Bagels Market

Global Bagels Market Report (2024 to 2029)

The global bagels market is anticipated to grow at a CAGR of 6.68% during the forecast period.

Current Scenario of the Global Bagels Market

The global bagels market has been growing steadily from the last few years and a similar kind of trend is expected for the market during the forecast period. Digitalization has facilitated the rise of online food ordering and delivery services, which is one of the factors bolstering the demand for bagels. It has provided customers with the convenience of a wide variety of food and beverage options. People’s preferences and dietary habits have changed with selecting healthy and more different choices in today's bagels industry and consumption of gluten-free, whole grain and artisanal types is growing. Also, bakery owners and companies are progressively adopting sustainable packaging due to the increased focus on environmental protection. As per a survey, the social conversation regarding bagels has surged by more than 27% in the last few years and just over 11% of restaurants provide this on their menus. The fastest-increasing customer need for bagels is the snack, and vegan is the leading diet for this. Furthermore, market participants such as Einstein Noah Restaurant Group, BAB In, and others are emphasizing their strategy-building model to enhance their line of products and expand worldwide.

MARKET DRIVERS

Y-o-Y growth in the demand for on-the-go and convenient food choices boosts the bagels market growth.

Bagels perfectly suit the tastes of consumers by giving a portable and carbohydrate-rich meal with a personalization option. The growth of the global bagels market is also being favored by the rising number of health-conscious people. The manufacturers adapted to the trend of better-for-you foods by providing healthier versions comprising whole grains and reduced sugar. In addition, the proliferation of food culture has exposed customers to varied flavors and toppings that have brought positive changes in the bagels market. Gourmet toppings and fusion flavors are increasingly consumed, thus attracting adventurous palates.

The growth of online platforms for food delivery further fuels the growth of the bagels market.

Bagel retailers can tap a wider consumer base, with people enjoying the convenience of doorstep delivery. Consequently, they continue to drive forward the bagels market owing to their elasticity and adjustability to customer traits, health-enhancing behavior and comfort-driven daily routines. As these market patterns prevail, the bagels market is poised for steady growth and invention.

MARKET RESTRAINTS

Slow adoption of new technologies such as automation and competition from alternative bread products restrict the bagels market growth.

The rise of substitute breads such as gluten-free and whole-grain options is making customers shift away from traditional bagels and this competition is significantly affecting the global market growth negatively. Moreover, economic and financial instability in European and Latin American nations have led to lower consumer expenditure on non-essential products such as bagels. This socioeconomic condition is a key restraint for the expansion of the global bagels market. In addition, the market players are overdependent on conventional methods and equipment. The acceptance of the latest automation and technologies is derailing production efficiency and scalability which ultimately impacts the market expansion.

MARKET OPPORTUNITIES

There is a huge opportunity for the bagels market in the Asia Pacific, especially in China, India and Japan. In recent years, the number of shops in (Shanghai) China has grown tremendously from just a handful of shops. The ring-shaped bagels and shops in the city are more like a fusion of Japanese milk bread and soft pretzels. The makers are selling ready-made sandwiches with a layer of square-shaped cheese or stuffing baked inside coupled with colorful dyes. Its softness is what separates it from its Western counterparts. The trend followed in Japan with the high popularity of New York bagels with local modifications and ingredients. Also, there are various market opportunities with the rise of specialty bagel shops. India has a sizeable younger population and authentic bagels have started to arrive. Therefore, to fulfill the demands of a large population, technological advancements will greatly benefit market growth.

MARKET CHALLENGES

High startup costs and competition from prominent franchises are obstructing the expansion of the bagels market. They are often regarded as unhealthy and this is a major issue for shops as customers want to reduce carbohydrates. Moreover, supply chain problems complicate the sourcing of cream cheese, creating an issue for bagel stores, which may have to shift to homemade cream cheese.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Bagels Market Analysis By Type

The fresh and frozen bagels segment is expected to hold the major share of the global market during the forecast period. Fresh and frozen bagels are more popular as customers want fresh food items. The change in consumer preference towards semi-cooked food rather than pre-packed ones. So, it is predicted to capture more market share in the coming years as the economic conditions improve and headline inflation in the affected regions of Europe, America and Latin America.  For instance, bagels are increasingly popular in New York and New Jersey in the USA. Likewise, the market is also growing in India with Ariko Fresh's launch of real New York-style bagels in Hyderabad in June 2024

Additionally, the customers are not looking at food as completely a caloric necessity. Hence, the market suppliers are integrating seeds into their foodstuffs such as chia seeds.

Global Bagels Market Analysis By Application

The supermarket segment is projected to propel at a higher CAGR maintaining its position in the bagels market during the forecast period. Their extensive activities and effective supply network help them to reach a wider customer base which is attributed to their leading market position. Further, supermarkets and hypermarkets particularly offer competitive rates and advertisements, making them lucrative to price-sensitive people. Their potential to provide discounts and bundle and package deals improves customer loyalty and encourages repeat business. Furthermore, these retail models invest in marketing strategies, branding and merchandising to speed up product visibility and present a delightful shopping experience.

REGIONAL ANALYSIS

North America is the biggest bagels market in comparison to Europe and is likely to continue its dominance in the future as well.

This is because the United States has the largest per capita consumption of organic bagels. According to industry expectations, it is forecasted that around 205.34 million Americans will eat bagels in 2024. The market is significantly stronger in the Northeastern region comprising Maine, New Hampshire, New York, Massachusetts, Maryland, Hawaii, etc. An Average US citizen consumes 85 bagels annually. Whereas in Canada the market continues to thrive with the invention of its own flavours such as All-Dressed and Montreal-style bagels. Also, it has a high market penetration as approximately 82.8% of Canadians consume it in the morning and around 53% top bagels with cream cheese. In addition, the average family consumption is about 10.6 bagels monthly. Leading Canadian states include Saskatchewan, Ontario, Nova Scotia, New Brunswick, Quebec, etc.

The European bagels market is expected to register promising growth with huge potential for organic bagels.

The leading regional market players include the United Kingdom and France. Moreover, the region loves chocolate, thus there is a decent consumption of chocolate-based bagel items. Further, in the UK, the industry has experienced swift growth in the last few years. The producers in the country are progressively focusing on the product’s healthy appeal. This can be due to the rising nutrition issues and consumer awareness of the item’s nutritional values. On the other hand, in France, 100 million bagels are sold annually. The French market is dominated by hole-in-the-wall sandwiches but is now searching for a new taste experience. Interestingly, bagels are the fourth extremely famous snack consumed by this country after pizza, sandwiches, and burgers.

The bagels market in Asia is on the rise.

The Asia bagels market recently saw an increase in consumption in certain countries and is predicted to advance further at a moderate pace throughout the estimation period. Nations like China, Japan, and India are witnessing surging in the entry of varied bagels, which are well accepted by their younger population. For instance, in India, it is available but is not the actual one and is prepared in one hour with the help of yeast. As the country’s snack industry is anticipated to be valued at more than 1.2 trillion rupees by FY 26 the demand for different bagel types is also expected to increase. Besides this, the Chinese market is also propelling with its own tough in the North American classic bagel.

KEY PLAYERS IN THE GLOBAL BAGELS MARKET

Companies playing a major role in the global bagels market include BAB Inc., Thomas’ Bagels, Panera Bread Company, McDonald’s, Bruegger's Bagel Bakery, Dunkin’ Donuts, Einstein Noah Restaurant Group, Hostess Brands, George Weston Ltd., Aryzta Americas, Kettleman’s Bagel Company and Flowers Foods.

RECENT HAPPENINGS IN THE GLOBAL MARKET

• In March 2024, McDonald’s announced the return of bagel sandwiches to its breakfast menu which was stopped due to COVID-19. Initially, they will be available at the selected restaurants at certain locations only.
• In March 2024, Hella Bagels started its brick-and-mortar establishment in Albany. It became the latest addition to the companies shifting from pandemic startups to proper shops.

DETAILED SEGMENTATION OF THE GLOBAL BAGELS MARKET INCLUDED IN THIS REPORT

This research report on the global bagels market has been segmented and sub-segmented based on type, application and region.

By Type

• Fresh and Frozen Bagels
• Pre-Packaged Bagels

By Application

• Supermarkets
• Food Service
• Convenience store
• Other

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa