The baking ingredients market is projected to reach US$ 22,278.10 million by 2028 from US$ 16,444.97 million in 2022; it is expected to grow at a CAGR of 5.2% from 2022 to 2028.
Baking ingredients include flours & premixes, sweeteners, livening agents, yeast, fats, emulsifiers, shortening, enzymes, flavors, colors, and inclusions. These ingredients play specific roles in the quality of bakery products. For instance, yeast provides volume to the baked food and makes the products soft, light, and fluffy. Shortening and fats improve the texture and strength of the dough. Flavors and colors enhance the taste and visual appeal of bakery products. The rising demand for bakery products, especially cakes, cookies, and sweet baked goods, due to the rising trend of indulgent consumption is driving the growth of the baking ingredients market.
The Middle East & Africa baking ingredients market is projected to grow at the fastest CAGR during the forecast period. The region has been witnessing a shift in socioeconomic conditions owing to rapid economic developments and elevating disposable incomes. Moreover, rapid urbanization, modern lifestyle, and increased spending capacities have changed people’s overall shopping habits and food consumption patterns. The rising influence of western culture, especially among the young population, is transforming consumption habits. There is an increasing preference for convenience food products that are consumed on the go. The demand for bakery products rising due to their affordability and ease of consumption. These factors contribute to the growth of the bakery industry, thereby boosting the baking ingredients market growth across the Middle East & Africa.
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Baking Ingredients Market: Strategic Insights
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Baking Ingredients Market: Strategic Insights
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Impact of COVID-19 Pandemic on Baking Ingredients Market
The food & beverages sector faced unexpected challenges amid the COVID-19 pandemic. Various restrictions imposed by governments, such as lockdowns, production shutdowns, travel bans, and border restrictions, disrupted the global supply chains in 2020. This led to a shortage of raw materials and labor, which hampered the production of various small-scale and large-scale food and beverage manufacturers. However, during the COVID-19 pandemic, there was significant demand for bakery products such as cakes, cookies, and pastries from people staying at home, as they perceived these products as a good way to overcome the pandemic-related stress, which boosted the sales of bakery products and baking ingredients. Moreover, after the onset of the COVID-19 outbreak, people have become more concerned about their health and immunity. As a result, they are replacing conventional bakery products with functional ones such as organic, gluten-free, non-GMO, vegan, and fortified products. This factor is expected to provide profitable growth opportunities to the baking ingredients market for functional products during the forecast period.
Market Insights
Rising Demand for Functional Ingredients to Provide Lucrative Opportunities to Baking Ingredients Market Players
Rising Demand for Functional Ingredients to Provide Lucrative Opportunities to Baking Ingredients Market Players
Consumers actively seek health benefits from the food products they consume. Amid the outbreak of the COVID-19, they have become more health-conscious and prefer products that offer functional benefits. Consequently, they tend to notice the nutritional value of bakery products, which drives their attention toward products containing healthier ingredients, such as fibers, probiotics, plant proteins, and low sugar content. Many consumers increase their fiber intake to manage their weight and support digestive health. Therefore, the manufacturers of bakery products are using fiber-rich ingredients such as whole grain flours to address the demands for high-fiber bakery products, such as digestive biscuits, high-fiber cookies, and whole wheat bread. Further, the demand for natural sweeteners such as honey, coconut sugar, and maple syrup has increased significantly. Natural sweeteners have lower calorific value than table sugar, and offer similar flavor and texture to bakery products. Thus, the rising demand for functional ingredients in bakery products is expected to open new opportunities in the baking ingredients market during the forecast period.
Type Insights
Based on type, the baking ingredients market is categorized into baking power & mixes emulsifiers, enzymes, starches, colors & flavors, oils, fats, and shortening, and others. The enzymes segment is expected to register the highest CAGR during the forecast period. Enzymes play vital roles in the making of bakery products. They increase the shelf life of the baked products eliminating the need for using chemical or artificial preservatives. Various enzymes used in the bakery sector are amylase, oxidase, and protease, among others.
Application Insights
Based on application, the baking ingredients market is segmented into bread & rolls, biscuits & cookies, cakes & pastries, and others. The bread & rolls segment accounted for the largest market share in 2021. Bread & bread rolls include baguette, sourdough, yeast bread, brioche, focaccia, and ciabatta bread. Consumer preferences are changing day by day, and a need for a high-quality product propels the expansion of healthy bread and rolls.
Major players operating in the baking ingredients market include Cargill, Incorporated; ADM; Associated British Foods Plc.; Koninklijke DSM N.V.; Kerry Group Plc; AAK AB; British Bakels; Corbion; International Flavors & Fragrances Inc.; and Dawn Food Products Inc.; among others. These companies present a broad product portfolio of baking ingredients. They have their presence in both developed and developing regions. The key market players are highly focused on developing high-quality and innovative products to fulfil customers’ requirements.
Baking Ingredients Market Regional Insights
Baking Ingredients Market Regional Insights
The regional trends and factors influencing the Baking Ingredients Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Baking Ingredients Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
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Baking Ingredients Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2022 | US$ 16.44 Billion |
| Market Size by 2028 | US$ 22.28 Billion |
| Global CAGR (2022 - 2028) | 5.2% |
| Historical Data | 2020-2021 |
| Forecast period | 2023-2028 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
Baking Ingredients Market Players Density: Understanding Its Impact on Business Dynamics
The Baking Ingredients Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Baking Ingredients Market are:
- Cargill, Incorporated
- ADM
- Associated British Foods plc
- Koninklijke DSM N.V.
- Kerry
Disclaimer: The companies listed above are not ranked in any particular order.
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Report Spotlights
- Progressive industry trends in the baking ingredients market to help companies develop effective long-term strategies
- Business growth strategies adopted by the market players in the developed and developing countries
- Quantitative analysis of the market from 2020 to 2028
- Estimation of global demand for baking ingredients
- Porter’s Five Forces analysis to illustrate the efficacy of buyers and suppliers in the baking ingredients market
- Recent developments to understand the competitive market scenario
- Market trends and outlook, and factors governing the baking ingredients market growth
- Assistance in the decision-making process by highlighting market strategies that underpin commercial interest
- Size of the baking ingredients market at various nodes
- Detailed market overview and segmentation, and the baking ingredients industry dynamics
- Size of the baking ingredients market in various regions with promising growth opportunities
- Historical Analysis (2 Years), Base Year, Forecast (7 Years) with CAGR
- PEST and SWOT Analysis
- Market Size Value / Volume - Global, Regional, Country
- Industry and Competitive Landscape
- Excel Dataset
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Type, and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The global bakery sector has been continuously expanding. The rise in global population, rapid urbanization, and changing consumer habits and lifestyles are shaping the global bakery sector. In recent years, people have become increasingly concerned about the ingredients used in the food products they consume. Consumer preferences are shifting toward more natural, organic, and less processed food products as they perceive these products to be healthier and of superior quality than the conventional ones. Moreover, consumers believe that organic and clean-label products provide better nutritional benefits and are more sustainable than traditional products. Hence, surging demand for organic and clean-label bakery ingredients worldwide.
Based on the application, bread & rolls segment is projected to grow at the fastest CAGR over the forecast period. As the rolls are a common breakfast & snack option in Europe, mainly in Germany, Austria, Switzerland, Sweden, and the UK & other countries with a booming bread culture. Also, bread is a staple food & it has been an essential part of many cultures' diets. Moreover, consumer preferences are changing day by day, and a need for a high-quality product propels the expansion of healthy bread & rolls. The bread & rolls are highly demanded in industrial, in-store bakeries. These factors are expected to boost the segment’s growth during the forecast period.
Asia Pacific accounted for the largest share of the global baking ingredients market. The market growth is attributed to increasing demand for bakery products such as bread, cakes, pastries, and muffins and the growing influence of western culture on the young population in the region. The bakery industry in Asia Pacific is rapidly advancing with the growing consumption of convenience food products. The rising disposable income levels of consumers and the growth of the middle-class population are among the key factors driving the demand for bakery products in the region.
Based on type, other segments mainly include various flours. Consumers are demanding whole grain flours such as wheat, oats, rye, millet, quinoa, barley, or a combination of grains, as the population is inclining toward a healthy lifestyle. The other segment also includes various types of sugars such as granulated, powdered, and brown sugar, date sugar, coconut sugar, maple sugar, honey, molasses, maple syrup, cane syrup, and agave syrup. Moreover, milk, extracts of fruits & spices, and essential add-ins such as chocolates, cocoa powder, dried fruits & nuts, coconut (shredded/flakes), matcha powders, and chia seeds. In these, segments, the manufacturer can offer products according to the customized taste, flavor & demand of the region.
The major players operating in the global baking ingredients market are Cargill, Incorporated; ADM; Associated British Foods plc; Koninklijke DSM N.V.; Kerry; AAK AB; British Bakels; Corbion; International Flavors & Fragrances; and Dawn Food Products Inc.
The importance of gut health has been increasing among people. Therefore, people include probiotics in their diet to ensure good gut health. Bakery manufacturers are also experimenting with probiotics to develop innovative products with digestive health claims. For instance, Lallemand Inc. offers active freeze-dried probiotic bacteria Bacillus subtilis Rosell-179 for baking applications. Functional ingredients are widely employed in bakery products as consumers have become health conscious. Thus, the rising demand for functional ingredients in bakery products is expected to open new opportunities in the baking ingredients market over the forecast period.
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The List of Companies - Baking Ingredients Market
- Cargill, Incorporated
- ADM
- Associated British Foods plc
- Koninklijke DSM N.V.
- Kerry
- AAK AB
- British Bakels
- Corbion
- International Flavours & Fragrances
- Dawn Food Products Inc.
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