• What trends do analysts identify? Profile of the Romanian consumer of pastry products. Where do you buy the pastry?
Orientation towards healthier products, urbanization, innovation, intense demand from millennials (young people between the ages of 18 and 34) and the expansion of the number of neighborhood patisseries with sales premises or cafes that also offer pastries lead to the development this market.
The global confectionery market was valued at USD 32,7 billion in 2017 and is expected to grow at a CAGR of 3,0% by 2023 to reach a market value of 38 billion USD in the last year of the forecast period, according to Mordor Intelligence.
The craft segment is the fastest growing and is expected to cross the $20 billion mark globally by the end of 2021. Sales in this niche have grown significantly due to increased demand for freshly baked products. Moreover, artisan pastry is also an opportunity due to the fact that products in this category can have increased added value.
From a competitive point of view, the worldwide pastry market is very fragmented, due to the presence of a large number of regional and international suppliers. Competition is determined by product differentiation, portfolio, brand recognition, technology or low prices. According to analysts, competition on this market will intensify over the next two to three years, as a result of the increase in the number of producers offering special or novel tastes, the growing demand for healthy foods and price competition.
What trends have the analysts identified?
- The urbanization accelerated will have a positive impact on the market of pastry products, until the end of 2020, reveals the same source. In addition, the active population and especially the youth in big cities, oriented towards quick snacks such as on-the-go sweet or savory pastries, will drive the growth prospects of the market during the forecast period.
- It is expected that INNOVATION in the product offerings to further contribute to the development of the market. Snacks, for example, are a new type of bite-sized snack that is gaining in popularity and is available in grocery stores or coffee shops. Pastries with special tastes and shapes can be another example that would lead to the stimulation and development of this segment, knowing that people are tempted to experiment with new flavors, new toppings. From this perspective, the sales of the savory pastry segment could even surpass those of the sweet ones. Thus, the new offers would be a reason for consumers, especially the younger ones, to look for the specialized stores, set up next to the pastry laboratories, as an attraction where they can enjoy a delicious snack, which could even replace lunch .
- Recognized consumer concern for a healthy lifestyle causes actors in the pastry industry to opt for innovations in terms of quality, to focus on new product ranges, with a higher fiber and lower fat content, towards natural or new ingredients, which give added value, without added sugar and additives, which also offer new taste experiences. In addition, the measure taken by the European Commission regarding the limitation of trans acids in food could lead to a reformulation of pastry products.
- Online sales and the launch of new products can be considered opportunities in this market, while the orientation, observed in recent years, towards the home preparation of pastry products could
represented an obstacle in the development of the market.
In Romania
In 2,63, Romanians spent 2017 billion lei on confectionery and pastry products. In the period 2012-2017, the market recorded an average annual growth rate of 2,79%, according to GlobalData. The strongest performance was achieved in 2015, when the annual growth rate was 2,97%, points out the same source. According to the GfK market study, presented by Rompan, the consumption of pastry products (excluding street trade) registered an increase of 0,7%, between 2016 and 2017, for biscuits and pasta of 12,5%, while for bread and bakery specialties, a significant decrease in volumes was observed. A business development strategy in the coming years could be to diversify the assortment palette by introducing new products with high added value, such as pastry products - appreciated for their taste and quality and where the price increase is not a barrier to purchase.
Natural products, a challenge
Globally, the demand for "clean label" products is increasing due to public awareness of the negative effect of artificial ingredients on health. Consumers are looking for natural and organic ingredients in baked goods as well. The global organic food market is expected to register an accelerated average annual growth rate of 14% between 2016 and 2021, according to Mordor Intelligence. The demand for pastries and sweet pies, made from natural ingredients, has grown significantly in Europe, especially in France and Germany, where "organic" is the main element mentioned on the label of most products launched in recent years. In 2017, approximately 29% of the bakery and pastry products launched contained whole grains, and 20% were gluten-free products. Organic and healthy ingredients drive sales of sweet pastries and pies.
