Companies Offering Gourmet Products Will Have Edge in APAC Bakery and Cereals Market: GlobalData
Companies which strike a balance between health and taste, and offer gourmet consumption experience will have a competitive edge over others in the Asia-Pacific (APAC) bakery and cereals market, says leading data and analytics company GlobalData.
The company’s report, Opportunities in the Asia-Pacific Bakery & Cereals Sector, reveals that the bakery and cereals sector in APAC, which was valued at US$99.1bn in 2017, is expected to register the second fastest growth after the Middle East & Africa, with a Compound Annual Growth Rate (CAGR) of 5.9% over the period 2017-2022.
Kalyan Rampa, Consumer Analyst at GlobalData, says: “Rising disposable incomes, busy lifestyles, increasing health awareness and growing number of young consumers willing to experiment with novel and unique flavours are some of the key drivers that will propel the growth of the bakery and cereals market in APAC over the forecast period.”
Within APAC, China accounted for US$36.7bn, followed by Japan (US$31.8bn), Australia (US$8.1bn) and India (US$6.8bn) in 2017. China is also expected to register the fastest CAGR of 9.2% over the forecast period.
In terms of categories, cakes, pastries & sweet pies accounted for the largest share with 32.1%, followed by bread & rolls (25.4%) during the year. Over the outlook period, cakes, pastries & sweet pies, cookies (sweet biscuits) and savory biscuits are expected to record an increase in their market share in terms of value. On the other hand, bread and rolls’ market share will erode, according to the report.
The APAC bakery and cereals sector is fragmented with the top three companies accounting for only 9.1% value sales in 2017. Yamazaki Baking Co., Ltd. led with a value share of 5%, followed by Mondelez International, Inc with 2.4% and Britannia with 1.8% shares. Artisanal producers held a value share of 16.6% during the same year.
Rampa adds: “With the limited reach of branded products in the highly fragmented market space, artisanal bakers offering novel and unique products to experimental minded consumers have a competitive edge over mainstream brands.”
This is substantiated by GlobalData’s Q3 2016 survey where 38% consumers from Asia and Australasia perceive artisanal products to offer unique taste.
Rampa concludes: “With rising incidence of lifestyle diseases, manufacturers will be compelled to reformulate their products without altering the taste to suit to the healthy preferences of consumers. In addition, as busy consumers constitute a major target segment, manufacturers are expected to offer a host of on-the-go bakery and cereals. To gain a competitive edge over others in this highly competitive market, players will have to strike a balance between health and taste, and offer gourmet consumption experience.”