Bakery Industry comprises a large number of segments. It includes bread and fermented goods, biscuits, cookies, crackers, cakes, sponges, and pastries. Apart from these major segments, there are some other segments such as gluten-free, whole grain, and high-fiber products in the bakery industry. The inclination of consumers toward nutrition-conscious food has led to the expansion of the bakery industry. It has also helped the overall bakery market to grow at a significant rate. According to Fortune Business Insights, the global bakery products market size at USD 480.23 billion in 2024. The analyst projected the market to grow from USD 504.78 billion in 2025 to USD 731.69 billion by 2032. It will grow at a CAGR of 5.45% during the forecast period.
Bakery Industry: Segment Wise Market Analysis
The rising influence of Western diets in developing economies such as India, Brazil, Indonesia, and China has led to the expansion of the Bakery market. The rapid urbanization, dual-income households, busy lifestyles, and participation of women in the workforce have also contributed to its expansion. Consumer consciousness and demand for products such as gluten-free, organic, and others have also influenced the global bakery market. There is a continuously changing consumption patterns and consumer trends across the globe in the bakery segment.
Bakery Market is segmented into bread, cakes and pastries, biscuits and cookies, and other bakery products.
Bread Segment
It holds the largest bakery products market share and its dominance is due to its high consumption among consumers of varied age groups. There are many factors such as high nutritional value, price, and convenience which have increased bread consumption in Western diets. Further, bread is also available in various categories, such as gluten-free, whole grain, and high-fiber products. Hence, health-centric new bread products are likely to boost their consumption among consumers. According to Mordor Intelligence, the Bread Market will register a CAGR of 3.55% during the forecast period (2025-2030).
Major Companies
Dan Cake, Barilla Group, Grupo Bimbo, Associated British Foods PLC, and Almarai are the major global companies operating in the Bread Market. Asia-Pacific region has the highest growth rate and will grow at the highest CAGR over the forecast period (2025-2030).
Bread Market Future Prospects
According to Mordor Intelligence, there has been an increasing demand for greater varieties of bread, such as ethnic bread, and whole-meal bread, like oats, bran, seeds, etc. Further, the bread manufacturers are leveraging the acceptance of regional bread specialties to create value-added products to diversify their assortments. Fortified, clean-label, and organic bread are in great demand among the bread categories worldwide. The innovation in the industry has also led to the development of new products. These products aim to meet the changing demands of consumers, and bakeries are offering bread with additional veggies like carrots, beetroot, or spinach.
Sourdough Bread: The New Development in Bread Market
Sourdough Bread has emerged as a new ‘Clean Label’ bread product. It is a naturally leavened bread as it doesn’t use commercial yeast to rise. The food processors use a ‘starter’ which is essentially a fermented flour and water mixture that contains wild yeast and good bacteria to manufacture it. The bread has a tangy flavor and slightly chewy texture. The use of wild yeast in bread-making provides more flavor than commercial yeast. Further, it is natural in the sense that it doesn’t contain any additives. According to Mordor Intelligence, the Sourdough Market size stands at USD 1.11 billion in 2025. It is expected to reach USD 1.56 billion by 2030, at a CAGR of 6.94% during the forecast period (2025-2030).
Cookies Market
According to the Mordor Intelligence, the Cookies Market stands at USD 13.24 billion in 2025. The market will reach USD 20.47 billion by 2030, at a CAGR of 9.1% during the forecast period (2025-2030). The use of functional, low-fat, and sugar-free ingredients has helped the cookies market to expand among consumers with nutrition-conscious diets. It has also expanded due to rapid urbanization. The demand for freshly hand-made cookies has risen sharply among consumers.
Major Companies
Britannia Industries Ltd, Campbell Soup Company, General Mills, Inc., Mondelēz International, Ferrero International S.A., Mckee Foods Corporation, and PepsiCo Inc. are major companies that are operating in the biscuit market.
Market Trends
There has been constant evolution in the cookie industry with innovations in ingredients, such as healthy alternatives for almonds, raisins, apricots, walnuts, and omega-3-rich seeds. These cookies aim to feed the high net-worth and health-conscious populations. Food manufacturers are using some of the food items such as Oats as well as other digestive ingredients. Further, there is an increasing trend of gluten-free cookies which are high in energy. There are developments of new kinds of flavors with exotic additions in the cookies segment.
Biscuit Market
The Biscuits Market size stands at USD 139.06 billion in 2025. It will reach USD 177.57 billion by 2030, at a CAGR of 5.01% during the forecast period (2025-2030). The biscuit industry is witnessing a notable shift towards plant-based and vegan additives to cater the broader dietary trends. New varieties of biscuits are also entering the market which uses alternative ingredients like oats, nuts, and plant-based proteins. For example, recently, Mars introduced new vegan-friendly biscuit varieties in early 2024.
Major Companies
Mondelez International, Kellogg’s, ITC Limited, Britannia Industries, Parle Products, and Yildiz Holding are the major companies operating in the global market.
Market Trends
Like other segments of the bakery industry, the biscuits market is experiencing a significant transformation driven by increasing health consciousness among consumers and a growing demand for clean-label products. Food processors use natural sweeteners such as stevia and monk fruit, natural colors derived from spirulina, elderberry, and beetroot, and natural thickeners such as tragacanth and gellan gum.
Segment Wise Analysis
In different segments, sweet biscuits dominate the global biscuits market with 73% of the total market share in 2024. According to Mordor Intelligence, the crackers and savory biscuits segment is experiencing robust growth and is projected to expand at approximately 6% CAGR during 2024-2029.
Cake Market
According to the Mordor Intelligence, the Cakes Market size stands at USD 101.91 billion in 2025. It will reach USD 124.17 billion by 2030, at a CAGR of 4.03% during the forecast period (2025-2030). The industry is undergoing a significant transformation driven by evolving consumer preferences and sustainability concerns.
Conclusion
The Bakery market is constantly evolving with a significant growth rate owing to the development of new food products and increasing demand. There is a constant inclination toward clean-label products in the market owing to increasing obesity and related issues across the world. From using novel sweeteners to plant-based colors, the whole bakery market is witnessing a transformation and innovation.