The global baking ingredients market is projected to cross USD 34.60 billion by 2033. The FMI analysts are of the view that the market is expected to record a CAGR of 6.8% from 2023 to 2033. The market size is anticipated to be at USD 17.92 billion in 2023.
Vital factors that might propel the development are:
The increasing pace of urbanization has led to the introduction of various kinds of dishes, especially from the Western part of the world. Lots of developing countries, especially in the Asia Pacific region have started consuming these delicacies on an incremental basis as these do not take much time to prepare. This is believed to be one of the primary factors for the increase in consumption of such food products, as urbanization has led to long working hours, which has resulted in a sedentary lifestyle. Thus, a lot of office goers may just grab a few pieces of pastries or doughnuts, which could possibly fill their appetite till lunch breaks. Such influences are expected to surge the demand for baking ingredients during the forecast period.
Surprisingly, even the COVID-19 pandemic has led to increased consumption of bakery products as a lot of people started pursuing cooking as a hobby. A huge chunk of them was involved in learning to cook bakery and confectionary items. There were a lot of crazes, especially for preparing pancakes during the lockdown.
The sales of baking ingredients are expected to surge as these assist in increasing the shelf life of the products. This has resulted in regulating the usage of resources, which has also helped the companies achieve cost-cutting. The application of baking ingredients also adds a certain degree of freshness to the products. The ingredients are available in different flavors as well, which is expected to increase the customer baseline.
The introduction of eCommerce and in-retail stores has propelled the market growth even more. The in-retail stores have an element of accessibility and ease of purchase, which has propelled the adoption of these cooking ingredients. The E-commerce sector has helped simplify purchases and provides numerous options, which has enhanced consumer strength.
North America is expected to hold the dominant market share during the forecast period. Owing to a busy lifestyle, a lot of people have been consuming food while on the move. This has led to increased adoption of pastries, pocket wraps, calzones, etc. Asia Pacific region is expected to hold a significant market share based on the CAGR. The Asia Pacific market is expected to advance at a CAGR of 8.9%, and this can be mainly attributed to rapid urbanization in the region.
| Attributes | Details |
|---|---|
| Baking Ingredients Market Value (2022) | USD 16.99 billion |
| Baking Ingredients Market Expected Value (2023) | USD 17.92 billion |
| Baking Ingredients Market Forecast Value (2033) | USD 34.60 billion |
| Baking Ingredients Market Expected CAGR (2023 to 2033) | 6.8% |
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In order to maintain a higher growth rate, the manufacturers have started developing eatables specifically for diabetic patients. This is expected to have a huge impact on the market as the products that have been developed are sugar-free. This move has opened the doors to serve 206 million diabetic patients worldwide, which is expected to have a massive impact on the market. Such innovative products are expected to surge the demand for baking ingredients during the forecast period. The historical CAGR for the market was 5.1%, while the anticipated CAGR is 6.8%.
Health Issues Pose Threat towards Market Growth
The baking ingredients are a source of trans-fats. High consumption of trans-fats can lead to diabetes, heart problems, and obesity. This is owing to the fact that these are devoid of proteins. Even if the baking ingredients do not contain trans-fats, they might contain refined flour and sugar. Refined flours have many of their nutrients and fiber removed, which might lead to the metabolism getting affected.
In the current times, many people have developed the hobby of preparing bakery items by themselves. One of the biggest drawbacks of preparing bakery items at home is that it is a time-consuming process, as a result of which people might lose interest after some time.
The United States is witnessing increased consumption of convenience food. Owing to hectic and sedentary lifestyles, people have started consuming food that takes less time to prepare. The increase in the number of bakery shops can be attributed to a surging demand for fresh bakery goods with varied ingredients. The palatability, affordability, and increased nutritional value are expected to surge the market growth during the forecast period. This is also supported by the presence of key players in the region, as a result of which high-quality bakery ingredients are accessible.
Europe is currently the dominant bread market. In 2023, the bread market in Europe is expected to hold a valuation of USD 126 billion. The best part about this market is that the cakes and bakeries segment is the leading sector in the bread market. The ability to be customized and be rich in taste and nutrition is expected to drive market growth. The growth of bakery ingredients is further bolstered by the presence of varied flavors which might serve a large variety of segments.
Japan is currently one of the leading players in the rice cakes market. The rice cake market in Japan is expected to be valued at USD 129 million in 2023. Its chewy texture and nutty flavor make it quite popular, especially among children. As per the customer demand, these can be fortified with the necessary nutrients as well. The bakery ingredients are used in the rice cakes to increase the shelf life. The bakery ingredients also assist in providing lots of flavors, which is believed to be a crucial aspect for increasing the market share of rice cakes.
South Korea is meant for its traditional dish, ‘yaksik.’ It is a common staple on almost every occasion. People consume yaksik in high numbers owing to its nutritional quality and taste as well. This cake is prepared using bakery ingredients in order to enhance the shelf life and emulsify the product. Moreover, people across South Korea also consume ‘Ggul tteok,’ which is expected to further surge the market growth during the forecast period. These honey cakes are expected to surge the market growth as these as well make use of bakery ingredients in large quantities.
Principal Consultant
The emulsifiers segment is expected to hold the dominant market share during the forecast period. Key benefits pertaining to the production of emulsifiers are their low production cost, fermentation activity, high shelf life, and improved stability offered by dough. Moreover, the emulsifiers help in mixing two liquids, which is believed to be quite important for developing new flavors. The emulsifiers are also used as thickening agents, thereby providing a particular texture to the bakery product.
The bread segment is expected to be highly sought-after during the forecast period. It is a staple food in many countries, especially across Europe. The growth is supported by affordable pricing and high nutritional content. The manufacturers have started focusing more on brown bread, and these are targeted especially towards health-conscious customers as these are rich in protein. The availability factor is also one of the key drivers of the bread as these are easily accessible.
The start-ups operating in the market are coming up with innovative ideas. They have been selling subscription boxes and individual products. The method has been adopted across beverages, condiments, and dry snacks. To increase sales, they are also maintaining tie-ups with eCommerce players.
Faasos: The start-up operates on the basis of the cloud-kitchen model and has been serving vegetable rolls and cakes. Faasos has been garnering a lot of attention owing to its ability to deliver food and maintain strategic partnerships with all the leading B2B food solution companies. In October 2021, Rebel Foods, the parent company of Faasos, raised USD 175 million in the Series F funding round, which was led by Qatar Investment Authority.
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The key players operating in the bakery ingredients market are focusing on enriching their offerings using probiotics. There has been an increased demand for probiotic food as well. To meet the growing expectations, the key players are investing huge amounts in developing production facilities. In February 2023, Archer Daniels Midland Company opened a state-of-the-art production facility in Spain to meet the growing demand for probiotics. The company had invested more than USD 30 million to build this facility.
Important developments in the bakery ingredients market:
Dominant players in the market:
| Company | Description |
|---|---|
| Archer Daniels Midland Company | Archer Daniels Midland Company has been unlocking the power of nature to improve the quality of high-performance of human life. Being a premier global human and animal nutrition company, the company has been delivering solutions with an eye on the future. The company has the image of being a cutting-edge innovator and leads the way to a new future of plant-based consumer and industrial solutions. From the seed of the idea to the outcome of the solution, the company has been giving an edge to the customers living the sustainability challenges. |
| Cargill Inc. | Cargill Inc. has been bringing food, agricultural, financial, and industrial products to people who need them the most. Having served the market for more than a century and a half, the company has been applying its expertise to serve customers and communities across 70 countries. The company employs 155,000 workers to nourish the world in a safe, responsible, and sustainable way. The company has been mainly into providing business-to-business solutions and has been providing effective solutions to transform raw materials into finished goods. |
| Associated British Foods | Associated British Foods is a highly diversified group and covers a wide range of food and ingredients businesses. The purpose of the company has always been to provide safe, nutritious, and affordable food and clothing, which is great value for money. The company has always worked hard to create long-term value for its shareholders. The core strategy is to achieve sustainable growth over the long term, increasing shareholder value through sound commercial and responsible business decisions. |
Other key players profiled: E. I. du Pont de Nemours and Co., BASF SE, Kerry Group Plc., Ajinomoto Corporation Inc., Bakels, Dawn Food Products, AngelYeast Co., Ltd., Döhler GmbH, Ingredion Incorporated, Lonza Group AG, Chr. Hansen Holding A/S, and Lallemand Inc.
The baking ingredients market is worth USD 17.92 billion in 2023.
The baking ingredients market is expected to be worth USD 34.60 billion by 2033.
The baking ingredients market is rising at a 6.8% CAGR through 2033.
Europe’s baking ingredients market holds a valuation of USD 126 billion in 2023.
The emulsifiers segment leads the baking ingredients market.
1. Executive Summary | Baking Ingredients Market 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Emulsifiers 5.2. Leavening Agents 5.3. Enzymes 5.4. Baking Powder & Mixes 5.5. Colours & Flavours 5.6. Preservatives 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 6.1. Bread 6.2. Biscuits & Cookies 6.3. Cakes & Pastries 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 7.1. Supermarkets & Hypermarkets 7.2. Specialty Stores 7.3. Convenience Stores 7.4. Online Retailing 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 8.1. North America 8.2. Latin America 8.3. Europe 8.4. Asia Pacific 8.5. MEA 9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. Key Countries Market Analysis 15. Market Structure Analysis 16. Competition Analysis 16.1. AAK AB 16.2. Associated British Foods plc 16.3. British Bakels Ltd 16.4. Archer Daniels Midland Company 16.5. Cargill Inc. 16.6. E. I. du Pont de Nemours and Co. 16.7. BASF SE 16.8. Kerry Group Plc. 16.9. Ajinomoto Corporation Inc. 16.10. Dawn Food Products 16.11. Lonza Group AG 17. Assumptions & Acronyms Used 18. Research Methodology
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Baking Ingredients Market
