Specialty Bread Market Report

The rising trend of people opting for organic and hand-crafted bread baked by artisans through proper processes and quality ingredients are proving very useful to the market. Thus, the target consumers are paying more and more attention to breads that represent the skilled craftsmanship and excellent quality materials being used, because the breads made through artisanal techniques allow the representation of the real taste and quality of the products. New bakers and producers are encouraged by the continually growing demand for well-made high-quality bread and the higher demand for specialty bread results in the development of new ideas and expansion of the product range hence the growth in the overall specialty bread market.

Most artisan bread products use quality grains and other ingredients sourced mainly from the market hence reflecting the regional palate and techniques. The awareness of fresh and delicious bread and the understanding of the art of making bread has created the need for bread’s consumption thus leading to its popularity. January 2024 saw a strategic collaboration between EQUII which is a protein food company and Bridor, a bakery products manufacturing company, to produce protein and nutritious artisanal bakery products like bread. The intent of this partnership is to meet the new demands of the customer’s requests in terms of nutrition.

The specialty bread sector is at risk due to strong competition from well-known brands and private labels, leading to price reductions and loss of market share. Growing expenses for ingredients along with interruptions in the supply chain present financial obstacles, while strict regulatory demands raise compliance expenses. The rise in these rival products can lower prices and lead to a saturated market, posing difficulties for specialty bread producers in staying profitable and standing out.

Changes in consumer preferences and dietary habits, along with economic factors, influence the demand for higher-quality products. In addition, issues concerning health and safety which are issues of health risks, product recall and quality issues can also affect the image of a brand. However, currently, many sustainability issues hinder the industry, including environmental consequences and consumption of resources. For instance, in July, 2024, Johnston Mooney & O’Brien Ireland initiated a recall of some of its products such as bread because of the presence of metal pieces.

Partnership and collaboration are fuelling the growth of the specialty bread market, collaborating with well-known brands or chains on co-branded products can tap into their existing customer bases and boost brand visibility. For instance, in January 2024, Speciality Breads has partnered with Wildfarmed to incorporate its regenerative wheat flour in all of its products. The initial company has been leading the way in creating ready-to-eat, frozen, handcrafted breads for about three decades and has ambitious sustainability goals for the years ahead.

The process of completing Aryzta's Grange Castle bakery in Dublin's new specialized bread manufacturing facility is nearly complete. The extension of the sophisticated live sourdough starter facility will result in a doubling of the capacity to create sourdough and specialty bread. With the help of Enterprise Ireland, this program will enable its clients in the UK and Ireland to perform at a higher level. Demand for sourdough bread has significantly increased as a result of its growing popularity, and Aryzta will be able to meet this demand with their increased manufacturing capacity. Additionally, this rise will make it possible to develop leading-edge new goods that will satisfy Irish and UK consumers progressively appreciate tastes

In Europe, the specialty bread market differs depending on the region, showcasing a range of consumer tastes and customs. In Western Europe, countries such as France and Germany show a high desire for handcrafted and high-quality breads, with an increasing focus on organic and health-oriented choices. In Southern Europe, specifically Italy and Spain, there is a focus on traditional and regional breads, which is motivated by a love for genuine flavors and top-notch ingredients. In countries such as Sweden and Denmark in Northern Europe, there is a growing need for healthier, high-fiber, and organic breads, with an emphasis on sustainability.

In the North America, there is an increasing need for handmade and health-oriented breads like gluten-free, whole grain, and organic types, influenced by health trends and varied consumer choices. In Canada, urban centres are seeing a rise in artisanal bakeries that focus on traditional baking techniques and use high-quality ingredients. In Mexico, specialty breads frequently consist of traditional and regional types, with a growing demand for genuine local breads and health-conscious choices.