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Baking Ingredients Market by Type (Emulsifiers, Enzymes, Baking Powders, Flavors, Colors, Starches, Sugars, Yeasts); Form (Dry, Liquid); Application (Bread, Cakes & Pastries, Croissants, Sponge Cakes, Cookies, Doughnuts) - Global Forecast to 2030

Q: What are the segments in the Baking Ingredients Market?

The market is segmented by: Type : Emulsifiers, Leavening Agents, Enzymes, Baking Powders, Shortening Agents, Flavors, Colors, Starches, Fibers, Preservatives, Sugars, Yeasts, and other ingredients. Form : Dry and liquid forms. Application : Bread, Cakes & Pastries, Pies & Tarts, Croissants, Muffins, Cookies & Biscuits, Doughnuts, Waffles, and other bakery products. Read More

Report ID:MRFB - 104738 Pages: 200 Jun-2024 Formats*: PDF Category: Food and Beverages Delivery: 24 to 72 Hours

The Baking Ingredients Market is projected to reach $27.2 billion by 2030, at a CAGR of 6.4% from 2024 to 2030. The growing consumer demand for bakery products, increasing urbanization and changing food consumption patterns, and rising demand for healthy bakery products are the key factors driving the growth of the baking ingredients market. However, an increase in health-conscious consumers is expected to hinder the growth of this market to a notable extent. Furthermore, growing consumer demand for frozen bakery products and emerging functional bakery ingredients are expected to provide significant growth opportunities for manufacturers of baking ingredients in the coming years.

The Impact of COVID-19 on the Baking Ingredients Market

The COVID-19 pandemic has severely affected human health and well-being. To control the spread of the virus, governments worldwide announced partial or complete lockdowns, which severely impacted many industries, including food & beverage, pharmaceuticals, home & personal care, and dietary supplements. However, the pandemic had a positive impact on the baking ingredients market.

The COVID-19 outbreak created a severe public health emergency globally, spreading rapidly in more than 150 countries. Many countries worldwide announced complete nationwide, state-wide, or citywide lockdowns to combat and control the spread of the virus, halting all travel, transport, manufacturing, educational institutions, and non-essential trade, significantly impacting many industries globally.

The pandemic has led to the adoption of some best-practice models for the bakery industry as the coronavirus epidemic has conveyed to the forefront the importance of hygienic and shelf-stable packaged foods in preventing the disease. This industry has faced unprecedented demand from manufacturers, retailers, and consumers, particularly for products such as breads, pizzas, and cookies & biscuits, from the storage and distribution point of view. Many companies in the bakery industry have already started changing their strategies, witnessing sudden growth in demand.

Further, school and office closures compelled consumers to opt for at-home breakfast, coffee, and lunch, which has driven a significant increase in the demand for convenience, ready-to-cook, and bakery products with longer shelf lives, such as bread, rolls, and buns. Likewise, the more indulgent bakery items, such as pastries, doughnuts, and bakery snacks, also witnessed increased demand. Additionally, due to restrictions, no fast food products were available in the market, and the closure of all restaurants made people cook at home.

Baking Ingredients Market

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Increasing Urbanization and Changing Food Consumption Patterns to Drive the Growth of this Market

Currently, more than half of the world's population lives in urban areas, and virtually all the countries worldwide are becoming increasingly urbanized. According to the United Nations World Urbanization Report, the urban population of the world has grown rapidly from 751 billion in 1950 to 4.2 billion in 2018, which shows that almost 55% of the world’s population lives in urban areas, a proportion that is expected to increase to 68% by 2050. As a result, urban consumers are gaining exposure to a much wider choice and better food availability than those living in rural areas. Also, this urbanization trend contributes significantly towards improved living standards and rising incomes, which influences the affordability of bakery products such as ready-to-eat, ready-to-bake, and frozen bakery products to a greater extent.

Further, with the increasing urbanization, the demand for convenience food products is increasing rapidly, mainly due to changing lifestyles, the rising number of nuclear families, an increasing proportion of working women, and less time for food preparation. These factors create a strong case for the accelerated growth of convenience and baked goods, which fuels the growth of the baking ingredients market.

The rise of fortified foods and dietary supplements has played a key role in healthy habits due to the growing concerns about health and the changing diet pattern to healthy nutrition through daily diet. The global demand for fortified food is mainly driven by increasing consumer awareness regarding micronutrient deficiencies, growing health concerns, rising incidence of various diseases, and increasing disposable income. Consumers are getting conscious about consuming healthier baked goods, which are, ideally, gluten-free, lower in carbs, clean-label, high in fiber, and fortified with nutrients. Hence, rapid growth in these product categories boosts the demand for various baking ingredients.

Thus, the increasing urbanization and changing food consumption patterns have a strong impetus on the baking ingredients market.

Key Findings in the Baking Ingredients Market Study:

The enzymes segment is projected to record the fastest growth rate during the forecast period

Based on type, the baking ingredients market is segmented into emulsifiers, leavening agents, enzymes, baking powder, shortening agents, flavors, colors, starches, fibers, preservatives, sugars, yeast, and other bakery ingredients. The enzymes segment is poised to register the fastest growth during the forecast period owing to its increasing usage as a cost-effective alternative to emulsifiers and its benefits, such as reduced mixing time, increased oxidation, and managed fermentation speed. In addition, enzymes improve the dough structure and softness, increasing the shelf-life of various bakery products.

In 2024, the dry form segment is expected to account for the largest share of the market

Based on form, the baking ingredients market is segmented into dry and liquid forms. In 2024, the dry baking ingredients segment is expected to account for the largest share of the baking ingredients market. Key factors contributing to the dominant position of this segment are the easy availability, easy handling & storage, and the longer shelf life of the dry-form ingredients.

In 2024, the bread segment is expected to account for the largest share of the bakery ingredients market

Based on application, the baking ingredients market is segmented into bread, pies & tarts, croissants, sponge cakes, muffins, cookies & biscuits, doughnuts, waffles, and other bakery products. In 2024, the bread segment is expected to account for the largest share of the bakery ingredients market. Key factors contributing to this segment’s major share include the rising bread consumption globally, growing demand for fast food, changing lifestyles, and increasing consumer preference for healthy claimed bread products, such as fortified, organic, whole grain, wheat alternative, and gluten-free. In addition, bread is a staple food in many countries and is experiencing high demand from developing regions, such as Asia-Pacific and the Middle East & Africa.

Asia-Pacific: The Fastest-Growing Regional Market

The baking ingredients market is divided into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Europe is expected to account for the largest share of the baking ingredients market. Huge demand for bakery products in this region due to bakery products being their staple food, the region’s well-established food industry, rising preference for innovative food products, growing demand for gluten-free bakery products, and the presence of key players. However, the Asia-Pacific region is projected to register the highest CAGR during the forecast period.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategic developments by leading market participants in the industry over the past four years. Some of the key players operating in the baking ingredients market are Cargill, Incorporated (U.S.), Archer Daniels Midland Company (U.S.), Associated British Foods plc (U.K.), Corbion N.V. (Netherlands), Koninklijke DSM N.V. (Netherlands), Lesaffre (France), Kerry Group plc (Ireland), Tate & Lyle PLC (U.K.), and International Flavors & Fragrances Inc. (U.S.).

Scope of the Report:

Baking Ingredients Market, by Type