Cake Market Sees Demand for Personalized Designs

The global cake market was valued at USD 65.68 billion in 2023 and is expected to reach USD 80.42 billion by 2030, registering a compound annual growth rate (CAGR) of 3.0% from 2024 to 2030. The continued cultural significance of cake cutting during celebrations such as birthdays, anniversaries, festivals, and personal milestones remains a major contributor to sustained market growth worldwide.

The market is further supported by evolving consumer lifestyles, increasing urbanization, and the growing influence of social celebrations, which continue to reinforce cakes as a preferred indulgent dessert across age groups.

Key Market Trends & Insights

• Asia Pacific dominated the global market with a 37.2% share, accounting for USD 24.46 billion in revenue in 2023.
• By product type, dessert cakes led the market, holding a 50.3% share, equivalent to USD 33.06 billion in 2023.
• Based on distribution channels, the retail segment captured the largest share of 83.8%, generating USD 55.05 billion in 2023.
• Rising demand for premium, customized, and occasion-based cakes continues to shape product innovation.
• Increasing preference for health-oriented and specialty cakes, including gluten-free options, is influencing product portfolios.

Market Size & CAGR

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

The demand for cakes is also being fueled by increased consumption during dine-out occasions, weekend gatherings, and social events, particularly among millennials and Gen Z consumers. Cakes are increasingly perceived not only as celebration essentials but also as everyday dessert options, further expanding consumption frequency.

Health awareness has significantly influenced consumer preferences, especially with the rising incidence of gluten sensitivity and celiac disease. A growing population is adopting gluten-free and organic diets, thereby expanding the addressable market for specialty cakes. In addition, non-celiac gluten sensitivity has emerged as a key factor driving interest in gluten-free bakery products.

According to a 2023 study by the University of Nebraska–Lincoln, approximately 25% of Americans follow gluten-free diets, prompting bakeries to cater to this niche yet expanding consumer segment. The rise of gluten-free bakeries has encouraged innovation, resulting in products that closely replicate the taste and texture of traditional cakes, thereby broadening consumer acceptance.

Gluten-free bakeries have demonstrated strong product innovation, offering a wide range of cakes such as rich chocolate varieties and light sponge cakes without compromising flavor or quality. This trend has influenced mainstream bakeries and large-scale manufacturers, many of which have introduced gluten-free variants to ensure inclusivity and expand their customer base.

Beyond medical needs, gluten-free cakes have gained popularity as part of broader lifestyle and wellness choices. Consumers increasingly associate gluten-free products with cleaner labels and healthier ingredients. Transparency in food labeling and the demand for minimally processed, natural ingredients have further supported the growth of gluten-free cake offerings.

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Key Companies & Market Share Insights

Prominent players operating in the global cake market include Pepperidge Farm (Campbell Soup Company), Bimbo Bakeries USA (Grupo Bimbo), Hostess Brands, Inc., McKee Foods, and Monginis. Market participants are actively focusing on product innovation, flavor diversification, and sustainable practices such as eco-friendly packaging and responsible ingredient sourcing to maintain competitiveness.

• November 2023: Bimbo Bakeries USA launched Entenman’s first baked donut cake, made with real ingredients and free from artificial colors and high fructose corn syrup.
• March 2023: McKee Foods introduced Little Debbie Cookies & Creme Brownies in the vending segment, combining brownies with cookie-inspired flavors.
• February 2023: Hostess Brands unveiled Hostess Kazbars, a candy bar-inspired cake snack available in Chocolate Caramel and Triple Chocolate flavors.

Key Cake Companies

• 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

Conclusion

In conclusion, the global cake market is poised for steady growth, driven by cultural traditions, evolving consumer lifestyles, and increasing demand for specialty and health-focused products. The rising popularity of gluten-free cakes, coupled with innovation by both artisanal bakeries and large manufacturers, is reshaping the competitive landscape. With Asia Pacific leading the market and retail channels dominating distribution, the industry is expected to witness sustained expansion through 2030, supported by product diversification, clean-label trends, and continuous innovation.

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