South America Baking Ingredients Market Outlook, 2028

South America Baking Ingredients Market Outlook, 2028

The baking ingredients industry in South America is a vibrant and rapidly evolving sector, catering to the diverse culinary traditions and preferences of the continent. With a rich gastronomic heritage and a strong appreciation for baked goods, South America presents a promising market for baking ingredient manufacturers and suppliers. The region encompasses countries such as Brazil, Argentina, Colombia, Peru, and Chile, each with its own unique baking traditions and cultural influences. From traditional pastries and breads to modern cake creations, South American consumers have a deep-rooted love for baked goods that is deeply ingrained in their daily lives and social gatherings. The South American baking ingredients industry is driven by factors such as increasing urbanization, changing lifestyles, rising disposable incomes, and the growing influence of international cuisine. As consumers seek convenience and quality in their baked goods, the demand for a wide range of baking ingredients such as flours, sugars, flavourings, yeast, and fats is on the rise. Additionally, the region's growing tourism industry and the popularity of traditional South American baked goods among tourists have further contributed to the growth of the baking ingredient market. With a combination of traditional recipes and a willingness to explore new flavours and trends, the South American baking ingredients industry is poised for expansion, offering ample opportunities for innovation, product diversification, and market growth. Consumer demand for convenience meals is changing in response to changing consumer expectations. The rising demand for bread, cookies, fruit, and organically flavoured cakes incorporating whole grain, rich in fibre, gluten-free, or healthy and fortified bread is the key driver of baking ingredient segment growth in South American countries. Because of the increased adoption of the healthy living idea, such items are becoming increasingly popular with customers.

According to the research report South America Baking Ingredients Market Outlook, 2028, published by Bonafide Research, the South America Baking Ingredients market is expected to grow at 785 Million by 2023–28. South American consumers' love for baked goods and the increasing demand for convenient baking ingredients drive the market. Consumers seek high-quality ingredients to create delicious and visually appealing baked goods at home or in commercial settings. The region's improving economic conditions and rising disposable incomes allow consumers to indulge in bakery products and experiment with baking at home. This drives the demand for baking ingredients, as consumers are willing to invest in premium and specialty ingredients for their baking endeavours. South America has a rich culinary heritage with diverse baking traditions. Traditional recipes and techniques are valued and cherished, leading to a consistent demand for specific baking ingredients used in local favourites such as empanadas, pastel de Choco, pan de yucca, and alfajores. This preserves the market for traditional baking ingredients. Consumers in South America are showing a growing appreciation for artisanal and specialty baked goods. This trend creates opportunities for baking ingredient manufacturers to develop and offer high-quality, premium ingredients that cater to the unique needs of artisanal bakeries and specialty bakeries. The health and wellness trend is gaining momentum in South America, leading to an increased demand for healthier baking ingredients. Consumers are seeking options such as whole-grain flours, natural sweeteners, and reduced-sodium ingredients. Manufacturers can capitalise on this trend by developing and marketing healthier alternatives to traditional baking ingredients. South America has a rich culinary heritage, and its unique baking traditions are attracting global attention. This presents an opportunity for baking ingredient manufacturers to export their products to international markets, introducing South American flavours and ingredients to a wider audience.

Governments in South America enforce strict food safety regulations to ensure the quality and safety of baking ingredients. These regulations include guidelines on ingredient labelling, product testing, and manufacturing practises to protect consumer health and maintain industry standards. Some governments in South America promote local agriculture by supporting farmers and encouraging the production of high-quality baking ingredients. This can involve providing financial incentives, offering agricultural training programmes, and implementing policies that prioritise the use of domestically sourced ingredients. Governments recognise the potential of the baking ingredient industry for international trade and actively support the export of locally produced ingredients. This can involve trade agreements, export subsidies, and participation in international trade fairs and exhibitions to showcase South American baking ingredients to global buyers. Governments often provide funding and support for research and development in the baking ingredient sector. This can include grants, subsidies, and partnerships with academic institutions to promote innovation, enhance product quality, and foster technological advancements in the industry. South American governments are increasingly emphasising sustainability in various industries, including baking ingredients. They may introduce regulations or incentives to encourage the use of sustainable sourcing practises, waste reduction, and environmentally friendly packaging within the baking ingredient industry.

The bread industry has been rapidly developing in recent years. Population growth, rising urbanisation, and changing consumer preferences and lifestyles are influencing the bakery industry in a number of nations. Because of people's hectic lifestyles, the demand for convenience food is expanding at an exponential rate. To save time and effort, people choose fast or ready-to-eat meals. Bread and baked goods are basic foods in many nations. Furthermore, the industry employs about 800,000 qualified workers, resulting in several job prospects. Consumer expenditure on bakery items is propelling the bakery sector throughout the area. In addition, the middle-class population, rising purchasing power, a growing preference for comfort food, and the availability of a wide range of bakery products at affordable prices across various retail channels are all contributing to the region's bakery industry's rapid expansion across developed and developing economies. Bakery products are favoured by customers due to their deliciousness, affordability, and convenience. Doughnuts, cakes, bread, and muffins are now common foods in many people's diets. Flour, sweeteners, livening agents, emulsifiers and shortening, enzymes, flavours and colours, and other baking ingredients are all more in demand as a result. As a result, the overall expansion of the baking ingredients market in South America is significantly aided by rising bakery product consumption.

Based on the product types (baking powder and mixes, Leavening agents, Oils, fats, and shortenings, Emulsifiers, Enzymes, Starch, Fibre, Preservatives, Colours and flavours, sweeteners, and others), in South America, Baking powder and mixes hold the highest market share due to Baking has gained popularity as a hobby and a way to express creativity in South America. More people are showing interest in baking their own goods, whether it's bread, cakes, cookies, or pastries. This increased interest has led to a higher demand for baking powder. South America has a rich culinary heritage with traditional baked goods that are integral to cultural celebrations and holidays. These traditions contribute to the sustained demand for baking ingredients throughout the year as people continue to bake traditional recipes passed down through generations. The form types segment includes dry and liquid forms. In the South American market, the dry form market share is high. Due to their dry form, baking ingredients have a longer shelf life compared to their liquid counterparts. They can be stored for extended periods without spoiling or losing their effectiveness. This convenience is particularly appealing to consumers who prefer to keep baking ingredients readily available in their pantry for occasional or spontaneous baking. Furthermore, dry ingredients, such as flour, baking powder, baking soda, and spices, are easier to measure accurately compared to liquids. This precise measurement ensures consistent results in baking. Additionally, dry ingredients can be easily stored and measured in bulk, which is beneficial for frequent bakers or commercial baking operations.

Based on the application types, which include bread, cookies and biscuits, rolls and pies, cakes and pastries, and others (Waffles, brownies, Crackers, tarts, Croissants, Pancakes, Donuts, etc.), in South America, bread has the highest market share. The popularity of artisanal bread and homemade baking has been growing in South America. Many consumers appreciate the quality and unique flavours offered by locally baked bread. This trend has led to an increased demand for baking ingredients as more individuals experiment with bread-making at home or support local bakeries. Based on the report, the region covers Brazil, Argentina, and Colombia. Among all three countries, Brazil has the highest market share due to having the largest population in South America, which translates into a significant consumer base for baking ingredients. The large market size provides opportunities for manufacturers and suppliers to cater to a vast number of consumers, driving growth in the industry. As well, Brazil has one of the largest economies in the region and a strong domestic market. The country's economic strength has led to increased consumer purchasing power and disposable income, enabling individuals to invest in baking ingredients for home baking or to support the growing bakery and confectionery industries.

Companies Cover in this reports
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.

Recent News
• In August 2021, Archer Daniels Midland Company and Coribon launched a new variety of bakery premixes across Brazil and Argentina to meet the demand for bakery products with unique textures and tastes to cater to changing consumer demands and preferences of domestic consumers offering customized taste preferences.

• In June 2021, IFF, a leading food ingredient supplier, unveiled a new, innovative bakery solution aimed at helping South American bakers produce clean label bread and pastries. Known as GRINDSTED, the new solution is a blend of soy lecithin, enzymes, and natural soluble fiber and is an alternative to the dough straighteners currently used in bread formulations.

• In August 2021, Archer Daniels Midland Company and Coribon launched a new variety of bakery premixes across Brazil and Argentina to meet the demand for bakery products with unique textures and tastes to cater to changing consumer demands and preferences of domestic consumers offering customized taste preferences.

Considered in this report

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

Aspects covered in this report

• South America 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

Countries covered in the report:

• Brazil
• Argentina
• Colombia

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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