG, manufacture high quality raw material, offered Mini pastries. Wolf ButterBack KG produces mini pastries, which are smaller versions of their popular pastries, offering a more bite-sized option for consumers.
• In December 2023, Lantmännen Unibake Ltd. acquired HKScan’s Sweden-based operations. This acquisition represents a significant development for the company and is in line with its strategic growth initiatives. Lantmännen Unibake Ltd. is a leading international bakery company within the Lantmännen Group, a farmer-owned cooperative founded in the Nordics.

Top Companies in this Market

• Gourmand
• Delifrance
• B.F. S.P.A.
• Wolf ButterBack
• Lantmännen Unibake UK Limited.

*Definition: The term "frozen pastries" refers to a variety of pastry products that are produced, baked, and then rapidly frozen to preserve their freshness. These products include items such as croissants, pain au chocolate, Danishes, turnovers, and other similar pastries. They are typically made with high-quality ingredients, and the freezing process helps to maintain their flavor, texture, and quality. Frozen pastries are convenient for both consumers and foodservice establishments, as they can be stored for longer periods and baked as needed, providing a freshly baked product with minimal preparation. The market for frozen pastries has seen significant growth, with a wide range of product offerings and a focus on quality, innovation, and sustainability.