Ingredients that help preserve freshness, softness, taste while increasing shelf life and protein content are referred to as baking ingredients. These typically consist of enzymes, emulsifiers, leavening agents, baking powders, baking sodas and many more. The flavour and texture of the food product depends on the selection of ingredients and their proportions. They are used for the processing of bread, doughnut, pastries, different types of cakes, pies, tarts and others. Continuous R&D is pushing for the development of new ingredients with varied functions.
Globally, in 2019, the baking ingredients market was valued at approximately USD 14.0 billion. It is estimated to expand at a compound annual growth rate of over 6% from 2021 to 2026. The market’s expected valuation at the end of the forecast period is nearly USD 20.0 billion.
The global baking ingredients market has been adversely affected since the advent of the pandemic. Even though the demand has sustained, the disruptions in supply chain have resulted in a low supply. The consequences of low supply have driven the prices of these ingredients significantly up in 2020. The rising product prices and the supply chain issues have resulted a dip in the overall market valuation.
Changing needs of consumers
The changing lifestyle patterns and health awareness among consumers have paved the way for low trans-fat and gluten-free products. This, in turn, will fuel the baking ingredients market growth. The soaring rates of obesity cases and fitness related concerns is expected to boost the market further. Moreover, the rising demand for the use of natural ingredients to manufacture bakery products will create a significant rise in market augmentation.
The rising popularity of alternate products
Products such as cereals, oats and many more are rapidly gaining ground across the globe since these are ready-to-eat with little to no added effort. The rising popularity of these products especially among the youth may restrict future market expansion.
The upsurge in Ready-to-Eat bakery products
The shift from home-cooked to convenience food has pushed for the demand for ready-to-eat products. Adoption of the westernized lifestyle, as well as improved income levels, will be the driving factor for these products. Furthermore, the requirements of consumers for whole grain, zero trans-fat and low sugar is expanding the baking ingredients market.
Stringent regulations and/or limits
Baking ingredients are produced through a mix of certain elements. Further, these products are subjected to various health and safety checks in order to be deemed safe for human consumption. In case of final products, a daily intake allowance has been specified by various authorities based on the results of numerous studies. The limit on intake and the regulations on production of bakery ingredients may create a hurdle for market growth.
The baking ingredients market has been segmented on the basis of type, application and region.
Europe garnered maximum market share in 2019. Germany is the major revenue-generating baking ingredients market. The growth in the region is largely driven by the demand for bakery products due to the extensive use of these products in their cuisines.
The market in the North American region is driven by the increasing number of fast-food chains especially in the United States and Mexico. The demand for baked food products and the widespread use of baking ingredients will positively influencing regional market growth.
The Asia – Pacific region is estimated to witness a growth rate of over 6.5% during the forecast period. Growing population, improving economic conditions, rising disposable incomes and introduction of bakery products in the region is anticipated to boost the market growth in the region.
The key players operating in the baking ingredients market are:
The research report analyses the ecosystem of baking ingredients market and categorizes it to forecast the revenues and analyse the trends in each of the following below-mentioned market segments.
Priyanka has been writing chemicals & material market research reports for the last 12 years. A post-graduate, her specialization is in the chemicals sector. Preparing end-to-end reports covering minute details for market insights, competitive intelligence and trend analysis in the CMFE sector.