Baking Ingredients Market Growth and Analysis by 2028

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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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

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

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.

Baking Ingredients Market Report Scope

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:

1. Cargill, Incorporated
2. ADM
3. Associated British Foods plc
4. Koninklijke DSM N.V.
5. Kerry

Disclaimer: The companies listed above are not ranked in any particular order.

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