Global bakery sales are expected to increase in value on the back of higher commodity prices and greater demand from emerging economies, according the latest report by Euromonitor.
According to the report, global bakery product sales are expected to rise by 1.6%, an increase of 1.4% on last year. Retail value sales are projected to hit the US$462bn mark.
However in its Global Bakery Highlights and Prospects for 2011-2016 report, Euromonitor said that this year would be one dominated by a wheat- and corn-driven rise in commodity prices, which would hamper volume growth in bakery.
“International manufacturers are adjusting to this trend by highlighting the added value of their brands,” states Euromonitor. “In doing so, they are trying to compete with private-label offerings, perceived as low in price and gaining in quality and sophistication every year.”
Euromonitor said that Western Europe and Latin America were predicted to remain the largest bakery product markets, accounting for 32% and 20%, respectively, of global bakery retail value in 2011.
The report predicted that biscuits would be the category to register the highest growth, having increased 2.4% in retail value this year, underpinned by strong sales growth in Latin America.
Bakery unit prices were expected to be highest in North America, at US$7.40 per kg and Australia at US$6.30 per kg.
In terms of trends, Euromonitor said it expected to see an increase in demand for functional properties among middle-class consumers in emerging countries.