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      Baked Goods Industry

      baked goods industry

      Who doesn’t love the smell of fresh bread and sweet pastries? While it’s clear that consumer tastes are evolving, the baked goods industry is as popular as ever and changing right alongside them. 

      At FPE, we’re here to supply you with the food processing equipment you need to optimise your bakery food business and meet increased consumer demand. Read on to see how we can help.


      Bakery industry statistics

      Australian bakery industry statistics

      • The market size of the Bakery Product Manufacturing industry in Australia is estimated to be $4.7 billion in 2023. (Source: IBISWorld)
      • The average Australian consumes 75.2 kilograms of bread and bakery products per year. (Source: Statista)
      • The Bakery Product Manufacturing industry is expected to grow at a CAGR of 1.5% over the next five years, to reach an estimated $5.1 billion in 2028. (Source: IBISWorld)

      New Zealand bakery industry statistics

      • The market size of the Bakery Product Manufacturing industry in New Zealand was $755.6 million in 2022. (Source: IBISWorld)
      • The bread production industry in New Zealand is larger, with a market size of $908.2 million in 2023. (Source: IBISWorld)
      • The average New Zealander consumes 45 kilograms of bread and bakery products per year. (Source: Statista)
      • The Bakery Product Manufacturing industry is expected to grow at an annualised rate of 1.8% over the five years through 2028, to $749.8 million. (Source: IBISWorld)

      So, we can see that the outlook for the bakery industry is positive. But what do par-baked/frozen baked goods, artisanal breads and vegan desserts have in common? They’re all currently changing the face of the baked goods industry. 

      Longer shelf life & par-baked goods

      During the COVID-19 pandemic, many consumers opted for products that last longer so they wouldn’t have to go to the supermarket as often. They also wanted to be able to keep stock of some of these products in case supply diminished. This resulted in an increase in bake-at-home products, which are either fully frozen or par-baked (which means they’re partially cooked and then frozen). The convenience of this trend means that demand is likely to remain consistent, despite us having moved past the pandemic.

      Artisanal & sourdough breads 

      It’s no surprise that health is at the top of the agenda for many consumers nowadays. This has meant that artisanal, wholemeal and seeded breads have risen in popularity, while traditional white bread has seen a decrease. 

      Consumers are also looking for bread and cake options that are high in protein and fibre, low in sugar and additives, and that are nutrient dense. 

      Vegan bakery products

      Vegan desserts and bakery products have been around for a while in Australia, but as more and more consumers turn to alternative diets, they continue to grow in popularity. This has meant that it’s not only speciality bakeries offering these baked goods and treats, but supermarkets too. 

      Learn more: plant based industry

      Baked goods for all dietary requirements

      Last but not least, there has been an increase in the number of options for people with dietary requirements. In supermarkets especially, you’ll see more gluten-free cakes and pastries, breads and sweet rolls.

      How the food processing industry is adapting

      The bakery industry is constantly evolving so if a bakery or baked good manufacturer isn’t changing as well, they’ll fall by the wayside. That’s why we spoke to Roberto Cardone from Cucina Classica to get insight into how they’re adapting:

      “We are needing to find ways to manufacture fresh, high quality food with longer shelf life, to use the best sustainable practices and packaging, and to manufacture with as many local and Australian ingredients as possible. 

      Consumers are also demanding higher food experiences from their supermarket. As manufacturers, we are needing to put our best foot forward in creating these experiences through constant innovation and being at the cutting edge of product trends.”

      Roberto Cardone

      CEO/BDM Managing Director

      Cucina Classica

      Because of the increase in demand, manufacturers are also looking to optimise their production line. Boulangerie St-Donat, a Canadian manufacturer of authentic pies, cakes and pastries, did this with the Eagle Pack 320 Pro. With the number of baked goods they produce every day, it was essential they improved their food quality assurance & traceability. 

      Learn more: 

      Processing equipment for baked goods suppliers

      FPE supplies best-in-class solutions for baked goods producers  in Australia and New Zealand – from automatic tempering machines to thaw frozen berries, to pallet washers.

      Tempering/thawing AMTek Microwave Thawing frozen berries or other product for processing or cooking
      Blending BCH Blending dry cake mixes or fillings for pastries
      Slicing  Magurit Slicing or dicing frozen blocks 
      Can opening DC Norris Opening cans of fruit or vegetables 
      HACCP compliance and food quality assurance Eagle PI Contaminant detection in unprocessed and finished product
      Production hygiene Elpress Hand and boot sanitisation for workers

      Pallet and crate washing

      Material handling SYSPAL Sanitising conveyors to sanitise packaged product between processing areas

      Operator-safe machines for mixing, tipping, washing, weighing and stacking Euro bins of product

      So if you’re a food producer in Australia, trust FPE. For bakery processing equipment, maintenance and more, we’re the leading provider in Australia and New Zealand. Contact us today on 1800 882 549 in Australia and 0800 100 003 in New Zealand to discuss your business needs.

      Bakery industry FAQs

      How big is the baking industry?

      In Australia, the baked good industry currently has a market size of $4 billion. 

      Is the bakery industry growing?

      Absolutely. The baked goods industry is forecast to grow over the next five years, especially as consumers demand more artisanal bread and pastries, healthy and organic bakery products.

      The bakery industry is also benefiting from the growing popularity of online ordering and delivery. This is making it easier for consumers to get their favorite bakery products, even if they don’t live near a bakery.

      What is new in the bakery industry?

      The latest craze in the baked goods industry is hybrid products! These are where you add a unique twist to a classic baked good, such as combining a croissant and muffin to create a Cruffin, or a doughnut and croissant to make a Cronut. The newest inventions have been the Cretzel (which is a pretzel and croissant), a Macaringue (a macaron and meringue), and lastly a Croffle (croissant and waffle).

      FPE’s very own baked good recipes