Bakery ingredients are the building blocks of finished bakery foods such as bread, cookies & biscuits, rolls and pies, cakes and pastries, and others. An increase in the trend of healthy eating and a rise in preference for convenience food are the primary factors boosting the market's growth. Prominent players and large corporates are developing their products to follow consumer trends and expand the company's growth to occupy a significant market share. Bakery ingredients are food elements that help baked goods keep freshness, softness, and flavor, extend shelf life, and boost protein content. These products are present in different flavors and are often regarded as the most fundamental food for human nourishment.
Due to rising health concerns, increased customer preference for gluten-free bakery products such as cakes, pastries, bread, and muffins, drives the market growth. Furthermore, the availability of healthy alternatives with low-calorie, fat-free, and cholesterol-free products is expected to drive market growth. Moreover, a surge in demand for wheat-based and whole-grain bread, high in fiber and protein, contributes to the market's expansion.
The quality of baked goods is affected by pH, water activity, and moisture content, leading to deterioration and contamination and reducing shelf life. However, manufacturers in the market focus on increasing product shelf life by using preservatives like sorbates and benzoates, which can inhibit yeast growth. Furthermore, adequate packaging extends the shelf life of baked goods, which is expected to boost the market's profitability. Again, new technologies such as long fermentation, new refrigeration technologies, and modern baking concepts have all aided in the improvement of bakery product quality.
The novel coronavirus outbreak has had a positive impact on the growth of the bakery ingredients market. According to the American Bakers Association, the baking sector in the United States employs nearly 800,000 skilled workers, generates over USD 44 billion in direct wages, and has a total economic impact of over USD 153 billion.
As per the International Food Information Council's annual Food & Health Survey, more than four out of five consumers say the coronavirus pandemic has changed their food habits, causing them to cook, eat, shop, and think about food differently according to the International Food Information Council's annual Food & Health Survey. As a result of the pandemic, many people said they were eating healthier and protein-based foods. All of these factors boosted sales of protein-based and natural ingredients products during the pandemic, which is expected to continue over the forecast period.
Europe dominates the regional market and is estimated to reach an expected USD 8,620 million by 2030 at a CAGR of 5.3%. Most people prefer such food over time-consuming meals in this region due to their hectic lifestyle. Additionally, increased product diversification in the baked food category and the generation of different packaging materials are expected to boost demand for bakery ingredients. Furthermore, baked food products that are healthy, quick, and nutritious are considered staple foods in Europe because they contain a sufficient proportion of energy-rich materials, boosting the market growth.
North America is the second-highest revenue contributor in the market. It is estimated to reach an expected value of USD 6,370 million by 2030 at a CAGR of 5.5%. Sales of bakery ingredients are increasing as demand for ready-to-eat and suitable products grows. Furthermore, rising obesity rates in countries like Canada and the United States have compelled bakers to develop low-trans fat and organic baked goods. Moreover, consumers gravitate toward less processed, protein-rich bakery products with fewer additives and preservatives. As a result, these factors combine to drive bakery ingredient sales in this region.