Baking Ingredients Market Size was valued at USD 14.5 billion in 2022. The baking ingredients market industry is projected to grow from USD 15.42 Billion in 2023 to USD 22.22 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 6.30% during the forecast period (2023 - 2030). The rising frequency of frozen bakery goods and a preference for cereals over baked products are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
These have been significant concerns that are attempted to be addressed by the bakery products. Frozen bakery products are more popular with consumers due to their taste, texture, ease of availability, long shelf life, convenience, and health benefits. Opportunities for frozen bakery makers to grow their businesses have been generated by the rising demand for frozen bakery delicacies.
Further, to meet the unique requirements of health-conscious consumers, bakers are introducing functional ingredients, including oats, fortified flour, millet, and prebiotics. Frozen bakery items are predicted to have promising growth prospects in fast-growing economies like China, thanks to the rising disposable income and purchasing power parity (PPP) of the nation’s burgeoning population. Due to the high demand for baked goods, America’s USD 153 billion bakery industry is assisting the market growth for baking ingredients.
Additionally, Convenience foods are a growing dietary trend that is to blame for the soaring demand for sweets and baked goods. Consumers are currently choosing foods that save time in procurement, preparation, and cleanup  due to their hectic lifestyles, extended working hours, and lack variety of time. To meet the rising demand for fresh and frozen bakery goods and various baking ingredients, local bakery shops, cafes, and supermarkets have sprouted up in emerging nations like the US and the UK in recent years.The bakery’s flavor, rich texture, long shelf life, ease of accessibility, low cost, and nutritional value. Therefore, such conditions related to bakery products have recently enhanced the baking ingredients market CAGR across the globe.
However, there have been significant advances in baking innovations to cater to the demand. For instance, there is a growing market for vegan cakes, muffins, and pastries created with plant-based bakery ingredients such as fibers, natural colors, dairy-free milk substitutes, and flavors, increasing baking ingredients market revenue.
The Baking Ingredients market segmentation, based on product type, includes emulsifiers, leavening agents, enzymes, baking powders & mixes, oil, fats & shortenings, starch and others. In terms of product sector market share in 2022, baking powders & mixes accounted for about 27% of sales. It is a main ingredient in many bakery items worldwide and is a source of proteins, vitamins, and carbohydrates. Growing consumer awareness of organic products has increased the popularity for wheat baking powder, which has reduced cholesterol and saturated fat levels, increasing baking Ingredients market revenue. Emulsifier demand in the market is anticipated to grow due to the rising bakery goods sector’s need for goods with a longer shelf life and customer appeal. These emulsifiers increase the product’s shelf life, which in turn spurs market expansion.
Feb 2023: An enzyme-based dough-strengthening product from Lallemand Baking will enable bakeries to use less gluten in bread recipes. According to the business, Essential GR 1620 WW is simple to scale, allowing a decrease of 20% to 50% of added gluten, depending on the application, and contributes significantly to cost savings.
June 2022: Roundabout Catering has acquired Franco Baking Co., which has baked bread at its Sparks facility for over 50 years. Franco Baking Co. services about 600 customer accounts, including 134 Port of Sub locations, grocery chains and other restaurants, in northern Nevada and Lake Tahoe.
The baking ingredients market segmentation, based on type, includes bread, muffins, cookies & biscuits, doughnuts, waffles, and other bakery items market is divided into several categories. The need for bakery ingredients is anticipated to be dominated by the bread sector in 2023. ly rising bread consumption, rising fast food demand, shifting lifestyles, and rising consumer preference for foods with health claims, such as fortified, organic, whole grain, wheat alternative, and gluten-free, are important factors influencing this segment's significant market share. Moreover, bread is a typical food worldwide and is in great demand in emerging markets like Asia-Pacific, the Middle East & Africa. Hence, rising applications of baking ingredients positively impact market growth.
Jan 2023: Grain & Milling Annual published by Sosland Publishing Co. states that the New Braunfels mill has 6,000 cwts of daily milling capacity, which equates to 2.2% of the company’s total US milling capacity.
March 2020: Butter Buds, according to research from Mintel, 57% of American adults now include dairy alternatives in their diets. This prompted the business to create the component.
Figure 1: Â Baking Ingredients Market, by Surgery, 2022 & 2030 (USD, Billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Additionally, the consumption of baking ingredients is anticipated to increase at the fastest rate over the anticipated period in the cakes & pastries area, with a compound annual growth rate of 6.30% from 2022 to 2030. The market’s growth is attributed to increased snack consumption and freezer’s availability keep frozen processed foods like cookies and pastries, driving sector growth throughout the projection period.
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific baking ingredients market accounted for USD 6.6 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the growing number of ingredient manufacturers to supply emulsifiers, enzymes, baking powders, oils, and fats, as well as an aging population across the region.
Further, the significant countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Â BAKING INGREDIENTS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Europe's baking Ingredients market accounts for the second-largest market share due to the availability of Baking opportunities resulting from high-quality product production, an aging population, and an increase the market for businesses producing bakery ingredients in tandem with the demand for various components and changing consumer tastes. Further, the German baking ingredients market held the largest market share, and the UK baking ingredients market was the fastest-growing market in the European region.
The Asia-Pacific baking ingredients Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to expanding economy and rising consumer spending power, and the Asia Pacific region is predicted to have the quickest rate of growth in the market for baking ingredients. Moreover, China baking ingredients market held the largest market share, and the Indian baking ingredients market was the fastest- growing market in the Asia-Pacific region.
For instance, The Indian baking ingredients market is the favored destination for a pioneer in the plant-based beverage industry. Life Health Foods (India) Pvt. Ltd. introduced its new vegan beverage, So Good Oat Unsweetened beverage, plant-based milk free of dairy. The brand-new, tasty So Good Oat beverage lives up to its claim of being a nutritious and adaptable beverage manufactured right here in India that gives coffee, tea, baking, and smoothies a fantastic taste and creaminess. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the baking ingredients market grow even more. Market participants are also taking a various strategic initiative to expand their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the baking ingredients industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers adopt in the  baking ingredients industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs the bakery ingredients market major player such as Ingredion Incorporated, Darling Ingredients Inc., Kerry Group Plc, Omega Protein Corporation, Archer Daniels Midland Company, Roquette Frères, Cargill Incorporated, SunOpta, Koninklijke DSM N.V., BASF SE are working on expanding the market demand by investing in research and development activities.
Ingredion Incorporated a wide range of industrial sectors, including the food, beverage, brewing, and pharmaceutical industries. We transform essential resources, including corn, tapioca, wheat, potatoes, and, other into a various food. For instance, Ingredion Incorporated (NYSE: INGR), a leading provider of ingredient solutions to the food and beverage industry, announced that it had been named to the 2023 Bloomberg Gender-Equality Index (GEI), marking its sixth consecutive year.
Also, a family-run business with its headquarters in France, Roquette uses the starch derived from corn, wheat, potatoes, and peas to make more than 650 by-products. Roquette, which was established in 1933 and had its headquarters in Lestrem, France, by the brothers Dominique and Germain Roquette. For instance, Roquette, a leader in plant-based ingredients and a leading provider of pharmaceutical and nutraceutical excipients, today announces the launch of two next-generation mannitol products for direct compression – PEARLITOL® CR-H and PEARLITOL® 200 GT.
Bakery Ingredients Industry Developments
Oct 2022: Roquette, a leader in plant-based ingredients and a leading provider of pharmaceutical excipients, today announces the addition of a new grade to its PEARLITOL® SD mannitol range for direct compression – PEARLITOL® 150 SD. Developed specifically for active pharmaceutical ingredients (APIs) susceptible to reducing sugars, PEARLITOL® 150 SD supports opportunities to unlock advanced tablet dosage forms – even when using challenging active ingredients.
June 2022: SunOpta (Nasdaq: STKL) (TSX: SOY), a U.S.-based, pioneer fueling the future of sustainable, plant-based, and fruit-based food and beverages, today announced it had been named 2022 R&D Team of the Year, large company category, by Food Processing magazine.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 14.5 billion |
| Market Size 2023 | USD 15.42 billion |
| Market Size 2030 | USD 22.24 billion |
| Compound Annual Growth Rate (CAGR) | 6.30% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2018 – 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Product Type, Application Type, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and  the Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Ingredion Incorporated, Darling Ingredients Inc., Kerry Group Plc, Omega Protein Corporation, Archer Daniels Midland Company, Roquette Frères, Cargill Incorporated, SunOpta, Koninklijke DSM N.V., BASF SE |
| Key Market Opportunities | Growing frozen baked goods |
| Key Market Dynamics | Rising frequency of bakery goods that are frozen, A preference for cereals over baked products |
Baking Ingredients Market Highlights:
Frequently Asked Questions (FAQ) :
The bakery ingredients market was valued at USD 14.5 Billion in 2022.
The market is projected to grow at a CAGR of 6.30% during the forecast period, 2023-2030.
Asia-Pacific had the largest share in the market.
The key players in the market are Ingredion Incorporated, Darling Ingredients Inc., Kerry Group Plc, Omega Protein Corporation, Archer Daniels Midland Company, Roquette Frères, Cargill Incorporated, SunOpta, Koninklijke DSM N.V., BASF SE.
The flour bakery ingredients category dominated the market in 2022.
The bread had the largest share in the market.
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