Mondelēz International is making bold moves in the global cakes and pastries market with its iconic Oreo brand leading the charge. The company currently holds the third-largest global share with a $2 billion business in this rapidly expanding sector. With the global cakes and pastries market projected to grow at a CAGR of 4.4% and reach an estimated $125 billion by 2030, Mondelēz is strategically positioning itself for significant growth. CEO Dirk Van de Put has emphasized the company’s strategy to leverage powerful brand recognition from Oreo, Cadbury, and Milka to drive expansion and capture a larger market share in this lucrative category.
The Sweet Strategy Behind Oreo’s Pastry Expansion
The expansion into cakes and pastries represents a natural progression for Mondelēz, building on the tremendous global popularity of its Oreo cookies. This strategic move aims to capitalize on consumers’ existing brand loyalty while offering new ways to enjoy familiar flavors. The company isn’t just launching random pastry products – they’re carefully extending established brands into new formats that maintain the core appeal consumers already love.
Dirk Van de Put has made it clear that leveraging iconic brands is central to their growth strategy. “Our strong foundation of iconic brands positions us well for long-term value creation in the cakes and pastries category,” Van de Put stated. The approach makes business sense given that confectionery sales continue climbing across multiple product categories.
This expansion comes at a time when consumer snacking habits are evolving, with many looking for indulgent options that provide a moment of enjoyment throughout their day. By offering Oreo in cake and pastry formats, Mondelēz creates additional consumption occasions beyond the traditional cookie experience. The strategy aligns with broader industry trends showing that established brands can successfully extend into adjacent categories when they maintain their core flavor profiles and quality standards.
Oreo Cakesters and 7 Days Croissants Lead the Charge
At the forefront of Mondelēz’s pastry expansion are two key products: Oreo Cakesters and 7 Days croissants. Oreo Cakesters have already proven their market potential, generating an impressive $125 million in revenue last year alone. These soft, cake-like sandwich cookies have achieved household penetration of approximately 6% in both the U.S. and China markets, demonstrating significant growth potential.
The success of Oreo Cakesters highlights consumers’ appetite for familiar brands in new formats. These treats maintain the distinctive Oreo cream filling and chocolate cookie flavor profile that fans love, but in a softer, more cake-like texture. This innovation provides a different eating experience while preserving the core brand identity that has made Oreo a global phenomenon.
Simultaneously, Mondelēz is planning a major U.S. expansion of its 7 Days packaged croissant brand. The company has set an ambitious goal to double its croissant business by 2030, indicating substantial investment in this segment. These shelf-stable croissants offer convenience while delivering indulgent flavors, including chocolate-filled varieties that connect to Mondelēz’s chocolate expertise and heritage.
In-Store Bakery Partnerships Expand Reach
Beyond packaged products, Mondelēz is making strategic moves into the in-store bakery sector with co-branded items. Oreo-branded mini cupcakes represent just one example of how the company is extending brand presence into freshly-baked goods. These partnerships allow Mondelēz to access different retail spaces within grocery stores and bakeries, increasing brand visibility and capturing additional consumer dollars.
The in-store bakery strategy taps into consumers’ perception of freshness and quality, while leveraging the trust and familiarity of the Oreo brand. By combining the appeal of freshly-baked goods with iconic branding, Mondelēz creates a compelling value proposition for both retailers and consumers. This approach also aligns with contemporary shopping patterns where convenience meets indulgence, as shoppers can pick up branded treats during their regular grocery trips.
These innovations represent part of a broader trend where major confectionery companies innovate across traditional category boundaries. For retailers, these co-branded bakery items offer the benefit of known brands with proven consumer appeal, potentially driving increased foot traffic to in-store bakery departments.
Market Position and Competitive Landscape
In the global cakes and pastries market, Mondelēz currently holds the third-largest share, trailing only behind Grupo Bimbo and Yamazaki Baking Co., Ltd. This positions the company ahead of Hostess Brands but still with significant growth opportunities. The company’s current $2 billion cake and pastry business represents a solid foundation, but Mondelēz clearly sees potential for substantial expansion.
The competitive landscape presents both challenges and opportunities. Established bakery players have deep distribution networks and manufacturing expertise, while Mondelēz brings powerful brand recognition and marketing capabilities. This combination of factors creates interesting competitive dynamics as the company works to increase its market presence.
Mondelēz has demonstrated resilience amid challenging market conditions, reporting a 4.3% organic net revenue growth and a 5.1% adjusted gross profit dollar growth in 2024 despite facing significant cocoa cost pressures. This financial performance suggests the company has the operational discipline and scale needed to navigate input cost challenges while continuing to grow its business. The ability to maintain growth during commodity price volatility speaks to the company’s supply chain management and pricing power with consumers.
As consumer preferences continue shifting toward balanced snacking options, Mondelēz is positioning its cake and pastry offerings as permissible indulgences that can fit into modern lifestyles. The company’s market research indicates consumers still desire memorable taste experiences, even as they become more health-conscious overall.
Navigating Challenges in Global Expansion
Despite its ambitious growth plans, Mondelēz faces several challenges in its pastry expansion strategy. Chief among these is the ongoing record cocoa input cost inflation, which puts pressure on margins for chocolate-containing products. However, CEO Dirk Van de Put has expressed confidence in the company’s ability to manage these cost pressures through a combination of strategic pricing, operational efficiencies, and product innovation.
Regional taste preferences present another challenge for global expansion. Pastry formulations and flavors that succeed in one market may require significant adaptation for others. Mondelēz is addressing this through market-specific product development and leveraging its global research capabilities to understand local preferences.
Distribution logistics for fresh and shelf-stable bakery items differ significantly from the company’s core cookie and chocolate businesses. To overcome this, Mondelēz is pursuing a multi-channel approach that includes traditional retail, in-store bakery partnerships, and e-commerce strategies. This comprehensive distribution strategy aims to make Oreo pastry products available wherever consumers shop, maximizing convenience and accessibility.
Additionally, the company faces competition not only from large bakery conglomerates but also from premium local bakeries and artisanal producers. Mondelēz’s strategy to combat this includes emphasizing the quality of their ingredients while maintaining the consistent flavor experiences consumers expect from their iconic brands.
Future Growth Through Brand Leverage
Looking ahead, Mondelēz’s growth strategy hinges on effectively leveraging its portfolio of iconic brands. Currently, about one-third of its cakes and pastries business comes from extending legacy brands into innovative products like “chocobakery” items. The company plans to accelerate this transformation by bringing more of its beloved brands into the pastry category.
Mondelēz aims to derive 90% of its revenue from core categories including chocolate, biscuits, and baked snacks. This focused approach allows the company to concentrate resources and expertise on categories where it can establish meaningful competitive advantages. Rather than diversifying too broadly, the strategy emphasizes doing more with established brands that already enjoy consumer trust and loyalty.
The company’s R&D teams are developing products that bridge traditional category boundaries, creating hybrid offerings that combine elements of cookies, cakes, and chocolate confections. These innovative products aim to deliver unique textural and flavor experiences that can’t be easily replicated by competitors. By focusing on proprietary product formulations, Mondelēz hopes to create sustainable competitive advantages in the increasingly crowded snack market.
For dessert lovers and food industry watchers alike, Mondelēz’s expansion of Oreo into cakes and pastries represents an exciting development. As the company continues to roll out new products, consumers can look forward to experiencing familiar flavors in new formats. I’d encourage anyone who enjoys discovering new treats to submit their favorite dessert recipe as inspiration for the next generation of indulgent snacks.
As Mondelēz implements its strategy, the company remains committed to responsible growth, balancing innovation with sustainability initiatives across its supply chain. With its strong brand portfolio and clear vision for the future, Mondelēz appears well-positioned to capture a larger slice of the growing global cakes and pastries market. For more information, consumers and industry professionals can visit the Mondelēz International website or contact the company directly through their media and investor relations departments.