Baking Ingredient Market: Global Industry Analysis and Forecast (2024-2030) by Type, Application, and Region

Baking Ingredient Market Definition:

Bakery ingredients are food elements that help baked goods keep freshness, softness, and flavour, extend shelf life, and boost protein content. These belongings are obtainable in a variety of methods on the market and are often observed as the most essential diet for human provisions. The taste and surface of baked food products are dogged by the materials and conformations used. When baking, it's important to use high-quality ingredients to keep the softness and flavour. For example, yeast is a vital ingredient in bread manufacturing, and the gas it produces should be maintained inside the dough for best results.

 

Because of the availability of fibre, it is possible to produce healthier alternatives. In addition, there has been a surge in the nutritional value of bakery items. Functional additives including omega-3, multigrain, probiotics, multivitamins, and phytosterols are added to bread items to boost the nutritional value.

 

 

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Baking Ingredient Market Dynamics:

The rise in Bakery and Confectionery Consumption around the World is driving the growth of the market:

 

With the expanding need for convenience foods and consumer preferences for appealing, flavourful, and textural elegances, the market for confectionery and bakery items is increasing. The ease of access, low cost, and nutrition connected with them are the primary reasons influencing their survival in today's market. As a result, bakery products have become a necessary component of many people's life. This has increased demand for a diversity of baking ingredients that are recycled to produce flavourful and texture-rich parched substances.

 

Basic components are used in the creation of bread goods. Flour, refined flour or Maida, sugar, shortenings, leavening agents, salt and milk derivatives are some of the elements used in baking. According to their purposes in the bakery, bakery ingredients can be categorised. Fresh bread and rolls were the most popular bakery products in the United States in 2020, with sales totalling $14 billion. The cookie was the country's second-most popular baked product, with sales exceeding $9 billion.

 

International quality standards and strict requirements are hampering the growth of the market:

 

On the label, food makers must list all of the ingredients in the product. The components on a product label are stated in order of predominance, with the ingredients used in the highest amount first, followed by those used in smaller amounts in descending order. Regulatory organisations have done several studies to determine the influence of these items on human health which is directly affecting the sale of the product. Products are categorised and the daily intake allowance (DIA) is calculated based on their findings. These organisations have direct or indirect control over the use of various chemicals and materials used in food processing. These major factors are hindering the growth of the market.

 

Demand for ready-to-eat bakery products is increasing which is creating a huge opportunity for the market:

 

The baking ingredients market is predicted to develop in response to the rising demand for ready-to-eat foods. In emerging nations, the move from traditional home-cooked food to convenience foods has raised the demand for these bakery components. The adoption of a westernised lifestyle, dual-income families, a focus on better lifestyles, more nutrition awareness, and an increase in disposable money are the primary drivers driving the baked foods industry's expansion, which is creating a huge opportunity for the bakery ingredients manufacturers.

 

The rising cost of bakery ingredients, along with increasing health consciousness, is posing a significant challenge to the market:

 

The labour and ingredient costs should account for 30-50% of the final retail price. This means that a $1.50 dessert could sell for anywhere between $3.00 and $4.50. The decrease in salt and sugar has become one of the most pressing issues in the food sector. According to Bio springer, a firm that manufactures leavening agents for the baking sector, over 33% of global consumers consider low salt to be one of the most important factors when making purchasing decisions. These factors are owing to consider the major challenge for bakery ingredient market.

 

Baking Ingredient Market Segment Analysis:

By Type, the market is segmented as Emulsifier, Baking Powder, Enzymes, Starch, and Leavening Agents. Baking Powder Segment dominated the market with a 45.8% share in 2023.

 

Baking powder is a dry chemical baking powder consisting of a weak acid and carbonate or bicarbonate. A buffer such as corn starch prevents the base from reacting prematurely with the acid. Baking powder is used to increase the volume and lighten the texture of baked goods. This causes the wet liquid to expand and foam. As a result of acid-base interactions, gaseous carbon dioxide is released into the dough or dough, forming bubbles in the moist liquid, causing the mixture to expand and loosen.

 

However, The Starch segment is expected to grow at a CAGR of 3.3% through the forecast period. Starch improves texture, viscosity, gelation, adhesion, cohesion, moisture retention, and can be used as a fat substitute in the kitchen. It is also an emulsifier, stabilizer, and pacifying or glazing agent, as well as a pacifying or glazing agent.

 

 

By Application, the market is segmented as Bread, Cookies & Biscuits, Rolls & Pies, and Cakes & Pastries. The Bread segment dominated the market with a 41% share in 2023. Bread is one of humanity's earliest basic food staples. Bread and bakery goods are an essential source of nutritional energy and are commonly consumed as part of traditional diets. Bread is a good source of carbs, protein, and vitamins B and E, and it's becoming more popular all around the world. However, this requirement applies to whole wheat products. The reason for this is that people who are conscious of good eating habits reduce the number of carbohydrates, fat, and cholesterol in their meals while increasing the number of complex carbs, dietary fibres, and vegetable protein.

 

Baking Ingredient Market Regional Insights:

The European region dominated the market with a 38% share in 2023. Due to changing lifestyles, rising demand for low trans-fat and gluten-free products, increasing urbanisation, rising demand for longer shelf-life products combined with the demand for natural products in the final baked product, and rising consumer preference for diverse bakery products, Europe dominates the baking ingredients market. Due to the growing demand for bakery items in Germany, the United Kingdom, and France, people prefer fast-paced foods such as pocket sandwiches, pastries, cupcakes, and pies because of their hectic lifestyles. The demand for baking ingredients is expected to be driven by the consumption of various types of bread in meals and breakfast.

 

However, in the baking ingredients market, the Asia Pacific region is predicted to develop at the quickest rate. In the coming years, the APAC region is predicted to be a vibrant and fast-growing region for baking ingredients. Biscuits are the most popular product in India, according to the Indian Bakers Federation (I.B.F), followed by sliced bread, cupcakes, pastries, and brownies. Furthermore, baked meals are becoming more common on shop shelves throughout the region. Consumers in developing nations such as Singapore, Hong Kong, South Korea, and India are becoming more aware of these bakery products as a result of their increased visibility.

 

The objective of the report is to present a comprehensive analysis of the Global Baking Ingredient market to the stakeholders in the industry. The report provides trends that are most dominant in the Global Baking Ingredient market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Global Baking Ingredient Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Global Baking Ingredient market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Global Baking Ingredient market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Global Baking Ingredient market.

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Global Baking Ingredient market. The report also analyses if the Global Baking Ingredient market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few Players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Global Baking Ingredient market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Global Baking Ingredient market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Global Baking Ingredient market is aided by legal factors.

 

Baking Ingredient Market Scope:

Baking Ingredient Market
Market Size in 2023	USD 17.62 Bn.
Market Size in 2030	USD 26.32 Bn.
CAGR (2024-2030)	5.9 %
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	by Application Bread Cookies & Biscuits Rolls & Pies Cakes & Pastries
	By Type Emulsifier Baking Powder Enzymes Starch Leavening Agents
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Baking Ingredient Market Key Players:

• Cargill (U.S.)
• Archer Daniels Midland Company (U.S.)
• Associated British Foods plc (U.K.)
• Koninklijke DSM N.V. (The Netherlands)
• Kerry Group plc (Ireland)
• AAK AB (Sweden)
• British Bakels (U.K.)
• Corbion (the Netherlands)
• IFF (US)
• Dawn Food Products, Inc. (U.S.)
• Tate & Lyle (U.K.)
• Lallemand, Inc. (Canada)
• Lesaffre (France)
• Flowers Foods Inc (Thomasville, GA)
• Hostess Brands LLC (U.S.)