Innovative startups in baked goods are redefining traditional baking, using unique ingredients, attracting investor funding, and using cutting-edge technology. These top 5 startups are set to significantly impact the industry.
What’s changing in the baking sector?
The global baking business has been going through big changes and growth, thanks to new technologies and changing consumer tastes. Here are a few important numbers and trends that affect the sector.
It is expected that the world market for bakery goods will grow at a rate of 6.7% between 2024 and 2032. In 2023, it was worth about USD 513 billion, according to Expert Market Research.
The rise is partly due to more people wanting ready-to-eat foods that are easy to use in many places.
When it comes to what consumers want, there is a lot of movement here. Bakery goods that are healthier are becoming more and more popular. This includes more people wanting gluten-free, organic, whole grain, and low-calorie foods. Vegan and plant-based baked goods are also becoming more popular, which is in line with a larger trend towards plant-based living.
Improvements in technology are also massively shaking up the baking sector. More and more baking processes are being automated and digitalized, which helps make them more efficient and consistent in the quality of the products they make.
In the bakery business, new technologies like 3D food printing are starting to be used, especially for making personalised cakes with complicated shapes and designs.
It’s technological innovations like this that are really changing how bakeries bake. Let’s discuss this further.
Bakingo secures funding
Bakingo, a bakery startup, has secured funding of $16 million to expand its operations across India.
Bakingo plans to expand its distribution, open exclusive brand stores, and invest in technology to enhance production, supply chain, and forecasting capabilities.
Technology and e-commerce integration have significantly impacted the transformation of baking startups, enabling them to expand their reach, streamline operations, and provide a seamless ordering experience.
The startup offers over 100+ cakes and desserts, including signature cheesecake, gourmet cakes, and jar cakes, with over 200 customizable designs and delivery within two hours in 13 cities.
Let’s see what they can bake up with this additional investment.
Nowhere Bakery – a Shark Tank success story
On a recent episode of Shark Tank, a husband and wife start up bakery pitched their new bakery idea to the panel.
In an act of sweetness, they brought treats from their business, Nowhere Bakery, and gave them to the panel. This pair opened their bakery with just $400 in March 2020, two weeks before the COVID-19 pandemic. When they left the TV show, they had an offer for the business worth $1.6 million.
What did the investors see in this bakery startup?
Well, the products have been created for people with dietary restrictions and are free from eggs, dairy, soy, gluten, refined sugar, and are paleo-friendly. In effect, they are plant based cookies. It’s also about making a healthy impact in the dessert world.
The cookie market in the U.S. alone is worth more than $12 billion, so there is opportunity for new start ups and new ideas like the ones Nowhere Bakery is bringing to the table.
Bakery expansions through Bimdo Open Door Platform
Bimbo Group, one of the world’s largest bakery manufacturers, has opened applications for it’s Open Door Platform. This platform aims to collaborate with food industry startups and scaleups, optimising and investing in their innovative products for market integration.
The platform, which launched last year, saw 11 bakery and snack startups in Mexico, Peru, Colombia, Singapore, the UK, and the USA undergo training and collaboration efforts.
Bimbo, a leading bread producer, is known for its continuous adoption of technology, both externally and internally, to drive its growth.
Bimbo Group has developed a copilot solution using Microsoft Azure AI technologies, including Azure Open AI Service, Form Recognizer, and Cognitive Search, for internal control and risk management. The solution provides a synthesized format for policy queries, with easily accessible reference links. This technology removes barriers, allowing users to easily access and consult policies in their preferred language.
By using technology to streamline their operations and by investing in start up bakeries around the world, they are looking at bringing collaboration and innovation to the bakery sector on a global scale.
Drone bakery drops
Currus & Co, an esteemed Spanish bakery located in Somo, northern Spain, is poised to revolutionize the industry by becoming the first bakery globally to offer bread delivery through drones. This innovative delivery system will utilize advanced location detection to dispatch orders directly to clients, with the bread securely packed in a canvas bag and transported via drone.
Although the bakery is eager to initiate its drone delivery service, it has yet to receive authorization from the Spanish government. This innovative approach is inspired by the strategies of global enterprises such as Amazon and Domino’s.
This new method of delivery could help expand the bakery reach and increase customer sales due to the novel delivery method.
Suprima rules premade dough
An Australian bakery manufacturer is expanding into prebaked breads and scrolls in a push to expand into the retail market. Originally a bakery wholesale business, Suprima makes premade dough bases at their Sydney plant. Using the latest technology from Europe and Japan, they produce premade dough at scale.
They boast production of up to 34,000 dough pieces per hour and can store 8,000 pallets of premade dough in their on-site cold storage facility.
Moving forward, they have identified the opportunity to bake the bread themselves and deliver it to bakery businesses, cafes, and restaurants, who can then on-sell the prebaked goods straight to customers. Products such as cinnamon scrolls and french bread sticks are eternally popular, and sales of these items look set to increase with the new baked range.
Summary
The global bakery market, valued at approximately USD 513 billion, is experiencing growth driven by consumer demand for healthier, ready-to-eat options and technological advancements such as automation and 3D food printing.
These top 5 startups are not just thriving in their niche but also setting new trends and standards across the baking sector.