The global market size for pastries is expected to grow significantly over the next six years. The market at the moment is large due to the increasing consumption of bread and baked products in various countries all over the world. The popularity of baked and natural products has also increased in countries such as the US, China, Mexico and Brazil (Monteiro et al, 2010). The market will also increase due to the growing demand of various baked products as well as the abundant availability of raw materials used to bake the products. The sale of baked products is expected to increase due to the increase in demand and the ease of baking the products.
The market is expected to expand in the next six years due to the increased consumption of the products in Australia and India as well as the shifting of the diets of people to healthier options (Grunert. and Traill, 2012). The market is continuing to grow and will continue to do so even in the future. The growth of this market is driven by the increase in urbanization and innovation (Hui et al, 2008). The availability of better bakery products will also enhance market growth in the coming years. More people are increasing their demand for baked products thus increase the markets for pastries. However, the industry still faces competition from various regions.
The competition for pastries is high due to the presence of a large number of regional and international suppliers. Vendors are now introducing healthier varieties with less fat to meet the needs of the population (Traill & Grunert, 2007). The industry is facing competition from private bakeries that manufacture similar products. Some of the major players in the market include Finsbury, Flowers Foods and Grupo Bimbo among others (Grunert et al, 2005). The competitors are introducing new products in the market that make some customers prefer them over those of this industry. These competitors are making the industry to find means of enhancing market differentiation for its products.
Differentiating the business
In order to differentiate the market for pastries, the industry is coming up with healthier styles of baking its products. This will help meet the needs of people who prefer the products with less sugar and less fat. They are also coming up with innovative new flavors that will help attract the customers. In addition, the industry is using new technological advancements to come up with new approaches that will help them attract more customers to meet their objectives (Ryder and Fearne, 2003). The industry is also trying to get better ingredients that will make their products more delicious to attract more people to buy the products.
Customer relationships differ within customer segments in the pastries industry. There are customers such as those from US and China who prefer bread. Others prefer baked products but those without a lot of sugar and fat. The customers are shifting to more healthy diets and as such they have become selective in the choice of their products. The young people do not care much about the products that they get as compared to the adults who are selective.
Grunert, K.G. and Traill, B., 2012. Products and process innovation in the food industry, Springer Science & Business Media
Grunert, K.G., Larsen, H.H., Madsen, T.K. and Baadsgaard, A., 2005. Market orientation in food and agriculture, Springer Science & Business Media
Hui, Y. H., Corke, H., & De, L. I 2008, Bakery Products: Science and Technology. Hoboken: John Wiley & Sons
Monteiro, C.A., Levy, R.B., Claro, R.M., Castro, I.R.R.D. and Cannon, G., 2010, A new classification of foods based on the extent and purpose of their processing, Cadernos de saude publica, 26(11), pp.2039-2049
Ryder, R. and Fearne, A., 2003. Procurement best practice in the food industry: supplier clustering as a source of strategic competitive advantage. Supply Chain Management: An International Journal, 8(1), pp.12-16.
Traill, B., & Grunert, K. G. 2007, Products and Process Innovation in the Food Industry, Boston, MA: Springer US.