According to the latest research by Mordor Intelligence, the global cakes market is projected to grow from USD 101.91 billion in 2025 to USD 124.17 billion by 2030, at a CAGR of 4.03% during the forecast period. This growth is fueled by a powerful combination of evolving consumer preferences, sustainable packaging innovation, and a surge in demand for personalized and indulgent cake offerings.

Get More Insights - https://www.mordorintelligence.com/industry-reports/cakes-market

Growing Consciousness of Sustainability and Health Transforms Cake Industry
Sustainability has emerged as a core purchasing factor, with 34% of American consumers stating that environmental friendliness significantly influences their food choices. This shift is prompting manufacturers to revamp packaging and production practices. In March 2023, Sirane introduced fully recyclable cake boards, highlighting the industry’s commitment to reducing plastic waste and embracing eco-friendly solutions.

Health-conscious consumers are also reshaping product innovation. According to the 2023 International Food Information Council survey, 37% of Americans now associate health with low-sugar foods. Responding to this trend, brands are launching health-forward alternatives, such as Dr. Schär’s gluten-free marble cake, introduced in February 2024, appealing to those with dietary restrictions and a desire for guilt-free indulgence.

Personalization and Celebration Culture Fuel Market Expansion
Personalization is emerging as a major growth lever, with 73% of global consumers preferring brands that offer tailored experiences. This demand is increasingly reflected in customized celebration cakes and unique flavor pairings. The popularity of social media platforms such as Instagram, now boasting over 2 billion users worldwide, has magnified the visual and experiential appeal of cakes, encouraging consumers to seek share-worthy, one-of-a-kind creations.

Celebratory events remain a cornerstone of cake consumption. Data from the UK’s Department for Environment, Food & Rural Affairs (DEFRA) highlights a year-over-year increase in consumer expenditure on cakes, rising from 83 pence to 94 pence per week between 2020 and 2022. Cakes are now essential to events like weddings, birthdays, anniversaries, and festivals, with consumers favoring elaborate, theme-based cakes to elevate their experiences.

Flavor Innovation and Collaborations Boost Premium Offerings
The industry is undergoing a renaissance in flavor experimentation. Insights from Bakery Info (2024) indicate rising demand for caramel and floral notes in cake products. To cater to sophisticated palates, companies like Bakingo have rolled out exotic flavors, including Belgian Chocolate, Opera Coffee Chocolate, Nutella Hazelnut, and Biscoff Baked Cheesecake.

Additionally, brands are breaking category boundaries through high-impact collaborations. For example, Dough Ball’s Birthday Cake Whiskey and Nothing Bundt Cakes’ limited-edition Reese’s Chocolate Peanut Butter Cake illustrate the power of merging iconic flavors with novel formats to attract younger demographics.

Market Segmentation: Form, Product, and Channel Insights
By Form
Unpackaged/Artisanal Cakes dominate with 56% market share in 2024. Consumers value fresh, handmade products with artisanal flair, often sourced from local bakeries and customized for events.

The Packaged Cakes Segment is forecasted to grow at ~5% CAGR through 2029, driven by urbanization, convenience needs, and longer shelf life. Innovations like gluten-free, sugar-free, and organic cakes are also propelling this growth.

By Product Type
Celebration Cakes lead with ~37% share in 2024 and are the fastest-growing category. These include cakes for weddings, birthdays, retirements, and themed social events.

Other key segments include sponge cakes, cupcakes, and specialty cakes, offering consumers variety in formats, textures, and serving sizes.

By Distribution Channel
Supermarkets/Hypermarkets hold the lion’s share at 43%, benefiting from in-store bakeries, impulse buying triggers, and wide product assortments.

Online Retail Stores are growing fastest at ~7% CAGR (2024–2029), fueled by app-based ordering, doorstep delivery, and rising demand for convenience.

Regional Analysis: Global Appetite for Innovation
North America
North America remains a major force in the global cakes market, led by the United States, which accounts for 87% of regional market share. Consumers here are increasingly embracing premium, artisanal, and health-conscious cake offerings. Mexico, meanwhile, is the region’s fastest-growing market (~6% CAGR), driven by a dynamic retail sector and rising disposable incomes.

Europe
Europe’s market reflects a rich blend of tradition and innovation. Italy, with its strong bakery heritage, holds 18% of the regional share, while the UK is the fastest-growing, thanks to premium offerings and evolving dietary trends.

Asia-Pacific
The Asia-Pacific market is flourishing due to urbanization and lifestyle shifts. China leads in volume and innovation, blending traditional and western cake formats. Pakistan is the fastest-growing APAC market, supported by rising incomes and modern retail infrastructure.

South America & MEA
In South America, Brazil is the largest market, while Argentina is the fastest-growing. In the Middle East & Africa, Saudi Arabia leads in size, and South Africa exhibits strong momentum due to retail modernization and increased demand for premium offerings.

Competitive Landscape: Local Expertise Meets Global Scale
The global cakes market is highly fragmented, with a mix of multinational leaders and agile regional players.

Leading companies include:
Grupo Bimbo, S.A.B. de C.V.

DoFreeze LLC

McKee Foods Corporation

Flowers Foods, Inc.

The J.M. Smucker Company

These players continue to expand through product innovation, acquisitions, and partnerships with local bakeries. Investment in sustainable packaging, digital retail, and health-forward product lines remains a strategic priority.

Artisanal bakers and specialty shops also hold significant market share in emerging regions, reflecting strong local loyalty and preferences for freshly made, customized cakes.

Conclusion: Innovation and Customization Drive the Future of Cake
As consumers become more health-conscious, environmentally aware, and experience-driven, the global cakes market is evolving to meet these demands. From artisanal creations and low-sugar offerings to digital ordering and sustainable packaging, the future of cake lies in blending tradition with innovation.

Companies that prioritize flexibility, sustainability, and personalized experiences will be best positioned to capitalize on the market’s continued growth toward USD 124.17 billion by 2030.

📊 Source: Mordor Intelligence – Cakes Market Report
📧 Media Contact: [email protected]
🌐 Website: www.mordorintelligence.com