Innovation and Market Drivers in Bakery and Cereals

Fast growth markets and strategies for adding value

Publication Date	May 2009
Publisher	Business Insights
Product Type	Report
Pages	104
ISBN Number	not applicable
Product Code	RBI00300

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Summary

The global bakery and cereals market is predicted to value $364bn by 2012. This expansion is being driven by fast growth markets such as China and India. The European and North American markets are now highly mature and low growth, and bakery and cereals have reached a level of saturation in many markets. To counter both this and the high levels of private label saturation, bakery and cereals manufacturers are attempting to differentiate their brands, especially in growth areas such as healthy and convenient bakery products. Ownership of a niche segment or proprietary ingredients is a key way bakery and cereals manufacturers can add value to their products and increase their market share.

'Innovation and Market Drivers in Bakery and Cereals: Fast growth markets and strategies for adding value' is a management report published by Business Insights that analyzes key trends in the bakery and cereals market and forecasts future growth opportunities. This report provides a detailed examination of the bakery and cereals market by region, category and maturity to provide unique insights into the factors shaping the market now and in the future.

Key Highlights

The largest category in the bakery and cereals market is bread and rolls, which reached $171bn in 2008. The bread and rolls segment, showed the slowest rate of growth.

The key emerging bakery and cereals markets are China, Russia, Brazi, Mexico, Saudi Arabia, South Africa, Indonesia, Columbia, Chile and India.

In the US, the number of people aged 65 and over is projected to increase from 39m in 2010 to 69m in 2030. About 20% of the total population will be over 65 in 2030, compared to about 13% currently.

Personalized products have experienced a large growth since 2006. These products correspond to the individual taste of consumers incorporating their nutritional needs and personality.

Use this report to...

Improve the targeting and effectiveness of your NPD strategy using this report's analysis of product launch data of 18,000 bakery and cereals products launched globally between 2005-2008.
Predict future growth areas in bakery and cereals using this report's forecasts to 2012 of market values and volumes by category and sub-category.
Gain insight into future opportunities in the bakery and cereals market and examine the most innovative product launches and potential areas of opportunity for manufacturers.
Identify key trends that are shaping the bakery and cereals market, and examine the key drivers for the market to 2012 detailing key trends in demographics,

Key issues...

Impact of changing population profiles. The older population (aged 65 and over) provides a key opportunity for bakery and cereals manufacturers to address products which directly target the nutrient needs of older needs, as this population is increasing rapidly. Increase in Private Label products.

The increase of private label in bakery and cereal products has increased the pressure for manufacturers to differentiate their brands, especially in growth areas such as healthy and convenient bakery products.

NPD in bakery and cereals market. This market is still being dominated by health concerns, including increasing diabetes and obesity rates, particularly among children. The health trend is overlapping both indulgence and convenience trends as consumers drive innovation in healthy indulgent and healthy convenient products.

The growth of Premiumization. In mature markets, where artisanal bakery takes a very low share, there is significant activity in very premium artisanal bakery - as more affluent consumers turn away from industrially produced bread and purchase high end bread as a treat, fostering a new wave of premiumization in in-store bakery as it tries to compete.

Your questions answered...

How can bakery and cereals manufacturers minimize the threat of private label brands?
What were the most innovative new bakery and cereals products launched in the last year?
How are leading bakery and cereals manufacturers reacting to ethical issues such as sustainability and recyclable packaging?
Who are the key players in the bakery and cereals market? What are the key trends likely to impact bakery and cereals NPD over the next three years?
How can bakery and cereals manufacturers position their products to reflect changing consumer demands?

Content

Innovation and Market Drivers in Bakery and Cereals Executive summary
Market drivers
Emerging bakery and cereals markets
- Innovation and NPD in bakery and cereals
- Key trends
Chapter 1 Introduction
- The bakery and cereals market
- Scope of the report
- Report structure
Chapter 2 Market drivers
- Summary
- Introduction
- Increase in raw material prices
- Private label
- High levels of disposable income
- Changes in working patterns
- Drive for personalization
- Legislation
- Article 13
- Reduction of sugar, salt and fat
- Nutritional labeling
- Ageing population
- Adding value
- Maturity and traditionalism
Chapter 3 Emerging bakery and cereals markets
- Summary
- Introduction
- Market value
- By category
- Bread and rolls
- Cakes and pastries
- Cookies
- Breakfast cereals
- Morning goods
- Crackers
- By region
- Emerging markets
- Brand shares
Chapter 4 Key trends
- Summary
- Introduction
- Health
- Weight management
- Satiety
- Heart health
- Bone health and osteoporosis
- Oat based products
- Plant sterols and stanols
- Convenience
- Food intake reduction or portion control
- Ethical
- Locally sourced food
- Ecofriendly packaging
- Indulgent
- Premiumization, upscale, gourmet
- Healthy indulgence, guilt free indulgence
- Chocolate
- Superfruit
Chapter 5 Innovation and NPD in bakery and cereals
- Summary
- Introduction
- Growth of bakery and cereals NPD
- Category analysis
- Bakery snacks
- Bread
- Cakes mixes
- Cereals
- Cookies
- Crackers
- Other baking mixes
- Pastries and baked products
- Regional analysis
- The key regions
- Innovative bakery and cereals
- Innovation in formulation
- Unusual ingredients and flavors
- Differentiated texture combinations that enhance taste
- Personalized nutrition
- Energy infused food
- Innovation in packaging
- Convenient packaging
- Shelf-life increasing packaging
- Eco-friendly packaging
- Innovation in positioning
- Meal replacement positioning
- Kids
- Leading tags on bakery and cereals
- Leading flavors in bakery and cereals
Chapter 6 Conclusions
- Summary
- Introduction
- Adding value
- Health
- Opportunities for ingredient manufacturers
- Indulgence
- Flavors
- Personalization
- Finding the right strategy
- Index
List of Figures
- Figure 2.1: Factors driving the bakery and cereals market
- Figure 2.2: U.S. and foreign wheat prices ($ per metric ton), 2003-2009
- Figure 2.3: Bakery and cereals overall market and private label growth (%) 2002-2007
- Figure 2.4: EU retail spend as % of total consumer expenditure, 2002 & 2007
- Figure 2.5: Nestl Cereal product Guideline Daily Amount (GDA) label
- Figure 2.6: Smart Choice logo
- Figure 2.7: Population aged 65 and over, US, m, 2000-2050
- Figure 2.8: Adding value vs. cutting back strategies
- Figure 2.9: Growth areas in the bakery and cereals market
- Figure 3.10: Bakery and cereals market value by category, ($m), 2004-2012
- Figure 3.11: Bakery and cereals market value and CAGR by category, ($m), 2004-2012
- Figure 3.12: Wholly Wholesome - Whole Grain Crumble Cake - Harvest Berry, 2008
- Figure 3.13: Market value ($m) and CAGR, by country, 2008
- Figure 3.14: Linseed sliced bread, Bimbo S.A de C.V, 2007
- Figure 3.15: Albany Superior - Bread - White Low GI, 2008
- Figure 4.16: Growth areas in the bakery and cereals market
- Figure 5.17: Percentage growth in bakery and cereals launched, by category, 2005-2008
- Figure 5.18: Share of bakery and cereals products launched globally, by category, 2005 and 200872
- Figure 5.19: Level of innovation in products launched, by category, 2005-2008
- Figure 5.20: Bimbo Bakeries US, 2006
- Figure 5.21: 123 Naehrmittel GmbH , 2008
- Figure 5.22: Ruth's Chia Goodness, 2007
- Figure 5.23: Monkey Brains Oatmeal , Shrky LLC, 2008
- Figure 5.24: Special K Crackers, Kellogg, 2008
- Figure 5.25: Alixir Regularis Cracker, Barilla G. e R. F.lli S.p.A, 2008
- Figure 5.26: Pizza mix, Bob's Red Mill Natural Foods, 2008
- Figure 5.27: Frozen Dulce de Leche Roulade from the James Skinner Baking Company, 2008
- Figure 5.28: Share of bakery and cereal products launched globally, by region, 2005-2008
- Figure 5.29: Mary Louise Butters Brownie Butts & Topinchen - Dr. Quendt 2008
- Figure 5.30: Multi-textured chocolate bar, by Yamazaki Nabisco, 2008
- Figure 5.31: Baker Organic, US, 2007
- Figure 5.32: Sturm Foods, 2007
- Figure 5.33: Pie Oh My, LifeStream brand, 2007
- Figure 5.34: Nestl Buitoni and Archers Farms Cereals, 2008
- Figure 5.35: Eat Local, US
- Figure 5.36: Meal replacement by Asahi Food and Health, 2007
- Figure 5.37: Examples of products targeted at children, 2007
- Figure 6.38: Me & Goji, 2008
List of Tables
- Table 2.1: US and foreign wheat prices ($ per metric ton), 2003-2009
- Table 3.2: Bakery and cereals market value by category ($m), 2004-2012
- Table 3.3: Value of the bakery and cereals market in Europe and the US ($m), 2004-2012
- Table 3.4: Market value ($m) and CAGR, by country, 2008
- Table 3.5: Top 5 bakery and cereals companies in each region, market share, %, 2005
- Table 5.6: Percentage of types of innovation within innovative bakery and cereals, 2005-2008
- Table 5.7: Top 20 product tags on new product packaging, % of all bakery and cereals products launched, 2005-2008
- Table 5.8: Top 20 product flavors on new product packaging, % of all bakery and cereals products launched, 2005-2008