Global Buttercream Frosting Market - Forecast(2024 - 2030)

Global Buttercream Frosting Market Overview

The Global Buttercream Frosting Market size is estimated to reach $7.8 billion by 2027. Furthermore, it is poised to grow at a CAGR of 6.1% over the forecast period of 2022-2027. Bakery products such as bread, muffins, pastries, waffles, and other requirements use buttercream frosting to enhance the taste while making the product look elegant. The frosting is created by using powdered sugars along with butter and milk, while also adding food coloring agents such as coffee or jellies, or jams. The food coloring agents fulfill the purpose of decorating cakes while also substantially providing a key taste element. The frosting is also referred to as a filling option when it is used inside the layers of food or baked food items. Frostings are generally loaded inside pastry bags, with an opening on one end to decorate cakes or for other desired applications.

The robust growth in bakery and confectionery food products associated with millennial demand amongst others along with a rising per capita consumption are some of the key drivers for the Global Buttercream Frosting Industry for the projected period of 2022-2027.

Global Buttercream Frosting Market Report Coverage

The report: “Global Buttercream Frosting Market Forecast (2022-2027)”, by Industry ARC covers an in-depth analysis of the following segments of the Global Buttercream Frosting Market.

Key Takeaways

• Geographically, Europe’s buttercream frosting market held a dominant market share in the year 2021. It is owing to widespread knowledge pertaining to the use of such products. Additionally, Europe holds a strong portfolio in terms of bakery and other confectionary items. However, Asia-Pacific is expected to offer lucrative growth opportunities over the forecast period of 2022-2027. It is owing to growing knowledge and use in home-baking and a subsequent rise in consumption and other attributes which allows for robust demand.
• The robust growth in bakery and confectionery food products associated with millennial demand amongst others along with rising per capita consumption trends have been of ready help. However, the association of bakery products with ill-health poses a unique market challenge.
• A detailed analysis of strengths, weaknesses, opportunities, and threats will be provided in the Global Buttercream Frosting Market Report.

Global Buttercream Frosting Market- Geography (%) for 2021.

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Global Buttercream Frosting Market Segmentation Analysis- By Product Type

The global buttercream frosting market based on product type can be further segmented into Regular Buttercream Frosting, Italian Meringue Butter Cream Frosting, Swiss Buttercream Frosting, and Others. Swiss Meringue Buttercream held a dominant market share in the year 2021. It has been regarded as one of the most standard buttercream frostings, especially for baking purposes for pastries and cakes. Further, the overall flavor for the same is extremely smooth and as compared to the American buttercream-it has a stronger butter flavor associated, which makes it a tad less sweet. Moreover, bakers have an additional chance of adding flavors such as jellies, melted chocolates, caramel, or any other form of extracts. Lastly, out of its many benefits- the egg whites and sugar are cooked and warmed at 160-degree Fahrenheit-thereby making it safe for consumption. Moreover, Swiss Buttercream Frosting is estimated to be the fastest-growing, with a CAGR of 7.2% over the forecast period of 2022-2027. The properties of being velvety smooth allowing it to be extremely generous for piping and frosting cakes with mild sweetness allows it to be extensively used in Industry. Further, as per the General Mills survey- 57% and 42% have been a preference for cookies and cakes consumption within the States which would allow for better demand prospects.

Global Buttercream Frosting Market Segmentation Analysis- By End-Use

The global buttercream frosting market based on end-user can be further segmented into Commercial and Household. Commercial held a dominant market share in the year 2021. The commercial segment grew as compared to 2020, owing to various lockdowns and stringent regulations. Physical visits to restaurants increased by around 9% when compared to 2020, however, were still down by 4% from pre-pandemic levels. Further, major restaurants and bakery chains saw a growth of 7% in 2021, while the small artisanal bakeries and chains saw an increment of 12% in their footfalls. Lastly, consumers opted for digital orders which increased by 13% in 2021, which allowed the commercial segment to hold a dominant size. However, the household segment is estimated to be the fastest-growing, with a CAGR of 7.7% over the forecast period of 2022-2027. Two strong consumer needs get allowed to be fulfilled while opting for home baking, the first being the ability to make comfort foods while the second reason is to follow wellness trends by baking “better for you” products. In an additional survey, it was found that 45% of those surveyed now bake at least once or twice a month which would allow for a stronger baking association in the future.

Global Buttercream Frosting Market Segmentation Analysis- By Geography

The global buttercream frosting market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Europe held a dominant market share of 35% as compared to its other counterparts. Europe has been long-known for its confectionery and bakery items. Additionally, their lifestyle revolves around having cinnamon rolls for breakfast to having pastries as a ready delicacy. Moreover, various member associations such as FEDIMA have been actively investigating the market trends and are readily converging and providing insights about how the perceptions pertaining to the bakery have changed within the region. Further, communication campaigns, market data and understanding, and thematic papers to understand the ingredient functional layout have had helped the European market to gain a sizable portion. Countries such as Greece, Poland, France, and Romania are the leaders in terms of expenditure spent on food. With Greece spending 17.08% and Romania spending close to 27.28%. However, Asia-Pacific is estimated to offer lucrative growth opportunities to marketers over the forecast period of 2022-2027 owing to growing demand from various end-user industries, and the rising inclination of millennials to adopt the western forms of eating and living.

Global Buttercream Frosting Market Drivers

The growing demand for bakery and confectionery items, propelled by new products launched favored by rising per capita income has been a key driver for the market.

The bakery and confectionary industry is growing at an optimistic pace. Further, the bakery and confectionary market together accounts for a market size equivalent to $459 billion in 2020 and has been growing at a robust pace of a CAGR of 4%. Consumers have been growing more vigilant about the offerings, while manufacturers are continually improving on providing the required functional food properties. Moreover, consumer demand has been soaring, and the figures which would be listed ahead would show how the demand is only going to soar in the developing countries, even more than the developed countries. As per an Economic Research Forum, a severe dip in real personal consumption expenditures was noticed in 2020 owing to the pandemic. As for Q4, 2019, the consumption expenditures per capita were $40,248, which touched the levels of $35,637 at the peak of the pandemic, which is Q2, 2020. However, if a cross-comparison is drawn from pre-pandemic levels and from 2020, it can be ascertained, that a growth of 3.7% has been observed in Q4, 2021, while an 18% increase has been noticed from the lows of 2020. The following figures depict a glowing future for people’s spending power. Owing to such facts, a prevalent growth can be seen in the projected period of 2022-2027.

The growing concern for consuming clean-label food items along with a substantial increment in footfalls amongst the commercial landscape has been a key driver for the market.

Label claims have been doing rounds in the food and beverages industry, especially ones concerning dairy and other confectionary items. As per a report by Ingredion, around 63% of the adults within the US say that ingredients present in their daily consumption needs have a moderate influence on their purchasing behavior. While in another survey, around 63% of the consumers prefer food items, whose ingredients are obtained via clean/ sustainable practices. Owing to such rampant use of clean label products, the industry is optimistically placed. Online and physical visits to quick-service restaurants and bakeries, which represent 82% of all orders, increased by 7% in 2021 compared to 2020 but were down 1% compared to 2019. Visits to full-service restaurants, which represent 18% of all restaurant orders, grew by 18% in 2021 over a 29% decline in 2020 but were down 16% from 2019.

Global Buttercream Frosting Market Challenges

The overall nutritional profile in basic buttercream frosting alongside the use of heavily processed sugars impedes the overall market growth.

Buttercream is generally made with confectioner’s sugar (processed sugars), butter, vanilla, or any other tastemaker, milk, or other heavy creams. Each of the discussed ingredients poses a unique health challenge to the consumers. For example, processed sugars can incidentally spike blood glucose levels, causing diabetes. As per WHO, around 490 million people globally are suffering from diabetes mellitus. Further, butter has been a consequent ingredient for causing issues such as hypertension and various other forms of cardiovascular tension such as high cholesterol and artery diseases. As per CDC, around 94 million people aged above 20 in the USA are suffering from high cholesterol. Lastly, heavy milk usage containing GMOs and other ingredients poses a unique set of health challenges. Owing to such reasons, the market’s growth is hindered.

Global Buttercream Frosting Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Global Buttercream Frosting Market. Top- Global Buttercream Frosting Market key companies are-

1. Rich Product
2. Betty Crocker
3. CSM Bakery Solutions
4. Pinnacle Foods
5. Wilton Industries
6. Dawn Food
7. Real Good Food
8. Lawrence Foods
9. Macphie
10. Fruit Fillings Inc

Recent Developments

• In January 2022, Duncan Hines and Dolly Parton have announced a successful venture for rolling out a line of cakes mixes, frostings, and others-which is inspired by the latter’s family recipes. Further, the latter commented that the offerings would allow for an easy southern-style baking experience. The product line would include Southern-style banana- and coconut-flavored cake mixes, two types of buttercream frosting, recipe cards, a tea towel, and a spatula. Priced at $40, the kits sold out within minutes, but customers can sign up online to receive an email when more become available.
• In January 2022, Nestle Professionals joined hands with Baked by Rich to create three-candy inspired-cookie variants to allow and capitalize on Brits demand for a sweet indulgence. The three flavors include Matchmakers Zingy Orange, Munchies, and Little Rolo- each utilizing frostings in a varied way. The cookies would be sold in packs of four- and allow for a snacking occasion or even as a sharing treat which would allow meeting the growing demand for premium freshly baked cookies. Rich’s product portfolio is strongly diversified and caters to buttercream frostings as a strong product mix.
• In January 2022, Betty Crocker has now come up with a new variety that includes chocolate chip cream frosting. The new Dunkaroos Chocolate Cookies with Chocolate Chip Frosting is arriving in stores in March 2022. This variety is exactly what it sounds like. On one side of the pack are round chocolate cookies, and on the other is white icing that’s filled with chocolate chips. The retail price for the same is now being kept at $3.99 for every 6-count box.

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