Cake Market Competitive Landscape and Key Player Strategies

The global cake market was valued at USD 65.68 billion in 2023 and is projected to reach USD 80.42 billion by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of 3.0% from 2024 to 2030. A primary driver of this growth is the enduring tradition of celebrating special occasions and successes with cake cutting.

The market is also significantly boosted by the increasing demand for cakes as desserts, particularly among millennials and Gen Z consumers, during dine-outs and weekend parties worldwide. Furthermore, a growing health consciousness, driven by conditions like gluten sensitivity and celiac disease, is leading to a surge in demand for gluten-free and organic cake options. A 2023 study by the University of Nebraska-Lincoln indicated that 25% of Americans follow gluten-free diets, prompting bakeries to cater to this niche.

This rise in health-conscious consumer behavior has spurred innovation, with gluten-free bakeries developing diverse and flavorful options that are often indistinguishable from their traditional counterparts. This trend has not only supported individuals with dietary restrictions but has also prompted mainstream cake producers to incorporate gluten-free products into their offerings, promoting inclusivity across the industry.

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Key Market Trends & Insights

• Asia Pacific region held a share of 37.2% with a market size of USD 24.46 billion in 2023. In recent years, the region has witnessed rapid urbanization and rising disposable incomes, leading to a shift in consumer preferences towards indulgent and Western-style desserts, with cakes in particular becoming symbolic of celebration and festivity in the region.   
• By product type, the dessert cakes segment dominated in 2023, holding a 50.3% share and a market size of USD 33.06 billion. Dessert cakes, such as wedding cakes and ice-cream cakes, remain popular for celebrations and special occasions, making them one of the most sought-after desserts in restaurants and parties. Moreover, dessert cakes can be customized and personalized according to individual preferences. This includes choosing from various flavors, fillings, and decorations and accommodating dietary preferences, significantly contributing to their market dominance and growth.   
• In terms of distribution channel, the retail channel segment accounted for the largest revenue share of 83.8% in 2023, with a market size of USD 55.05 billion. Consumers are increasingly seeking unique and premium cakes, ranging from artisanal and specialty cakes to those catering to specific dietary needs, such as gluten-free, vegan, or low-sugar options.The demand for variety and customization fuels the expansion of the retail distribution channel as it allows consumers convenient access to a wide range of cake options in one location. As a result, the retail distribution channel will continue to be the dominant sales platform for the market during the forecast period.  **** 

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Market Size & Forecast

• 2023 Market Size: USD 65.68 billion
• 2030 Projected Market Size: USD 80.42 billion
• CAGR (2024-2030): 3.0%
• Asia Pacific: Largest market in 2023

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Key Companies & Market Share Insights

Key players in the market, including Pepperidge Farm (Campbell Soup Company), Bimbo Bakeries (Grupo Bimbo), Hostess Brands, Inc., McKee Foods, and Monginis, are focusing on innovation to maintain a competitive edge. They are actively developing new and exciting cake flavors to meet evolving consumer preferences and adopting sustainable practices, such as eco-friendly packaging and locally sourced ingredients, to appeal to environmentally conscious consumers.

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• In November 2023, Bimbo Bakeries USA, a Grupo Bimbo subsidiary, launched Entenman’s first baked donut cake, made with "real ingredients" and free from artificial colors or high fructose corn syrup.
• In March 2023, McKee Foods introduced Little Debbie Cookies & Creme Brownies to the vending industry, combining brownies with a smooth white icing and chocolate cookie crumbles.
• In February 2023, Hostess Brands launched Hostess Kazbars, a candy bar-inspired snack featuring layers of chocolate cake, cream, candy crunch, and either caramel or chocolate fondant, covered in a rich chocolate-flavored coating. Kazbars are available in Chocolate Caramel and Triple Chocolate flavors.

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Key Players

• Pepperidge Farm (Campbell Soup Company)
• Bimbo Bakeries USA (Grupo Bimbo)
• Hostess Brands, Inc.
• McKee Foods
• Balconi S.p.A.
• Monginis
• Merwans Confectioners Pvt. Ltd
• Britannia Industries Limited
• Bake’n Joy Foods, Inc.
• Bonn

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Conclusion

The global cake market is set for steady growth, driven by its integral role in celebrations and its increasing popularity as a dessert among younger generations. The rising demand for health-conscious options, particularly gluten-free varieties, is a significant catalyst for innovation and market expansion. As manufacturers continue to cater to evolving tastes and dietary needs while embracing sustainable practices, the market is expected to expand, offering diverse and inclusive options to consumers worldwide.