Raising Agents Market

Raising Agents Market Snapshot

Revenues of Raising Agents Market grew at 2.7% to surpass the figure of USD 31 billion in 2021. The demand for raising agents is going to grow at a rate of 3.1%, according to the Future Market Insights (FMI) study.

Attribute	Details
Market Size Value in 2021	USD 31 billion
Market Forecast Value in 2032	USD 43 billion
CAGR	3.1%
Forecast Period	2022 to 2032

The study further projects that by the end of 2032, global sales of raising agents will bring in nearly USD 43 billion in revenues. Raising Agent or Leavening Agent or Leavener are the substances used in doughs or batters to lighten and soften the mixture, they do so by causing a foaming action and releasing carbon dioxide.

Demand for raising agents from the confectionary segment is set to grow at 3.9% CAGR while baking soda and cream of tartar is the largest raising agents segment by product type, and is growing at a rate of 3.2%. This segment is likely to hold 60% of the global revenue share of the raising agents market.

However, the emergence of egg alternatives and the growing use of substitutes such as lemon juice are observed as impediments to the global raising agents market.

How The Market Progressed Till June 2022?

Particulars	Details
H1 2021	3.1%
H1 2022 Projected	3.1%
H1 2022 Expected	3.4%
BPS Change	- 34.1 ↓

FMI presents a half-yearly comparison analysis and review of the market growth rates and further development prospects in the global market. The market is predominantly influenced by certain demographic and innovation factors under the subjective impact of macro and industry factors.

Some new developments that have taken place in these markets include

• Yeast, baking soda and baking powder are the key types of raising agents that are significantly used in the baked products such as cakes, cookies, muffins, bread, etc.
• Huge consumer base around the globe are having busy lifestyle due to which they don’t have much time for timely eating thus they are opting for convenience food products.
• The companies are majorly focusing on research & development activities in order to enhance the quality and variety of their product offerings and also to develop innovative products.

The global market for Raising Agents has witnessed H1 2021 growth at the magnitude of 3.1%. However, this growth is not evenly spread across all regions, with the developing markets recording higher growth rates of 3.4%. Thus, leaving the gap of -34.1 BPS points between expected and projected growth during H1 2022.

Key reasons for this change in growth rate are attributed to slow/rapid uptake of the market during the first half of the forecast period owing to improving end-user demand in key economies and their booming populations.

In particular, China and India are both seeing an increase in their consumption pattern, resulting in increased demand for the Raising Agents market. Additionally, many other market segments are expected to perform fairly and attain promising growth prospects in the next half of the projection period.

Despite these positive prospects, there are some likely challenges that stay ahead for the industry including a shift in consumer preferences, stringent trade barriers, and a low degree of security in raw material supply, and other manufacturing inputs.

Increasing Use of Raising Agents in Production of Confectionary Products to Drive Market Growth

The report observes that raising agents are finding lucrative grounds for sales growth on the back of their effective applications in the confectionary businesses. Producing confectionary products with the use of raising agents is gaining traction across the global food production landscape.

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Over the forecast period, sales of raising agents across confectionery applications are expected to register a global CAGR of 3.9%, reflecting the fastest revenue growth. Also, the rising consumption of ready-to-eat foods is supplementing the growth.

Bakery to remain the largest application of raising agents despite declining demand

There has been excessive growth in bread and bakery application of raising agents in the recent past, however, the report observes a declining demand for raising agents in bakery product applications.

Nonetheless, bakery applications of raising agents will continue to account for the largest chunk of the global revenue pie, registering a one-fourth share on global market value by 2032-end. Fried fish product applications of raising agents are also likely to gain considerable traction in terms of revenues.

Global Sales of Cream of Tartar to Bring in over USD 26 billion by 2032-end

The demand for raising agents is expected to remain highly concentrated at baking soda and the cream of tartar. While the cream of tartar is expected to bring in nearly 60% of global raising agents market value throughout the forecast period, sales of baking soda are pegged to register revenue growth at 3.2% CAGR.

The report also reveals a dwindling demand for baking powder, wherein consumers are using fewer amounts of baking powder as raising agents to avoid the risks of high acidity levels.

Direct Sales and Wholesales to dominate the distribution channels

Over the forecast period, the sales of raising agents are slated to remain concentred at direct sales and wholesales. In 2021, direct sales and wholesalers accounted for nearly USD 14.6 billion of global market revenues.

The report further reveals that the majority of manufacturers in the global raising agents market will be interested in signing long-term supply partnerships with wholesalers. Modern grocery retailers are also observed to emerge as a key sales channel in the global raising agents market and will register a value CAGR of 3.8% over the forecast period.

Competitive Landscape of Raising Agents

The FMI report has profiled leading companies partaking in the expansion of the global raising agents market through 2032.

Weikfield Products Private Limited, ACH Food Companies Inc., Lallemand, Forise Yeast, Lesaffre, Caravan Ingredients Inc., Clabber Girl Corporation, AB Mauri, Eagle International, Kudos Blends Limited, Davis, Rumford, McCormick & Company Inc., Newseed Chemical Co. Limited, (Tártaros Gonzalo Castello SL) Mitsubishi Corporation, and Foodchem International Corporation, are expected to drive the global raising agents production in the near future.

The majority of these players will be investing in expanding their production of biological or natural raising agents. Several companies are expected to focus on increasing the applications of raising agents in the organic production of baked items.

Raising Agents Manufacturers also get into joint ventures like DSM and Cargill have established a joint venture brand called Avansya to manufacture zero-calorie sweeteners using fermentation.

Augmenting Investment in Production of Natural and Biological Raising Agents

Raising Agents manufacturers are increasingly investing in the manufacturing of natural and biological food raising agents to get clean label confectionery, bread, and baked products. The most popular biological food-raising agent is yeast. The demand for instant fresh yeast, dry yeast, and active dry yeast is growing for use in bakeries and confectionery.

Another natural raising agent gaining popularity is natural leaven made using a mixture of flour and water. Liquid leaven and stiff leaven are two variants of leaven which are used in a multitude of food and beverage products. Rising consumer preference for organic baked products is driving the demand for natural and biological raising agents among the raising agents market.

The emergence of substitutes a restraint to the Raising Agents Market

The emergence of substitutes like lemon juice and egg alternatives has led the demand for food-raising agents to descend. Buttermilk, sour milk, whipped egg whites, molasses, plain yogurt, vinegar, club soda, and self-rising flour are some of the substitutes used in baked products to replace cream of tartar and baking powder. The above-mentioned substitutes are chosen on the basis of the flavor profile of the final baked good.

For instance, molasses owing to its sugary taste and texture is finding wide application in sweet baked and confectionery products. Creaming is also a widely used mechanical leavening process and is likely to hinder the growth in the raising agents market.

Creaming involves a process of mixing sugar and fat that permits the incorporation of air bubbles resulting in a fluffy texture. The emergence of such processes and substitutes might hamper the growth of the raising agents market in the forecast period.

Scope of Report

Attribute	Details
Market Size Value in 2021	USD 31 billion
Market Forecast Value in 2032	USD 43 billion
CAGR	3.1%
Forecast Period	2022 to 2032
Historical Data Available for	2017 to 2021
Market Analysis	MT for Volume and USD Mn for Value
Key Regions Covered	North America; Latin America; Europe; Japan; APEJ and MEA
Key Countries Covered	United States, Canada, Brazil, Mexico, Argentina, UK, France, Germany, Russia, Australia, New Zealand, India, China, ASEAN, Japan, GCC countries, North Africa, South Africa, others.
Key Market Segments Covered	Product Type, Distribution Channel, Application, and Regions
Key Companies Profiled	Weikfield Products Private Limited; ACH Food Companies Inc.; Caravan Ingredients Inc.; Clabber Girl Corporation; Davis; Rumford; McCormick & Company Inc.; Newseed Chemical Co. Limited; (Tártaros Gonzalo Castello SL) Mitsubishi Corporation; Foodchem International Corporation; Others
Pricing	Available upon Request

Segmentation of Raising Agents Market

By Region:

• North America
• Latin America
• Europe
• Japan
• APEJ
• MEA

By Product Type:

• Baking Powder
• Baking Soda
• Cream of Tartar
• Organic Agents
• Others

By Sales Channel:

• Direct Sales & Wholesalers
• Modern Grocery Retailers
• Independent Grocery Retailer
• Non-Store Retailers

By Application:

• Bakery Products
• Confectionery Products
• Biscuits and Crackers
• Packaged Food Products
• Fried Food Products
• Other Food Products

Frequently Asked Questions

How much is the raising agents market currently worth?

Currently raising agents market is worth more than USD 31 Billion.

At what CAGR is the market expected to grow?

Raising agents consumption is expected to grow at a CAGR of around 3.1% during the period 2022 to 2032.

How was the performance in the last five years?

In terms of revenue, raising agents grew at a CAGR of around 3.2% during 2017 to 2021.

What is the key trend boosting sales for raising agents?

The increasing consumption of bread, tortilla, bakery, confectionery, and convenience, ready-to-eat foods and beverages is the key trend driving the raising agents market.

How are market players reacting to the new developments in the market?

Raising Agents Companies are opting for acquisitions, joint ventures, product launches, and expanding their geographical reach.

Which are the major countries driving demand for raising agents?

The USA, UK, France, Spain, and Canada are the major countries driving demand for raising agents.

Who are the major players in the Raising agents Market?

The major players involved in the raising agents market are Kraft Heinz, Guangxi Forise Yeast, Sunkeen, Lesaffre, AB Mauri, Lallemand, Angel Yeast, Solvay, Natural Soda, and Berun among others.

What outlook does North America provide?

North America occupied the largest market share of 36% in 2021 owing to the increasing demand for confectionery and bakery products in the US and Canada.

At what rate will the baking soda market grow?

The baking soda product type is projected to grow at a CAGR of around 2.7% over the next ten years.