The bakery and pastry market - Italy (2023)

1.2 A Growing Global Market

In ****, global sales of bakery and confectionery products were estimated at $*** billion. The global bakery and confectionery market is expected to grow at a CAGR of *%, reaching an estimated market size of $***.* billion in **** .[***]

Global bakery market size World, ****-****, US$ billion

Europe holds the leadership in the sector, thanks to the presence in its territory of a large number of local bakeries (***), combined with the high demand of consumers who, even in the face of the spread of new work patterns based on smart working and demographic changes, continue to seek ready-made baked goods, sold in family packs and with ...

1.3 Evolution of the Italian market

The bread and pastry market is facing a time of evolution in response to emerging trends and consumer preferences. The market for artisanal fresh bread production remains very popular in Italy, covering about **.* percent of the market. Average production stands slightly below * million units.[***]

For **** and ****, forecasts indicate growth in the Italian food market, with rates around * percent annually, although these figures could have changes caused by inflation affecting Europe. Specifically, in Italy, the flour and coffee sectors will achieve the best performance.[***]

Performance analysis - growth of (***) compartments Italy, ****, % Sweet Savory

As shown in the graph below, production in value ...

1.4 Imports and exports

To analyze Italy's trade balance for the bakery and confectionery market we will use HS Code ****: Bread, pastry, cakes, cookies, other bakery products, including those containing cocoa.

Imports, exports and coverage rate for HS Code **** Italy, ****-****, in billion dollars and % Source: ****

As shown in the chart above, Italy is a net exporter of bakery products, which is why the coverage rate has been on an upward trend in recent years. From **** to **** , a growth of **.* percent occurs. On the other hand, as far as imports are concerned, the values remain significantly lower, hovering around * billion euros (***).

Breakdown of bread and ...

1.5 Impact of the derivative

Spending on cereal derivatives in **** grew at a low rate compared to other supply chains, only *.* percent, after a tentative *.* percent in ****. Weighing most heavily on the trend were bread sales, with spending down*.* percent in value and *.* percent in volume compared to **** , and the inevitable loss of the special occasion confectionery segment, which after an Easter and Christmas in "social estrangement" suffered sales losses of more than ** percent.

Snack purchases remained stable at last year's levels, holding up despite the partial closure of schools and the increased presence of mothers in the kitchen. On the other hand, the sector was ...

2.1 Demand characteristics and factors influencing demand

Bread and baked goods are booming in Italy as more and more people turn to their local bakery or supermarket instead of baking at home. Italy's milling industry processes *,***,*** tons of soft wheat annually, which enables the production of about *,***,*** tons of flour, ** percent of which is used for the production of breads (***), and ** percent for the production of pizza, confectionery or pastry products. Annual per capita consumption is around ** kg in Italy.[***]

According to the latest survey conducted by Italmopa, **% of Italians surveyed habitually consume bread and its derivatives, while **% of respondents say they do not cons ume it or ...

2.2 Geographical distribution of demand

As can be seen from the graph below, there is not a big difference between the different macro regions in terms of average monthly household spending on bread and cereals. However, it is worth noting that the Northwest presents the highest expenditure on these products.

Regarding consumption habits, even at the time of the Coronavirus, Italians confirmed their preference for bread made from selected raw materials. Consumers in this country do not always want the same bread, they like to change and seek quality, authenticity and nutritional value. Therefore, products made with ancient grains, unrefined, stone-ground or whole grain flours, with ...

2.3 Curiosity and the search for a healthy diet drive consumption

The main drivers of consumption in this market are as follows[***]:

Healthy Diet: Growing orientation toward products made with unrefined raw materials and no chemical additives. Curiosity: Consumers are attracted to novelty, are curious and want to experience new, well-presented and narrated offerings. Reduced weights: Demand is oriented toward small-sized bread that reduces waste and is more versatile (***) and toward bread that is curated in shape. Attention to origin: Greater attention to the origin of raw materials, which explains the success of supply chain operations that enhance Km * productions. Rediscovery of traditional flavors: Preference toward bread and pastries that have taste, ...

3.1 Market structure and dynamics

Italy has always been a key player in the sector, being endowed with a significant number of enterprises producing bakery and pastry products, even considering the value of exports, it can be seen that this market is essential for the Italian economy. However, it shows a decline in the number of active enterprises from **** to date, by about **.* percent. The decline has been gradual from year to year, starting in **** where a decrease of *.* percent is attested.

Evolution of the number of active enterprises in the production of bakery and confectionery products Italy, ****-****, in number of enterprises Source: ****

Another important ...

3.2 Geographical distribution specialty stores

Another important sector of the market is the retail sector consisting of stores specializing in breaks, cakes, sweets and confectionery. As can be seen from the map below, the geographic distribution of these stores is fairly aligned with the distribution of the Italian population. From this it can be seen that bakeries and confectionery shops are really widespread nationwide as well as evenly distributed with respect to the Italian population.

With the graph below, we highlight the breakdown in percentages, going to denote how the Northwest territories represent the player with the most active businesses in the sector taken into ...

3.3 Market value chain

The value chain and operation of the bakery and pastry market in Italy is presented below.

3.4 Innovation in Italian industry: Baker_Eat

Rino Mini, an Italian entrepreneur known as "the king of water" for his role in the historic Galvanina brand, has decided to embark on a new business in Emilia Romagna in Covid's time. His idea is to open a chain of outlets that will be born under the new brand name "Baker_Eat" where flour produced from ancient and, when possible, indigenous grains will act as a collector. It is a mix between the "American bakery" and the "French boulangerie," with Italian style and local flour from ancient and, when possible, indigenous grains.

The entrepreneur plans to open a total of ...

4.1 Overview of the offer

A varied and constantly updated supply stimulates additional purchases, offsetting the decline in traditionally understood bread and helping to shift sales to more profitable products. Diversification is increasingly practiced and is effective throughout the country, including small towns.

The gap between North and South has narrowed in recent years: bakers in the Central and South are becoming more receptive and responsive to change and are adapting their offerings to attract customers. In the North, bakers aim to include/enhance cafeteria offerings (***) and bakery production, even in the evenings, which favors gourmet take-out.

Pizza and focaccia have slowed the growth recorded in ...

4.2 Wheat: The main driver of supply

Soft wheat is the basic raw material for the domestic milling industry, which processes it into flour for bread and other baked goods. The Italian industry's supply depends on domestic production and international supply.

In **** , soft wheat sowings are expected to be about ***,*** hectares in total, an increase of *.* percent, or **,*** hectares more than last year. All areas show positive signs: +*.* percent in the Northwest (***).[***]

Wheat flour (***) production Italy, ****-****, in tons (***) Istat

As can be seen in the graph above, the trend in wheat i (***) flour production in tons in **** has declined, which is relatively low when considered compared to ...

4.3 Prices

The Ukrainian conflict is fueling the economic crisis, especially in terms of rising costs of basic necessities (***), while the average price is about €*.**/kg. The situation does not improve in Forlì, where the maximum price is, again, around €*/kg. Then we move on to Venice, with a cost of €*.** , and to other Italian cities, such as Bologna, Trento, Udine, Modena, Macerata , and Ancona, where the price, at times, can exceed even €*/kg. Given the decline in the price of flour and the increase in the price of bread, we are in front of the clear example of how energy, real estate ...

4.4 The best bakeries and pastry shops in Italy

In the wide range of bakeries in Italy, Gambero Rosso has compiled a list of the best bakeries, divided by region, awarded the Tre Pani[***] recognition:

Piedmont: Vulaiga, Fobello (***). Lombardy: Voglia Di Pane, Brescia (***). Veneto: Olivieri ****, Arzignano (***). Trentino Alto Adige: Panificio Moderno, Isera (***). Friuli Venezia Giulia: Jerian, Trieste (***). Emilia Romagna: Forno Brisa, Bologna (***). Tuscany: Pank La Boulangeria, Florence (***). Marche: L' Assalto ai forni, Ascoli Piceno (***). Latium: Panificio Bonci, Rome (***). Campania: La Francesina Boulangerie, Ercolano (***). Puglia: Panificio Adriatico, Bari (***). Basilicata: Pane e pace, Matera (***). Sicily: Panificio Guccione, Palermo (***). Sardinia: PBread Natural Bakery, Cagliari (***).

Gambero Rosso compiled the same list covering the best ...

4.5 Key supply trends

Healthy products

The healthy trend has also hit pastry and bakeries in Italy. Manufacturers have responded to the trend and implemented seasonal and healthier ingredients in their kitchens. Initiatives taken by bakeries and pastry shops include the following:

avoidance of certain ingredients, such as palm oil in favor of sunflower oil, compliance with recent regulations on nutrition labeling and decoration, a wider range of special/specialty breads according to the season, giving more space to healthy products in spring/summer.

Traditions

The concept of Made in Italy is very much present in the industry, and many producers are reviving it in ...

5.1 Regulations

Bill No. *** on the production and sale of bread was filed on Dec. **, ****. Structured in ** articles divided into various sections, the legislative proposal aims to reorganize legislation regarding the production, marketing and sale of bread. Specifically, the first ** articles focus on aspects related to production, introducing key definitions such as that of "bread"; defined, therefore, as a product obtained from the total or partial baking of a dough, adequately leavened, prepared from wheat or other cereal flours and water, with or without the addition of sodium chloride or common salt, spices or herbs. Also outlined are the characteristics and types of ...

6.1 Segmentation

• Panificio Adriatico
• Lievitamente
• Panealba
• Roberto industria alimentare
• Bimbo QSR Italia
• Casa della Piada - CRM
• Panificio pasticceria Tossini