Baking Ingredients Market Size, Share, Industry, Forecast and outlook (2024-2031)

Baking Ingredients Market is segmented By Product Type (Emulsifiers, Leavening Agents, Enzymes, Baking Powders & Mixes, Fats & Shortenings, Starch, Color & Flavors, Others), By Application (Baked, Bread, Biscuits & Cookies, Cakes & Pastries, Rolls & Pies, Others), and By Region (North America, South America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Baking Ingredients Market Size

The Global Baking Ingredient Market US$ 16.5 billion in 2022 and is projected to witness lucrative growth by reaching up to US$ 26.1 billion by 2030. The market is growing at a CAGR of 5.9% during the forecast period 2024-2031.

Busy lifestyles and the desire for convenience have led to a demand for time-saving baking solutions. Baking ingredient manufacturers are offering pre-mixed blends, ready-to-use doughs, and baking mixes that simplify the baking process. These convenience-oriented baking ingredients provide consumers with easy-to-follow recipes and reduce the time and effort required for home baking. 

There is a growing emphasis on health and wellness among consumers, leading to a demand for healthier bakery products. This trend is driving the market for baking ingredients that enable the production of products with reduced sugar, fat, and sodium content. Additionally, there is an increased interest in using alternative flours, such as whole grain, gluten-free, and ancient grains, which require specialized baking ingredients.

Baking Ingredients Market Scope

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Baking Ingredients Market Dynamics

The Growing Bakery Industry is Driving the Market Growth of the Baking Ingredient Market

The bakery industry is experiencing a rise in the consumption of bakery products such as bread, pastries, cakes, cookies, and other baked goods. For instance, according to the Government of Canada, in 2021, global retail sales of baked goods were 407,164.2 million dollars. Factors such as population growth, urbanization, and changing consumer preferences contribute to the increased demand for bakery products. As the bakery industry expands, the need for baking ingredients to produce these products also grows, driving market growth.

The bakery industry offers a wide range of products with various flavors, textures, and types. Consumers today seek diverse bakery experiences, including artisanal bread, specialty cakes, pastries with unique fillings, gluten-free options, and more. Meeting these demands requires a diverse range of baking ingredients, including flour, sugars, fats, flavors, and leavening agents. The growth of the bakery industry drives the demand for these ingredients, stimulating market growth.

Increasing Demand for Convenience Foods is Driving the Baking Ingredients Market Growth  

Bakery products, such as bread, pastries, and cakes, are considered convenient food options as they are readily available and require no or minimal cooking. This demand for ready-to-eat bakery products drives the need for bakery ingredients to produce these items on a large scale.

Convenience foods are designed to be consumed on the go, allowing consumers to eat while commuting, at work, or during travel. Bakery products like sandwiches, wraps, and muffins are popular choices for on-the-go consumption. The demand for such portable bakery items drives the market growth for bakery ingredients as manufacturers need to produce them in large quantities.

Fluctuating Raw Material Prices Can Restrain the Market Growth for Baking Ingredients

Fluctuating raw material prices can lead to increased production costs for baking ingredient manufacturers. When the prices of key raw materials such as wheat, sugar, oils, and flavors rise, it directly impacts the cost of ingredient production. Manufacturers may need to pay higher prices for sourcing these materials, which can squeeze profit margins. The increased production costs may make it challenging for manufacturers to maintain competitive pricing, leading to a potential restraint on market growth.

Fluctuating raw material prices can create pricing pressures within the baking ingredients market. When the prices of raw materials increase, manufacturers may pass on these costs to customers by raising the prices of their baking ingredients. However, price increases could potentially lead to reduced demand as customers may seek cheaper alternatives or adjust their consumption patterns. The price sensitivity of consumers can impact the overall market growth for baking ingredients.

Baking Ingredients Market Segmentation Analysis

The global baking ingredient market is segmented based on product type, application, and region.

Widespread Consumption of Bread Boosts the Segment Growth

Depending upon the application, the baking ingredient market is divided into bread, biscuits & cookies, cakes & pastries, rolls & pies, and others.

In 2022, bread had the highest share in the baking ingredient market. Bread is a staple food consumed by a vast majority of the population worldwide.  For instance, according to Gold Medal Bakery, a bakery manufacturer, in 2020, the average American utilized one package of bread every week. Bread is a common part of daily meals and is available in various forms, such as sliced bread, baguettes, rolls, and buns. The widespread consumption of bread contributes to its high demand and, consequently, its significant share in the bakery ingredient market.

The process of bread-making involves various stages, including mixing, fermentation, proofing, shaping, and baking. Each stage requires specific ingredients to achieve the desired characteristics of the bread. Baking ingredients such as flour, yeast, enzymes, emulsifiers, dough conditioners, and improvers play critical roles in ensuring proper dough development, structure, texture, and overall quality of the final bread product. The complexity of bread-making necessitates a wide array of ingredients, contributing to its prominent share in the bakery ingredient market.

Baking Ingredients Market Geographical Share

Rich Baking Heritage in Europe Region

In 2022, Europe had the highest share of the baking ingredient market. According to data from the Association of German Plant Bakeries, exports of bread and other bakery products from Germany increased throughout the first half of 2022. In the first half of 2022, about 753,100 tonnes of bread and baked goods were exported. Europe has a rich baking heritage and a strong culture of bread and pastry consumption. Bread is deeply ingrained in European diets and traditions, with each country having its unique bread varieties and baking techniques. 

Europe offers a diverse portfolio of bakery products, including bread, pastries, cakes, biscuits, and other confectionery items. This variety of bakery products requires a wide range of baking ingredients to meet the diverse tastes and preferences of European consumers. The demand for ingredients such as flour, sugars, fats, flavors, and leavening agents is high in the European market, contributing to its significant share in the baking ingredient market.

Baking Ingredients Market Companies

The major global players include DowDuPont Inc., Archer Daniels Midland, Koninklijke DSM N.V., Cargill Incorporated, BASF SE, Ingredion Incorporated, Roquette Frères, SunOpta, Darling Ingredients Inc. and Omega Protein Corporation

COVID-19 Impact On Baking Ingredients Market

With lockdowns and restrictions on dining out, people turned to at-home baking as a recreational and therapeutic activity during the pandemic. This led to a surge in demand for baking ingredients as consumers stocked up on flour, sugar, yeast, and other essential ingredients to make homemade bread, pastries, and desserts.

However, the closure of restaurants, cafes, and other food service establishments during lockdowns significantly reduced the demand for baking ingredients from the commercial sector. The decline in the food service industry's activity and the shift towards takeout and delivery services resulted in reduced sales of bakery products, impacting the demand for ingredients used in commercial baking.

By Product Type

• Emulsifiers
• Leavening Agents
• Enzymes
• Baking Powders & Mixes
• Fats & Shortenings
• Starch
• Color & Flavors
• Others

By Application

• Bread
• Biscuits & Cookies
• Cakes & Pastries
• Rolls & Pies
• Others

By Region

• North America
  • The U.S
  • Canada
  • Mexico
• Europe
  • Germany
  • The U.K
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In September 2022, Kemin Industries, a global ingredient manufacturer, launched Shield Pure, a mold inhibitor that provides bakers with a direct substitute for synthetic mold inhibitors, at the International Baking Industry Exposition.
• In September 2022, Angel Yeast, a supplier of yeast, launched premium dry yeast to address many of the baking difficulties at Bakery China.
• In October 2021, Cargil, an agribusiness company, launched a soluble rice flour SimPure 92260, that tastes, feels, and functions similarly to maltodextrin, a substance frequently employed as a bulking agent and flavor transporter.

Why Purchase the Report?

• To visualize the global baking ingredient market segmentation based on product type, application, and region understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous baking ingredient market-level data points all for segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The Global Baking Ingredient Market Report Would Provide Approximately 53 Tables, 54 Figures And 102 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies