The Fillings and Toppings Market size is estimated to be valued at USD 11.9 billion in 2022 and is projected to reach USD 15.9 billion by 2027, recording a CAGR of 6.0% during the forecast period in terms of value.
The market for fillings and toppings has been driven by several external factors such as growing urbanization, changing taste preferences with unique flavors, changing traditional eating patterns, expanding food chains, and a growing population that has contributed to the markets expansion. Additionally, increased consumption of convenience food and snacking habit, busy lifestyle, are some other factors that had enhanced the market demand. Developing markets offer higher potential for greater market penetration, while in developed markets, innovation in new flavors and healthy ingredients drive the market growth.
Drivers: Rapidly growing confectionery and bakery industries
The global confectionery and bakery industries are expected to grow at high rates in developing nations. Adoption of western dietary habits has changed the consumers eating preferences and has played a major role in the growth of fillings and toppings in the Asia Pacific. Confectionery is building on premiumization in a market that is mature but continuing to grow modestly. Despite rising concerns around sugar intake, consumers continue to demand every day and more indulgent treats. Moreover, fillings form an integral part of cakes and pastries. They enhance the sensory characteristics, while also providing a characteristic taste to cakes and pastries. They are also used in viennoiseries such as puff pastries and pieces of bread.
Restraints: Stringent Adherence due to international quality standards and regulations
The ingredients used in the manufacturing of fillings and toppings for bakery, confectionery, and convenience food products are subjected to rigorous health and safety checks based on the governmental regulations in each country. Standards set by agencies for the classification and usage levels differ from respective authoritative bodies and pose a serious problem to companies for streamlining product developments. Also, the industry will continue to be burdened by government rules, for instance, the Environmental Protection Agency and the Food and Drug Administration are continually inspecting bakeries’ operations and establishing new restrictions that raise production expenses and thus, affecting the growth of the bakery industry in the market.
Opportunities: The baking and confectionery industry’s growth potential in developing economies
The increased income has changed the living standards and employment rates in these regions, leading to a change in lifestyle with hectic work schedules. Eating habits have been shifting from regular meals to fast food and convenience foods, which is providing an impetus to fillings and toppings in these markets. Developing markets offer higher potential for greater market penetration, while in developed markets, innovation in new flavors and healthy ingredients drive the market growth.
Challenges: Health consciousness among consumers in developed countries
In the US and developed European countries such as Germany, U.K., France, and Italy, health consciousness among consumers is one of the major factors restraining the demand for fillings and toppings in the market. In Europe, the rising level of obesity found in infants and young adults is a significant issue, wherein the European Union is promoting the consumption of fruits and vegetables, which has a positive impact on the juice concentrates market in Europe. For instance, Germany is very health conscious and is one of the leading markets for bakery products, globally. The rising health consciousness among consumers has been driving the market growth for healthy foods in the country. This has adversely affected the demand for cakes, pastries, and other bakery snack products.
Key players in this market include ADM (US), Barry Callebaut (Switzerland), Tate & Lyle (US), AGRANA Beteiligungs-AG (Austria), Associated British Foods plc (UK), Cargill (US), AAK AB (Sweden), Ashland (US), Highlander Partners (US), and Zentis GmbH & Co. KG (Germany).
