Baked Goods in Latin America

Key findings

Steady growth seen in baked goods

Baked goods was recording positive annual growth rates over the historic period, particularly once Brazil had emerged from its deep recession in 2015-2016. Bread is a key staple in many countries in the region, even if the main product might differ from country to country, eg unpackaged leavened bread in Brazil but unpackaged flat bread in Mexico.

Pandemic provides temporary spike for packaged bread

In many countries across the region as well as in Latin America as a whole, packaged bread outperformed unpackaged bread because of the pandemic in 2020. Consumers had hygiene concerns about unpackaged bread, given that it is open to the environment and could potentially be handled by a number of store workers and/or other shoppers.

Artisanal products and local bakeries still very popular

Artisanal products tend to dominate sales in most countries in the region. For example, artisanal producers dominate baked goods in Argentina – seen as more affordable than packaged/industrial alternatives and as being made with higher-quality ingredients. Even branded players, such as leading regional player Grupo Bimbo, have been introducing increasing numbers of artisanal-style products.

Free from gluten will be the most dynamic products in 2020-2025

Baked goods is expected to record consistently healthy annual growth rates over the forecast period. While unpackaged leavened bread will account for the bulk of the new sales in real value terms, frozen baked goods will perform strongly as consumers value the convenience and easy preparation of these products. The greatest dynamism will be seen in free from gluten products over 2020-2025. Health-conscious consumers are increasingly looking for free from gluten products, capable of not only addressing different levels of gluten intolerance, but also contributing to a more functional and balanced diet.