Global Baking Ingredients Market Outlook, 2028

Global Baking Ingredients Market Outlook, 2028

The global baking ingredients industry plays a crucial role in the production of a wide range of bakery products, including bread, cakes, pastries, cookies, and more. Baking ingredients are the fundamental components that contribute to the taste, texture, and overall quality of baked goods. This industry encompasses a diverse array of ingredients, including flours, sugars, fats, leavening agents, flavourings, emulsifiers, and more. The demand for baking ingredients is driven by the thriving bakery sector, which is fueled by changing consumer preferences, evolving food trends, and the growing popularity of homemade and artisanal baked goods. The industry is influenced by factors such as population growth, urbanization, disposable income, and the influence of global cuisine. Additionally, health-conscious consumers are increasingly seeking healthier alternatives, leading to a rise in demand for organic, natural, and clean-label baking ingredients. The industry is highly competitive, with numerous global and regional players vying for market share. Manufacturers continuously innovate and develop new ingredients to meet the evolving demands of bakers, confectioners, and foodservice establishments. Furthermore, the industry is subject to regulatory standards and quality control measures to ensure food safety and compliance. As baking remains a cherished tradition and a universal indulgence, the global baking ingredients industry is poised for growth, fueled by innovation, consumer preferences, and the timeless love for freshly baked goods. Convenience foods are a growing dietary trend that is to blame for the soaring demand for sweets and baked goods. Consumers are currently choosing foods that save time in the procurement, preparation, and clean-up processes due to their hectic lifestyles, extended working hours, and lack of time. To meet the rising demand for fresh and frozen bakery goods as well as a variety of baking ingredients, local bakery shops, cafes, and supermarkets have sprouted up in emerging nations like the US and the UK in recent years. The need for baking ingredients is being driven by the marketability, rich texture, long shelf life, accessibility, affordability, and nutrition of bakery meals, which are primarily driving these factors. Business expansion is anticipated to be driven by an increase in demand for baking ingredients that shorten fermentation times and multi-cuisine bakery products. In the production of bakery goods, enzymes, emulsifiers, baking powders, and yeast are frequently utilised as baking ingredients.

According to the research report, Global Baking Ingredients Market Outlook, 2028, published by Bonafide Research, the global baking ingredients market is anticipated to cross USD 25.17 Billion in size by 2028, increasing from USD 18 Billion in 2022. The market is expected to grow at a CAGR of 5.85% by 2023–2028. Changes in lifestyle are resulting from growing urbanisation, making it harder or impossible to cook. Companies in the food and beverage industry are responding by introducing a variety of baked goods that can be eaten for breakfast or as a snack. Retail bakeries are seeing a rise in the number of one-time purchases of baked goods as a result of the availability of products with longer shelf lives and the ability to store them in freezer conditions. Many producers are developing innovative strategies to keep the product fresh over an extended shelf life. The advent of baked items that include freshness and flavour through natural ingredients and enzymes with reduced sugar levels has acquired great acceptance. Natural approaches that restrict mould formation in bakery items have prolonged the product's life while matching client expectations. During the foreseeable term, this will boost industry growth. The culture and tradition surrounding baking ingredients vary across different regions and countries, reflecting the culinary heritage and preferences of each culture. Baking plays a significant role in cultural celebrations and festive occasions around the world. For instance, in Western countries, Christmas is associated with traditional baked goods like fruitcakes, gingerbread cookies, and Yule logs. In Asia, the Lunar New Year brings forth a variety of symbolic and auspicious baked treats. These festive bakes often have symbolic meanings and are deeply rooted in cultural traditions. Many countries have a rich tradition of artisanal baking, where recipes and techniques are passed down through generations. These heritage recipes often have a strong cultural significance and are cherished for their historical and nostalgic value. Baking ingredients used in these traditional recipes help preserve the authenticity and heritage of regional delicacies. Furthermore, Baking ingredients are heavily influenced by the flavours and spices traditionally used in different cultures. For instance, spices like cinnamon, cardamom, and nutmeg are common in European baking, while spices like saffron, rose water, and pistachio feature prominently in Middle Eastern sweets. These cultural influences contribute to the unique flavour profiles of baked goods around the world.

Based on the products types segment includes the Baking powder and mixes, Leavening agents, Oils, fats, and shortenings, Emulsifiers, Enzymes, Starch, Fibre, Preservatives, Colours & flavours, Sweeteners and Others (Nuts and Seeds, Fruit and Vegetable Purees, Citrus Zest, Gelatin, Baking Enhancers, Specialty Flours, Decorative Ingredients, etc.). Among all the baking powders and mixes, baking powder holds the highest market share. Baking powder and mixes offer convenience and time-saving benefits to consumers. They provide pre-measured and pre-mixed ingredients, eliminating the need for measuring and combining individual baking ingredients. This convenience is particularly appealing to busy individuals or those with limited baking experience who want to enjoy freshly baked goods without the hassle of gathering and measuring multiple ingredients. Emulsifiers will grow at the highest CAGR rate in the future, as the demand for processed and convenience foods are on the rise globally. Emulsifiers play a crucial role in improving the texture, stability, and shelf life of processed foods, such as spreads, dressings, sauces, and baked goods. As consumers increasingly seek ready-to-eat and easy-to-prepare food options, the demand for emulsifiers to enhance the quality and functionality of these products is expected to grow significantly. The emulsifiers industry is witnessing technological advancements and innovative solutions that further boost its growth. Manufacturers are developing new and improved emulsifiers that offer enhanced functionality, versatility, and cleaner label options. These advancements cater to the evolving needs of food producers and consumers, driving the adoption of emulsifiers in a wide range of food and beverage products.

Based on region, the baking ingredients market is segmented into North America, Europe, Asia Pacific, South America, the Middle East, and Africa. Europe is anticipated to capture the highest market share during the current period. Europe has a long-standing baking tradition deeply ingrained in its culinary culture. Countries like France, Italy, Germany, and the UK are renowned for their diverse and exquisite bakery products. The European market benefits from a strong heritage of baking, leading to a high demand for baking ingredients to create traditional and artisanal baked goods. Furthermore Bread is a staple in European diets, and the region has a high per capita consumption of bread and other bakery products. This demand for bread drives the need for essential baking ingredients like flour, yeast, and dough improvers. Europeans' preference for fresh, high-quality bread fuels the market for baking ingredients. As well, Europe attracts a significant number of culinary tourists who explore local cuisines and traditional baked goods. The region's reputation for high-quality ingredients and artisanal baking techniques enhances the demand for premium baking ingredients. Tourists often seek authentic experiences, encouraging the consumption of local products and driving the market for baking ingredients.

Bread, Cookies & Biscuits, Rolls & Pies, Cakes & Pastries, and Others (Waffles, Brownies, Crackers, Tarts, Croissants, Pancakes, Donuts, etc.) are all based on application types. At the global level, bread is the fastest-growing segment in the baking ingredients market. Bread is a staple food consumed by people in various cultures and regions around the world. It is a versatile and convenient food option that can be enjoyed as a standalone item or used as a base for sandwiches, toasts, and other dishes. The widespread consumption of bread drives the demand for baking ingredients used in its production. Bread appeals to a wide range of consumers, regardless of age, ethnicity, or dietary preferences. It is a common food item consumed by individuals of different backgrounds, making it a highly accessible and popular choice. The global appeal of bread contributes to the sustained growth of the segment and the subsequent demand for baking ingredients. Bread comes in various forms, flavours, and textures. There are different types of bread, such as white bread, whole wheat bread, multigrain bread, artisanal bread, and specialty breads. Each type offers unique characteristics and caters to different tastes and dietary preferences. This variety in bread products drives the need for different baking ingredients to achieve the desired attributes and meet consumer demands. Based on the form types segment, which includes the dry form and liquid form, at the global level, the dry form holds the highest market share due to Dry forms of baking ingredients have a longer shelf life compared to their liquid counterparts. This extended shelf life allows for easier storage, distribution, and availability of the products over a longer period of time. Consumers and manufacturers prefer dry ingredients as they can be stored for extended periods without compromising their quality, reducing the risk of spoilage or wastage. Furthermore, Dry baking ingredients are generally more cost-effective compared to their liquid counterparts. The dry form allows for efficient production, packaging, and transportation, leading to lower manufacturing and logistics costs. This cost-effectiveness benefits both producers and consumers, making dry ingredients a preferred choice in terms of affordability.

Recent development
• Cargill released SimPure 92260 soluble rice flour with the same taste, texture and functionality as maltodextrin, a commonly used ingredient in bulking agents and flavors In October 2021. This ingredient has the same quality as maltodextrin and can be used in a variety of applications, including baked goods.

• Cargill will open its first innovation centre in India in January 2021. The 18,000-square-foot innovation centre comprises a sensory laboratory and demonstration kitchen with features for the beverage, bread, dairy, and convenience food businesses.

Companies Covered in this report
The Archer-Daniels-Midland Company, Royal DSM N.V., Caldic B.V., Kerry Group plc, BASF SE, Lallemand Inc., Dohler Group SE, Corbion N.V., Associated British Foods plc, Ingredion Incorporated, Cargill, Incorporated, General Mills Inc, Novozymes A/S, AAK, Bunge Limited, Tate & Lyle PLC, Puratos Group, Lesaffre, Chr. Hansen Holding A/S and B&G Foods, Inc. 

Considered in this report

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Global Baking Ingredients market with its value and forecast along with its segments
• Region-wise Baking Ingredients market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report:

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

Products types:

• Baking powder and mixes
• Leavening agents
• Oils, fats, and shortenings
• Emulsifiers
• Enzymes
• Starch
• Fiber
• Preservatives
• Colors & flavors
• Sweeteners
• Others (Nuts and Seeds, Fruit and Vegetable Purees, Citrus Zest, Gelatine, Baking Enhancers, Specialty Flours, Decorative Ingredients, etc.)

By Application:
• Bread
• Cookies & Biscuits
• Rolls & Pies
• Cakes & Pastries
• Others (Waffles, Brownie, Crackers, Tart, Croissants, Pancakes, Donuts, etc.)
By Form:

• Dry
• Liquid

The approach of the report
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Artificial Lawn industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.

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