The global Food Grade Ammonium Carbonate market is estimated to be worth USD 308.3 million in 2024 and is projected to reach a value of USD 897.3 million by 2034, expanding at a CAGR of 11.3% over the assessment period of 2024 to 2034
Food grade ammonium carbonate is a white crystalline salt that is primarily used as a leavening agent in baking. It is known as "baker's ammonia" or "hartshorn," it releases carbon dioxide gas when heated, which helps the dough rise and creating a light texture in baked goods.
It is generally used in cookies, crackers, and some confectionery products. Generally recognized as safe (GRAS) by regulatory organizations, it is used according to food safety guidelines and stored in a cool, dry place.
Advancements in food technology have led manufacturers to introduce innovative leavening agents that can enhance the quality of baked goods further. These agents help in improving texture, flavor, volume and also extend the shelf life by restraining spoilage.
Baker Perkins Ltd. company specializes in the design and manufacturing of equipment for the food industry, particularly in baking and confectionery. The company provides solutions that include food-grade ammonium carbonate as a leavening agent in various baked products, helping to improve texture and quality. Their equipment and formulations are widely used by bakeries and food manufacturers around the world.
| Attributes | Description |
|---|---|
| Estimated Global Food Grade Ammonium Carbonate Business Size (2024E) | USD 308.3 million |
| Projected Global Food Grade Ammonium Carbonate Business Value (2034F) | USD 897.3 million |
| Value-based CAGR (2024 to 2034) | 11.3% |
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for global food grade ammonium carbonate market.
This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision about the market growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 10.4% (2023 to 2033) |
| H2 | 10.8% (2023 to 2033) |
| H1 | 11.1% (2024 to 2034) |
| H2 | 11.7% (2024 to 2034) |
The above table presents the expected CAGR for the global Food Grade Ammonium Carbonate demand space over semi-annual period spanning from 2024 to 2034. In the first half (H1) of the year 2023, the business is predicted to surge at a CAGR of 10.4%, followed by a slightly higher growth rate of 10.8% in the second half (H2) of the same year.
Moving into year 2024, the CAGR is projected to increase slightly to 11.1% in the first half and remain relatively moderate at 11.7% in the second half. In the first half (H1 2024) the market witnessed a decrease of 18 BPS while in the second half (H2 2024), the market witnessed an increase of 30 BPS.
Consumers are seeking detailed nutritional information
Nowadays, consumers are more concerned about what goes into their food products and they like to be informed of what they are consuming, which has boosted the demand for more transparency from manufacturers.
Due to growing health, ethical, and environmental issues consumers want to know the origin of ingredients, their nutritional value and whether they are allergen-free or free from harmful chemicals or not. As a result, companies are forced to disclose detailed information on labels. By doing this, further companies can slowly win the trust of consumers as well. For instance,
Kerry group has developed a clean label enzyme solution- Biobake, especially designed for use in bread and rolls, frozen and retarded doughs, wafers and crackers.
Expansion of Dairy and Meat Processing
The expansion of the dairy and meat processing industry is driving the demand for food-grade ammonium carbonate as companies seek out for innovative formulations and preservation methods. Ammonium carbonate is used to improve flavors and improve the texture of dairy products, such as cheeses and yogurts.
In meat processing, it acts as a preservative, helps in extending shelf life while also maintaining product quality. As these industries focus on developing new products and meeting consumer preferences for taste and freshness, the usage of ammonium carbonate is increasingly beneficial.
Innovation in Confectionery
The confectionery industry is experiencing momentous innovation, with manufacturers experimenting with new flavors, textures, and product formats to attract consumers. Food-grade ammonium carbonate is playing a crucial role in this process, as it helps in creating unique candy products by improving texture and providing a light, airy quality.
Its ability to produce distinctive mouthfeel and flavor composition allows confectionery companies to differentiate their offerings in the competitive market. As consumer preferences expand, the demand for ammonium carbonate in innovative candy formulations continues to rise.
Peeps is a popular marshmallow candy produced by Just Born, Inc. Peeps is known for their unique texture and light, fluffy consistency, which is achieved in part through the use of ammonium carbonate.
In recent years, Just Born has expanded its Peeps product line to include various flavors and seasonal shapes, such as chocolate-dipped and fruit-flavored varieties. The inclusion of ammonium carbonate helps in maintaining the desired texture while also allowing for creative flavor combinations.
Ready-to-use leavening agent mixes are becoming popular
Ready-to-use leavening agent mixes, such as pre-measured baking powder and yeast blends, are gaining popularity due to their convenience and consistency. As these products simplify the baking process by eliminating the need for precise measurements and reducing preparation time.
This is particularly appealing to amateur bakers who may find traditional baking intimidating, as well as to professionals seeking efficiency. The rise of home baking during the pandemic has further boosted the demand, with consumers searching for easy and reliable solutions to prepare homemade baked products. For instance,
Maxx Performance microencapsulation systems protect ingredients, prevents degradation and premature reaction and improving performance at minimal cost without altering production processes. They also deliver a bread dough with enhanced physical attributes and allow for the slow release of leavening acid or base at the ideal time during baking.
Principal Consultant
Global Food Grade Ammonium Carbonate sales increased at a CAGR of 10.4% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on food grade ammonium carbonate will rise at 11.3% CAGR
Food-grade ammonium carbonate is a highly versatile ingredient which is utilized across multiple applications in the food industry. In baking, it functions as an effective leavening agent, which helps to create light and airy textures in products like cookies, crackers, and breads. In dairy products, ammonium carbonate improves flavor and texture, further contributing to the quality of items such as cheeses and yogurts.
Additionally, in meat processing, it acts as a preservative and flavor enhancer, and improving the overall quality of processed meats. This adaptability across various sectors allows food-grade ammonium carbonate to meet diverse industry needs, and further driving its demand and usage.
The growing preference for home baking, fueled by social media and a desire for homemade treats, has drastically increased the demand for traditional leavening agents like food-grade ammonium carbonate. As consumers pursues to replicate artisanal baked goods, they are choosing ammonium carbonate for its ability to enhance texture and flavor.
This ingredient is particularly valued in recipes for cookies, crackers, and other baked items, where it contributes to a light, crisp texture. The emphasis on quality and authenticity in baking has led both home bakers and professional artisans to embrace ammonium carbonate, further driving its popularity in the market.
Artisan cookie brand such as Tate's Bake Shop, which is known for its thin, crispy cookies, Tate's uses traditional baking techniques and high-quality ingredients, including ammonium carbonate, to achieve the desired texture and flavor.
Tier 1 companies comprise market leaders with market revenue of above USD 20 million capturing significant sales domain share of 40% to 50% in the global sphere. These business leaders are characterized by high production capacity and a wide product portfolio.
These trade leaders are distinguished by their extensive expertise in manufacturing and reconditioning across multiple packaging formats and a broad geographical reach, underpinned by a robust consumer base.
They provide a wide range of series including reconditioning, recycling, and manufacturing utilizing the latest technology and meeting the regulatory standards providing the highest quality. Prominent companies within tier 1 include BASF, Solvay S.A., Tata Chemicals Ltd., Univar Solutions, The Chemical Company, Thermo Fisher Scientific, and American Elements.
Tier 2 companies include mid-size players with revenue of USD 4 to 20 million having presence in specific regions and highly influencing the local retail space. These are characterized by a strong presence overseas and strong consumer base knowledge.
These industry players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 include Honeywell, ECSA Chemicals, Avantor, Destiny Chemicals, Nabhi Chemicals, and A. B. ENTERPRISES.
Tier 3 includes the majority of small-scale companies operating at the local presence and serving niche demand space having revenue below USD 4 million. These companies are notably oriented towards fulfilling local marketplace demands and are consequently classified within the tier 3 share segment.
They are small-scale players and have limited geographical reach. Tier 3, within this context, is recognized as an unorganized field, denoting a sector characterized by a lack of extensive structure and formalization when compared to organized competitors.
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The table below highlights revenue from product sales in key countries. The United States and UK are predicted to remain top consumers, with estimated trade valuations of USD 155.2 million and USD 100.5 million, respectively, by 2034.
| Countries | Market Value (2034) |
|---|---|
| United States | USD 155.2 million |
| UK | USD 100.5 million |
| Germany | USD 80.8 million |
| India | USD 58.3 million |
| China | USD 37.7 million |
The following table shows the estimated growth rates of the top sales domains. India and China are set to exhibit high Food Grade Ammonium Carbonate consumption, recording CAGRs of 8.8% and 9.2%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 7.5% |
| UK | 7.0% |
| Germany | 8.2% |
| India | 8.8% |
| China | 9.2% |
The ecosystem for Food Grade Ammonium Carbonate in the United States is projected to exhibit a CAGR of 7.5% during the assessment period. By 2034, revenue from the sales of food-grade ammonium carbonate in the country is expected to reach USD 155.2 million.
With the growing number of suppliers and distributors, both commercial and home bakers can easily access this ingredient through various channels, including online platforms and local specialty stores. This accessibility encourages experimentation and innovation in baking, as more consumers and small businesses look to create high-quality, artisanal products.
As food-grade ammonium carbonate becomes more widely recognized for its benefits in enhancing texture and flavor, its presence in the market continues to expand, further driving its demand among diverse baking enthusiasts.
Food Grade Ammonium Carbonate demand in Germany is calculated to rise at a value CAGR of 8.2% during the forecast period (2024 to 2034). By 2034, Germany is expected to account for 18.9% of Food Grade Ammonium Carbonate sales in Europe.
The European Food Safety Authority (EFSA) plays a crucial role in regulating Food Grade Ammonium Carbonate used in food products. By conducting thorough scientific assessments, EFSA ensures that these agents meet stringent safety standards before they are approved for use. This stringent evaluation process helps to prevent any potential health risks associated with food grade ammonium carbonate (leavening agents).
As a result, consumers can trust that the food products they purchase are safe to eat. This regulatory oversight not only protects public health but also enhances consumer confidence in the food industry, knowing that EFSA’s stringent guidelines are in place to safeguard their well-being.
Consumption of Food Grade Ammonium Carbonate in China is projected to increase at a value CAGR of 9.2% over the next ten years. By 2034, the business size is forecasted to reach USD 37.7 million, with China expected to account for a domain share of 53.8% in East Asia.
Increased foreign investment in China’s food sector has considerably enhanced the production and availability of baked products. This influx of capital has enabled local companies to upgrade their technology, improve supply chains, and expand their product offerings. Foreign investors bring not only financial resources but also expertise and innovation, leading to higher quality and more diverse baked products.
Additionally, partnerships with international brands have introduced new flavors and baking techniques to the Chinese market, catering to evolving consumer preferences.
| Segment | Dairy Products (Application) |
|---|---|
| Value Share (2024) | 38.5% |
Sales from the Dairy Products segment are projected to register a CAGR of 8.6% from 2024 to 2034.
Food-grade ammonium carbonate drastically improves dairy products through several methods. It improves texture by creating a smoother, creamier mouthfeel in items like cheese and yogurt, and uplifts the overall sensory experience for consumers.
Additionally, it contributes to flavor development by helping to create distinct taste profiles, which makes dairy products more appealing to those searching for unique and flavorful choices. Furthermore, ammonium carbonate acts as a stabilizer, maintaining the consistency and quality of dairy products over time.
This stabilization is particularly important for products with varying moisture content, as it ensures stability and extends shelf life, which further allows companies to deliver high-quality products that meet consumer expectations for freshness and taste.
| Segment | Powder (Form) |
|---|---|
| Value Share (2024) | 74.3% |
The powder segment is anticipated to advance at 7.5% CAGR during the projection period.
The powdered form of food-grade ammonium carbonate is increasingly preferred due to its multiple advantages. Its ease of use allows for simple measurement and inclusion into recipes, which makes it convenient for both home bakers and food manufacturers, as it dissolves quickly for uniform distribution in baked goods. Further, its versatility enables applications across baking, confectionery, and dairy products, catering to diverse food formulations.
Additionally, powdered ammonium carbonate generally boasts a longer shelf life and is easier to store in airtight containers, which protects it from moisture. It provides consistent performance, further ensuring reliable texture and flavor in products, which is essential for quality control. Furthermore, its cost-effectiveness and compatibility with other dry ingredients make it an ideal choice for baking mixes and pre-packaged foods.
Market players are focusing on investing in R&D to develop functional ingredients with enhanced health benefits and sensory properties. They are diversifying product portfolios to meet diverse consumer needs and forming strategic partnerships with firms, to leverage expertise and accelerate innovation.
These strategies help them stay competitive in the evolving food grade ammonium carbonate market. Further, many companies are adopting sustainable practices in sourcing and production.
For instance
This segment is further categorized into ammonium bicarbonate and ammonium carbonate.
This segment is further categorized into baking industry, confectionery, dairy products, meat processing, and others (sauces, dressings, etc).
As end user, the ecosystem has been categorized into food manufacturers (large-scale producers of baked goods, snacks, and other food items), bakeries (small to medium-sized businesses focused on baking), confectionery manufacturers (companies specializing in candy and sweet products), and household (retail sales for home baking and cooking).
This segment is further categorized into powder and lumps or flakes.
Industry analysis has been carried out in key countries of North America, Latin America, Eastern Europe, Western Europe, East Asia, South Asia & Pacific, Central Asia, Balkan and Baltic Countries, Russia & Belarus and the Middle East & Africa.
The global Food Grade Ammonium Carbonate industry is estimated at a value of USD 308.3 million in 2024.
Sales of Food Grade Ammonium Carbonate increased at 10.4% CAGR between 2019 and 2023.
BASF, Solvay S.A., Tata Chemicals Ltd., Univar Solutions, The Chemical Company, Thermo Fisher Scientific, and American Elements are some of the leading players in this industry.
The North America domain is projected to hold a revenue share of 34.7% over the forecast period.
Europe holds 29.6% share of the global demand space for Food Grade Ammonium Carbonate.
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