Baking Ingredients Market Analysis and Global Forecast 2023-2033

Baking Ingredients Market Overview

The Baking Ingredients Market Size is expected to reach USD 24.85 Billion by 2033. The Baking Ingredients industry size accounted for USD 17.87 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 6.01% from 2023 to 2033. The baking ingredients market encompasses a variety of essential components crucial for baking, including flour, sugar, shortenings, leavening agents, eggs, water, salt, milk, and milk derivatives. These ingredients serve distinct functions in baking, such as providing structure, tenderness, moisture, and flavor enhancement to bakery products. With the global exposure to diverse bakery products, the demand for baking ingredients has increased significantly, offering benefits like cost reduction, volume enhancement, and improved texture and flavor. Enzymes, for instance, are highly valued for enhancing protein solubility and reducing bitterness in baked goods, highlighting the importance of each ingredient in achieving successful baking outcomes.

Global Baking Ingredients Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic has caused supply chain hiccups, which have decreased demand or created shortages in the market for baking ingredients. Spending by consumers and businesses has decreased significantly as a result of the travel restrictions and social distancing measures, and this trend is expected to persist for some time. The epidemic has altered end-user trends and tastes, leading manufacturers, developers, and service providers to implement several measures in an attempt to stabilize their businesses.

Baking Ingredients Market Dynamics

The major factors that have impacted the growth of Baking Ingredients are as follows:

Drivers:

Ø  Technological Advancements

Advances in food technology and processing techniques have enabled manufacturers to develop new and improved baking ingredients with enhanced functionality and performance. This includes ingredients with improved shelf life, texture, flavor, and nutritional profiles.

Restraint:

• Changing Consumer Preferences and Trends

Consumer preferences and trends are constantly evolving, posing a challenge for baking ingredient manufacturers to stay ahead of the curve. Shifts in dietary preferences, flavor preferences, and lifestyle choices can impact the demand for certain ingredients and products, requiring companies to adapt quickly to changing market dynamics.

Opportunity:

⮚      Convenience and Time-Saving Solutions

With busy lifestyles and increasing demand for convenience, there is an opportunity for baking ingredient manufacturers to develop time-saving solutions for consumers. This includes pre-mixed baking mixes, frozen doughs, and ready-to-bake products that allow consumers to enjoy freshly baked goods with minimal effort. Manufacturers can also innovate in packaging formats and portion sizes to cater to on-the-go consumption and single-person households.

Baking Ingredients Segment Overview

By  Type

Based on Type, the market is segmented based on Emulsifiers, Enzymes, Starch, Fiber, Oils, fats, and shortenings, Baking powder and mixes, Preservatives, Colors & flavors, Leavening agents, Others. Baking powders and mixes made up approximately 27% of sales in terms of market share for the product sector in 2022. It is a major component of many baked goods around the world and a good source of carbs, vitamins, and proteins. Wheat baking powder has become more popular as a result of rising consumer awareness of organic products. This has decreased levels of cholesterol and saturated fat, which has raised market income for baking ingredients.

By End User

Based on End Users, the market has been divided into the Bread, Sweet Bakery. By 2023, the bread industry is expected to account for the majority of the demand for baking ingredients. The substantial market share of this category is influenced by factors such as increased bread consumption, growing demand for fast food, changing lifestyles, and growing customer desire for items with health claims including whole grain, organic, fortified, gluten-free, and wheat substitute.

Global Baking Ingredients Market Regional Analysis

Based on region, the global Baking Ingredients market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. Asia-Pacific is projected to dominate the use of the Baking Ingredients market followed by the North America and Europe regions.

Baking Ingredients Asia-Pacific Market

Asia-Pacific holds a dominant position in the Baking Ingredients Market. The market for baking ingredients in Asia-Pacific was valued at USD 6.6 billion in 2022 and is projected to rise at a substantial CAGR over the course of the study. This is a result of both the aging population in the area and the increasing number of ingredient manufacturers who supply emulsifiers, enzymes, baking powders, oils, and fats.

Baking Ingredients Europe Market

The Europe region has indeed emerged as the fastest-growing market for the Baking Ingredients industry. Due to the availability of Baking opportunities resulting from high-quality product production, an aging population, and an increase in the market for businesses producing bakery ingredients in tandem with the demand for various components and changing consumer tastes, Europe’s baking ingredients market holds the second-largest market share.

Competitive Landscape

The global Baking Ingredients market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as Type launches, and strategic alliances.

Prominent Players:

• Cargill
• Archer Daniels Midland Company
• IFF Plc
• KONINKLIJKE DSM N.V
• Kerry Group Plc
• AAK AB.
• Corbion
• IFF
• Dawn Food Products
• BRITISH BAKELS.

Key Development

In September 2022, Dawn Food Products announced a strategic partnership with a leading technology company to enhance its digital capabilities and streamline its supply chain. This move aimed to improve efficiency and agility in responding to customer demands while driving innovation in the baking ingredients market.

Scope of the Report

Global Baking Ingredients Market, by Type

• Emulsifiers
• Enzymes
• Starch
• Fiber
• Oils, fats, and shortenings
• Baking powder and mixes
• Preservatives
• Colors & flavors
• Leavening agents
• Others

 Global Baking Ingredients Market, by Application

• Bread
• Sweet Bakery

 Global Baking Ingredients Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $24.85 Billion
CAGR	6.01% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, Application
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Cargill, Archer Daniels Midland Company, IFF plc, KONINKLIJKE DSM N.V, Kerry Group plc, AAK AB., Corbion, IFF, Dawn Food Products, BRITISH BAKELS
Key Market Opportunities	• Growing frozen baked goods
Key Market Drivers	• Growing frozen baked goods

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Baking Ingredients market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Baking Ingredients market historical market size for the year 2021, and forecast from 2023 to 2033
• Baking Ingredients market share analysis at each Type level
• Competitor analysis with detailed insight into its Type segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including Type launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Baking Ingredients market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, Type offering, recent developments, SWOT analysis, and key strategies.