Bakery Industry Trends and Statistics in 2025

Keep up with what’s going on in the bakery industry today. 

It’s easy to dream of running a bakery. The smell of fresh pastries, the quiet of the mornings, the connections made between staff and regulars, and of course, the access to all the treats you can eat all make the job incredibly appealing.

Some people go to pastry school, work in a few bakeries, and then venture out and start their own bakery business. Others are avid home bakers with business savvy who jump into bakery ownership when they need a career change. Others still dedicate themselves to creating architectural cakes to wow guests at weddings and other events. 

Whichever way you enter into bakery ownership, it’s always important to stay up to date on trends in the baking industry. We’ll provide some market insights and bakery trends that can help you take your business in the right direction.

So, preheat your ovens and dust off your rolling pins! It's time to explore the layers of innovation that are making 2024 the most delectable year yet for bakery lovers everywhere.

Bakery industry market analysis

The market size of the global bakery industry was $513.17 billion in 2023, and is projected to reach $919.9 billion by 2032. Across the world, major corporations are largely responsible for getting bakery products into the hands of hungry customers.

In 2022, the bakery industry competitive landscape has a few top players who hold a majority of the market share — in the U.S., 55% of all baked goods are produced by three major companies. Globally, Grupo Bimbo, Flowers Foods, and Campbell Soup Co. are just a few of the top brands in the world.

The specialty bakery sector, which refers to bakery companies catering to customers looking for key trends like healthy alternatives and new products, including organic and gluten-free baked goods, is expected to grow by 15.87 billion from 2023 to 2028, with a compound annual growth rate (CAGR) of 5.29%.

Bakery industry trends 

1. Health-Conscious Options

Many bakery lovers today are looking for guilt-free indulgence. 

According to recent reports, the global gluten-free bakery market is expected to reach $7.59 billion by 2027, growing at a CAGR of 7.2% from 2020 to 2027. This shift in consumer preferences is pushing bakers to innovate, creating a new generation of treats that satisfy both cravings and health-conscious minds.

Bakers can respond to this trend by:

• Developing gluten-free recipes for breads, pastries, and cakes

• Creating vegan baked goods options

• Reducing sugar content or using natural sweeteners

• Incorporating functional ingredients like protein or fiber

Erin McKenna's Bakery, with locations in New York, Los Angeles, and Orlando, has built its entire business model around gluten-free, vegan, and refined sugar-free baked goods.

2. Artisanal and Specialty Breads

The demand for unique, high-quality breads is on the rise. Consumers are seeking out bakeries that offer specialty loaves with interesting flavors and textures.

Key aspects of this trend include:

• Sourdough breads with long fermentation times

• Ancient grain and heirloom wheat varieties

• Flavored breads infused with herbs, fruits, or nuts

• Rustic, hand-shaped loaves

Tartine Bakery in San Francisco is renowned for its artisanal bread program, featuring long-fermented sourdoughs and unique grain blends.

3. Plant-Based and Vegan Baked Goods

The plant-based movement is making significant inroads in the bakery industry. A report by Grand View Research indicates that the global vegan dessert market is expected to expand at a CAGR of 10.1% from 2022 to 2030.

Key aspects of this trend include:

• Developing egg and dairy-free recipes for pastries and cakes

• Creating vegan alternatives for classic baked goods

• Offering plant-based options for popular bakery items

• Educating staff on vegan baking techniques and ingredients

Cinnaholic, a growing franchise in North America, offers entirely vegan cinnamon rolls with a wide array of plant-based toppings and frostings.

4. Nostalgic Flavors with a Modern Twist

Bakeries are reimagining classic flavors and treats for a new generation of consumers.

Key aspects of this trend include:

• Updating traditional recipes with unique ingredients

• Creating fusion flavors that combine nostalgic tastes

• Developing "grown-up" versions of childhood favorites

• Offering limited-edition nostalgic flavor releases

Milk Bar, founded by Christina Tosi, has become famous for its nostalgic yet innovative treats like the Cereal Milk Soft Serve and related baked goods, which evoke childhood flavors in fun and new ways.

5. Sustainable and Locally Sourced Ingredients

Eco-conscious baking is on the rise. The National Restaurant Association's report highlighted locally sourced ingredients and zero-waste as key trends in the food industry, including bakeries.

Key aspects of this trend include:

• Sourcing ingredients from local farms and producers

• Implementing zero-waste practices in bakeries

• Offering seasonal baked goods based on local produce availability

• Educating customers about ingredient sourcing and sustainability

Carlisle Bakery in Pennsylvania, emphasizes the use of locally sourced, organic ingredients and implements sustainable practices in their bakery operations.

6. Global Flavors and Fusion Baking

As consumers become more adventurous, bakeries are incorporating international flavors and techniques into their offerings.

Key aspects of this trend include:

• Introducing global pastries and breads to local markets

• Fusing traditional baking methods with international flavors

• Collaborating with international chefs for limited-edition offerings

• Educating customers about the cultural significance of global baked goods

85°C Bakery Cafe, originating from Taiwan, has successfully brought Asian-inspired baked goods and drinks to the global market, including sea salt coffee and marble taro bread.

7. Technology Innovation and Automation

Technology is reshaping how bakeries operate and interact with customers, from the front of house to the kitchen.

Key aspects of this trend include:

• Implementing online ordering and delivery systems

• Using social media for marketing and customer engagement

• Adopting kitchen automation for consistency and efficiency

• Offering virtual baking classes and experiences

• Implementing QR code ordering systems for on-premise dining

• Upgrading POS systems to integrate with online ordering platforms

8. Adapting to Labor Challenges

The bakery industry, like much of the hospitality sector, is grappling with staffing shortages and the need to retain skilled workers.

Key aspects of this trend include:

• Increasing wages and benefits to attract and retain staff

• Offering professional development and career growth opportunities

• Implementing more efficient scheduling systems

• Cross-training staff for multiple roles

• Investing in automation to reduce labor needs in certain areas

Flour Bakery + Cafe has a comprehensive benefits package for its employees, including health insurance, 401k with a company match, paid time off, and professional development opportunities, to attract and retain talented bakers and staff.

9. Enhanced Online Presence and Delivery Options

Online ordering and delivery have become expected conveniences that bakeries must continue to offer and improve.

Key aspects of this trend include:

• Developing user-friendly websites and mobile apps for ordering

• Partnering with third-party delivery services

• Creating special "delivery-only" menu items

• Implementing efficient packaging solutions for delivered baked goods

• Offering subscription services for regular bakery deliveries

Porto's Bakery, a popular chain in Southern California, developed "Porto's Bake at Home," allowing customers nationwide to order their famous pastries frozen and bake them fresh at home.

Keep bringing baked treats to your community

Every baker and bakery owner fuels their business with their passion for food, their love of connecting with customers, and with the help of a dedicated team. Keeping up with economic and consumer trends in the bakery industry can help inform what you can add, change, or optimize at your bakery — no matter what kind of bakery you run.