European bakeries eye North America: US tariffs add heat to the flow

European bakery players have been venturing into the North American market for decades, a trend that has accelerated in recent years. They rely on their strong supply capabilities to serve an expanding North American market that is eager to explore new products.

This report examines the dynamics of market flows and the similarities and differences on both sides of the Atlantic to better understand what lies ahead. Despite growing demand, the competitive landscape has become increasingly crowded, with local players offering portfolios that closely resemble those of European entrants. Additionally, tariffs have introduced new uncertainties into the movement of baked goods into and across the North American market.

We conclude that European entrants are not aiming to compete in the core baked goods segments – branded fresh products distributed through direct-store-delivery networks – but rather in what they do best: European-style frozen baked goods for in-store bakeries and select foodservice channels. We expect this trend to continue to drive demand for US-based bakery assets among both local and international players.