In 2025, the baking industry is poised for new opportunities and challenges as consumer behavior evolves and the market continues to grow. With a focus on health, convenience, and quality, brands need to navigate the competitive landscape to find sustainable growth strategies.

China's baking market has experienced significant expansion, reaching a retail scale of 561.42 billion yuan in 2023, with a year-on-year increase of 9.2%. Projections indicate that by 2029, the market size could surge to 859.56 billion yuan. This growth is driven by rising per capita consumption levels and shifting consumer habits. Baked goods are no longer just snacks; they have become part of daily diets, hunger relief solutions, and even meal replacements. Data shows that 58.0% of consumers enjoy baked goods as snacks, while over 40.0% purchase them for satiety, ritualistic experiences, or as substitutes for main meals.

Health is a key focus for modern consumers. There is a growing demand for low-sugar, low-fat, and high-fiber baked products. When purchasing baked goods, consumers prioritize taste, freshness, and nutritional value. This trend has prompted baking companies to innovate and offer healthier options, such as whole-wheat bread, sugar-free pastries, and gluten-free products. Additionally, consumers are willing to pay a premium for high-quality baked goods, with a significant portion of spending falling in the 21-40 yuan range per purchase.

Consumer purchasing habits have solidified, with 90.6% of consumers buying baked goods at least once a week, and 2.0% purchasing daily. Brand loyalty is evident, as 62.2% of consumers tend to stick with specific brands. However, there is still room for improvement in brand loyalty. Consumers are more likely to choose well-known brands that offer superior quality.

To stand out in the competitive market, baking brands must innovate in product offerings, technology application, and marketing strategies. In terms of product innovation, brands should align with health and personalization trends by launching low-sugar, low-fat, and additive-free products. Collaborations with popular IPs, limited-time offers, and blind box promotions can add novelty and attract younger consumers. Technologically, the adoption of automated production equipment and cold-chain logistics has improved the efficiency and quality of baked goods. Meanwhile, the integration of the internet and e-commerce has facilitated the convergence of online and offline operations. Brands can better understand consumer needs through big data analysis and provide personalized products and services.

Brands also need to strengthen their market positioning by clarifying their core values and competitive advantages. Emphasizing the selection of high-quality raw materials and optimizing production processes ensures the taste, freshness, and nutritional value of products. Leveraging social media, KOL endorsements, and influencer visits can enhance brand visibility and attract a younger demographic. Expanding sales channels through e-commerce platforms while optimizing offline experiences with interactive services and comfortable environments is essential.

According to BakingExpo, the baking industry in 2025 has a promising future, but competition is intensifying. Brands must innovate in health, personalization, and digitalization to meet the diverse needs of consumers. By reinforcing brand positioning, enhancing product quality, and innovating marketing strategies, brands can find sustainable growth opportunities in an uncertain market environment.

Bakery China 2025 will continue to share more industry professional content with you, so please stay tuned!

Bakery China, organized by China Association of Bakery and Confectionery Industry (CABCI) and Bakery China Exhibitions Co., Ltd. was launched since 1997. Bakery China is the Asia Pacific‘s leading event serving the entire value chain for the bakery and confectionery market. The event presents all range of ingredient, equipment, packaging and services, and enables global leading professionals and buyer delegates to meet and share the latest innovations and thinking on manufacturing & distribution, R&D, applications and related services for bakery industry.

The 27th Bakery China would be held on May 19-22, 2025 at National Exhibition and Convention Center (NECC), Shanghai, covering 330,000 sqm show space. Over 2,200 exhibitors and 400,000 visits are expected.

（source: Dimaxe）