The Southeast Asia bakery products market
was valued at USD 13,470.18 million in 2020 and is projected to grow at a CAGR
of 7.67% from 2021 to 2026, according to research by ResearchAndMarkets.com.
Southeast Asian consumers are increasingly
adopting Western-style diets containing wheat and high protein content, shows the
report called “Southeast Asia Bakery Products Market – Growth, Trends, COVID-19
Impact, and Forecasts (2021 – 2026)”. Thai consumers, particularly, are seeking
healthier diets. This has pushed companies to produce gluten-free baked goods
and natural bakery products. In 2021, Mondelez launched its gluten-free Oreo
chocolate sandwich cookies, for example. The gluten-free option is available
for its traditional and Double Stuff Oreo variants. Snack products claiming to
contain natural and organic ingredients have witnessed increased demand in
Malaysia and Singapore, and this concept has been evolving across other markets
as well.
The increased consumer demand for
nutritious products and the rising clean-label claims on products have
accelerated market growth in this region. Product launches with various label
claims, such as no artificial additives, no preservatives, non-GMO, and reduced
sugar, are becoming increasingly popular. Consumers perceive their food as an
opportunity to experience various tastes and textures.
They are more inclined to products that
position themselves as natural and healthy. Many market players are responding
to this trend by incorporating ‘superfood’ seeds into their offerings, such as
chia seeds, rich in proteins and calcium. Japanese artisanal bread is popular
among Southeast Asians. Many key players are taking advantage of this trend.
These multi-portion buns are a part of the offerings from Yamazaki Baking,
which began selling Japanese-style bread in Indonesia in 2018 through a joint
venture with Mitsubishi Corp. and the operator of the local convenience store
chain, Alfamart. The bakery industry has recently witnessed the establishment
of a combination of bakeries, restaurants, cafes, and catering services. These
bakery cafes or cake-houses offer various products in different flavors.
Indonesia’s
flourishing bakery market
The demand for bakery products in Indonesia
is continuously increasing because people recognize it as a meal rather than a
snack. This increased consumption is also augmented by the consumers’ changing
lifestyles, income improvement, urbanization, and westernization. In 2019, the consumption
of bread and cakes reached 9.5kg/year per capita, surging by around 60% between
2016 and 2018. Rice is a staple food in the country, but some people get bored
with eating rice and other local dishes all the time. They shifted to bakery
products instead, the report highlights, which is another factor driving the
market’s growth. Consumers in the country have different preferences for bakery
products as per their income.
For instance, high-end consumers prefer
western bread and pastries, the upper-middle-income group prefers Japanese and
Asian bread, and the lower-middle group prefers local sweetbreads and white
bread. As per the data published in German-Indonesian Chamber of Industry and
Commerce reports, more than 640 registered bakery product companies are in the
country. In addition, only a few prominent market players are operating in the
Indonesian bakery products market, including Pt. Nippon Indosari Corpindo Tbk,
Khong Guan Biscuit Factory (S) Pte Ltd, and Nissin Food Holdings Co. Ltd. The
leading companies lack variety in the products offered, as they all have a
similar kind of product portfolio.
