The global frozen bakery products market is projected to register a CAGR of 7.50% during the review period. The growth of the market can be attributed to the increasing demand for convenience foods along with the growing working women’s population. Market players are expected to witness profitable growth opportunities in the global market due to the rising demand for organic products.
The key players operating in the global frozen bakery products market include Grupo Bimbo S.A.B.de C.V. (Mexico), Conagra Brands, Inc. (US), Associated British Foods plc (UK), General Mills, Inc. (US), Lantmännen Unibake (Denmark), Kellogg Company (US), Aryzta AG (Switzerland), Vandemoortele NV (Belgium), Europastry S.A. (Spain), and Cole’s Quality Food, Inc. (US). The market comprises tier-1, tier-2, and local players. The tier-1 and tier-2 players have a global reach along with diverse product portfolios. Companies such as Grupo Bimbo S.A.B.de C.V., Conagra Brands, Inc., Associated British Foods plc, General Mills, Inc., and Lantmännen Unibake dominate the global market due to their brand reputation, product differentiation, financial stability, and diversified regional presence.
The players are focused on investing in research & development and adopting strategic growth initiatives such as product launches, expansions, and partnerships to strengthen their market positions and capture a larger customer base.
Threat of New Entrants
Several established players operate in the global frozen bakery products market, which makes it difficult for new entrants to compete with established brands in the market. Additionally, new players need to invest heavily in creating a brand name through promotion and marketing. However, the barriers to enter the market are not very high, and the initial investments required to start a frozen bakery brand are moderate. The easy availability of raw materials also increases the chances of new entrants.
Hence, the threat of new entrants in the global frozen bakery products market is expected to be moderate during the forecast period.
Bargaining Power of Suppliers
The raw material suppliers in the global frozen bakery products market are food & beverage manufacturers and millers. The frozen bakery products manufacturers have the liberty to shift between suppliers as they are not dependent on a single supplier, which reduces their operational risks. Furthermore, the presence of several suppliers reduces the switching costs among the manufacturers. The limited scope of product differentiation also reduces the bargaining power of the suppliers.
Hence, the bargaining power of suppliers in the global frozen bakery products market is expected to be low during the forecast period.
Bargaining Power of Buyers
The bargaining power of buyers is the pressure consumers exert on manufacturers to offer high-quality products at low prices. Owing to the presence of several established industry players in the market, the buyers have the option of choosing between several brands, which reduces their switching costs and, consequently, increases the bargaining power of buyers. Moreover, consumers usually tend to experiment with new products in the market and often change their preferences, which increases their bargaining power.
Hence, the bargaining power of buyers in the global frozen bakery products market is expected to be high during the forecast period.
Threat of Substitutes
Frozen bakery products are being replaced with conventional bakery products as the general population is becoming increasingly health conscious. The use of various chemicals and preservatives in frozen bakery products can cause various diseases, which is why many consumers prefer fresh bakery products instead of frozen. Furthermore, the cold chain process is still at a budding stage in most developing and underdeveloped countries, which is expected to reduce the overall consumption of frozen bakery products.
Hence, the threat of substitutes in the global frozen bakery products market is expected to be high during the forecast period.
Intensity of Rivalry
The frozen bakery products market is a highly competitive market that is marked with fierce rivalry among the players in terms of product quality, variety, and pricing. The mature and stagnant market for frozen bakery products is forcing the market players to emphasize on innovation in terms of flavors and product quality to expand their customer base. Many manufacturers are focusing on reducing production costs to compete in the cut-throat market. They are also engaged in strategic expansions to strengthen their businesses worldwide and survive in the market.
Hence, the rivalry in the global frozen bakery products market is expected to be high during the forecast period.
