Baking Ingredients Market Size, Share & Trends Analysis Report By Product (Emulsifiers, Yeast, Enzymes, Baking Powder & Mixes), By End-use (Bread, Cakes & Pastries, Rolls & Pies), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global bakery ingredients market was valued at USD 15.18 billion in 2021 and is advancing at a compound annual growth rate (CAGR) of 6.1% from 2022 to 2030, owing to changing preferences for a variety of baked goods among consumers. A rise in demand for multi-cuisine bakery products, as well as increasing demand for baking ingredients that reduce fermentation time, is expected to drive business growth. Baking ingredients such as enzymes, emulsifiers, baking powders, and yeast are commonly used in the production of bakery products such as pastries, bread, cakes, rolls, tarts, pies, and many more. COVID-19 had a moderate impact on the bakery ingredients market, lockdown and trade restrictions affected the raw material availability thus causing supply chain disruption which directly affected production. However, the pandemic had resulted in an increase in demand for baking ingredients as people have been using their spare time at home to pursue cooking as a hobby. Bread making, in particular, had seen a surge in popularity during the pandemic.

Growing urbanization is leading to changes in lifestyle leaving less or no time to cook. This is driving the food & beverage companies to introduce diverse baked products that serve as breakfast and snack items. The availability of products with extended storage life and accessibility to freezer storage conditions in retail bakeries is leading to a trend of one-time purchases of baked goods.

Innovative methods are developed by many manufacturers that maintain the freshness of the product throughout the extended shelf life. The introduction of baked products that integrate freshness and flavor through natural ingredients and enzymes that contain low levels of sugar has gained widespread popularity. Natural methods which inhibit mold growth in bakery products have extended the life of the product while meeting the customer’s taste. This will drive the industry growth during the forecasted period.

In-store bakery products are becoming more popular in retail and grocery stores due to their accessibility and ease of purchase. Additionally, online retail stores are gaining traction in emerging economies owing to the ease of availability and convenience of buying products from home. The future of the bakery industry will be defined by taste, freshness, health, and variety. Consumers prioritize the taste of bakery products, ingredients such as salt, sweeteners, and fat improve the taste of the product by adding ethnic flavor.

Individual contributions from end-use segments such as bread, cakes & pastries, cookies & biscuits, and rolls & pies is driving the global baking ingredients market. New applications and innovations in developed economies to produce high-quality baked goods are expected to fuel the demand further. However, in developing economies, the customer's proximity to affordable bakery products is positively impacting market growth. Rising urbanization in transition economies is increasing the consumption of baked goods.

Product Insights

Baking powders & mixes had the largest market share in the product segment in 2021, accounting for over 27% of global revenue. It is a source of proteins, vitamins, and carbohydrates that is widely consumed as a primary ingredient in bakery products around the world. Wheat baking powder, which has lower saturated fat and cholesterol content, is gaining popularity owing to rising consumer awareness of organic products.

Emulsifiers in the product segment are expected to grow in demand, as the expanding baking goods industry necessitates products with a longer shelf life and appeal to consumers. When food acids like tartaric acid, acetic acid, and lactic acid react with hydroxylic groups, they form emulsifiers. These emulsifiers extend the shelf life of the product, which in turn boosts market growth.

End-use Insights

The global bread segment held the largest market share in the end-use segment and was valued at USD 6,899.9 million in 2021. Bread is considered a staple food in many countries around the world. Bread's affordability and nutritional content account for its steady demand growth. Changing consumer preferences have made manufacturers invest in innovation, in order to deliver baked goods that satisfy consumer tastes. Manufacturers are developing bread with a balanced nutritional and flavor content in order to capture a sizable market share.

Baking ingredient consumption in the cakes & pastries segment is expected to grow at the fastest rate during the forecasted period with a compound annual growth rate of 7.1% from 2022-2030. Market expansion is attributed due to rising snack consumption as well as the availability of freezers for storing frozen processed foods like cookies and pastries in retail establishments. Additionally, food processing companies looking to expand their product portfolio by getting into the cookies and biscuits manufacturing business are driving the segment.

Pies have a unique market positioning where people buy pies for special occasions. To bridge the link between occasions and pies, manufacturers now look to maximize the size of pies to accommodate servings in large numbers. The new size formats are in the range of 8-inch, 9-inch, and 12-inch. Owing to changes in the size formats of pies, the global pies market provides more opportunities for the use of sweeteners, salts, acids, and other ingredients.

Regional Insights

North America held a share of over 25.3% in 2021 and is anticipated to expand at a CAGR of 6.1% over the forecast period. The on-the-go food lifestyle in countries like Canada and the U.S. may drive up demand throughout the forecast period. The convenience and easy-to-carry options provided by bakery manufacturers, such as pocket wraps and rolls, among others, are also driving growth. Gluten-free food is one of the trends that is prevailing in the market and the trend is anticipated to continue throughout the projected time period.

Changing lifestyles have created a demand for alternatives to traditional home food, driving the demand for processed and packaged foods. The increasing working population looking for food that consumes less time than conventional food. In addition, perceptions linked to health and well-being are driving consumers to opt for a  healthy diet. The continuing evolution in the food processing industry has resulted in the development of new packaged foods to meet the growing demand for convenience foods from North American consumers.

The Asia Pacific baking ingredients market is expected to expand at a CAGR of 7.3% during the projected period. China and India are the most populous countries in the world with their population expected to grow further. Many businesses tend to boost their production volume and use new production techniques to produce high-quality products because the urban population in the Asia Pacific region is increasingly shifting toward Western foods. Production of high-quality products provides opportunities for baking ingredient manufacturers to supply emulsifiers, enzymes, baking powders, oils, and fats. This is expected to increase the demand for baking ingredients.

Key Companies & Market Share Insights

The bakery Ingredients market is fragmented in nature with the key players intending to achieve optimum market growth and widen their presence through various market expansion strategies. These expansion plans include joint ventures, third-party agreements for supply & distribution, acquisitions, and capacity addition in new geographies.

The market offers the scope of increase to players who produce bakery ingredients in synchronous with the needs of changing customer preferences and the need for diverse ingredients. Therefore, key industry players are focusing on developing diverse baking ingredients. For instance, in January 2020, British Bakels (UK) introduced vegan baking ingredients. Consumer demand for high-quality vegan bakery alternatives is anticipated to rise as veganism gains momentum in 2020. Therefore, Bakels added indulgent fillings that are suitable for vegans to its vegan range. Some of the prominent players in the global baking ingredients market include:

• Flower Foods Inc

• Hostess Brands LLC

• George Weston Ltd

• Grupo Bimbo S.A.B. de C.V

• Nestle SA

• Finsbury Food Group

• Aryzta AG

• Britannia Industries Ltd

• Tiger Brands Company

• Goodman Fielder

• Uniferm GmbH & Co.

• General Mills Inc

• Bread Talk Co. Ltd

• Mckee Foods Corporation

• Mondelez International

• Yamazaki Baking Co. Ltd

• Monginis Food Pvt. Ltd.

• Koninklijke DSM V.V

• Associated British Foods plc

Baking Ingredients Market Report Scope

Global Baking Ingredients Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global baking ingredients market report based on product, end-use, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Emulsifiers

  • Yeast

  • Enzymes

  • Baking Powder & Mixes

  • Oils, Fats, and Shortenings

  • Colors & Flavors

  • Starch

  • Preservatives

  • Others

• End-Use Outlook (Revenue, USD Million, 2017 - 2030)

  • Bread

  • Cakes & Pastries

  • Cookies & Biscuits

  • Rolls & Pies

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

    • Netherlands

    • Poland

    • Portugal

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa