A leavening agent is referred to a substance that is mostly used to expand batters and doughs by removing gas from within the mixtures and making the baked product porous and fluffy. Baking soda, baking powder, and yeast are the three main types of leavening agents used in baking. Using such products in baking makes cakes, bread, cookies, and muffins make it rise. The gas which is produced totally depends on the type of leavening agent used while baking the mixture.
The leavening agents market size is estimated to grow at a fast pace and reach a valuation of USD 900 million at a CAGR of 5.8% during the forecast period 2021-2028. There is a huge concern among the people regarding health issues and so the consumption of baked foods is increasing. Baked foods look good when leavening agents are added to the batter. Hence, the use of leavening agents is also increasing with the rise of baked foods. This is a major reason which is driving the growth of the market.
Due to the outbreak of the COVID-19, governments across the world imposed lockdown and strict social distancing norms. This has affected almost all the sectors of the economy. The leavening agents market is not affected that much. The supply of raw materials was brought to a halt due to lockdown and the demand for the leavening agents was increasing. Due to the social distancing norms, people preferred to make bread and cakes at home. As the use of leavening agents in baked products is very minimum and so the supply was sufficient enough to meet the demands of the customers. During the pandemic, there was a rise in consumption of healthy foods which gave rise to an opportunity for the leavening agents market.
There is a shift in the preference of the consumers towards healthy and gluten-free foods. This is a major driving force of the market for leavening agents. Bread is eaten by most people across the world. The use of leavening agents in bread is making the leavening agents market drive its growth. The companies are also implementing various marketing strategies which are also driving the market for leavening agents.
The use of leavening agents in foods releases the air which in turn makes the baked product look extremely delicious. The bakery industry is using such products to enhance the volume and the texture of the bread. This is a major opportunity for the market for leavening agents to grow during the forecast period.
The consumption of excessive leavening agents such as baking soda, baking powder, and yeast in various types of baked foods which contain fatty acids is becoming a reason for the increase in health issues among people. This is a major factor that can restrain the growth of the market for leavening agents. Also, international quality standards and strict regulations are other restraining factors for the market.
Along with the various driving factors of the market for leavening agents, there are a few challenges too that can hamper the growth of the market. It is very important to balance the ratio of the leavening agents in order to produce enough carbon dioxide in foods. This balance sometimes poses a major challenge for the leavening agents market as the number of health-conscious consumers is increasing.
The Asia Pacific region and the Middle East and Africa are the two high-growth segments that may create a high opportunity for the leavening agents market. However, based on the leavening agents market forecast, it is estimated that the market for leavening agents will grow at a rapid pace and reach a valuation of USD 900 million if the CAGR is measured at 5.8% by the end of 2028. New product development has been taking place through various research and development that are operating in the market.
Value Chain Analysis
The global market for leavening agents is witnessing significant growth recently. The increase in the demand for bakery products among people is driving the market for leavening agents. There is a rise in consumption of gluten-free products among consumers which is driving the need for leavening agents in the market. The companies must continue the high availability of the leavening agents which may affect the market positively.
The market for leavening agents is segmented into 2 major leavening agents’ types. They are by application and by form. These two categories are further sub-divided into smaller divisions which are mentioned below.
Geographically, the global leavening agents market is segmented into five different regions which include North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Among these regions, North America is expected to hold the largest leavening agents market share due to the rise in the trend of healthy and gluten-free foods among the residents of America. The US is the only country in North America that is a major contributor to the leavening agents. Due to this reason, North America is expected to grow at a significant rate during the forecast period.
On the other hand, Europe accounted for holding the second largest market share in the leavening agents market, in the year 2020. The markets in countries like Germany, Spain, France, and the UK are responsible for the growth of the market. However, the increase in the awareness of the health benefits among Europeans has been another reason for the growth of the market for leavening agents.
The market for leavening agents consists of many international and national companies which are competing against each other for the best position in the market. The producers are trying to implement various new strategies, forming partnerships, and joint ventures to retain their positions in the market for leavening agents. They are also trying to create various types of leavening agents that can make their company stand out in the competition.
Corbion NV, DSM, Kudos Blends Limited, AB Mauri Food, and Kraft Foods Corporation are some of the key players in the market who are changing and creating new leavening agent functions to strengthen their position in the market. The companies are also investing a huge amount in research and development activities in order to enhance the quality of the product which in turn will increase the customer base. Mergers and acquisitions are a common method that is often practiced by competitors.
List of Key Companies:
Based on the leavening agents market analysis, the leavening agents market report includes an assessment of the market along with the important changes that are taking place in the leavening agents market. The report also covers the various factors that are affecting the growth of the market both positively and negatively. Those factors include the drivers, opportunities, restraints, and challenges. The report also consists of a competitive and regional analysis of the market. The outbreak of COVID-19 on the market and its impact on the market for leavening agents are also discussed in this report.
Among all the five major regions, North America is expected to hold the largest leavening agents market share due to the rise in the trend of healthy and gluten-free foods among Americans.
AB Mauri Food Inc., Kraft Foods Group, Lesaffre, Corbion N.V., DSM, PURATOS, Clabber Girl Corporation, Sunkeen, and Kudos Blends Limited are some of the key players in the leavening agents market which are responsible for the excessive growth of the market.
The market size for leavening agents is estimated to reach a valuation of USD 900 million if the CAGR is recorded at 5.8% during the forecast period.