IBIE - 2016 Special Edition & Show Preview - 128

Global Growth : It's Not Easy The global baking industry finds both opportunities and threats from acquisitions as well as value-added and better-for-you products. by Pinar Hosafci, Euromonitor International B Baked goods continued to see anemic growth in 2015 due to declining bread sales as a result of the rising popularity of low-carb diets and anti-wastage campaigns. However, in value terms, growth is rather strong, and consumers around the world are opting for high-quality variants in bread. Pastries and frozen baked goods are seeing the opposite, with volume growth outweighing value growth while value options remain popular. With sales of more than 127.6 million tonnes (280.7 million tons), bread remains the largest baked goods subcategory in 2015 followed by pastries and cakes. Dessert mixes and frozen baked goods sales remain relatively small, though frozen baked good sales are picking up with the rising availability and greater penetration of freezers at retail and household levels. In terms of volume growth, bread has been the worst performer as a result of the increasing popularity of lowcarb diets and waste reduction efforts in emerging markets. Another reason behind bread's dismal performance is the intensifying competition from other products consumed for breakfast, including pastries, cakes, sweet biscuits and snack bars. These products offer better growth potential than bread because they successfully capitalize on snacking and indulgence trends. To compete with 128 / PreShow Guide / IBIE 2016 those portable breakfast treats, bread could be positioned as an occasion-specific snack item. In light of the strong growth in free-from baked goods and the stronger performance of impulse items such as cakes and pastries, bread manufacturers are pursuing inorganic growth strategies to recuperate their falling sales. Expansion of geographic footprints and inclusion of more value-added baked goods are the main motivations behind acquisitions in this field. As margins in baked goods become increasingly tight, the industry is becoming more consolidated. Bigger players are acquiring smaller baked goods companies to gain shelf space at major retailers and to move toward healthier food and impulse products - both of which show stronger performance than standard bread. By pursuing an aggressive acquisition strategy, Mexico City-based Grupo Bimbo - a global leader in baked goods - has managed to boost its value share from 3.3% in 2010 to 4.4% in 2015. In actual terms, this represents an increase of $6 billion in annual sales, which is more than the total sales of Tokyo-based Yamazaki Baking Co, the world's second biggest baked goods company. While Mexico is the world's largest baked goods market, Egypt overtook Turkey to become the world's sec-

Table of Contents for the Digital Edition of IBIE - 2016 Special Edition & Show Preview

IBIE - 2016 Special Edition & Show Preview
Table of Contents
IBIE PERSPECTIVE - Challenges Amid Attractive Conditions
STATE OF THE INDUSTRY - Well Positioned for Growth
Fuel for the future
PARADE OF PROGRESS - Bakers and exhibitors say they go to IBIE because …It's About the Future
EQUIPMENT TRENDS SURVEY - Good Vibrations
IBIE TECH - Must-have Mobile
ENGINEERING ROUNDTABLE - Putting it on Automatic
ABA PERSPECTIVE - Election 2016: The Stretch Run
Getting the Message Out
‘Premiumization’ opportunities abound
B&CMA, ABA - Pathway to the Future
Cookie-cracker education at IBIE
FSMA & THE BAKERY - Proof of Validation
SANITATION & SAFETY - Signs of the Times
How to collaborate, a PMMI protocol
PACKAGING - One-stop Shop
COLD STORAGE LOGISTICS - Securing Smooth Sailing
INGREDIENT CHOICES - The Big Questions
Go ahead, eat, it’s safe
TAX RELIEF - Go Ahead, Spend
SOCIAL MEDIA - Plugged into Consumers
INGREDIENT TRENDS - Favorable Forecast
INGREDIENT TRENDS: FATS & OILS - Deadline: 2018
WORKFORCE GAP - A New Paradigm
BREAD TRENDS - I Love Bread
bake - Special Edition
Retail Perspective - Road to Recovery
Retail Perspective: Equipment - Innovations Abound
Retail Perspective: Cake - Standing out from the crowd
Retail Perspective: Education - School in session
A World of Opportunity
INTERNATIONAL INSIGHT: BAKED FOODS - Global Growth: It's Not Easy
ALL-AMERICAN TAILGATE - Kickoff IBIE 2016
VEGAS GUIDE - Something for everyone
Off the beaten path
Ad Index

IBIE - 2016 Special Edition & Show Preview