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Baked Goods in Chile

Chile Baked Goods Market: New insights

Baked goods will register stronger current value growth in 2014 than it did in 2013, with products such as bread and pastries essentials for consumers as breakfast or teatime items. The rising health-consciousness of consumers also continues to draw an increasingly higher number of them away from traditional white, unpackaged/artisanal bread to wholegrain packaged/industrial bread, with the latter deemed to be healthier.

Bread consumption remains high in the country, bread being one of the most ubiquitous food products in Chile. Nevertheless, lifestyle shifts related to health and wellness trends and weight management in an increasingly obese population are making consumers look for products with less sodium, fat or calories. Also, government policies are oriented towards the labelling of products with high amounts of sugar, fat and sodium. Baked goods may be negatively affected by this legislative change.

Even though artisanal products lead the market with a remarkable 89% share, among companies Ideal SA is the one leading in baked goods, with an overall market share of 5%, but that reaches 46% when only companies are considered. Chile remains very conservative when it comes to baked goods, and consumers prefer fresh products, especially when they are recently made and still hot. Artisanal producers consequently continue to lead sales. Ideal SA, on the other hand, has gained sales, efficiently innovating in a range of products with opportunities to grow.

Baked goods is expected to maintain stable growth compared with review period, with a forecasted CAGR of 2% in volume. This slow growth rate is mostly due to increased interest among consumers on leading a healthier lifestyle, looking for healthier alternatives to bread and avoiding health and obesity issues related to an excessive consumption of highly refined flour products, such as bread. In terms of value, forecast growth is expected to be a 2% constant value CAGR.

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Baked Goods in Chile

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