Insights from Jorge Zarate: The Future of the Baking Industry
Jorge Zarate, the Chief Supply Chain Officer and Chief Sustainability Officer at Grupo Bimbo SAB de CV in Mexico City, currently serves as the Chair of the upcoming 2025 International Baking Industry Exposition (IBIE). He expresses a cautiously optimistic view of the industrial baking sector, suggesting that despite certain challenges, the industry has largely experienced growth in recent years.
“The industry has been through a lot of changes,” Zarate notes, reflecting on the evolution of the sector. “Overall, we have seen consistent growth over the past few years. Even the IBIE show itself has expanded exponentially, evolving from a traditional grain-based framework to one that embraces digital automation and sophisticated operational methodologies.”
This transformative journey is largely driven by changing consumer demands. Today’s consumers are increasingly seeking nutritious, high-quality baked goods offered at competitive prices. However, achieving these price points is not without its challenges. Baking companies around the world continue to grapple with post-pandemic economic realities, including rising costs of raw materials and labor, compounded by inflationary pressures that are affecting sales. As a result, many organizations are actively exploring automation, digital tools, and innovative solutions from around the globe.
“Globalization is not solely about product offerings; it also plays a significant role in the dissemination of industry knowledge,” Zarate explains. “Professionals within the baking sector must remain aware of trends and practices in other countries. This knowledge enables them to enhance their processes by acquiring the best equipment and sourcing superior ingredients, sometimes necessitating international procurement.”
The impact of globalization is evident within the IBIE itself. Zarate, who has been involved with the planning committee for a decade, observes a marked increase in the diversity of exhibitors and attendees, reflecting a truly global industry. The IBIE strives to create a platform that fosters the exchange of innovative ideas from various market segments worldwide.
Given this dynamic landscape, Zarate anticipates a significant presence of automation solutions at the upcoming IBIE. However, he also underscores the importance of advancing the industry’s digital transformation. “While automation has been a topic of discussion for some time, its relevance has become even more pronounced in many countries, not only for cost control but also for enhancing uniformity in processes and bolstering food safety,” he elaborates. “Digitalization is critical as it allows us to monitor our processes and equipment in a proactive manner, emphasizing preventative rather than corrective measures.”
The IBIE serves as a biennial gathering for the international baking community, set to take place in Las Vegas from September 13 to 17, 2025. Zarate emphasizes that the event is not exclusively for business leaders; it also attracts technical professionals. He encourages companies to bring a well-thought-out plan to the expo and to utilize IBIE’s corporate meeting program for post-event debriefing sessions.
“IBIE is the premier venue for learning about and experiencing the latest trends and shifts in the global baking industry,” Zarate asserts. “Having professionals from across the industry convene under one roof to share ideas and address challenges provides invaluable insights into the current state and future direction of our sector.”
Challenges and Opportunities Ahead
As the baking industry continues to evolve, addressing challenges such as supply chain disruptions and fluctuating consumer preferences remains paramount. The integration of technology, including AI and machine learning, is expected to play a pivotal role in optimizing production processes, enhancing quality control, and ultimately improving profitability.
Moreover, sustainability is becoming a focal point for many baking companies. Consumers are increasingly prioritizing eco-friendly practices and products, compelling organizations to adopt more sustainable sourcing and production methods. This trend aligns well with Zarate’s dual role at Grupo Bimbo, where sustainability is a core component of the company’s operational philosophy.
The upcoming IBIE will not only showcase the latest technological advancements but also provide a forum for discussing sustainable practices and innovations. With the baking industry at a crossroads, the insights garnered from this event will be instrumental in shaping future strategies and operational frameworks.
A Call for Collaboration
In a rapidly changing environment, collaboration among industry stakeholders will be vital. Zarate encourages baking professionals to engage in dialogue, share best practices, and explore potential partnerships that can drive innovation and growth. “The future of the baking industry will depend on our ability to work together, leveraging our collective knowledge and resources to navigate the complexities of our market,” he concludes.
As the 2025 IBIE approaches, the anticipation builds. With a commitment to embracing change and a focus on sustainability and digital transformation, the baking industry is poised for a promising future. The insights shared by leaders like Jorge Zarate will undoubtedly pave the way for a more resilient and innovative sector, ready to meet the demands of a diverse and evolving consumer landscape.
