The industrial bakery and pastry market registered its first decline in ten years in 2020, as a result of the crisis caused by COVID-19. The increase in sales in the food distribution channel was insufficient to offset the significant drop in demand for frozen dough in the hotel and catering industry.
It is one of the main conclusions drawn from the study Industrial Bakery and Pastry Sectors recently published by the INFORMA DBK Sector Observatory, which collects that the market value of industrial bakery and pastry products registered a decrease in 2020, penalized by the measures decreed to face the COVID-19 pandemic. The temporary closure in hotels and restaurants, time and capacity restrictions, and the decline in tourist activity caused a notable drop in business volume in this channel, which could not be offset by the growth in household consumption.
In global terms, the market stood at 3,930 million euros, which represented a decrease of 5.2%, compared to the growth of 1.7% registered in the previous year, the fall being concentrated in the frozen dough segment, due to the important weight of the hospitality channel in this segment, with a decrease of 16.4% in value, while the other segments grew around 1-2%.
The value of the frozen dough market stood at 1,330 million euros, with a worse performance of frozen pastry doughs, compared to frozen bread. For its part, the bakery business grew by 1.9%, with 820 million euros, the pastry and pastry business increased by 1.2% to 815 million, and the biscuit business by 2.1% (965 million ). In this context, the frozen dough segment reduced its weight over the total market to 34% in 2020, while that of biscuits stood at 25%, followed by bakery, pastry and pastry, both with about 21% of the total.
Regarding exports, they increased by 4.5%, reaching 1,108 million euros, while imports decreased by 13.3% to 660 million. Imports come almost entirely from European Union countries (98.1%), while 75.6% of exports are also destined for these countries.
And, finally, regarding the structure of the sector, there is an increase in the degree of concentration of activity in the main operators, favored by purchase operations and mergers between companies, so that the first five reached a market share in 2020 45% combined, which rose to 72% when considering the top ten. The biscuit and pastry and pastry segments continue to show a higher degree of concentration.
Industrial bread and pastry market. Synthesis data, 2020
Production: 4,378 million euros
Export: 1,108 million euros
Import: 660 million euros
Market: 3,930 million euros
- Bakery: 820 million euros
- Pastry and pastries: 815 million euros
- Cookies: 965 million euros
- Frozen dough: 1,330 million euros
Market growth (variation 2019/2018)
Total: -5.2%
- Bakery: +1.9%
- Pastry and pastries: +1.2%
- Cookies: + 2.1%
- Frozen dough: -16.4%
Concentration (joint market share in value): -5.2
- Top five companies: 44.6%
- Top ten companies: 71.6%