Bakery Ingredients Market

Market Study on Bakery Ingredients: Highest Demand Enjoyed by Color & Flavor Baking Products

Bakery Ingredients Market Segmented By Enzymes, Emulsifiers, Flavors, Colors, Leavening agents, Oils and fats type for application such as Bread, Cakes & pastries, Biscuits & cookies, Savory baked products (rolls, puffs, and pies)

Bakery Ingredients Market Outlook (2022-2032)

During the forecast period of 2022-2032, the global bakery ingredients market is anticipated to expand at a CAGR of 6.4%, which will push its current valuation of US$ 9.76 Bn up to US$ 18.14 Bn by the year 2032.

Bakery Ingredients Market Size (2022E)

US$ 9.76 Bn

Projected Sales of Bakery Ingredients (2032F)

US$ 18.14 Bn

Value CAGR (2022-2032)

6.4%

Value Share of Top 5 Countries (2021A)

49.2%

Worldwide consumption of bakery ingredients accounts for around 15% to 20% value share of the global food ingredient market.

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Companies

  • PURATOS
  • Cargill, Incorporated
  • Siegel Egg Co.
  • Bakels Worldwide
  • Glanbia plc
  • Koninklijke DSM N.V.
  • Corbion N.V.
  • Efco Products, Inc.
  • KANEKA Corporation
  • IREKS GmbH
  • Kerry Group Plc
  • Lallemand, Inc.
  • Martin Braun KG
  • Novozymes
  • Others

Consumption Analysis of Bakery Ingredients (2017-2021) Vs Market Estimations (2022-2032)

During the historical period (2017-2021), bakery ingredient sales registered a compounded annual value-based growth rate (CAGR) of 4.7%. Demand for bakery ingredients is rising as they offer various taste, texture, and other sensorial perceptions, making them a vital component in bakery products.

Bakery ingredients are used for manufacturing various bakery products such as bread, cakes & pastries, cookies & biscuits, and others. Steady rise in the consumption of bakery products in various flavors and varieties has made producers utilize advanced bakery ingredients and state-of-the-art manufacturing techniques to deliver high-quality bakery solutions.

Factors such as busy lifestyle and changes in dietary patterns have resulted in a rise in the use of bakery requirements, which offers huge opportunities for manufacturers of bakery ingredients and products. Prominent market players are expected to continue expanding their production capabilities with the incorporation of modern technologies.

All in all, the worldwide bakery ingredients market is expected to see significant growth and register a CAGR of 6.4% over the next ten years.

bakery-ingredients-market

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What Factors are Triggering Demand for Bakery Ingredients?

“Increased Consumption of Convenience Food Driving Bakery Ingredient Sales”

Demand for convenience food has been gradually increasing as customers' living standards have increased and their lifestyle patterns are becoming busier. Bakery products, desserts and fast food products have all seen a surge in demand as a result of this increased convenience meal need.

Growth in demand for convenience food can be observed more in the United States, China, South Africa, and some other nations as per capita food expenditure gradually rises in tandem with per capita income. A major aspect of convenience foods is the food ingredients that go into them to provide the necessary organoleptic properties required, as well as to facilitate a longer-than-average shelf life so as to appeal more to consumers.

  • Growth in demand for bakery and confectionery food directly correlates to increased demand for bakery enzymes, bakery flavors, baking colors, and specialty baking ingredients.
  • Increase in demand for other types of bakery ingredients such as natural and synthetic gums and starches can be attributed to increased demand for healthy convenience foods such as protein bars and different kinds of nutrition bars.

“Rising Worldwide Per Capita Consumption of Baking Products”

Bakery products and bread consumption has been steadily increasing around the world. Europe is among the dominating markets for bakery products due to rise in per capita consumption in the U.K., Germany, France, Italy, the Netherlands, and Spain. Around 65% of the flour processed in the U.K. is used for the manufacturing of bread products, with the remaining 35% used in a large variety of food products.

Also, the confluence of factors such as increasing disposable income, rise in urbanization, and popularity of the Western lifestyle has been contributing to the growth in the sales of baking kits with ingredients and shortening ingredients for baking in developing regions, such as Asian countries.

  • According to the Federation of Bakers Ltd, in the U.K., bread was among the most popular item purchased in 2017/18 with more than 99% of households buying them.

“Healthy Bakery Ingredients Used as Alternative for Traditional Bakery Ingredients”

Consumers have become more conscious regarding food safety, the ingredients present in their food, and the required daily allowance. Consumers across the world are becoming health conscious and are gradually turning toward bakery products that contain no or less sugar, are gluten-free, are free from chemicals, etc.

Manufacturers are continuously innovating new products and flavoring in baking products and baking improvisers targeting the health and wellness of consumers.

  • For instance, EFCO Products, Inc., while tapping into the current market trend for less sugar in baked goods, is using an alternative to high fructose corn syrup in its bakery ingredient products. Consumers in Singapore are turning toward reduced sugar chocolate confectionery and dark chocolate due to their antioxidant properties.

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What’s Stunting Market Growth Potential of Baking Ingredients?

“Highly Fragmented Market for Bakery Ingredient Solutions”

In recent years, many medium-sized and large businesses have emerged into the bakery ingredients market, globally. Additionally, small bakeries, artisanal bakeries, and home-based bakeries exist in the market. In urban areas, large and international outlets are becoming more popular, while in rural areas, domestic and local bakeries are preferred.

This highly fragmented and highly disproportionate behavior in the market is likely to restrain the growth of the Southeast Asia bakery ingredients market.

  • In the European and North American markets, many acquisitions and mergers in the bakery sector have helped the industry prosper. For example, the acquisition of Au Bon Pain and Dunkin’ Donuts franchise by Sub Sri Thai Plc.

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Country-wise Insights

Which Countries are Showing High Growth Potential in the European Market?

Poland, Italy, and Russia are markets leading the European region for high-quality baking ingredients, and are expected to surge at CAGRs of 7.6%, 6.7%, and 6.3%, respectively, over the forecast period (2022-2032).

Demand for baking ingredients is high in the European market due to the growth of traditional trade and modern trade, which is likely to have a positive impact on bakery food flavor market growth throughout the decade.

How is the Canada Bakery Ingredients Market Shaping Up?

In the North American market, Canada is showing promising growth for the forecast period and is expected to register a significant CAGR of 6.2%.

Demand for baking tools and ingredients is high here due to continuously rising consumption of bakery products such as bread, rolls, cakes, and others. Market share of Canada in the North America bakery ingredients market is around 31%, which is currently valued at US$ 811.7 Mn in 2022.

Category-wise Insights

Which Product Type of Bakery Ingredients Holds the Largest Volume Share?

Based on product type, bakery ingredients are segmented into enzymes, emulsifiers, colors & flavors, yeast, and fats & oils, out of which, fats & oils are the most-utilized bakery ingredients.

Market volume share of fats & oils in bakery ingredients is 58.9% in 2022, and the segment is projected to be valued at 4,520,561 MT by the end of the forecast period in the global market.

Which Application of Bakery Ingredients is Hugely Popular?

Based on application, bakery ingredients are segmented into bread, cakes & pastries, cookies & biscuits, and others, among which, bread holds a major value share in the global market at around 43.6% in 2022.

High consumption of bread across the world allows the segment to hold a leading market share as far as bakery ingredient usage is concerned, with the segment currently valued at around US$ 4.25 Bn.

Impact of COVID-19

Consumers are motivated on protecting their health in the wake of COVID-19, which is expected to raise the sales of nutritional foods across the world. In the present scenario, immunity is a major concern in order to fight new COVID-19 strains, besides maintaining cleanliness and following all medical recommendations.

The World Health Organization (WHO) recommends that the global population should add immunity-boosting food into their diets to tackle the COVID-19 pandemic, and this has triggered customers to buy immunity-boosting supplements, which has increased the sales of healthy bakery ingredients.

Competitive Dashboard

Major manufacturers of bakery ingredients are involved in catering to tailored solutions according to end-user requirements to help them enhance the creativity, texture, and cost-effeteness of their bakery products. Moreover, prominent companies are acquiring other competitive companies in order to reduce competition and increase their global presence.

  • In December 2019, Bakels India successfully acquired Buhler Group’s flour ingredient business. This acquisition will strengthen Bakels position in China and help it develop and produce flour ingredients and solutions.
  • AAK AB focuses on the increasing demand for value-added and efficient baking solutions. The company will strengthen its position as a fats and oils specialist with its deep technical understanding.
  • AGRANA Beteiligungs-AG provides innovative solutions to ice cream, dairy, bakery, and foodservice companies. The company provides customized fruit, brown flavor, and savory preparations, along with fruit specialties and inclusion preparations.
  • Archer Daniels Midland Company signed an agreement to acquire 75% stake in The Pound Bakery for US$ 600 Mn. This acquisition will help The Pound Bakery to elevate its product offerings and services to customers across the world and support its growth in manufacturing and developing best-in-class pet products.
  • In May 2019, AB Mauri Italy successfully acquired Italmill S.p.A., a pioneer player in the Italian bakery ingredients sector. This acquisition helped the company benefit from Italmill's long history of tradition and innovation in sourdough, flour mixes, frozen technologies, and pizza and pastry mixes.

Bakery Ingredients Industry Report Scope

Attribute

Details

Forecast period

2022-2032

Historical data available for

2017-2021

Market analysis

US$ Million for Value

Key regions covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia and Pacific
  • The Middle East & Africa

Key countries covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

Key market segments covered

  • Product Type
  • Application
  • Distribution Channel
  • Region

Key companies profiled

  • Puratos
  • Cargill, Incorporated
  • Siegel Egg Co.
  • Bakels Worldwide
  • Glanbia plc
  • Koninklijke DSM N.V.
  • Corbion N.V.
  • Efco Products, Inc.
  • KANEKA Corporation
  • IREKS GmbH
  • Kerry Group Plc
  • Lallemand, Inc.
  • Martin Braun KG
  • Novozymes
  • Others

Report coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & pricing

Available upon request

Categorization of Bakery Ingredients Industry Research

Bakery Ingredients Market by Product Type:

  • Enzymes
  • Emulsifiers
  • Colors & Flavors
  • Yeast
  • Fats & Oils

Bakery Ingredients Market by Application:

  • Bread
  • Cakes and Pastries
  • Cookies & Biscuits
  • Others

Bakery Ingredients Market by Distribution Channel:

  • Traditional Trade
  • Modern Trade
  • Industrial
  • Foodservice (HoReCa)

Bakery Ingredients Market by Region:

  • North America Bakery Ingredients Market
  • Latin America Bakery Ingredients Market
  • Europe Bakery Ingredients Market
  • East Asia Bakery Ingredients Market
  • South Asia and Pacific Bakery Ingredients Market
  • Middle East and Africa Bakery Ingredients Market

Media Release

- FAQs -

The global bakery ingredients market is currently valued at over US$ 9.76 Bn.

Sales of bakery ingredients are increasing due to rise in demand for convenience foods, especially in developing economies.

From 2016 to 2020, demand for bakery ingredients increased at a CAGR of 4.7%.

Sales of baking ingredient solutions are projected to increase at 6.4% CAGR and reach a valuation of US$ 18.14 Bn by 2031.

Puratos, Koninklijike DSM N.V., Kerry Group, Glambia PLC, and Corbion N.V. are the top 5 bakery ingredient suppliers.

The U.S, China, Canada, Germany, and France account for the highest sales of baking ingredients.

The main country in Europe with maximum share is Germany, followed by France and the U.K.

The China bakery ingredients market is anticipated to reach US$ 2.42 Bn by 2032, the market in Brazil set to reach US$ 942.8 Mn.

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