Bagel Market – Global Industry Size, Share, Trends, Opportunity and Forecast, By Product Type (Plain Bagel, Flavored Bagel, Others), By Sales Channel (Hypermarkets/Supermarkets, Convenience Stores, Online, Others), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 5.82 Billion
CAGR (2026-2031)	4.91%
Fastest Growing Segment	Online
Largest Market	North America
Market Size (2031)	USD 7.76 Billion

Market Overview

The Global Bagel Market will grow from USD 5.82 Billion in 2025 to USD 7.76 Billion by 2031 at a 4.91% CAGR. Bagels are dense, ring-shaped bread products defined by a unique preparation process involving boiling before baking, which yields their characteristic chewy texture and shiny crust. The global market is primarily supported by the product's inherent versatility as a customizable breakfast staple and sandwich carrier, allowing it to serve multiple meal occasions throughout the day. Furthermore, the enduring consumer need for convenient, portable food options drives consistent sales volume, particularly in urban centers where time-constrained lifestyles necessitate quick meal solutions. These fundamental drivers provide a stable foundation for growth, distinct from temporary flavor innovations or dietary fads.

However, the industry faces a significant impediment in the form of escalating operational costs that threaten profitability and expansion efforts. Volatility in the price of essential raw materials, such as wheat flour and sugar, coupled with high energy rates, has created a difficult economic environment for manufacturers. According to the Craft Bakers Association, in 2024, 88% of surveyed members identified the rising cost of ingredients as a primary business challenge. Consequently, managing these financial pressures while maintaining affordable retail pricing remains the most critical obstacle to sustained market development.

Key Market Drivers

Strategic Menu Additions by Global Quick-Service Restaurant Chains have become a primary catalyst for market expansion as operators aggressively leverage bagels to capture the lucrative breakfast daypart. Fast-food giants are prioritizing these items to compete for morning traffic, utilizing the bagel's durability as a sandwich carrier to differentiate their offerings from standard biscuit or bun options. For example, according to Allrecipes, February 2025, McDonald's expanded the availability of its breakfast bagel sandwiches to all restaurants nationwide across the United States following a successful regional rollout. This channel's influence extends beyond traditional Western strongholds, effectively introducing the product to new consumer bases in regions without a history of bagel consumption. Illustrating this international reach, according to Longbridge, April 2025, the China division of Tim Hortons sold 22 million bagel products in the preceding year, underscoring the item's growing acceptance in emerging markets through organized foodservice networks.

Concurrently, the Integration of Functional Ingredients like Protein and Whole Grains is reshaping retail product development, allowing brands to retain health-conscious consumers who might otherwise reduce bread consumption. Manufacturers are increasingly reformulating standard recipes to include high-performance nutrition claims, moving beyond simple carbohydrate delivery to offer value-added benefits that align with modern wellness trends. This shift is evident in recent major product launches targeting the fitness-oriented demographic. Notably, according to Snack Food & Wholesale Bakery, October 2025, Thomas' rolled out its High Protein Bagels nationwide, which are formulated to contain 20 grams of protein per serving. Such innovations address the critical challenge of declining carbohydrate sentiment, ensuring the category remains relevant to dietary patterns focused on macronutrient balance and sustained energy.

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Key Market Challenges

Escalating operational costs constitute a critical barrier to the growth of the Global Bagel Market. This challenge, characterized by the volatility of raw material prices and persistently high energy rates, severely compresses manufacturer profit margins and restricts financial flexibility. When producers must allocate a growing proportion of revenue to essential overheads, funds for strategic initiatives such as facility modernization or distribution expansion become scarce. Consequently, this burdensome cost structure often forces businesses to raise retail prices to maintain viability, a move that risks alienating price-sensitive consumers and reducing overall sales volume in a competitive landscape.

The impact of these rising expenses is substantial within the wider baking sector. According to the Federation of Bakers, in 2024, average bakery wages increased by 9.5%, a figure that notably outstripped national averages. Such steep hikes in labor costs, alongside sustained inflationary pressure on ingredients and utilities, create a hostile economic environment for market participants. This financial strain directly hampers the industry's ability to scale operations or invest in the product development necessary to sustain long-term market momentum.

Key Market Trends

The Shift Towards Artisanal and Authentic Production Methods is redefining the retail landscape as consumers increasingly favor bakery-style freshness over conventional pre-packaged options. Shoppers are gravitating toward the "perimeter" of grocery stores, where thaw-and-serve or fresh-baked offerings promise a texture and quality comparable to foodservice experiences, effectively de-commoditizing the category. This preference for higher-quality, authentic preparations is quantitatively evident in recent retail performance metrics. According to Commercial Baking, October 2024, sales of perimeter bagels in the United States achieved a 4.2% dollar growth rate over the preceding 52 weeks, a notable contrast to the volume decline observed in the traditional center-store aisle segment.

Simultaneously, the Emergence of Globally Inspired and Fusion Flavor Profiles is acting as a powerful mechanism to drive impulse purchases and expand consumption occasions beyond the standard breakfast hour. Manufacturers are moving beyond traditional savory variants to introduce complex, dessert-like, or adventurous combinations that appeal to younger demographics and "snackification" trends. This strategy of leveraging novel taste experiences to reinvigorate interest is delivering tangible financial results. According to Grocery Trader, May 2024, New York Bakery Co.’s introduction of Cookies N’ Cream bagels in the United Kingdom successfully tapped into this demand, generating £770,000 in retail sales value shortly after its launch.

Segmental Insights

The online segment is currently recognized as the fastest-growing category within the global bagel market due to the widespread adoption of e-commerce platforms and third-party food delivery applications. This rapid expansion is primarily driven by consumer demand for convenience and the ability to access fresh bakery products from the comfort of home. Furthermore, major bakery chains are increasingly investing in direct-to-consumer logistics to expand their customer reach beyond physical storefronts. This strategic shift toward digital sales channels allows companies to efficiently meet evolving purchasing behaviors, thereby fueling the substantial development of the online segment.

Regional Insights

North America retains the leading position in the global bagel market, primarily driven by the established cultural preference for baked goods as a staple breakfast item in the United States and Canada. The region benefits from a robust retail infrastructure, including widespread supermarket chains and specialty bakeries, which ensures consistent product availability. Furthermore, the rising consumer demand for convenient, on-the-go meal options encourages manufacturers to innovate with healthier ingredients and diverse flavor profiles. This strong alignment between consumption habits and retail distribution secures North America’s dominance in the sector.

Recent Developments

• In December 2025, H&H Bagels introduced a festive new cream cheese variety inspired by a classic Italian-American dessert, launching the Rainbow Cookie Cream Cheese. This limited-time product infused traditional cream cheese with the distinct flavors of almond, chocolate, and raspberry found in rainbow cookies, incorporating actual chunks of the cookie for added texture. The launch represented the New York-based brand's continued strategy of innovating with dessert-inspired spreads to complement its legendary bagels. The product was positioned as an indulgent, nostalgic treat for the holiday season, available for nationwide shipping and at the company's various catering and retail locations.
• In April 2025, Thomas' unveiled a new line of High Protein Bagels, marking a significant product innovation designed to cater to the growing demand for functional breakfast options. These newly formulated bagels contain 20 grams of protein per serving, derived from a proprietary blend of plant-based sources such as soy, pea, and fava bean proteins. Available in popular plain and everything flavors, the product was engineered to offer double the protein content of the brand's traditional offerings. The company emphasized that this nutritional enhancement was achieved without compromising the characteristic soft and chewy texture that consumers expect from its baked goods.
• In November 2024, PopUp Bagels announced a major strategic shift towards national expansion by officially launching a franchising model for its popular "grip, rip, and dip" bagel concept. Concurrently, the company successfully secured Series B funding to support this aggressive growth trajectory, with the investment round led by growth-equity firms. To spearhead this new phase, the brand appointed a new Chief Executive Officer with extensive experience in the fast-casual sector. The expansion plan aims to establish numerous new locations in major markets across the United States while preserving the brand's streamlined menu of fresh bagels and rotating schmear flavors.
• In January 2024, Philadelphia Cream Cheese collaborated with several renowned bagel shops across North America, including Utopia Bagels and St-Viateur Bagel, to launch a limited-edition product known as "Bagel Wholes." This innovative campaign introduced a unique, no-hole bagel specifically designed to maximize the surface area available for cream cheese application. The initiative sought to playfully resolve consumer debates regarding the utility of the traditional bagel hole and involved the exclusive sale of these specially baked items at selected partner locations in major cities such as New York, Montreal, Chicago, and Dallas for a limited time.

Key Market Players

• Einstein Noah Restaurant Group, Inc.
• Grupo Bimbo, S.A.B. de C.V
• H&H Bagels
• New York Bakery Company
• The Bagel Company
• Western Bagel Baking Corp.
• The J.M. Smucker Company
• Flowers Foods, Inc.
• Galveston Bagel Company
• Original Bagel Company

By Product Type	By Sales Channel	By Region
Plain Bagel Flavored Bagel Others	Hypermarkets/Supermarkets Convenience Stores Online Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Bagel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Bagel Market, By Product Type:

• Plain Bagel
• Flavored Bagel
• Others

• Bagel Market, By Sales Channel:

• Hypermarkets/Supermarkets
• Convenience Stores
• Online
• Others

• Bagel Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE