Thaw-and-serve, bake-off and portability directly influence the growth of frozen bakery products, according to a study conducted by Markets and Markets, New York. The market for frozen bakery products is projected to reach $21.2 billion by 2020, growing at a CAGR of 8.5% from 2015-2020
Frozen bakery products help in-store bakeries, coffee chains, gas stations and quick-service restaurants offer quick and convenient products with prolonged shelf life despite seasonal variations. However, manufacturers of frozen bakery products face intense competition from inter- and intra-industry peers in sourcing raw material, ultimately restraining the market growth to a significant extent.
The frozen bakery products market is considered to be one of the fastest-growing segments of frozen foods due to the growing trend toward ready-to-bake or ready-to-thaw frozen items. Quick-service restaurants and retail chains benefit from frozen bakery products, as they can now readily thaw and be prepared as a fresh item using frozen dough. Additionally, prolonged shelf life offers benefits of easy availability whenever required.
Other benefits include less food wastage, as stores can bake based on demand, while keeping remaining products frozen and preserved.