Selbyville, Delaware, United States, November 4 2020 (Wiredrelease) Global Market Insights, Inc –:Frozen foods and bakery products have been among the fastest growing trends in the food and nutrition space. The popularity of frozen foods has been largely influenced by growing consumer attraction towards convenience foods due to busier lifestyles. Frozen bakery products are gaining significant traction with the surging demand for durable food items as they have a longer lifespan compared to conventional bakery items.
Driven by a need for convenience, rapid growth of instore bakeries and bakery chains, and increased out-of-home consumption of bakery products has been observed across Latin America in recent years. This in turn has augmented the demand for convenience from bakers through ready-to-make semi-finished baked products in chilled or frozen form.
វាត្រូវបានប៉ាន់ស្មានថា Latin America frozen bakery market size will hit an annual valuation of more than US$5.7 billion by 2024, with growing consumption of packaged easy-to-make bakery items including frozen bread, frozen patisserie, frozen viennoiserie, and frozen savory snacks.
What growth strategies are leading manufacturers adopting?
H. E. Butt Grocery Company, Bimbo de Colombia S.A. (Grupo Bimbo), Rich Products Corporation, Patagonia Artisan Bakers, S.A. De C.V, Panificadora El Panque, Dulcipan, Don Maíz SAS, Comapan S.A., General Mills Colombia Ltda, and Europastry Colombia (Europastry) are among the notable frozen bakery product manufacturers in Latin America.
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With the growing popularity and adoption of frozen foods over the past several years, these companies have been actively investing in development of new and expansion of existing production lines. For instance, in September 2017, Grupo Bimbo Colombia had invested more than US$86 million to build a new bakery facility in the country. During the same year, the company had inaugurated a new US$129.3 million distribution center in Mexico City, which is among the largest and most advanced bakery distribution hubs in the Americas. The investment helped the company increase logistics capacity and enhance distribution efficiency.
Mergers, acquisitions, and partnerships are also among the top strategies adopted by local players to expand their market presence and gain a competitive advantage. Citing a recent instance, in January 2020, Rich Products Corporation had acquired two instore frozen bakery facilities from TreeHouse Foods, Inc. The company further announced the expansion of its product portfolio with the acquisition of Morey’s Seafood International and Rizzuto Foods in February 2020.
In addition, new product development, expansion of product portfolio, and adding greater capacity are key strategies that help manufacturers achieve innovation, continued growth, and long-term success.
What factors may possibly limit the product consumption?
Most edible items are perishable and require preservation for long-term storage. Storing at lower temperatures help reduce biological activity from bacteria and other microbes that cause food decay. In the longer run, freezing is the only viable solution for storage of eatables such baked goods. As a large amount of fuel is utilized in storage, freezing, and cryogenic logistics, fluctuations in energy costs may hamper frozen bakery operations to some extent.
The consumption of frozen bakery products in Latin America may also be affected by the prevalent adoption of freshly baked products. However, more and more consumers are switching to frozen, ready to make products due to their busy urban lifestyles. With growing consumer preference towards ease and convenience, the demand for packaged foods such as bread, pizza, and arepas made of frozen dough is likely to grow exponentially over the next few years.
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