Global bakery manufacturers are leveraging critical food trends to shape their portfolios and product offerings to remain relevant to their target consumers. This behaviour is one of the key findings from a new bakery industry report compiled with the help of Brown Gibbons Lang (BGL), an independent investment banking firm. The company researched in conjunction with Global M&A Partners (GMAP), an international partnership of independent investment banks that provides sector-focused access to strategic relationships, investors, and opportunities around the world.
The food trends identified in the report are critical as these help drive competitive positioning and a robust mergers and acquisition (M&A) market, BGL said. Trends such as evolving preferences, underpinned by the rising influence of Millennial and Gen Z consumers, are fuelling demand for bakery products. Consumer preference is growing for baked products that satisfy specialised needs for nutrition, diet, health conditions, convenience, authenticity, and small indulgences. Healthy and diet-friendly options are rapidly gaining popularity. Changing consumer palates are also impacting food choices, encouraging the use of premium ingredients, functional/superfoods, and bold flavours.BGL said the M&A market is gaining momentum as industry participants look to further leverage acquisitions and orient product portfolios towards consumer demand for innovation and functionality. For example, investments in niche, better-for-you, and health-focused products are driving category disruption/evolution.
Meanwhile, the firm revealed that large bakery and snack product manufacturers are divesting non-core, underperforming brands and divisions. These moves aim to reshape their portfolios towards premiumisation and on-trend products. Private equity funds are also looking to establish scalable growth platforms in the bakery space, BGL concluded. (Image from Unsplash)
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