Consumer preferences currently incline strongly toward health, convenience and indulgence. To accommodate these trends, manufacturers must constantly innovate, stretch perceptions, and provide customer-oriented offerings. The real opportunities lie in the niche arena, where successful market penetration will require product specialization and uniqueness.
New analysis from Frost & Sullivan (food.frost.com), Strategic Assessment of the U.S. Bakery Industry, finds that the market earned revenues close to $34 billion in 2007.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the U.S. bakery industry, then send an email to Johanna Haynes, Corporate Communications, at jhaynes_pr[.]frost.com with the following information: your full name, company name, title, company telephone number, company email address, city, state, and country. We will send you the information via email upon receipt of the above information. All media inquiries please reply directly to johanna.haynes[.]frost.com.
"The present food and beverage industry is marked by strong competition, which demands meticulous strategies by market participants to cater to the dynamic needs of the global market," says Frost & Sullivan Research Analyst Sneha Pasricha. "Ongoing innovations and advancements have led to the proliferation of products intended to please the palates of health-conscious consumers."
These shifting trends, though challenging, are proving to be advantageous for bakers as well as manufacturers of bakery ingredients such as emulsifiers, enzymes, colors, flavors, antimicrobials, starch, and functional and formulated bakery ingredients. With the healthy living trend, natural, organic and high-fiber foods emerge as sought-after products.
Keeping pace with rapidly changing consumer expectations and purchasing patterns presents a major challenge for manufacturers. To acquire a distinct advantage, manufacturers must experiment with novel ideas such as the inclusion of Omega-3 and -6 fatty acids, vitamins, minerals, prebiotics and probiotics. Opportunities also lie in niche segments such as specialty, gourmet and on-the-go consumption.
Apart from price and innovation, other issues dominating the market are product quality, product differentiation, technology, branding and quality of ingredients. Attractive pricing, enhanced customer support, and an extensive product portfolio are vital as market participants grapple with intense rivalry, relentless pressure on costs, and restrained profits. In addition, various restrictions that hinder the entry of newcomers keep industry assets low.
Average per unit prices of baked goods, however, increased annually since 1991 – a clear indicator that manufacturers have been able to confront and overcome the challenges and identify opportunities to unleash the hidden potential of the market.
"This indicates that competition has its own limits in this market space, resulting in higher profitability for industry participants," notes Pasricha. "Despite challenges, the market still holds opportunities for participants who are prepared to diversify."
Overall, U.S. bakery market dynamics demand proactive participation. Maximizing innovative strategies is the surefire route to business development.
Strategic Assessment of the U.S. Bakery Industry is part of the Food and Beverage Ingredients Growth Partnership Service program, which also includes research in the following markets: U.S. Industrial Enzymes Markets, U.S. Food and Feed Enzymes Markets, European Food Emulsifiers Markets, Strategic Analysis of Chinese Food Emulsifiers Markets, U.S. Markets for Antimicrobials in Food and Beverage Applications, U.S. Prebiotics Markets, Strategic Analysis of the Global Flavors Market and Brazilian Flavors Markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.
Frost & Sullivan, the Global Growth Consulting Company, partners with clients to accelerate their growth. The company's Growth Partnership Services, Growth Consulting and Career Best Practices empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.
Strategic Assessment of the U.S. Bakery Industry N341