Bakery Ingredient Market Size, Share, Growth Report 2032

Industry Prospective:

The global bakery ingredient market was valued at about USD 15.23 billion in 2021 and is expected to increase to around USD 24.11 billion by 2028, with a CAGR of around 6.4 percent over the forecast period. The study examines the drivers, constraints, and challenges in the bakery ingredient market, as well as their impact on demand throughout the forecast period. The report also looks at new potential in the bakery ingredient sector.

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Bakery Ingredient Market: Overview

Bakery ingredients are food elements that help baked goods retain flavor, softness, & freshness, extend shelf life, and boost protein content. These ingredients are available in a variety of forms on the market and are often regarded as the most fundamental diet for human sustenance. The flavor and texture of baked foods are determined by the ingredients and compositions used.

COVID-19 Impact:

COVID-19 had a devastating effect on the bakery ingredient market in two ways: it has significantly affected demand and production, and it has disrupted the supply chain and market. Bakery players have been affected by the pandemic in many ways. Frozen bakery players have faced lower orders as food consumption shifts from restaurants to home kitchens. Consumers would most certainly want new and better solutions in the aftermath of the pandemic. Improved nutrition is predicted to receive consumer and government attention in this scenario as a means of avoiding illnesses and strengthening immunity, allowing businesses to focus on innovation. Thus, with ease in operations and restrictions, the market is likely to boost during the forecast period.

Bakery Ingredient Market: Growth Drivers

Growing demand for bakery products is propelling the market growth

For a long time, bakery products have served as fundamental food items for human nourishment. With the expanding need for convenience foods and customer preferences for appealing, flavorful, and textural delicacies, the market for confectionery and bakery items is increasing. The key factors promoting their long-term viability in today's market are their low cost, high nutritional value, and ease of availability. As a result, bakery items have become a necessary component of many people's life. This has boosted demand for a variety of baking ingredients that are used to create flavorful and texture-rich baked items thereby driving the growth of the market. In addition to this, change in lifestyle & eating habits, increase in spending power, and increase in disposable income are some of the additional factors that are driving the global bakery ingredient market.

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Bakery Ingredient Market: Restraints

Strict rules on safety and use of bakery ingredients may impede the market growth

Baking ingredients are a blend of numerous substances that are submitted to stringent health and safety inspections depending on local government standards. Regulatory organizations have done a number of studies to determine the influence of these items on human health. Products are categorized and the daily intake allowance (DIA) is calculated based on their findings. Food safety regulations are governed by international bodies such as the Committee on the Environment, Public Health, and Food Safety (EU), the World Health Organization (WHO), the United States Food and Drug Administration (FDA), the Canadian Food Inspection Agency (CFIA), and the National Food Safety and Quality Service (SENASA). These organizations have direct or indirect control over the use of various materials and chemicals used in food processing. All such factors are likely to hinder the growth of the market.

Bakery Ingredient Market: Opportunities

Rising demand for plant-based bakery products to foster the market during the forecast period

When it comes to purchasing selections, consumers are becoming more conscious of aspects such as social effects, sustainability, and health. Environmental issues have arisen as a result of the use of animal-based meals. Furthermore, some customers oppose the use of animals in food items due to ethical concerns. Veganism and vegetarianism are promoted to consumers for a variety of reasons, including personal health, the environment, and animal welfare. According to the Good Food Institute, plant-based foods have seen significant growth in retail sales in the United States. Plant-based meat and plant-based milk have the greatest market for plant-based foods. The need for vegan baking ingredients may rise during the forecast period as the market for plant-based bakery items such as vegan buns, bread, muffins, and cake grows. This is likely to bring up some potential growth prospects for the global bakery ingredient market during the forecast period.

Report Scope:

Bakery Ingredient Market: Challenges

The growing inclination of the consumer towards a healthy lifestyle may be a challenge for market growth

Owing to the rise in health-related concerns among customers, there is a greater demand for low-sodium and low-fat food items. The decrease in sugar and salt has become one of the most important concerns in the food sector. The rise in obesity and diabetes cases in the community has also become one of the primary variables influencing product buying decisions. As a result of these circumstances, demand for high-fat, high-sugar bread items may decline dramatically. This would undoubtedly affect the demand for various baking ingredients used in the production of these products.

Bakery Ingredient Market: Segmentation

The global bakery ingredient market is divided based on form, type, application, and region. By form, the global market is categorized into liquid and dry. Based on the type, the market is bifurcated into sweeteners, fats & shortenings, leavening agents, baking enzymes, preservatives, colors and flavors, emulsifiers, and others. The application segment is bifurcated into cookies & biscuits, cakes & pastries, bread, and others.

Recent Developments

• In March 2021, Synergy Flavors has introduced a bakery ingredient that mimics the flavor and feel of baked products while reducing fat and calories by a large amount. The all-natural invention, according to the flavor and ingredients firm, could be used in a variety of items, including breakfast goods, biscuits, cookies, cakes, and muffins.
• In August 2021, to meet consumer demand, Bako introduced a vitamin D premix for use in bread, rolls, and other bakery items. VitaD is a combination of wheat flour and vitamin D2 yeast that's been released under an exclusive UK wholesale distribution deal with specialty ingredients producer Lallemand.

Bakery Ingredient Market: Regional Landscape

Europe to hold the topmost position in the global market during the forecast period.

Among the regions, Europe is expected to contribute the major share of the global bakery ingredient market during the forecast period. This is majorly due to the growing consumption of confectionery & bakery products and the rise in modern as well as traditional trade. North America is likely to account for a significant share of the market. Nevertheless, in terms of bakery ingredients, these are becoming mature markets. On the other hand, the market in the Asia Pacific is expected to grow at the highest CAGR value owing to rising demand for bread, biscuits, cookies, and cakes in countries like India, South Korea, and Singapore.

Bakery Ingredient Market: Competitive Landscape

Some of the major players that are operating in the global bakery ingredient market are Kerry Group plc, Koninklijke DSM N.V., Associated British Foods plc, Archer Daniels Midland Company, Cargill, Dawn Food Products, Inc., Lallemand, IFF, Corbion, British Bakels, and AAK AB, among others.

Global bakery ingredient market is segmented as follows:

By Form

• Liquid
• Dry

By Type

• Sweeteners
• Fats and Shortenings
• Leavening Agents
• Baking Enzymes
• Preservatives
• Colors and Flavors
• Emulsifiers
• Others

By Application

• Cookies & Biscuits
• Cakes and Pastries
• Bread
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa