The trends set to drive Asia-Pacific bakery market growth
Bakerysnacks.com (8/02/2016) reports that rapid urbanization and rising demand for convenient and gluten-free foods has been tipped to drive more than $3bn growth in the Asia-Pacific (APAC) bread and rolls market over the next five years.
Market analysts Technavio have predicted that APAC, which accounts for just over 10% of the $187.1m global bread and rolls market, is set to grow at a compound annual growth rate (CAGR) of 3.08% between 2016 and 2020. This would see APAC expand faster than both the global market (predicted to grow at a CAGR of 2.9%), and the massive European bread market, which is tipped to grow at a CAGR of 3.06%.
Urbanization, hectic work schedules and increased disposable income has boosted demand in APAC countries for on-the-go breakfast and convenient food products, and will drive the value of the market from $20.22bn in 2015 to $23.53bn by 2020.
According to the report - Global Bread and Rolls Market 2016-2020 report, consumers in APAC have a diversified taste and preference, which led to them looking for variety in bread and rolls, which gives manufacturers scope for innovation and new product portfolios.
India has particularly strong potential, as bread and rolls are proving more popular in the country than traditional breakfasts. Artisanal bakers in the Indian region are losing share as a result of the growing popularity – and effective distribution networks - of hypermarkets and supermarkets.
China, Hong Kong, and Malaysia were also seeing high growth in the bread market as a result of economic growth and rising standards of living. Many new bakeries have been established in China and Hong Kong in the past few years.
Demand for rice bread – popular with Japanese consumers – is increasing, although the Japanese market faces a challenge from a decreasing population as the number of new-born babies falls.
Among bread ranges proving popular in the APAC region, are Breadtalk (China), Britannia vitamin-enriched and wholewheat breads (India), Helga’s Lower Carb Breads (Australia) and Takaki Bakery’s stone oven breads (Japan).
“Since the bread and rolls market in APAC is completely dominated by local vendors and artisanal producers, it is difficult for any Western manufacturer to make inroads into the APAC market and compete with the existing ones,” he added. “Except for Mexican company Grupo Bimbo, not many foreign companies have had any impact on the APAC market.”
One similarity between Western markets and APAC is the rise of gluten-free eating, with a prediction that APAC will be the fastest-growing region for the global gluten-free food market, with an expected CAGR of more than 9% during 2016-2020.
“The easy availability of gluten-free food products in APAC is another major reason for the increased consumption of gluten-free products including bread and rolls,” added Sirathi . “Moreover, increasing number of celiac patients, increase in the number of digestive health problems among APAC consumers, weight management issues, and their ever growing demand for nutritious food will make this trend more prevalent in the APAC region.”