Mondelēz International is eyeing a larger piece of the $97 billion global cakes and pastries market, aiming to inject some excitement into a sector that has grown stale, according to the company’s CEO.
The snacks giant is leveraging its portfolio of well-known brands such as Oreo cookies and Milka chocolate to establish a premium presence in a market flooded with generic cupcakes, brownies, and muffins.
“It’s a natural progression for us. That’s the beauty of it,” said Dirk Van de Put, Mondelēz’s CEO. “There were $97 billion worth of opportunities waiting for us to explore, and we intend to play a significant role in this category.”
Mondelēz is already a major player in the cakes and pastries segment, with sales exceeding $2 billion last year. Van de Put anticipates doubling these figures by 2030 by expanding the company’s biscuit and chocolate brands in the category and introducing new products and technologies through acquisitions.
The top five packaged goods manufacturers in the cakes and pastries sector hold about 18% of the global market share, with numerous smaller companies making up the remainder. Mondelēz, currently the third-largest player in the field with a 3.8% market share, aims to further increase its presence.
The cakes and pastries market has experienced rapid growth over the past four years, with a compound annual growth rate of 8.2%, compared to 5.2% between 2015 and 2024. According to Euromonitor data cited by Mondelēz, the market is projected to reach $125 billion globally by 2030.
Van de Put highlighted that consumers are increasingly drawn to cakes and pastries due to innovations in the sector, a rising demand for indulgent treats, and the convenience of these snacks. Moreover, these products have proven to be more appealing to children as a snacking alternative to cookies and crackers.
For Mondelēz, the similarities between its core cookie and cracker business and the cakes and pastries segment make the transition seamless. Both categories often share production technologies and ingredients.
Mondelēz can also leverage the strong brand recognition of products like Milka chocolate and Oreo cookies to introduce premium bakery offerings. Van de Put emphasized that the company’s iconic brands, coupled with recent acquisitions, provide Mondelēz with a significant competitive edge over its rivals.
“We see the opportunity to consolidate and elevate the market through acquisitions and product launches, offering a more premium and superior product range,” he stated.
One of Mondelēz’s notable successes includes Oreo Cakesters soft snack cakes, generating $125 million in revenue last year. The company, with $36 billion in annual revenue, expanded the popular cookie brand into cupcakes following its acquisition of a majority stake in Give & Go, a North American manufacturer of frozen-to-fresh brownies, cookies, and cupcakes.
Mondelēz has also introduced Milka chocolate into brownies and croissants, utilizing technology obtained through its acquisition of snacking brand 7Days in 2021.
Currently, a third of Mondelēz’s cakes and pastries business stems from extending its legacy brands, while the remaining portion is attributed to recent acquisitions like Give & Go and Evirth, a China-based frozen-to-chilled cakes company in which Mondelēz acquired a majority stake in September.
“The cakes and pastries category is sometimes undervalued because, in our view, it’s not just an adjacent market. It’s a core category,” Van de Put emphasized, noting the sector’s attractive margins and growth rate compared to other snacking categories.
Analyst Brittany Quatrochi from Edward Jones commended Mondelēz’s strategic move into cakes and pastries, stating that the company has made a compelling case for expanding its presence in the market.
“The incremental steps they’ve taken are evolving into a stronger strategy,” Quatrochi remarked. “While it may not be a primary driver of their business currently, there is potential for cakes and pastries to significantly contribute to their future growth.”