Baking Ingredients Market Synopsis

Baking Ingredients Market Size Was Valued at USD 16.90 Billion in 2023, and is Projected to Reach USD 31.33 Billion by 2032, Growing at a CAGR of 7.1% From 2024-2032.

The growing demand for culinary-grade bakery products, coupled with the growing need for baking ingredients that reduce fermentation time, is expected to drive the market growth. Baking ingredients such as enzymes, emulsifiers, baking powders, and yeasts are commonly used in the manufacturing of baked goods such as cakes, breads, pastries, rolls, tarts, pies, and many others.

• Increasing urbanization is leading to a change in lifestyle, leaving people with little or no time for cooking. This is prompting food companies to introduce various types of baked goods for breakfast and snacking.
• The availability of products with extended shelf life and access to refrigerated storage facilities in retail bakeries are driving the trend of single-use baked goods. Many manufacturers have developed innovative methods to preserve the freshness of products over extended shelf life, and baked goods combine freshness and flavor by using natural ingredients and enzymes that contain low sugar content. Natural methods inhibit the growth of mold in baked goods, which helps extend the shelf life of the products while maintaining their delicious taste.
• Therefore, these factors are expected to drive market growth during the forecast period. In-store baked goods are gaining popularity in retail and grocery stores due to their accessibility and ease of purchase. Additionally, online retail stores are gaining ground in emerging economies due to the availability and convenience of purchasing products from home. The future of the baking industry will be defined by taste, freshness, health and variety. Consumers are prioritizing the taste of baked goods and ingredients such as salt, sweeteners and fats will enhance the taste of the product by adding an ethnic flavor. Individual contributions from end-use segments such as bread, cakes and pastries, cookies and rolls as well as baked goods are driving the global baking ingredients market. New end-use applications and innovations in developed economies to produce high-quality bakery products are expected to continue to drive demand.
• However, in developing economies, the proximity of customers to affordable bakery products is having a positive impact on market growth. Increasing urbanization in transition economies increases the consumption of bakery products.

Baking Ingredients Market Trend Analysis

The Expanding Bakery Industry Is Fuelling the Market Growth of The Baking Ingredient Market

• The utilization of pastry shop items, counting bread, baked goods, cakes, treats, and other heated merchandise, is on the rise within the pastry shop industry. For case, as detailed by the Government of Canada, worldwide retail deals of prepared merchandise come to $407,164.2 million in 2021. Components such as populace development, urbanization, and changing buyer inclinations contribute to the increased request for pastry kitchen items. With the persistent extension of the pastry kitchen industry, there's a parallel increment within the request for preparing fixings basic for creating these shifted items, in this manner driving showcase development.
• The pastry kitchen industry caters to a different run of shopper inclinations, advertising items with diverse flavors, surfaces, and sorts. Cutting edge customers look for shifted pastry shop encounters, counting artisanal bread, strength cakes, cakes with interesting fillings, gluten-free choices, and more. Assembly these advancing requests requires a wide cluster of preparing fixings, such as flour, sugars, fats, flavors, and raising specialists. The development of the pastry shop industry specifically impacts the request for these fixings, cultivating showcase development.

Opportunity

Rising Demand for Natural and Organic Products

• The rising request for normal and natural items reflects a critical move in customer inclinations towards more beneficial and more economical nourishment choices. As mindfulness of wellbeing and natural issues increments, customers are progressively looking for fixings that are free from counterfeit added substances, hereditarily altered living beings (GMOs), and engineered chemicals. This developing inclination for characteristic, natural, and non-GMO fixings gives a considerable opportunity for producers to enhance and grow their item offerings to meet these requests.
• Characteristic and natural fixings are seen as more beneficial alternatives, regularly related with diminished chemical buildups and more economical cultivating hones. This discernment adjusts with the broader slant towards wellness and natural obligation, driving buyers to select items that are seen as more secure and more naturally inviting. Producers that adjust to this drift by creating and promoting items that emphasize characteristic and natural qualities can capture a developing showcase section and upgrade their competitive edge.
• The request for straightforwardness in nourishment labelling and sourcing hones advance fills this slant. Customers are progressively inquisitive about understanding where their nourishment comes from and how it is delivered, driving to more prominent investigation of fixing records and generation forms. This move presents openings for producers to distinguish themselves by highlighting the characteristic and natural qualifications of their items, in this manner building buyer believe and dependability.

Baking Ingredients Market Segment Analysis:

Baking Ingredients market is segmented on the basis of Type, Application, Segment3, Segment4, Segment5, And Segment6.

By Type, Baking Powder & Mixes Segment Is Expected to Dominate the Market During the Forecast Period

By Type it is segmented as Emulsifier, Yeast, Enzymes, Baking Powder & Mixes, Oils, Fats & Shortenings, And Colors, Flavors, Starch, Preservatives and Fiber.

• French Baking Powders and Mixes segment dominates the product segment market share by 2023, accounting for over 27% of global revenue. It is a source of protein, vitamins and carbohydrates that is widely consumed as a key ingredient in baked goods across the world. Wheat-based baking powder, which is lower in saturated fat and cholesterol, is gaining popularity due to increasing consumer awareness of organic products.
• The emulsifiers segment is expected to grow due to the expansion of the baking industry that demands products with longer shelf life and consumer appeal. When food acids such as tartaric acid, acetic acid and lactic acid react with hydroxyl groups, they form emulsifiers. These emulsifiers extend the shelf life of the product, thereby boosting the market growth.

By Application, Bread Segment Held the Largest Share In 2023

By Application it is segmented as Bread and Sweet Bakery

• Bread is recognized as a staple food in many countries across the world, with steady growth in demand due to its affordable price and nutritional value. Changing consumer preferences have prompted manufacturers to focus on innovation, aiming to offer baked goods that cater to diverse tastes. In pursuit of a significant market share, manufacturers are creating breads with balanced nutritional content and taste.
• The consumption of baking ingredients in the bakery segment is expected to witness the fastest growth during the forecast period, characterized by a CAGR of 1.5%. The market expansion is due to the increasing consumption of snack foods, coupled with the availability of freezers for storing frozen processed foods such as biscuits and cakes in retail establishments. Additionally, this segment is driven by food processing companies looking to diversify their product portfolio by entering the biscuit and biscuit manufacturing sector.
• Pies occupy a special market position where consumers buy them for special occasions. To strengthen the connection between occasions and pies, manufacturers are now focusing on maximizing the size of pies to accommodate larger portions. New size formats range from 8 inches, 9 inches and 12 inches. With changes in cake size formats, the global cake market offers more opportunities for the use of sweeteners, salt, acids and other ingredients.

North America Baking Ingredients Market Regional Insights: is Expected to Dominate the Market Over the Forecast Period

• The North American region, particularly the United States, dominates the global baking ingredients market. This dominance is largely due to the region's highly developed food and beverage industry, which is a major consumer of baking ingredients. The U.S. has a well-established infrastructure for food production and distribution, supported by a large number of leading baking ingredient manufacturers such as Archer Daniels Midland Company, Cargill, and General Mills. Additionally, the high demand for convenience foods, innovative baking solutions, and a diverse consumer palate drive significant consumption of baking ingredients in North America.
• The region's advanced research and development capabilities foster innovation in baking ingredients, leading to the introduction of new products and technologies. Moreover, the presence of major food processing companies and a robust retail sector further bolster the demand for baking ingredients. While Europe and Asia also contribute significantly to the market, North America's combination of industry maturity, consumer demand, and innovation infrastructure ensures its leading position in the global baking ingredients market.

Baking Ingredients Market Active Players

• Archer Daniels Midland Company (ADM) (USA)
• Cargill, Incorporated (USA)
• Ingredion Incorporated (USA)
• Kerry Group plc (Ireland)
• Tate & Lyle plc (UK)
• General Mills, Inc. (USA)
• Bunge Limited (USA)
• Associated British Foods plc (UK)
• Lesaffre International (France)
• FMC Corporation (USA)
• Dupont de Nemours, Inc. (USA)
• Royal DSM N.V. (Netherlands)
• Döhler GmbH (Germany)
• Sudzucker AG (Germany)
• MGP Ingredients, Inc. (USA)
• Bakery Basics (USA)
• Miller Milling Company, LLC (USA)
• Hawkins Food Products, Inc. (USA)
• Lallemand Inc. (Canada)
• Synergy Flavors, Inc. (USA)
• Brenntag AG (Germany)
• Puratos Group (Belgium)
• Briess Malt & Ingredients Co. (USA)
• Eckert & Ziegler Strahlen- und Medizintechnik AG (Germany)
• Ireks GmbH (Germany) and Other Active Players

Key Industry Developments in the Baking Ingredients Market:

• In September 2023, Moyu, a U.S.-based baking mix brand, announced the launch of better-for-you bakery mix. The bakery features konjac-based mixes under the better-for-you baked goods category.
   
• In June 2023, Ardent Mills, a flour-milling and ingredient company, announced the launch of the Ardent Mills Egg Replace and Ancient Grains Plus Baking Flour Blend. These products aim to meet the evolving consumer preferences and address supply chain challenges. Ardent Mills Egg Replace is a gluten-free and vegan alternative to whole eggs, while Ancient Grains Plus Baking Flour Blend is a protein-rich, plant-based, and gluten-free flour blend.