Bakery Manufacturers: On a Roll

Closeup of chocolate chip cookies on a plate.

Article - July 15, 2025

The bakery market is large, growing, and fragmented, with retailers and foodservice operators eager to partner with companies that can help them stay on trend while keeping the shelves reliably stocked with high-quality, innovative options.

Below, our Consumer Group shares what’s driving M&A momentum in bakery manufacturing and several recent clients that illustrate its investment potential.

Help Wanted

Baked goods are central to consumers’ lifestyles, from celebratory cupcakes to craveable cookies to capable sandwich carriers. Against a backdrop of steady demand, fresher and more premium options found in restaurants and in the in-store bakery are experiencing a continued rise in consumption:

82% of U.S. households make in-store bakery purchases annually, averaging 12 visits per year.¹
The global premium bakery products market is projected to grow by 4.2% from 2025 to 2035, reaching $25 billion by 2035.²
Perimeter bakery items reached $18.3 billion in sales in 2024, up from $13.9 billion in 2019.³
Artisanal bakery products are expected to grow by 5.7% from 2023 to 2030.⁴

To tap into this growth, many retailers and foodservice operators are seeking bakery partners—not just suppliers. Winning bakery companies are pulling ahead by investing in new equipment and collaborating with customers to develop higher-quality, innovative products that are easy to execute on-premises to drive incremental sales. The best bakery companies are also investing in automation to lower their cost structures while ensuring more reliable supply chains.

"The need for bakery partners versus suppliers has never been more important,” says Brant Cash, a managing director. “By serving as collaborative innovators that can lead new product ideation, design, and development, manufacturers can establish deeper, stronger, and higher-value customer relationships. They are also winning new business and, in many cases, long-term contracts."

Spotlighting Success

Harris Williams has worked with a variety of bakery businesses that exemplify this trend towards value-added partnerships with retailers and foodservice businesses.

CraftMark Bakery, for example, is a manufacturer of frozen baked goods, including bread dough, cookie dough, pre-deposited muffins, flatbread, and ready-to-eat cookies. “CraftMark stands out through its state-of-the-art modern bakery, robust R&D capabilities, and commitment to food safety,” says Richard Furseth, a director. “That’s helped the company partner with leading chain restaurants and grocery retailers to create customized baked goods that drive sales and solve supply-chain challenges.”

Rise Baking Company produces a broad portfolio of products for in-store bakeries and foodservice customers, including leading national grocery chains, convenience stores, QSRs, and mass merchandisers. “Rise’s successful M&A strategy and integration expertise helped it transform into a best-in-class provider for multiple baked goods product categories across North America,” explains Tim Alexander, a managing director. “Adding product capabilities and cross-selling allows Rise to serve more customers with more high-quality offerings.”

“Rise excels in innovation, providing a vast array of custom products that help make customers’ bakery operations more efficient,” adds Cash. “Operational flexibility is key to satisfying customer needs for limited-run seasonal products as well as high-volume everyday items.”

Similarly, Fresca Mexican Foods has established itself as a key supplier to some of the largest foodservice chains in the U.S. and Canada by delivering homestyle quality and taste, customization at scale, and clean-label products that meet the needs of a growing customer base.

Fresca established a reputation for innovation and manufacturing excellence by investing in its facilities, production lines, and R&D teams. “Large quick-serve restaurant chains are demanding customers,” notes Cash. “They need to offer a superior customer experience that is consistent across thousands of stores, which are frequently operated by teenagers. Suppliers like Fresca that can develop customized, easy-to-use products that meet each customer’s needs are poised for long-term growth.” 

A Recipe for Growth

In-store bakeries and foodservice operators need supply partners that can provide easy-to-execute bakery solutions and deliver consistency, quality, and food safety at scale. As shown by recent Harris Williams engagements, investor interest is strong for differentiated manufacturers in the sector.

“The baked goods market is large and fragmented with significant room to drive growth through M&A or by investing in organic growth,” says Cash. “There’s plenty of opportunity for leading bakery manufacturers to expand into new categories, develop new customer relationships, and acquire companies that unlock cross-sell opportunities and operational synergies.”

To further discuss bakery M&A, please contact our senior professionals.