Baking Ingredients Market Share, Size, Trends, Industry Analysis Report, By End-Use (Bread, Cakes and Pastries, Cookies and Biscuits, Rolls and Pies, Others); By Product; By Application; By Region; Segment Forecast, 2024 - 2032
- Published Date:Feb-2024
- Pages: 115
- Format: PDF
- Report ID: PM1977
- Base Year: 2023
- Historical Data: 2019-2022
Report Outlook
The global Baking Ingredients market was valued at USD 15.83 billion in 2023 and is expected to grow at a CAGR of 7.8% during the forecast period.
Fueled by evolving consumer tastes for diverse baked goods, the rising request for multi-cuisine bakery products, and the escalating need for baking ingredients that accelerate fermentation, are anticipated to propel business growth. Vital baking components like enzymes, emulsifiers, baking powders, and yeast play a pivotal role in crafting a variety of bakery items, encompassing bread, cakes, pastries, rolls, pies, tarts, and more.
The shift towards urban living, accompanied by changing lifestyles that leave little or no time for cooking, is propelling food and beverage companies to introduce a variety of baked products suitable for breakfast and snacks. The availability of items with prolonged shelf life and the convenience of freezer storage options in retail bakeries are fostering a trend of single-purchase transactions for baked goods.
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Many manufacturers are implementing innovative methods to preserve product freshness over an extended shelf life. The introduction of baked goods that combine freshness and flavor using natural ingredients and enzymes with low sugar levels has gained widespread popularity. Natural techniques that prevent mold growth in bakery products have further extended product life while satisfying customer preferences. This trend is expected to drive industry growth throughout the forecasted period.
In retail and grocery settings, in-store bakery products are gaining popularity due to their accessibility and convenient purchase options. Furthermore, online retail stores are experiencing increased traction in emerging economies, facilitated by the convenience of purchasing products from the comfort of one's home. Considerations of taste, freshness, health, and variety will shape the future trajectory of the bakery industry. Consumers prioritize the taste of bakery products, with ingredients like salt, sweeteners, and fats enhancing flavor by introducing ethnic nuances.
Individual contributions from end-use segments such as cookies and biscuits, bread, cakes and pastries, and rolls and pies are propelling the global baking ingredients market. Anticipated increases in demand are driven by new applications and innovations in developed economies, focusing on producing high-quality baked goods. Concurrently, in developing economies, the proximity of customers to affordable bakery products is positively influencing market growth. The ongoing urbanization in transitioning economies is contributing to the rising consumption of baked goods.
Industry Dynamics
- Growth Drivers
- The expanding bakery industry is fueling the market growth of the baking ingredient market.
The consumption of bakery products, including bread, pastries, cakes, cookies, and other baked goods, is on the rise in the bakery industry. For example, as reported by the Government of Canada, global retail sales of baked goods reached $407,164.2 million in 2021. Factors such as population growth, urbanization, and changing consumer preferences contribute to the heightened demand for bakery products. With the continuous expansion of the bakery industry, there is a parallel increase in the demand for baking ingredients essential for producing these varied products, thereby driving market growth.
The bakery industry caters to a diverse range of consumer preferences, offering products with different flavors, textures, and types. Modern consumers seek varied bakery experiences, including artisanal bread, specialty cakes, pastries with unique fillings, gluten-free options, and more. Meeting these evolving demands necessitates a wide array of baking ingredients, such as flour, sugars, fats, flavors, and leavening agents. The growth of the bakery industry directly influences the demand for these ingredients, fostering market growth.
Report Segmentation
The market is primarily segmented based on product, end-use, and region.
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By Product |
By End-Use |
By Region |
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By Product Analysis
- The Baking Powder & Mixes segment held the largest revenue share in 2023
Functioning as a provider of proteins, vitamins, and carbohydrates, it is widely employed as a fundamental component in bakery products worldwide. The rising consumer awareness of organic products is contributing to the growing popularity of wheat baking powder, recognized for its reduced saturated fat and cholesterol content.
The demand for emulsifiers in the product segment is anticipated to increase, driven by the growing baking goods industry's requirement for products with an extended shelf life and enhanced consumer appeal. Emulsifiers are formed when food acids such as tartaric acid, acetic acid, and lactic acid react with hydroxylic groups. These emulsifiers contribute to prolonging the product's shelf life, thereby fostering market growth.
By End-use Analysis
- The Bread segment accounted for the highest market share during the forecast period
Bread is acknowledged as a staple food in numerous countries globally, with its consistent demand growth attributed to affordability and nutritional value. Evolving consumer preferences have prompted manufacturers to focus on innovation, aiming to offer baked goods that cater to diverse tastes. In the pursuit of a substantial market share, manufacturers are creating bread with well-balanced nutritional content and flavors.
The consumption of baking ingredients in the cakes and pastries segment is anticipated to experience the fastest growth rate during the forecast period, characterized by a compound annual growth rate. The expansion of the market is attributed to the increasing consumption of snacks, coupled with the availability of freezers for storing frozen processed foods like cookies and pastries in retail establishments. Furthermore, the segment is driven by food processing companies seeking to diversify their product portfolios by entering the cookies and biscuits manufacturing business.
Pies hold a distinctive market position where consumers purchase them for special occasions. To strengthen the connection between occasions and pies, manufacturers are now focusing on maximizing the size of pies to accommodate larger servings. The new size formats range from 8-inch, 9-inch, to 12-inch. With changes in pie size formats, the global pies market presents additional opportunities for the utilization of sweeteners, salts, acids, and other ingredients.
Regional Insights
- North America dominated the largest market in 2023
The trend of on-the-go food lifestyles in countries like Canada and the U.S. is expected to contribute to increased demand throughout the forecast period. Bakery manufacturers offering convenient and portable options, such as pocket wraps and rolls, are also fueling this growth. The prevalence of gluten-free food is a prominent trend in the market, and it is expected to persist during the projected timeframe.
The shift in lifestyles has generated a demand for alternatives to traditional home-cooked meals, leading to an increased interest in processed and packaged foods. The growing working population seeks foods that require less time for preparation than conventional meals. Additionally, concerns related to health and well-being are motivating consumers to opt for healthier dietary choices. The continuous advancements in the food processing industry have resulted in the introduction of new packaged foods to meet the rising demand for convenience foods among North American consumers.
The Asia Pacific baking ingredients market is anticipated to experience rapid growth with a high CAGR throughout the projected period. China and India, as the most populous countries globally, are expected to see further population growth. As the urban population in the Asia Pacific region increasingly adopts Western food preferences, many businesses are inclined to enhance their production volume and employ new production techniques to deliver high-quality products. This shift presents opportunities for baking ingredient manufacturers to supply emulsifiers, enzymes, baking powders, oils, and fats, consequently driving the demand for baking ingredients.
Key Market Players & Competitive Insights
The market is characterized by intense competition, with established players relying on advanced technology, high-quality products, and a strong brand image to drive revenue growth. These companies employ various strategies such as research and development, mergers and acquisitions, and technological innovations to expand their product portfolios and maintain a competitive edge in the market.
Some of the major players operating in the global market include:
- Aryzta AG
- Associated British Foods plc
- Bread Talk Co. Ltd
- Britannia Industries Ltd
- Finsbury Food Group
- Flower Foods Inc
- General Mills Inc
- George Weston Ltd
- Goodman Fielder
- Grupo Bimbo S.A.B. de C.V
- Hostess Brands LLC
- Koninklijke DSM V.V
- Mckee Foods Corporation
- Mondelez International
- Monginis Food Pvt. Ltd.
- Nestle SA
- Tiger Brands Company
- Uniferm GmbH & Co.
- Yamazaki Baking Co. Ltd
Recent Developments
- In September 2022, Emin introduced SHIELD Pure, a clean label mold inhibitor, as part of its range of solutions designed to assist bakers in prolonging shelf life and enhancing the performance of bread. This addition aids bakers in addressing formulation and process challenges, enabling them to create optimal baked goods, flatbreads, and tortillas that maintain freshness and safety for extended periods.
- In September 2022 At Bakery China, Angel Yeast introduced its newest dry yeast product, Premium Dry Yeast, designed to tackle various baking challenges. These innovative yeasts are crafted to fulfill the latest demands of the baking industry, emphasizing stability, convenience, and overall adaptability.
- In October 2021, Cargill introduced SimPure 92260, a soluble rice flour that mirrors the taste, texture, and functionality of maltodextrin, a commonly used ingredient serving as a bulking agent and flavor carrier. This ingredient shares similar characteristics with maltodextrin and finds application in various areas, including bakery.
Baking Ingredients Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 16.98 billion |
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Revenue forecast in 2032 |
USD 31.18 billion |
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CAGR |
7.8% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments Covered |
By Product, By End-Use, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region and segmentation. |
FAQ's
The key segments in the Baking Ingredients Market are product, end-use, and region.
Baking Ingredients Market Size Worth $ 31.18 Billion By 2032.
The global Baking Ingredients market is expected to grow at a CAGR of 7.8% during the forecast period.
North America is leading the global market.
The key driving factors in Baking Ingredients Market is expanding bakery industry is fueling the market growth of the baking ingredient market
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