A research firm predicts that the global bread market will gain $118.37 billion in value by 2027.
Technavio published research on Monday about the projected growth, which they measured from 2022 to 2027. The predicted compound annual growth rate (CAGR) is 7.27%.
The study researched various types of bread, including artisanal bread, gluten-free bread and whole wheat bread. In a press release, researchers noted that bread "serves as a versatile snack or convenient food option."
"Specialty bread, such as sourdough, and fortified bread are also popular choices, reflecting consumer interest in diverse flavors and added nutritional benefits," the report added.
FILE - A baker prepares organic bread at a stand at the Gruene Woche agricultural trade fair Jan. 18, 2008 in Berlin, Germany. (Sean Gallup/Getty Images)
Researchers believe that the presence of bakeries in supermarkets boosts the market's growth.
"The rising prominence of in-store bakeries in supermarkets is notably driving the growth," Technavio said in its research report. "In-store bakeries, typically located within supermarkets and hypermarkets, are gaining prominence for their convenience and affordability."
FILE - A bakery worker arranges a display of artisan breads at a Saturday vegetable market in downtown Denver, Colorado. (Robert Alexander/Getty Images)
"Offering an array of baked goods, they specialize in specialty bread and rolls," the press release added. "The popularity of parbaked, pre-baked, and bake-off products is on the rise globally, providing consumers with easy-to-bake options that enhance convenience and retain product texture through freezing, ensuring an extended shelf life."
Technavio also said that "increased snacking and indulgence consumption" is another trend that supported growth. However, the press release noted that an increase in the price of raw materials may impede growth.
"The growth of the artisan segment will be significant during the forecast period," the report explained. "The segment is expected to thrive due to steady consumer demand for diverse varieties available at competitive prices."
"Offering ethnic varieties, these breads are often sold within two days of production and are increasingly accessible in supermarkets. The growth is fueled by multiple purchases, diverse options, and the incorporation of healthy ingredients like soy, catering to health-conscious consumers."