Bakery Ingredients Market Size, Share & Trends Analysis Report By Application (Bread, Cookies and Biscuits, Rolls and Pies, Cakes and Pastries), By Type (Enzymes, Starch, Fiber, Colors, Flavors, Emulsifier, Antimicrobials, Fats, Dry baking mix, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global bakery ingredients market size was worth USD 15,235 million in 2021 and is projected to reach USD 25,305 million by 2030, growing at a CAGR of 5.8% during the forecast period (2022–2030).

Bakery ingredients are the essential components of baked goods, including bread, cookies and biscuits, rolls and pies, cakes and pastries, etc. The factors driving the market are increased healthy eating and a rise in the inclination for convenience foods. Leading players and giant corporations develop products to keep up with consumer trends and improve company growth to capture a larger 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 many flavors and are often regarded as the most fundamental food for human nourishment. The key drivers driving the market's growth are increased healthy eating and a rise in the inclination for convenience foods. Leading players and giant corporations develop products to keep up with consumer trends and improve company growth to capture a larger market share.

Market Dynamics

Global Bakery Ingredients Market Drivers

• Consumer Preference for Healthier Bakery Products

An increase in customers' preference toward gluten-free bakery products such as cakes, pastries, bread, and muffins, owing to a rise in health cautiousness, drives the market's growth. Furthermore, the availability of healthy options with low-calorie, fat-free, and cholesterol-free goods is likely to drive market expansion. Moreover, the surge in demand for bread with wheat base and whole grains, which are rich in fiber and proteins, supplement the market's growth.

• Change in Culture and Lifestyle of the Emerging Asian Market

Changes in lifestyle trends in Asia-Pacific countries like India and China, which account for more than 37% of the global population, boost demand for high-quality goods and comfortable living. As a result, the need for convenience foods rises, propelling the market forward. Furthermore, the growing number of supermarkets, hypermarkets, and bakeries fuels the demand for bread goods. Again, rapid economic growth and people's hectic schedules push them to use high-quality, healthy bakery items, which helps the industry flourish.

• Increasing Adoption of Baking as a Relaxation Practice

Baking could be pretty tranquil, which aids in unwinding and lowering stress. Activities like kneading bread have been shown to reduce anxiety and help people manage and prevent depression. Other advantages of baking, particularly for older adults, including helping to control appetite, fostering creativity, and enhancing memory and recall. Many people lose their appetite for certain foods as they become older. Because baking appeals to the senses, it can be a helpful tool for encouraging elders to try new foods and value their nutrition more.

Global Bakery Ingredients Market Restraints

• Availability of Healthier Substitutes

The rise in consumers' preference toward cereals such as wheat, oat, and barley, which are high in proteins, fiber, minerals, vitamins, and carbohydrates, over baked products such as bread, cookies, and rolls is expected to hamper the growth of the bakery ingredients market. Although various healthy bakery products are available, cereal grains are considered the ideal energy source and help combat multiple diseases such as cancer, blood sugar levels, constipation, and others. Thus, the availability of healthier substitutes hampers the growth of the market.

Global Bakery Ingredients Market Opportunities

• Emphasis on Improving Quality, Shelf Life, and Lessen Production Costs

Factors such as pH, water activity, and moisture content affect the quality of baked products, leading to deterioration and contamination, which affect the shelf life. However, manufacturers in the market focus on improving the shelf life of products by using preservatives such as sorbates and benzoates, which can inhibit yeasts. Moreover, adequate packaging helps preserve the shelf life of baked products, which is expected to provide lucrative opportunities for the market. Furthermore, innovative technologies such as long fermentation, new refrigeration technologies, and modern baking concepts have helped improve the quality of bakery products.

Regional Analysis

The Dominance of Europe Over Others

By region, the global bakery ingredients market share is divided into North America, Europe, Asia-Pacific, and LAMEA.

Europe is the most dominant region in the market. It is estimated to reach USD 8,620 million by 2030 at a CAGR of 5.3%. Most people in this region prefer ready-to-eat food over time-consuming meals due to their hectic lifestyle. Furthermore, increased product diversification in baked food and the development of new packaging materials are expected to propel the demand for bakery ingredients.

In addition, healthy, instant, and nutritious baked food products are considered a staple food in Europe, as they consist sufficient proportion of energy-rich materials, thus, augmenting the market growth. Furthermore, if the tourism sector in this region grows, roadside stores will be able to sell bakery products, which are easy to sell and transport and have minimal selling and storage costs. As a result, these reasons boost the bakery ingredients industry in this region.

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%. The rise in demand for ready-to-eat and suitable products is boosting the sales of bakery ingredients. Moreover, in countries such as Canada and the US, the increase in obesity has compelled manufacturers to develop low-trans fat and organic baked products. In addition, consumers are shifting their preference toward minimally processed, protein-rich bakery products with lesser additives and preservatives. Thus, all these factors together drive the sales of bakery ingredients in this region.

The growth of the North American bakery ingredients market is driven by an increase in demand for bakery products, owing to the rise in health consciousness among consumers. Moreover, an upsurge in the prevalence of diseases caused by artificial ingredients has encouraged people to opt for natural ingredients, boosting the market's growth in North America. North America is a vast market with high penetration of food colorants, flavors, and dry baking mixing. The demand for natural products has seen a steep increase over the years, owing to changes in consumer preference toward food with natural ingredients.

A sizeable market share is predicted for Asia-Pacific. Massive changes in lifestyle brought about by urbanization have affected consumers' spending habits in the region. Additionally, the rise in the number of working customers who lead fast-paced lives has increased the demand for packaged and convenient goods. Although the items in the Asia-Pacific area have a shorter shelf life, they may be prepared swiftly to meet the rising demand. The region's expansion is also being aided by the region's rising disposable income and consumers' preference for vegan cuisine.

Segmental Analysis

The global bakery ingredients market share is divided by type, application, and region.

Based on type, the global bakery ingredients market is divided into enzymes, starch, fiber, colors, flavors, emulsifiers, antimicrobials, fats, dry baking mix, and others. The dry baking mix category dominated the global market, accounting for around 19% of total revenue. With a CAGR of 6.1%, it is predicted to reach a value of USD 4,355 million by 2030.

Dry baking mixes are available in granular, powder, flake, and crystal forms, depending upon the use of mixes in the food industry. They are used for garnishing food, which makes the food more appetizing. They offer diversified health benefits such as aid in improving digestion, promoting weight loss, boosting metabolism, and lowering blood pressure. The rising use of ready-to-eat food products and expansion of quick-service restaurants (QSRs), owing to the fast-moving life of consumers in the developed and developing countries, has bolstered the demand for dry baking mixes in developing as well as developed regions. Moreover, increased consumer expenditure on experimenting with various flavors, textures, and cuisine resulted in a rise in demand for dry baking mixes.

In addition, the availability of dry baking mixes in online sales channels and modern trade like supermarkets, hypermarkets, and others have propelled the bakery ingredients market growth. Due to rising health concerns, consumers' preference for gluten-free bakery products such as cakes, pastries, bread, and muffins drives the baking mix and enzyme market expansion. The enzyme category is expected to develop at the fastest CAGR during the projection period since enzymes are an excellent replacement for potassium bromate, banned in the European Union, Canada, Brazil, Argentina, Peru, India, China, and South Korea, and Sri Lanka.

Furthermore, due to changes in eating patterns and a busy lifestyle, there has been an inclination for quickly available on-the-go food products. For example, the availability of numerous instant premix powders to make desserts at home quickly and easily without much work contributes significantly to the worldwide market's growth. Furthermore, rising population, urbanization, and the advent of healthy bakery alternatives at competitive prices contribute to increased demand for baking mix and enzyme goods.

In 2022, the fiber market category significantly grew its revenue share in the bread ingredients market. The primary sources of fiber used in baking include whole grains and how they are employed in crackers, bread, muffins, and bread products. Cereal fiber is a type of fiber found in cereal grains.

In terms of application, the global bakery ingredients market is divided into bread, cookies and biscuits, rolls and pies, cakes and pastries. The bread application segment dominated the market. It is estimated to reach an expected value of USD 15,335 million by 2030 at a CAGR of 5.5%. Bread is a vital staple baked food item globally, especially in the west, and plays an indispensable role in religious rites and secular culture.

Over the years, bread was perceived as a regular breakfast food. However, currently, it is consumed as artisan confectionery. Bread demand in the food business is boosted by rising disposable income, increased urbanization, and shifting customer preferences. Although white bread dominates the market, brown and other nutritional bread have grown popular among health-conscious consumers.

The second slowest market is cookies and biscuits. Snacks such as cookies and biscuits are becoming increasingly popular, particularly among the youth. Cookie and biscuit demand is fueled by ongoing product improvements that improve the food item's taste, texture, and health advantages. To appeal to consumers, manufacturers are focused on introducing novel flavors and innovative packaging. Moreover, cookies and biscuits serve as a common choice for gifting and other confectionery items such as chocolates. In addition, low-calorie cookies and biscuits are gaining high popularity among health-conscious consumers, fueling the bakery ingredients market.

Impact of covid-19

The outbreak of the novel coronavirus has positively affected the growth of the bakery ingredients market. According to the American Bakers Association, in the US, the baking industry employs almost 800,000 skilled individuals, generates over USD 44 billion in direct wages, and has an overall economic impact of over USD 153 billion.

According to the Annual Food & Health Survey from the International Food Information Council, more than four out of five consumers say that the coronavirus pandemic has changed their food habits, driving them to cook, eat, shop, and think about food differently. A higher proportion of people said they were eating healthier and protein-based food products than they usually do due to the pandemic. All these factors have dramatically increased the sales of protein-based and natural ingredients products during the pandemic, and it is expected to follow over the forecast period.

Recent Developments

• In August 2022, ADM collaborated with New Culture, a pioneering dairy business that uses no animals. The companies' goal in this agreement was to make it easier to produce and market alternative dairy products. The collaboration underscored both businesses' dedication to serving as examples of a more sustainable food future. By leveraging New Culture's advancement in new ingredients and non-dairy products, the relationship allowed for the co-development of products.
• In August 2022, Benson Hill, a food technology business that unlocks the genetic variety of plants, and ADM partnered to do so. As a result of their collaboration, the businesses concentrated on developing new soy-based products to meet the fast-rising need for plant-based proteins.
• In June 2022, Bakels will add new chocolate options to its premium assortment.
• In November 2022, Cargill declared the acquisition of Owensboro Grain Company.