May 31, 2016
Three major factors have been identified as having a significant impact on the state of the global cakes and pastries market.
New data gathered by Technavio analysts has revealed that the global cakes and pastries market is poised for growth over the next few years. According to their latest report, the global cakes and pastries market is expected to reach $60 billion by 2020, growing at a CAGR of almost 4% from 2016-2020.
According to Vijay Sarathi, lead research analyst at Technavio for food research, “The market’s growth is likely to be supported by product developments and flavor extensions in categories such as frozen pies, cake rolls and pound cakes, among others. In addition, the rising consumer focus on quality ingredients has led to the introduction of healthier products.”
Technavio’s lead food and beverage market research analysts have identified the following three factors that will drive the global cakes and pastries market:
Rising urbanization and demand from millennials
Urbanization and rising disposable incomes have resulted in greater purchasing power. The working population in big cities prefers on-the-go foods, such as pastries, cake snacks and sweet pies, among others. Globally, 54% of the population lives in urban areas, and this is expected to increase in the coming years.
Also, the rising millennial population is demanding more on-the-go food options. Millennials constituted the largest workforce demographic in the U.S. and accounted for $1.3 trillion in direct annual consumer spending in 2015, which will grow as their annual income reaches $8.3 trillion by 2025 in the U.S.