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The baking ingredients market size is forecast to increase by USD 6.55 billion, at a CAGR of 6.5% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand for bakery items. This trend is driven by the expansion in the retail landscape, with in-store bakeries becoming a prominent feature in supermarkets. Consumers are seeking fresh, artisanal baked goods, leading to an uptick in demand for high-quality baking ingredients. Supermarkets recognize this trend and are investing in expanding their in-store bakeries to meet this demand. As a result, the baking ingredients market is poised for continued growth, with suppliers and manufacturers responding by innovating new products and improving production efficiency to meet the increasing demand.
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The market is witnessing growth due to evolving lifestyle disorders prompting more consumers to opt for healthier alternatives like baking soda and cocoa powder. With the rising demand for convenience foods, young people are turning to baking as a creative outlet, driving sales of enzymes, baking powders, and ingredients for tarts and pies. As the food and beverage industry adapts to changing consumer preferences, online retail stores are becoming vital for accessing alternative snack products with lower saturated fat content.
Bread is one of the most widely consumed bakery ingredients in the world, with many variations and shapes found in different cultures and regions. Craft bread, packaged bread, buns, bread crumbs, and breadsticks are some types of bread. Due to the demand and popularity of handmade bread, it is also available in supermarkets and hypermarkets. Furthermore, the demand for packaged bread has also raised due to changing consumer lifestyles, the growth of organized retail, product labeling, and the increasing consumer preference for bread. branded. Another growth driver for the bread segment is the growing popularity of artisan and specialty bread. Hence, such factors will drive the growth of the segment during the forecast period
The market share growth by the flour segment will be significant during the forecast period. One of the significant factors driving the growth of the flour segment is the rising consumption of bakery products globally. Bread, cakes, pastries, and other baked products have become staples in many diets and cultures, leading to an increasing demand for flour. In addition, the popularity of home baking and the growth of the baking ingredients industry are driving the demand for flour. The baking flour market has witnessed innovation and product diversification over the years.
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The flour segment was valued at USD 4.63 billion in 2018. The demand for rice flour, soybean meal, and corn flour as bakery ingredients is also growing. Demand for rice flour is steadily increasing amid rising consumer awareness of the benefits of gluten-free foods and increasing adoption of healthy lifestyles. The growing demand for healthy flour from bread and convenience food manufacturers has increased the demand for rice flour. This is because more health-conscious consumers are looking for nutritious flour alternatives in pizza, burgers, and other fast foods. Therefore, such factors will drive the growth of the market during the forecast period.
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Europe is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The market for bakery ingredients in Europe is expected to grow substantially due to the changing preference of people for natural baking ingredients in Europe. In addition, the adoption of personalized baked goods in Europe is increasing due to the availability of different types of innovative baked products including different flavors, tastes, and textures.
Moreover, consumers in different countries have different needs for baked goods. For example, in Russia and the UK, consumers prefer baked goods such as bread rolls, buns, cookies, snack bars, and muffins. However, in Spain, Turkey, and France, the demand for handmade products is higher. Likewise, the demand for gluten-free baking mixes is very high in Western Europe. These regional preferences and dietary trends significantly influence the dynamics of the US cookies market, reflecting diverse consumer demands and product innovations tailored to specific markets. Thus, these factors will not only shape the growth of the bakery ingredients market in the region but also impact the evolution of the US cookies market during the forecast period.
The Market encompasses various components such as Baking Soda, Baking Powder, Cocoa Powder, Enzymes, Emulsifiers, and Yeast. These ingredients are essential in the production of bakery goods and convenience foods, including Pastries, Bread, Cakes, Rolls, Tarts, Pies, Cookies, Biscuits, and Alternative snack products. Urbanization and the rise of food and beverage industries have significantly impacted the market's growth. The increasing prevalence of lifestyle disorders, such as obesity and diabetes, has led to a shift towards healthier baking options. As a result, there is a growing demand for low-saturated fat and low-cholesterol baking ingredients. Baking Powders and Yeast are key leavening agents used in baking. They help in the rising and fermentation of dough and batter. Enzymes and Emulsifiers are added to improve the texture, shelf life, and overall quality of baked goods. Cocoa Powder is a popular flavoring agent used in various baked goods and desserts. Online retail stores have made baking ingredients easily accessible to young people, making home baking a popular hobby and pastime. The market is expected to continue its growth trajectory due to the increasing popularity of bakery goods and the availability of convenient baking ingredients. Our researchers analyzed the data with 2023 as the base year, along with the key trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
Growing demand for bakery items is the key factor driving the growth of the market. In the past few years, there has been a significant change in the lifestyle and eating habits of consumers. The emerging economies of Central and South America and APAC will prove to be significant markets in the future. Sweet baked goods, such as cakes, pastries, and other items, are increasingly popular.
In addition, the tendency to snack between meals has also increased. In metro cities, the working class demands more takeaways such as rolls, sandwiches, and croissants. As a result, increasing urbanization and changing consumer lifestyles will increase demand for bakery goods, which, in turn, will boost demand for baking ingredients and thus drive the growth of the global baking ingredients market during the forecast period.
Increasing demand for organic and gluten-free bakery products is the key trend shaping the growth of the market. The baking industry is increasingly favoring healthy ingredients due to their benefits. These ingredients include aluminum-free baking powder, gluten-free flour, and organic baking powder. Demand from health-conscious customers will increase the popularity of organic baked products even though the high cost of production and raw materials make them expensive. This has led to an increase in demand for organic and gluten-free baked products, leading to a need for specific baking ingredients to meet these preferences.
Moreover, to capitalize on this trend, market players are investing in R&D to develop innovative and quality gluten-free and organic ingredients. They are also expanding their production capabilities and product portfolio to meet the growing demand for gluten-free baked goods. In addition, partnerships between baking ingredient manufacturers and bakeries specializing in organic and gluten-free products are being strengthened to ensure a stable supply chain of specialty baking ingredients. Hence, the growing demand for organic and gluten-free bakery products will drive the growth of the global baking ingredients market during the forecast period.
Growing health concerns about diabetes and obesity are the key challenge that affects the growth of the market. Excessive consumption of sugar, for instance, can lead to obesity and diabetes. A large percentage of consumers have abandoned the consumption of bakery foods, such as sweet bread, to avoid consuming trans fats. Likewise, gluten-intolerant consumers avoid consuming artisan bread because most of them are made with flour, all-purpose flour, and other similar flours, which can cause allergies.
Furthermore, removing trans fats from baked goods creates a significant challenge for manufacturers of rolls, sweet bread, and other baked products. Substitutes for trans fats affect product characteristics, including taste, texture, shelf life, and product stability. Whole-wheat bread can raise blood sugar. Most baked goods are high in gluten and have harmful ingredients, such as fructose corn syrup, which can raise bad cholesterol levels. Such factors will impede the growth of the market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The baking ingredients market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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The market is witnessing significant growth, driven by evolving consumer preferences and dietary trends. Local bakery businesses are embracing innovation to meet the demand for diverse products, including frozen bakery goods and functional ingredients. Rising awareness of health concerns like trans fatty acids and metabolic diseases has fueled the demand for healthier options, leading to a surge in diabetes mellitus friendly and vegan and vegetarian-friendly ingredients. Plant based ingredients and dairy free milk are gaining popularity, alongside the use of oats, millets, and fortified flour in frozen bakery products.
Additionally, the market also caters to the needs of working consumers seeking convenient packaged foods, offering options that are protein rich and gluten free, while incorporating prebiotics for digestive health. Further, the market is evolving to accommodate diverse dietary preferences. Both commercial bakery ingredients and those for home bakery settings now include options suitable for veganism and vegetarianism. With growing demand for plant-based alternatives, manufacturers are developing innovative products to cater to these specific dietary requirements, offering a wide range of options to meet consumer needs.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.5% |
Market growth 2024-2028 |
USD 6.55 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.0 |
Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
Performing market contribution |
Europe at 34% |
Key countries |
Germany, US, China, UK, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AAK AB, AB Mauri Food Inc., AGRANA Beteiligungs AG, Archer Daniels Midland Co., Associated British Foods Plc, Azelis SA, Bakels Worldwide, Bakemark USA LLC, Cargill Inc., Corbion nv, Dawn Food Products Inc., Ingredion Inc., Kerry Group Plc, Koninklijke DSM NV, Lallemand Inc., Lesaffre and Cie, Palsgaard AS, Puratos, Swiss Bake Ingredients Pvt. Ltd., and Zeelandia Group BV |
Market dynamics |
Parent market analysis, market forecast , Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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