Baking ingredients market growth is driven by growing customer demand for healthier foods, convenience foods, and functional baked goods. The market is also driven by factors such as demand for gluten-free foods and innovative product developments for improved baking ingredients such as modified starch, enzymes, emulsifiers, baking powders & mixes that can be cost-effective as well as used in a wide range of baked items.
The baking ingredients market, estimated to be valued at USD 13.03 Billion in 2017, is projected to grow at a CAGR of 5.4% from 2017 to 2022. Ingredients such as enzymes improve protein solubility and reduce bitterness in end products, making enzymes one of the most preferred ingredients in the baking industry. With heavy investment in R&D, new applications such as protein-based fat replacements, flavor enhancements, textural improvements are emerging rapidly and prolonging the shelf life of products. Baking ingredients offer several advantages such as reduced costs, volume enhancement, texture, color, and flavor enhancement. Hence, baking ingredients will be viewed as a business opportunity in the next five years. As a result, many multinational players have entered into the production of varied types of baking ingredients.
Baking Ingredients Market by Type (Emulsifiers, Leavening Agents, Enzymes, Baking Powders & Mixes, Oil, Fats & Shortenings, Starch, Colors & Flavors), Application (Bread, Biscuits & Cookies, Cakes & Pastries, Rolls & Pies), and Region – Forecast to 2022
Based on the types of ingredients used, the baking ingredients market is led by the baking powders & mixes segment, followed by the oils, fats & shortenings segment, in terms of value. In terms of volume, the market was led by the starch segment. Baking ingredients are used on a large scale in regions where there is high per capita consumption of bread and other baked goods.
Among the varied applications for baking ingredients, such as bread, biscuits & cookies, cakes & pastries, rolls & pies, bread accounted for the largest market share, followed by cookies & biscuits and cakes & pastries. Bread is widely consumed in European countries and is being incorporated in regular diets in most developing Asian and Latin American countries as well.
Europe accounted for the largest market share for baking ingredients, followed by North America and Asia-Pacific. Ingredients such as baking powder, baking mixes, leavening agents, and enzymes are among the most widely used ingredients in Europe; high per capita consumption of bread was one of the major factors driving the baking ingredients market in this region. The Asia-Pacific region is projected to be the fastest-growing market with investments from several multinational manufacturers, especially in countries such as China, India, and Japan.
Prominent players such as Kerry Group plc (Ireland), Koninklijke DSM N.V. (the Netherlands), Corbion (the Netherlands), Associated British Foods (U.K.), and Cargill (U.S.) have been profiled in the report.
