Bakery Processing Equipment Market Size, Share, Growth & Industry Analysis By Product Type (Mixers, Ovens and Proofers, Sheeters and Molders, Divider, and Others (Bread Slicers)), By Application (Bread, Cakes and Pastries, Cookies and Biscuits, Pizza Crust, and Others (Breadcrumbs)), By Mode of Operation (Semi-Automatic and Automatic), By End-user (Retail Bakeries, Hotels & Restaurants, Pilot Plants, and Low Capacity Processors), and Regional Forecast, 2022-2029

The global bakery processing equipment market size was valued at USD 13.31 billion in 2021 and is projected to reach USD 21.38 billion by 2029 from USD 13.96 billion in 2022, growing at a CAGR of 6.3% during the forecast period. Based on our analysis, the global market exhibited a decline of -7.0% in 2020 as compared to 2019. The global COVID-19 pandemic has been unprecedented and staggering, with bakery processing equipment experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. 

Bakery processing equipment is essentially an important part in the bakery industry that helps the artisan and manufacturers to solve the problem by manufacturing a variety of bakery goods in large quantities. Moreover, bakery products such as bread, pizza base, and confectionaries which are high in demand hold a major market share. In response to fulfill the demand, bakery manufacturers are upgrading the current production facilities. Moreover, this upgrade is helping the adoption of equipment in bakeries, hotels & restaurants, pilot plants, and low-capacity processors.

Key players are concentrating on the use of technologically advanced equipment to automate their baking process, which is further strengthening the processing equipment sales in the bakery industry. Additionally, the market is growing progressively owing to strong demand for ready to eat bakery products. However, rising maintenance costs owing to technological advancements and the rising number of parts have restrained the market to grow. Trend enablers such as autonomous systems, digitization, and auto inspection mechanisms have helped manufacturers to attain sustainable growth opportunities in new zones. Additionally, growing consumer demand and IoT capabilities among bakery equipment have supported the global bakery processing equipment market growth.

• For instance, in January 2022- AMF Bakery Systems, a leader in bakery equipment manufacturing, acquired Workhouse Automation LLC., a market leader in the U.S., merged the robotic capabilities and expertise to upgrade the existing bakeries with intelligent equipment.

Thus, it is observed that the fragmented market has key enabling points for the prime equipment supplier that will enable the manufacturers to fulfill the growing demand from customers and also grow some consolidated share of revenue of the bakery industry.

COVID-19 IMPACT

Trade Flow Disruptions and Changing Consumer Demand Impacted Revenue During the Pandemic

The COVID-19 situation impacted global industries in every sector, while the situation impacted the cash flow in the bakery sector. The trade stopped for a small period of time and situations all around the globe were impacted along with consumer needs owing to inactive lifestyles. During the pandemic, the need for more bakery varieties resulted in revenue growth in the market while factors, such as labor shortages and high wages, maintained the demand for automated bakery equipment among the bakery manufacturing industries. In addition, many bakery products manufacturers during the pandemic have upgraded their existing manufacturing facilities in order to fulfill the growing consumer demand for ready to eat packaged and confectionery food products. Thus, it is observed that COVID-19 has impacted the global market moderately while factors such as automation and consumer demands helped the growth of the market significantly.

• For example, in March 2021, Mondelēz International revealed a new production line for no-added-sugar products such as cookies and biscuits. This bakery line of products is made with chicory root fiber, dates, cashew flour, sea salt, organic coconut oil, cassava flour, flaxseed, and organic rosemary extract.

LATEST TRENDS

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Growing Technological Advancements in Bakery Equipment are Set to Amplify the Market Growth

The evolution of bakery products led to the market growth which has helped many artisan bakers and packaged bakery manufacturers to upgrade their current facilities. Post-pandemic, the rise in internet penetration and work-from-home culture came into existence that helped the bakery industry to integrate or upgrade their existing manufacturing facilities. The expansion trend in the bakery industry owing to consumer demand to grow investments in the field of research strongly focused on the new varieties of bakery products. Moreover, many players are also focusing on the possible strategies to introduce equipment that can provide the final products mostly related to confectionery and healthy products have helped to grow significant revenue from the bakery industry. Thus, the strong growth of advanced capabilities-enabled equipment triggers the growth of the market.

DRIVING FACTORS

Rising Adoption of Energy-efficient Equipment by Manufacturers to Drive Market Growth

Rising research activities and technological upgrades have affected the global bakery industry. Prominent players in the bakery industry have shifted their focus on product research and development to develop more energy-efficient and cost-enhancement equipment. Moreover, changes done in strategies to satisfy consumer needs have brought competitiveness among the manufacturers that have raised product varieties in supermarkets and purchasing platforms. Despite labor shortage, manufacturers strongly focus on investments in automating production, R&D, and marketing strategies, which have helped to boost the bakery foods demand. Moreover, the growing bakery product demands among consumers will consequently accelerate the production and bakery processing equipment demand in the industry.

• For Instance, a U.K.-based manufacturer, Tom Chandley, introduced an ‘Eco’ range portraying its double insulated deck and rack ovens. These ovens are pooled with automatic controllers that easily shut-off the oven if not in use.

RESTRAINING FACTORS

Concerns for Cost Minimization and High Maintenance Issues Weigh Down the Market Growth

Maintenance is always the last part of any operation; hence, a major requirement for skilled mechanics has come into existence. The growing number of complex parts and advancements has shrunk the labor pool. Moreover, many players have identified the need for smart equipment capabilities. However, these capabilities require higher costs to pay, which will restrain them from upgrading and expanding their current facilities. Furthermore, higher cost of maintenance owing to complex build quality and parts has obstructed the growth of the prime processing equipment and its sales in the market. Therefore, key bakery product manufacturers and equipment buyers are holding back their investments and expansion strategies, which can cause possible hindrances to the market growth.

• For instance, the Founder and President of Brixey Engineering Inc., Mr. Brixey, has addressed maintenance as a prominent issue for the downfall of the company’s competitiveness that affects the prices of end goods in the market.

SEGMENTATION

By Product Type Analysis

Strict Energy Policies and Rising Preference for Energy-efficient Ovens are Dominating the Product Segment

Based on product type, the market is segmented into mixers, ovens and proofers, sheeters and molders, divider, and others (bread slicers). Ovens segment accounted for the largest share with many bakers relying on gas-based ovens and electric ovens, which are further growing at a significant growth rate. Moreover, government policies to reduce carbon emissions and greenhouse gases by strictly implementing the Paris Treaty have been a major concern for prime bakery manufacturers. However, the efforts to reduce the cost of operation and save energy from waste are the prime innovations needed in the market.

• For Instance, in 2021, Mecatherm, a prime bakery equipment manufacturer, launched a new intelligent motoring application M-CARE for managing predictive maintenance.

By Mode of Operation Analysis

Automation Adoption is Boosting the Use of Semi-automatic Equipment among End-users

Based on mode of operation, the market is segmented into automatic and semi-automatic.

Automation has been a primary adoption factor for automatic and semi-automatic equipment among bakers. While supporting factors, such as flexibility, modularity, and labor reduction, have become hot topics in the bakery industry that is enabling the demand for automation in the production line. Thus, the mentioned primary factors are uplifting the operational use of semi-automatic equipment in the bakery industry. Thus, rising production capacity and shifting of product elasticity with consumer sentiments over time are other major driving forces for the adoption of semi-automatic equipment over automatic machines.

By Application Analysis

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Bread Segment to Dominate the Market Owing to Increase in Demand from Consumer Sector  

Based on application, the market is divided into bread, cakes and pastries, cookies and biscuits, pizza crust, and others (breadcrumbs).

The inactive lifestyle and growing work-from-home culture owing to COVID-19 have impacted the consumer lifestyle and made them more dependent on gadgets and applications. Online platforms and ready-to-baked goods have created multiple options for buyers. While artisan bakery products, such as bread, are an essential part of the daily lifestyle, it holds a major share in the market. The demand for confectionery products, such as cakes and pastries, has created lucrative opportunities in the forecast period. Moreover, easy delivery of bakery goods, such as cookies, biscuits, and pizza crust, is a major driver for bakery products in the market. In response to changing demand, many manufacturers are preferring ovens that can bake more precisely and easily mold according to the changing needs.

By End-user Analysis

Growing Demand for Fresh Bakery Products and Daily Bakery Goods to Supplement Retail Bakeries      

On the basis of end-user, the market is divided into retail bakeries, hotels & restaurants, pilot plants, and low capacity processors.

The rising demand for essential bakeries, such as bread and toast, that must be fresh has given a boost to the sales of fresh artisan bakeries. Bakery products are quite unstable and hard to preserve while fresh bakery products, such as croissants are bread rolls, representing the artisan bakeries segment showed positive demand from the retail stores and has maintained profit margins in 2021.

Retail demand for bakery products and confectionery products has hiked the adoption of processing equipment among end-users such as bakeries, hotels and restaurants, pilot plants, and low capacity processors. Moreover, the end-user’s upgrading of projects to develop and manufacture new varieties has created new opportunity zones where they can earn good profit margins from confectionaries by selling them in the retail sector.

• For instance, according to the Government of Canada, Sector Trend analysis, in 2021, at the global stage, the total sales of baked goods in the retail sector were USD 407.2 billion, growing at a remarkable CAGR of 4.6% from 2017 to 2021.

REGIONAL INSIGHTS

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The market covers five major regions at the global level such as North America, Europe, the Middle East & Africa, Asia Pacific, and Latin America.

According to our analysis, the Asia Pacific region is expected to dominate the global market during the forecast period, where rising demand for confectionery and Western culture fast food are prime ones. Moreover, increasing industrial adoption of connected devices and favorable policies of the government to grow the food processing sector are the dominating factors. In India, the study shows that the majority of players such as Kellogg’s and ITC in the Indian bakery industry are trying to expand their portfolio with vegan varieties and healthy food bakery goods, which are the growth enablers for the bakery processing and manufacturing industry.

China is estimated as a dominant zone with the highest revenue-generating market. Supporting growth factors such as investments, capacity expansions, automation, and demand for bakery and ready-to-eat products are estimated as revenue drivers for the bakery industry. Key players in the market are seeking more advanced technological upgrades and automation to enhance the food processing abilities in the bakery sector. Additionally, ready-to-eat food packages such as bread and other confectionery goods surge the demand for bakery processing equipment in the bakery sector. According to our analysis, Asia Pacific data shows trends, forecasts, and highlights revamping investment strategies and manufacturing facility upgrades of key players. Furthermore, the new automation technology such as Artificial Intelligence (AI) based software solutions, Internet of Things (IoT), and robotics are helping them to reduce the cost of operation and will significantly expand the global market size.

North America is anticipated to grow at the highest CAGR over the forecast period and is set to dominate the global market. Owing to safer home cooking and a sedentary lifestyle, many consumers prefer to buy bakery goods at the nearest stores and outlets, which has raised sales at the regional retail stores. Moreover, deviations in eating habits and food varieties reflect the online trends. Many fitness experts researched the public interests and concerns and carried out internet search trend statistics during the pandemic. Bakery goods such as cakes, pastries, and other confectionery products are the more preferred items of consumption that created hype for processing equipment in the market.

The Europe bakery market is driven by change in energy policies and rising electricity prices. Additionally, favorable consumer demand for confectionery products such as cakes and pastries led to an additional push to the market growth. While, the mainland players are seeking for energy-efficient electric ovens to enhance baking operations as well as their possibilities to save costs from such technology-enabled processing equipment. In addition, rising consumer potential saving has created a subtle demand for confectionery artisan baked goods such as croissants and cookies, further supplementing the growth of products in the industry.

The Middle East & Africa region is driven by the essential need of bakery goods such as bread, rolls, and others. Whereas, the Africa market reports a very weak demand for bakery products, while in the Middle East region, the demand for bakery products such as pizza crusts and confectionery products governs the revenue share in this region. Bakery retailers and manufacturers are revising their strategies to expand their presence in the Middle East & Africa region, which might hold a consequent revenue share in the market. Consumer deviations toward Western food varieties and bakery products such as bread rolls, cakes and pastries, and pizza crusts have a good presence in the global market.

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South America has its dominant presence in the agricultural sector uplifting the bakery food processing market by introducing new varieties in the bakery food segment. Thus, stable growing demand and positive investment opportunities in the South American region drive the sales of the bakery industry, which will help the new players to expand their presence in this region.

KEY INDUSTRY PLAYERS

Prominent Players Emphasizing on Innovation and Acquisition Strategies to Improve Global Market Presence

Key players are adopting strategies such as product launches and acquisitions to expand their product portfolio. Moreover, key players are making heavy investments in R&D activities to develop their novel products. For instance, Schenck made an agreement to acquire Baker Perkins, a leading supplier of food processing equipment, to strengthen its global presence. Such strategies are projected to fuel the growth of the market during the forecast period.

• August 2021: Schenck Process Group (SPG), a key bakery processing equipment supplier, acquired Solid Handling and Process Engineering Co., Ltd. (SHAPE), a specialist in powder technology based in Bangkok.

• May 2021: Gemini/KB Systems in collaboration with Sveba Dahlen introduced a gas and oil-fired oven variety. The I 62 Rack is proficient with a programmable computerized control panel of accommodating multiple per bake chamber.

LIST OF KEY COMPANIES PROFILED:

• Bühler Group (Switzerland)


• GEA Group Aktiengesellschaft (Germany)


• The Middleby Corporation (U.S.)


• JBT Corporation (U.S.)


• Ali Group S.r.l. a Socio Unico (Italy)


• ILLINOIS TOOL WORKS INC. (U.S.)


• MARKEL CORPORATION (U.S.)


• Heat and Control, Inc. (U.S.)


• RHEON Automatic Machinery co., Ltd (Japan)


• Schenck Process Holding GmbH (Germany)

KEY INDUSTRY DEVELOPMENTS:

•  August 2022: The Koenig rex, a bakery processing equipment manufacturer, has declared the I-Rex Compact EC an oil-free Dough Divider and Rounder, a drum molding device with a constant quick-discharge molding belt is easy to remove for cleaning.


• July 2022: Swiss technology bakery processing equipment manufacturing group Bühler and investment group Jordanian Al-Hazaa opened a cutting-edge flour mill (Ayla Mill) in Aqaba, Jordan.


• July 2022: The Middleby Corporation acquired Colussi Ermes, a global manufacturer of automated washing solutions for the food processing industry. The company is located in Pordenone, Italy and consolidated a revenue of USD 50 million.


• December 2021: Middleby Corporation acquired Masterbuilt Holdings LLC, which offers a wide variety of outdoor residential cooking products.

REPORT COVERAGE

An Infographic Representation of Bakery Processing Equipment Market

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The research report on bakery processing equipment delivers a thorough analysis of the product type, application, mode of operation, and end-user. It also offers information about key players in the global market and their detailed business overview, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, and current bakery processing equipment industry trends and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the market's growth in recent years.

Report Scope & Segmentation