Bakery Ingredient Market - Global Industry Analysis

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Bakery ingredient market is a rapidly growing industry on account of demand from several regions of the world. In 2017, global bakery ingredient market was worth around 14.07 billion USD. Bakery ingredient market constitutes of all enzymes, emulsifiers baking powders & mixes, oil, leavening agents, fats & shortenings, colors & flavors, and starch. Baking ingredients are any substance used in the processing, production, treatment, packaging, and storage of food or transportation. These ingredients are approved for use by FDA or the U.S. Department of Agriculture prior to the food additives provisions of law.

Changing consumer preference and lifestyle of the people have created awareness among the population regarding the practice of using bakery ingredient. The rising demand for powder & mixes and enzymes products is expected to be a major driver for the bakery ingredient market. The growing awareness among the population regarding health benefits and adverse effects of the varying environmental and climatic conditions on the health has further increased the demand for bakery ingredients.  

Rising GDPs and disposable income in various regions across the globe is also expected to augment the growth of the bakery ingredient market. The food processing products market is derived from various processed food products such as sauces, canned products, cream fillings, and soup mixes. 

Increase in demand for convenience foods & consumer preferences for healthier bakery products coupled with a change in culture & lifestyle is anticipated to increase the demand for bakery ingredients in emerging Asian markets. Intense competition and huge market dominance by the key players are expected to restrain the entry of new players in the market. However, the use of branded products and the growing trend towards ready to eat food products is expected to present opportunities for the bakery ingredient market within the forecast period. 

Attractive marketing strategies and attractive packaging are also expected to draw in more customers. The bakery ingredient market can be classified into baking powders & mixes, enzymes, leavening agents, starch, emulsifiers, oil, fats & shortenings, and colors & flavors.  Baking powder & mixes segment accounted for over 35.0% of the global revenue and is expected to witness a significant growth over the next six years owing to the rising demand for bakery products. Leavening agent and starch emerged as the second leading segment and is expected to grow due to the increasing demand for conventional, confectionery & bakery, and fast food products. The antioxidant segment is expected to witness significant growth within the forecast period owing to high additional health benefits and rising demand from the Asia Pacific region.  

North America region has the largest market among other regions in 2017. Rising standard of living and health benefits of bakery product is expected to fuel the growth of the bakery ingredient market. The Asia Pacific accounted for the second largest market share and is expected to grow due to urbanization and rising disposable income in the countries of the region. India and China are major countries in the Asia Pacific with a huge population and are also expected to be a major point of attraction for the key market players. Latin American bakery ingredient market is expected to witness a significant growth over the forecast period. Additionally, the bakery and confectionery industry in the region are also expected to fuel the demand for bakery ingredient markets. 

The key players in this industry are Kerry Group Plc and Corbion, Cargill, Associated British Foods Limited, and Koninklijke DSM N.V.