Global Cakes Market By Product Type (Sponge cake, Cup Cake, Dessert Cake, Others ), By Flavor (Chocolate, Vanilla, Cheese, Others), By Distribution Channels (Supermarket/Hypermarket, In-store bakeries, Online stores, Convenience stores, Others), By Region, and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2033

Report Overview

The Global Cakes Market is anticipated to be USD 66.1 billion by 2033. It is estimated to record a steady CAGR of 3.3% in the Forecast period 2023 to 2033. It is likely to total USD 47.8 billion in 2023.

Cakes are a vital element of the baking industry. They are a delicacy of the desert and sweet treat that comes in different shapes, forms and tastes. A base mixture of ingredients like flour sugar, oil/butter, sugar baking powder, baking soda, sugar as well as eggs (optional) constitutes the base recipe for cakes. A variety of additional ingredients can be used to increase the value of the cake. The art of making cakes can no longer be a complicated process. Modern baking equipment and simplifying recipes have made it easier for non-professional cooks to create decent cakes.

Note: Actual Numbers Might Vary In Final Report

Cakes hold cultural significance and remain ever-present at celebrations like birthdays, weddings and holidays where the ritual of cutting a cake marks a special milestone. This enduring role continues to drive cake demand. Cakes stay popular dessert menu items at restaurants and parties. They are readily available pre-packaged or fresh, in forms like sponge cakes, cheesecakes and cupcakes.

The Cakes Market is marked by its adaptability to changing consumer preferences. Western-style baking, creative cake decorations, unique flavors, and extended shelf life have all contributed to the enduring popularity of cakes. Customizable and packaged cakes are driving the industry’s growth, catering to diverse consumer preferences. The rapid urbanization and increased disposable income have spurred demand for indulgent foods like cakes, especially on-the-go and affordable options.

Key Takeaways

• Market Size: The Global Cakes Market is projected to be valued at USD 66.1 billion by 2033, with an expected CAGR of 3.3%. In 2023, it is estimated to be worth USD 47.8 billion.
• Cultural Significance: Cakes hold cultural significance and are commonly present at celebrations like birthdays, weddings, and holidays. The act of cutting a cake marks special milestones.
• Adaptability: The Cakes Market adapts to changing consumer preferences. Factors such as Western-style baking, creative decorations, unique flavors, and extended shelf life contribute to the continued popularity of cakes.
• Product Types: In 2023, dessert cakes held the largest market share (approximately 49.6%), followed by cupcakes, cheesecakes, sponge cakes, and other specialty cakes.
• Flavor Preferences: Chocolate-flavored cakes dominated the market with a share of 35.6%, followed by vanilla and cheese flavors. The introduction of different chocolate varieties and the versatility of vanilla contributed to their popularity.
• Distribution Channels: In 2023, in-store bakeries held the largest share of the market (approximately 45.3%), known for providing fresh-baked, customizable cakes. Supermarkets/hypermarkets, online stores, and convenience stores also played significant roles in cake distribution.
• Regional Analysis: Europe had the largest market share (43.2%) in 2023, driven by rich baking traditions and diverse cake preferences. North America followed, characterized by a wide variety of cake offerings. The Asia-Pacific region experienced rapid growth, especially in countries like China and India.
• Key Market Players: Major companies in the Cakes Market include Finsbury Food Group Plc, Yamazaki Baking Co., Ltd., MCKEE FOODS, Grupo Bimbo, BreadTalk Group Limited, Hostess Brands, LLC., Monginis, George Weston Limited, Campbell Soup Company, and Britannia Industries Limited.

Product Type Analysis

In 2023, the cake market saw various segments flourish, each with its unique appeal. Dessert cakes led the way, holding a dominant position with more than 49.6% of the market share. Their popularity stems from their versatility and wide range of flavors, catering to diverse tastes and occasions. Cupcakes followed closely, cherished for their convenience and personalized touch, making them a hit for parties and small gatherings.

Cheesecakes carved out their niche too, favored for their rich, creamy texture and variety, from classic New York style to fruit-topped delights. Sponge cakes were not far behind, known for their light, airy consistency, making them a preferred choice for those who enjoy a less dense cake.

Other types of cakes, including specialty and artisanal varieties, also held a significant portion of the market. These often catered to specific dietary needs or gourmet preferences, showcasing the evolving consumer demand for tailored cake options. Each segment contributed to the dynamic and ever-growing cake market, highlighting the diverse tastes and preferences of cake lovers worldwide.

Flavor Analysis

In 2023, the Chocolate flavor segment held a dominant position in the cakes market, capturing more than a 35.6% share. The enduring popularity of chocolate is due to its delicious taste and its wide appeal across all ages. Chocolate cakes, renowned for their variety and versatility, are a popular choice for different celebrations such as weddings, birthdays and anniversary celebrations. Additionally the introduction of different chocolate flavors such as milk, dark and white has increased the variety of choices available to customers, catering to a variety of preferences in taste.

Vanilla, another classic flavor, follows closely in market share. Vanilla cakes are cherished for their subtle yet rich flavor and are often preferred for their ability to pair well with a fillings. The simplicity of vanilla also makes it a popular choice for layered cakes and custom decoration, making it a favorite for special occasions and professional bakers. Its versatility and universal appeal keep it a strong contender in the cakes market.

The Cheese flavor segment, primarily encompassing cheesecakes, has also carved out a significant niche. Cheesecakes, famous for their rich texture and rich flavor are gaining popularity due to their distinctive flavor profile that balances sweetness with flavorful notes of cheese. This market has experienced growth because of the growing popularity of cakes that are gourmet and artisanal that place the emphasis on high-quality ingredients and distinctive flavor profiles.

The ‘Others’ segment includes a variety of innovative and exotic flavors such as red velvet, carrot, lemon, and more. This segment caters to a segment of consumers looking for new and unique taste experiences. The trend towards experimentation and fusion flavors has led to the introduction of unconventional cake flavors, meeting the demand for personalized and distinctive taste preferences.

Note: Actual Numbers Might Vary In Final Report

Distribution Channel Analysis

In 2023, in-store bakeries held a dominant position in the cakes market, capturing more than a 45.3% share. The success of bakeries in stores can be explained by their ability to provide fresh-baked high-quality cakes that are often with the option of customization. They are a popular choice for those looking for premium, freshly baked cakes to celebrate special events as well as delicious desserts

Supermarkets and hypermarkets form another significant segment. These outlets are convenient for customers looking to purchase cakes along with their regular grocery shopping. The availability of a variety of pre-packaged and ready-to-eat cakes at competitive prices makes supermarkets and hypermarkets an attractive option for many consumers.

Online stores are rapidly gaining market share in the cakes industry. The convenience of browsing and ordering cakes from the comfort of home, coupled with services like home delivery and easy payment options, are key drivers of this segment’s growth. Online platforms also offer a wider range of choices, including specialty and customized cakes that might not be available in physical stores.

Convenience stores also hold a notable share in the cakes market. They cater to impulse purchases and the need for quick and accessible cake options. The availability of single-serving and ready-to-eat cakes at convenience stores makes them a popular choice for consumers looking for a quick snack or a small celebration treat.

The ‘Others’ category includes various small-scale bakeries, artisan shops, and specialty cake stores. These outlets often focus on niche markets, offering unique and artisanal cake options. They cater to consumers looking for bespoke and gourmet cake options that stand out from the mass-produced varieties.

Drivers

• Rising Consumer Demand: The cakes market is driven by increasing consumer demand for indulgent and celebratory treats, with a consistent year-on-year growth of approximately 3%.
• Customization Trend: Customized and personalized cakes are gaining popularity, with a 10% increase in demand for specialty cakes for events and occasions.
• Health-Conscious Consumers: The demand for healthier cake options, such as gluten-free, organic, and low-sugar cakes, is growing steadily, accounting for 8% of the market share.
• Online Retail Surge: E-commerce channels are experiencing robust growth, with online cake sales contributing to 15% of the total market revenue, thanks to convenience and global accessibility.

Restraint Factors:

• Health Concerns: The cakes market faces challenges due to increasing health concerns, with a 5% decrease in sales of traditional high-sugar and high-fat cakes.
• Price Sensitivity: Price fluctuations in key ingredients like flour, sugar, and dairy products can impact profit margins, creating pricing challenges for manufacturers.
• Regulatory Compliance: Strict regulations on food labeling and ingredient transparency necessitate ongoing compliance efforts, adding operational costs.

Opportunities

• Innovation in Ingredients: The use of natural and clean-label ingredients presents a significant opportunity for market players, with a projected 7% growth in sales of cakes made from wholesome ingredients.
• Global Expansion: Exploring emerging markets in Asia and Latin America offers potential for market expansion, with a forecasted 12% increase in international sales.
• Eco-Friendly Packaging: Shifting toward sustainable and eco-friendly packaging can enhance brand reputation and cater to environmentally conscious consumers.

Challenges

• Competition Intensity: A highly competitive market landscape necessitates strong branding and marketing efforts to stand out among rivals.
• Supply Chain Disruptions: The cakes market is susceptible to supply chain disruptions, with the COVID-19 pandemic highlighting vulnerabilities in sourcing and distribution.
• Changing Consumer Preferences: Adapting to rapidly evolving consumer preferences and staying ahead of food trends requires agility and research investments.

Key Market Segments

By Product Type

• Cupcakes
• Dessert Cakes
• Cheesecakes
• Sponge Cakes
• Others

By Flavor

• Chocolate
• Vanilla
• Cheese
• Others

By Distribution Channel

• Supermarket/Hypermarket
• In-store bakeries
• Online stores
• Convenience stores
• Others

Regional Analysis

In 2023, Europe held a dominant market position in the Cakes Market, capturing an impressive 43.2% share. The demand for Cakes in Europe was valued at USD 15.6 billion in 2023 and is anticipated to grow significantly in the forecast period. This dominance can be attributed to the rich baking traditions and diverse cake preferences across European countries. From classic pastries in France to the iconic Black Forest cake in Germany, Europe’s love for cakes drives its market. Additionally, the region’s focus on high-quality ingredients and the rising popularity of artisanal and specialty cakes contribute to its leading position.

North America follows Europe in the cakes market. The region’s market is characterized by a wide variety of cake offerings, ranging from traditional layered cakes to innovative flavors and health-conscious options like gluten-free and vegan cakes. The strong presence of established bakeries and the growing trend of custom-made cakes for special occasions also fuel the market growth in this region.

The Asia-Pacific (APAC) region is experiencing rapid growth in the cakes market, driven by changing consumer preferences and increasing Western influences. Countries like China and India are seeing a surge in demand for cakes, particularly for celebrations and gifting. The expansion of local and international bakery chains in this region is further boosting the market.

Latin America, with its diverse culinary cultures, also shows a growing interest in cakes. The region is embracing a mix of traditional flavors and modern cake trends, leading to an increase in cake consumption and market growth.

The Middle East & Africa (MEA) region, while a smaller market compared to others, is witnessing growth due to the rising disposable income and the growing influence of Western dietary habits. The increasing number of bakery outlets and the growing popularity of European-style cakes are driving the market in this region.

Note: Actual Numbers Might Vary In Final Report

Key Regions and Countries Covered in this Report

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Player Analysis

The global cakes market is highly competitive with a mix of large established bakeries and emerging local players. Some of the major companies operating include Finsbury Food Group Plc, Yamazaki Baking Co., Ltd., MCKEE FOODS, Grupo Bimbo, BreadTalk Group Limited, Hostess Brands, LLC., Monginis, George Weston Limited, Campbell Soup Company, Britannia Industries Limited.

Most large players have an international presence spanning multiple regions. Their growth is fueled by heavy investments in production automation, high-volume output capabilities, and extensive distribution networks with partnerships across supermarkets, convenience stores, hotels and online channels. Large advertising budgets also drive brand recognition and consumer trust.

At the same time, smaller regional players thrive by customizing product assortments to localized tastes and freshness preferences. Many target specific occasions such as custom celebration cakes. Specialty offerings and differentiation create niche customer loyalties. Emerging players also benefit from lower overheads that provide flexibility to meet unpredictable demand spikes. New entrants continue bringing product and process innovation which fragments categories and challenges established brands.

As large players prioritize margins and smaller bakeries tap into artisanal demand, both approaches retain relevance indicating continuing market diversity between industrially mass-produced and customized hand-crafted cakes moving forward.

Top Key Players

• Finsbury Food Group Plc
• Yamazaki Baking Co., Ltd.
• MCKEE FOODS
• Grupo Bimbo
• BreadTalk Group Limited
• Hostess Brands, LLC.
• Monginis
• George Weston Limited
• Campbell Soup Company
• Britannia Industries Limited

Recent Developments

• In November 2022, Hostess Brands Inc. brought out some yummy holiday treats for winter! They introduced special Holiday HoHos, Holiday CupCakes, Mint Chocolate Twinkies, and Donettes with Hot Cocoa & Marshmallow flavor.
• Back in September 2022, Hostess Brands also introduced something called Hostess Bouncers. These are small, bite-sized snack cakes with creamy fillings. You can get them in three flavors: Hostess Twinkies, Hostess DingDongs, and Hostess Donettes.

Report Scope