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The baking ingredients market size is forecast to increase by USD 6.55 billion at a CAGR of 6.5% between 2023 and 2028. The market in the food and beverage industry experiences significant growth due to the increasing demand for bakery items such as bread, cakes, rolls, tarts, and pies. Consumers' preferences are shifting towards organic and gluten-free options, driving market expansion. Furthermore, health concerns related to diabetes and obesity fuel the demand for healthier baking ingredients. Online retail stores also contribute to market growth by providing convenience and accessibility to consumers. This trend is expected to continue as the market adapts to changing consumer preferences and prioritizes health and wellness.
The market has experienced significant growth in recent years due to the increasing popularity of bakery goods and baked products in the food and beverage sector. This trend can be attributed to various factors, including the rise in lifestyle disorders, urbanization, and the growing preference for convenience foods among young people. Baking ingredients, such as baking soda, baking powder, cocoa powder, enzymes, and emulsifiers, play a crucial role in the production of various bakery items, including pastries, bread, cakes, rolls, tarts, pies, cookies, biscuits, and alternative snack products.
Furthermore, these ingredients not only enhance the taste and texture of the final product but also contribute to extending their shelf life. The increasing prevalence of lifestyle disorders, such as obesity and diabetes, has led to a growing demand for reduced-saturated fat and low-cholesterol baking ingredients. This trend is expected to continue as consumers become more health-conscious and seek out healthier alternatives to traditional baked goods. Urbanization and the rise of online retail stores have also contributed to the growth of the market. With more people living in urban areas and leading busy lifestyles, there is a growing demand for convenience foods, including baked goods that can be easily prepared and consumed at home or on the go.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The flour segment is estimated to witness significant growth during the forecast period. In the realm of baking, flour plays a pivotal role as a fundamental ingredient, contributing to the structure, texture, and taste of an array of baked goods. Primarily sourced from wheat, flour can also be derived from other grains such as corn, rice, oats, and soy for specific baking applications. The escalating consumption of baked items, including bread, cakes, pastries, and other bakery products, globally is a significant factor fueling the expansion of the flour market. These baked goods have become integral components of various diets and cultures, consequently increasing the demand for flour. Moreover, the revival of home baking and the burgeoning baking industry further amplify the need for flour.
Furthermore, flour is essential in the creation of a vast assortment of bakery goods, with key ingredients such as baking soda, baking powder, and cocoa powder playing crucial roles in the baking process. The prevalence of lifestyle disorders, particularly obesity and diabetes, has led to an increased focus on healthier baking alternatives, driving innovation and growth in the market.
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The flour segment was valued at USD 4.63 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 34% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The European market is projected to expand substantially over the upcoming years. This growth can be attributed to the shifting consumer preferences towards natural and functional baking ingredients in Europe. Moreover, the trend of customized baking products is gaining traction, driven by the introduction of diverse baking solutions offering unique flavors, textures, and tastes. Consumers in various European countries exhibit distinct preferences for baked goods. For instance, the UK and Russia have a high demand for rolls, cookies, snack bars, and muffins. In contrast, Spain, Turkey, and France exhibit a stronger inclination towards artisanal products. Functional ingredients, such as oats, fortified flour, millets, and prebiotics, are increasingly being adopted to cater to these diverse consumer preferences. Urbanization and the rise of packaged foods have further fueled the demand for baking ingredients in Europe.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Growing demand for bakery items is the key driver of the market. The market in the US and globally is experiencing growth due to several key factors. The expanding urban population and changing consumer lifestyles have led to an increase in demand for convenient food options, including baked goods. Young people and working consumers are particularly drawn to on-the-go snacks and sweet bakery items such as pastries, cakes, and other baked treats. Moreover, the adoption of Western culture in emerging economies, particularly in Central and South America and Asia Pacific, is driving growth in the market. In countries like India, rising disposable income, a growing working population, and increasing purchasing power are fueling the popularity of bakery products.
Furthermore, baking ingredients include various additives such as enzymes and emulsifiers that improve the texture, taste, and shelf life of baked goods. Baking powders and yeast are essential components of baking ingredients, used to leaven and ferment baked goods, respectively. These ingredients are crucial in ensuring the quality and consistency of baked goods. The increasing popularity of bakery products and the availability of innovative baking ingredients are expected to drive market growth.
Increasing demand for organic and gluten-free bakery products is the upcoming trend in the market. The bakery market in the United States is experiencing a shift towards healthier baking ingredients due to increasing consumer awareness and preferences. These ingredients include aluminum-free baking powder, gluten-free flour, and organic baking flour. The demand for such products is on the rise, particularly among health-conscious consumers, driving the need for specialized baking ingredients. Organic bakery items, while more expensive to produce due to the high cost of raw materials, are gaining popularity due to their perceived health benefits. These benefits include being free from synthetic pesticides, chemical additives, and genetically modified organisms (GMOs). As a result, the market for cookies, biscuits, alternative snack products, cakes, and pastries is witnessing a significant increase in demand for organic and gluten-free options.
Furthermore, saturated fat and cholesterol concerns continue to influence consumer choices in the bread segment as well. The market is expected to grow steadfastly to meet the increasing demand for these healthier options. Organic baking ingredients offer a healthier alternative to traditional baking ingredients, making them a preferred choice for many consumers. The organic baking products industry is poised for steady growth, with key players focusing on innovation and product development to cater to this growing demand. Keywords: baking ingredients, cookies, biscuits, alternative snack products, saturated fat, cholesterol, bread segment, cakes and pastries, organic, gluten-free, healthier options.
Growing health concerns about diabetes and obesity is a key challenge affecting the market growth. The consumption of baking ingredients, including those used in the production of bread, cakes, rolls, tarts, and pies, has become a significant concern in the food and beverage industry due to their potential health implications. According to the World Health Organization, obesity rates have been on the rise globally, with over 650 million adults currently classified as obese. This trend is expected to continue, with up to 1 billion adults projected to be obese by 2025. The increased consumption of baking ingredients, particularly those high in sugar and trans fats, is a contributing factor to this concerning trend. For instance, excessive sugar intake can lead to obesity and diabetes.
Furthermore, many consumers have opted to limit their consumption of bakery foods, such as sweet bread, to avoid the intake of unhealthy fats. Online retail stores have emerged as a popular platform for purchasing baking ingredients, providing consumers with greater convenience and access to a wider range of options. However, it is essential to make informed choices when selecting baking ingredients to ensure a healthy and balanced diet. Keywords: baking ingredients, obesity, food and beverage, online retail stores, sugar, trans fats, health concerns.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AAK AB: The company offers baking ingredients such as shortenings, laminating fats, frying oils, margarine, flaked shortenings, hardstocks, and melanges.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Baking ingredients play a vital role in the production of various bakery goods, including cakes, pastries, bread, rolls, tarts, pies, cookies, and biscuits. The market is witnessing significant growth due to the increasing demand for baked goods as convenience foods and lifestyle trends. The rise in lifestyle disorders such as metabolic diseases, and diabetes mellitus, and the growing popularity of veganism and vegetarianism are driving the demand for plant-based ingredients, dairy-free milk, and functional ingredients like oats, fortified flour, millets, prebiotics, enzymes, and emulsifiers. Baking soda and baking powder are essential leavening agents used in baking, while cocoa powder adds flavor and richness to baked goods.
Furthermore, trans fatty acids, commonly found in margarine, are being replaced by healthier alternatives due to their association with health issues. Local bakery businesses are increasingly offering frozen bakery goods made with plant-based ingredients, including dairy-free milk, to cater to the growing demand for protein-rich and gluten free options in home bakery. Urbanization and the busy lifestyles of working consumers and young people have led to the growth of online retail stores for easy access to baking ingredients. The commercial bakery ingredients segment is also witnessing significant growth due to the increasing demand for frozen bakery products and protein-rich, gluten-free offerings.
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Market Scope |
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Report Coverage |
Details |
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Page number |
176 |
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Base year |
2023 |
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Historic period |
2017-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.5% |
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Market Growth 2024-2028 |
USD 6.55 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
6.0 |
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Regional analysis |
Europe, APAC, North America, Middle East and Africa, and South America |
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Performing market contribution |
Europe at 34% |
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Key countries |
Germany, US, China, UK, and Japan |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AAK AB, AB Mauri Food Inc., AGRANA Beteiligungs AG, Archer Daniels Midland Co., Associated British Foods Plc, Azelis SA, Bakels Worldwide, Bakemark USA LLC, Cargill Inc., Corbion nv, Dawn Food Products Inc., Ingredion Inc., Kerry Group Plc, Koninklijke DSM NV, Lallemand Inc., Lesaffre and Cie, Palsgaard AS, Puratos, Swiss Bake Ingredients Pvt. Ltd., and Zeelandia Group BV |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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