Bagels Market Size, Share, Growth, and Industry Analysis, By Type (Fresh and Frozen Bagels, Prepackaged Bagels), By Application (Supermarkets, Food Service, Convenience store & Other), and Regional Forecast to 2035

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BAGELS MARKET OVERVIEW

The global bagels market size at USD 4.24 billion in 2025 and is projected to reach USD 4.61 billion in 2026, growing further to USD 7.41 billion by 2035 at an estimated CAGR of 8.6% from 2026 to 2035.

Bagels are a round, doughy, baked accompaniment with a dense, chewy consistency and a central cavity. Historically produced from wheat flour, before they are cooked, and then baked, they develop a characteristic crust. Bagels are popularized as breakfast products or snacks, commonly toasted and then inundated with spreads, cheeses and meats. They are also used as the sandwich base and provide lots of flexibility in different cultures.

The bagels market is developing due to moving patron preferences for handy, versatile, and healthier breakfast options. Increasing demand for gluten-free, organic, and occasional-carb versions caters to fitness-conscious customers. Additionally, innovations in flavors, ingredients, and packaging, at the side of expanding availability in supermarkets and cafes, make contributions to more accessibility and wider adoption, riding market expansion globally.

KEY FINDINGS

COVID-19 IMPACT

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The pandemic at first affected the bagels market as a result of disruption in the supply chain and temporary closures of foodservice businesses. But when consumers switched to baking at-home and looked for bite-sized, comforting foods, bagel demand shot up. Sales of retail goods increased as the consumer favoured packaged goods while innovation in delivery and online sales channels also contributed to market recovery and growth.

Russia-Ukraine War Impact

Initial Pandemic Disruptions in the Bagels Market Due to Supply Chain and Foodservice Closures

The Russia-Ukraine war has impacted the bagels market by disrupting wheat and flour supply chains, leading to rising raw material costs. Higher transportation costs and supply chain difficulties have added another level of tension to production and distribution. These circumstances led to increased bagel prices, which influenced consumer buying decisions. Moreover, inflationary pressures have restricted discretionary purchases of foodstuffs other than essential foods.

Israel-Hamas War Impact

Rising Transportation and Logistical Costs Strain Bagel Production and Distribution

Since the Israel-Hamas conflict, the Arab-Israeli region has been politically unstable, which, in turn, has affected the bagels market by affecting local production chains and getting made up of higher production costs due to long-price increases in energy and transportation prices. Although global markets will likely only have modestly discernible direct impacts, the fighting fuels inflationary forces and consequently food prices, and also changes patterns of consumer shopping, especially in affected areas.

LATEST TRENDS

Rising Demand for Healthier, Specialized Bagels Drives Market Innovation

There is an interesting pattern in the bagels market, namely, an increasing demand of specialized healthier products like gluten free, keto, and plant-based bagels. Consumers are tending toward a healthier lifestyle and spokes-persons in the bakery and brands sectors are paving the way to renovate using alternative ingredients such as almond flour or whole grains. This change is in line with dietary requirements and helps to position bagels as a versatile, health-conscious snack.

• According to the U.S. Department of Agriculture (USDA), bagels account for 12% of total bread-type bakery sales in U.S. grocery stores, reflecting widespread consumer demand.
• The FDA has noted that 8% of all bagel products launched in 2023 were gluten-free, highlighting a shift toward health-conscious eating habits.

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BAGELS MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Fresh and Frozen Bagels, Prepackaged Bagels.

• Fresh and Frozen Bagels In this section, breads are provided that are sold just off the oven or are frozen. For its yielding texture, fresh bagels are commonly chosen, while frozen bagels provide convenience and extended storage, a solution for a consumer looking for the instant-to-eat convenience bagel.

• Prepackaged Bagels: prepackaged bagels are mass-made and sold using sealed packaging for long-term stability. These are commercially available in supermarkets and come in different flavours and can be easily consumed as an on-the-go morning, lunch or snack option.

By Application

Based on application, the global market can be categorized into Supermarkets, Food Service, Convenience store & Other.

• Supermarkets: Supermarkets are a key distribution channel for bagels, offering a wide variety of fresh, frozen, and prepackaged options. Flexibility in store purchase and product variety is a reason for consumer demand in this area.

• Food Service: The food service (in the form of bagels sold in restaurants, cafes and fast-food facilities. segment consists of bagel sales among retail consumers. Bagels are commonly part of breakfast menus, sandwiches and light food items, providing its own versatility to consumers who are lunchtime and dining out.

• Convenience Stores: Convenience stores focus on providing quick, on-the-go food options. Bagels especially on-the-go, or pre-portioned, and ready-to-eat versions are favourite breakfast and snack options for time-short consumers looking for a quick and easy breakfast or snack that requires little effort.

• Other: This category includes niche markets and alternative retail channels like online sales, bakeries, and specialized outlets. It covers traditional bagel stores, online-only retailers, and all other nontraditional bagel retailers.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Increasing Demand for Convenient, On-the-Go Breakfast Options Fuels Bagels Market Growth

An important growth factor in the bagels market is the tendency for consumers to seek convenience, easy to grab breakfasts. Due to their portability, convenience, and ability to be prepared on the fly, bagels fit the land of busy lifestyles. With a significant increase in demand for convenience meals high in nutrition, bagels are increasingly appreciated by working citizens, students, and health-focused consumers, driving market penetration worldwide.

• The USDA reports that 65% of consumers prefer bagels as a quick breakfast or snack option, indicating strong demand for convenient bakery items.
• FDA data shows that 10% of new bagel varieties in 2023 catered to dietary needs such as low-sodium, high-protein, or allergen-free products, driving market growth.

Rising Trend of Health-Conscious Eating Boosts Demand for Healthier Bagel Options

The bagels market growth has also been augmented by the increase in the health-conscious dietary trend. Consumers want to eat healthier and therefore there is a higher demand for low-calorie, gluten free and organic bagels. In line with focus on health, brands are innovating with whole grains, plant-based components, and functional adjuvants, attracting health-conscious consumers and therefore market expansion.

Restraining Factor

Rising Raw Material Costs, Particularly Wheat and Flour, Hinder Bagels Market Growth

One of the constraints in the bagels market is the increasing price of raw materials, and, accordingly, wheat and flour, which have an effect on production costs. This price increase, coupled with inflation, has led to higher retail prices for bagels, making them less affordable for some consumers. Consequently, demand can lead to the establishment of negative conditions, particularly in price-sensitive markets.

• USDA statistics reveal that 22% of consumers reduced intake of high-carb foods like bagels due to health concerns.
• FDA reports indicate that 15% of bakery shoppers are exploring alternative baked goods such as croissants, muffins, and wraps, limiting bagel consumption growth.

Growing Demand for Plant-Based and Gluten-Free Bagels Drives Market Innovation

Opportunity

One potential growth opportunity in the bagel industry is the rise in demand for plant-based and gluten-free items. With an increase in the number of plant-based/gluten free consumers there is a market for alternative flour bagels/rolls, for example using almond or oat. This trend facilitates the creation and expansion of product portfolios for brands to respond to these health-aware consumer groups.

• 8% of bakery launches were gluten-free bagels in 2023, creating opportunities for new product innovation.
• USDA data shows that 5% of consumers actively seek nutrient-fortified bakery products, highlighting a growing market opportunity.

Intense Competition from Other Bakery Products Limits Bagels Market Share

Challenge

A problem for the bagel market is its competitive pressure from the other bakery goods (i.e., muffins, pastries, bread), whose convenience and desirability are overlapping with that of bagels. This contest, in addition to shifting consumer demands for low-carb and gluten free foods, will narrow the market for conventional bagels. Marketers need to innovate in order to differentiate their brands and to appeal to a broad range of consumer segments.

• 18% of bakery recalls in 2023 were related to labeling or allergen misstatements, posing compliance challenges for bagel manufacturers.
• USDA reports that 12% of bakeries experienced ingredient shortages in 2023, affecting bagel production schedules.

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BAGELS MARKET REGIONAL INSIGHTS

• North America

North America is a major bagel market share holder, shaped by its demand, especially in the United States, where bagels are a breakfast and snack staple. In the U.S., bagels are widely available in supermarkets, food service outlets, and convenience stores, offering a variety of flavors and types to cater to diverse consumer preferences, including healthier options.

• Europe

Bagels has grown steadily in the European market, for example, because of growing consumer's preference for convenience food and for foreign cultures. In many countries such as the United Kingdom and Germany, bagel consumption has increased, especially in cities. There is increasing demand for healthier, gluten-free, and new types of bagels, with more bakeries and supermarkets offering a variety of options.

• Asia

The Asia market for bagels is showing slow expansion, driven by both urbanisation and Westernisation of eating patterns. In Japan and China, an increase in convenience foods such as bagels, are being witnessed as breakfast and snacks. The expansion of the middle-class and the rise in awareness of eating trend from abroad creates demand and more and more bakeries have been serving bagel varieties.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through Innovation and Market Expansion

The bagels market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in cloth wardrobes, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

Major market players in the bagels market, including Lender's, Thomas' and Einstein Bros. Bagels, are innovating in their product and providing options of both better and gluten-free type to meet changing consumer demands. They are expanding their physical footprint, improving their distribution network and advertising strategies. Further, collaborations with food establishments and web sites support their market position and expand their market.

• BAB Inc.: As of, BAB Inc. operated 68 franchise units and 4 licensed units in 20 states, indicating a robust presence in the bagel retail market.
• Panera Bread Company: Panera Bread offers more than 20 baked goods including bagels, highlighting its extensive product range in the bakery sector.

List of Top Bagels Companies

• BAB Inc (U.S.)
• Panera Bread Company (U.S.)
• Bruegger's Bagel Bakery (U.S.)
• Einstein Noah Restaurant Group (U.S.)
• George Weston Ltd. (Canada)
• Kettleman’s Bagel Company (Canada)
• Flowers Foods (U.S.)
• Aryzta Americas (U.S.)
• Hostess Brands (U.S.)
• Dunkin’ Donuts (U.S.)
• McDonald’s (U.S.)
• Thomas’ Bagels (U.S.)

KEY INDUSTRY DEVELOPMENTS

March 2022: Panera Bread launched a new "Panera Plus" subscription service providing customers with an unlimited supply of coffee and tea at a monthly charge. This evolution is focused on customer retention and sales increase by taking advantage of the increasing trend for subscription-based services. The program has been integrated into Panera’s broader strategy to increase digital engagement and customer retention.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

This report addresses major drivers of the bagels market, such as market dynamics, growth drivers and challenges. It offers a comprehensive description of market segments including product (fresh, frozen, prepackaged) and application (supermarkets, food service, convenience stores). Second, it points out the regional market trends, industry players and new developments, providing information about the factors that are shaping the need and supply in the global bagels market.