Baking Ingredients Market Forecast to 2028 by Size and Share

Baking Ingredients Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Baking Powder & Mixes; Emulsifiers; Enzymes; Starches; Colors & Flavors; Oils, Fats, and Shortening; and Others) and Application (Breads & Rolls, Biscuits & Cookies, Cakes & Pastries, and Others)

Publication Month : May 2022

  • Report Code : TIPRE00009084
  • Category : Food and Beverages
  • Status : Published
  • No. of Pages : 168
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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

baking-ingredients-market
Market Size Value inUS$ 16,444.97 Million in 2022
Market Size Value byUS$ 22,278.10 Million by 2028
Growth rateCAGR of 5.2% from 2022 to 2028
Forecast Period2022-2028
Base Year2022
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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.

Baking Ingredients Market Breakdown, by Region

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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.

Baking Ingredients Market, by Application – 2021 and 2028

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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.

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
Report Coverage
Report Coverage

Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

Segment Covered
Segment Covered

Type, and Application

Regional Scope
Regional Scope

North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

Country Scope
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


Can you list some of the major players operating in the global baking ingredients market?

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.

What are the opportunities for baking ingredients in the global market?

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.

Based on the type, why is the others segment have the largest revenue share?

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.

What is the largest region of the global baking ingredients market?

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 the application, which segment is projected to grow at the fastest CAGR over the forecast period?

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.

What are the key drivers for the growth of the global baking ingredients market?

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.

The List of Companies - Baking Ingredients Market

  1. Cargill, Incorporated
  2. ADM
  3. Associated British Foods plc
  4. Koninklijke DSM N.V.
  5. Kerry
  6. AAK AB
  7. British Bakels
  8. Corbion
  9. International Flavours & Fragrances
  10. Dawn Food Products Inc.

The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

  1. Data Collection and Secondary Research:

As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

  1. Primary Research:

The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

A typical research interview fulfils the following functions:

  • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
  • Validates and strengthens in-house secondary research findings
  • Develops the analysis team’s expertise and market understanding

Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

  • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
  • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

Below is the breakup of our primary respondents by company, designation, and region:

Research Methodology

Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

  1. Data Analysis:

Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

  • 3.1 Macro-Economic Factor Analysis:

We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

  • 3.2 Country Level Data:

Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

  • 3.3 Company Profile:

The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

  • 3.4 Developing Base Number:

Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

  1. Data Triangulation and Final Review:

The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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