The Latin American (LATAM) frozen bakery market will surpass $5.7 billion by 2025, according to a new research report by Global Market Insights, Inc., Shelbyville, Del.
Rising economic growth resulting in an expansion of disposable income of the Colombian population has resulted in a vast increase in modern retail space across the country. This would further augment the demand for frozen bakery products in the coming years. The expansion of restaurant chains and fast food outlets are a key component of the sector’s growth. According to the Colombian Chamber of Commerce, there were 32,000 restaurants registered in Bogotá in 2016, the majority of which were fast food outlets. This growth would further increase the demand for frozen dough.
However, increased fluctuations in energy costs and major fuel consumption in freezing, storage and cryogenic logistical requirements could hinder the LATAM frozen bakery market growth during the forecast timeframe.
In terms of volume, the bread segment will account for more than 63% of the overall LATAM frozen bakery market by 2024.
On the basis of product, ready-to-prove products show decent growth of more than 3% in forecast timeframe, which allows for the surge in the usage of ready-to-prove products by artisan bakers in Mexico and Colombia. Rising number of artisanal bakers in the region will increase the consumption of ready-to-prove products in next seven years.
Hotels, restaurants and catering (HORECA) captured close to 20% volume share of end-user base in 2017, as these restaurants sell a variety of bakery products, including cakes, pastries, snacks, etc. Thus, developments in the restaurant industry in the country will drive product demand for use in HORECA during the forecast period.
Based on country, Colombia shows the positive growth with more than 6% CAGR in forecast period. Advancement in different retail channels across the country will be crucial factor behind the frozen bakery market growth in Colombia. The increasing number of restaurants and hotels in the country has also led to sharp increase in the consumption of bakery products such as pastries, cakes, etc. These trends will propel the Colombia frozen bakery market by 2024.