Baking Ingredients Market Size, Share & Growth Report 2031

Report Description

Baking Ingredients Market Outlook 2031

The global baking ingredients market size was around USD 18.06 billion in 2022 and is estimated to reach USD 32.37 billion by 2031, expanding at a CAGR of around 6.7% during the forecast period, 2023 to 2031. The growth of the market is attributed to the increasing demand for convenience foods and the wide availability of a variety of baked goods across the globe.

Baking refers to a process of cooking with dry heat, typically in an oven. Baking is done at an individual level in homes or at a large-scale commercial level. The most commonly baked item is bread. There are several other baked products such as cookies, cakes, pastries, muffins, rolls, and others. These products are staples in several cultures across the globe and provide carbohydrates and other nutrients in human diets.

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The primary ingredients used in baking are some kind of grain flour, water, and leavening agents that give characteristic appearances, textures, and flavors to several baked products. Various other ingredients used in baking include milk, eggs, salt, shortenings, sugar, and others, which are as effective in modifying the appearance, texture, and flavor of bakery products as the primary ingredients. Using high-quality ingredients enhances the taste, appearance, and overall quality of bakery products.

COVID-19 Impact

The global baking ingredients market was affected negatively during the COVID-19 pandemic situation. The lockdown, social distancing, travel bans, border restrictions, and other government regulations regarding the pandemic posed challenges for the food & beverages industry. The shortage of raw materials and labor resulted in the production shutdown and disruption in the supply chain.

Conversely, the demand for cookies, cakes, pastries, and other baked products increased during the pandemic. People growingly consumed these backed goods as comfort foods during the lockdown. An increasing number of baked goods were consumed to overcome the pandemic-related stress. Growing health concerns during the pandemic boosted the demand for bakery products with gluten-free, organic, vegan, non-GMO, and other fortified ingredients. This factor is anticipated to boost the global baking ingredients market in the coming years.

Baking Ingredients Market Dynamics

The baking ingredients market research report presents a complete overview by providing detailed information about the current global market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global baking ingredients market report has up-to-date insights about market dynamics and market scenarios that can shape the overall market performance and output during the forecast period, 2023 to 2031.

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Major Trends:

Vegan baking ingredients are one of the current market trends

Consumers are increasingly becoming aware of the health, sustainability, and social impact of purchasing power they possess. Increasing consumption of animal-based food products raises environmental concerns. Therefore, several consumers have shifted to veganism and vegetarianism. An increasing number of consumers prefer to use vegan ingredients in their baked goods, which facilitates the expansion of the global baking ingredients market during the forecast period.

Key Drivers:

Surging consumption of bakery products across the globe drives the global baking ingredients market

Bakery products such as bread, cakes, pastries, and others are increasingly gaining popularity among consumers globally. Bakery products are an essential part of several cultures across the globe. Rising demand for convenience foods such as baked goods, wide availability, low price, and associated nutrition are some of the factors that fuel the demand for bakery products across the globe and spur the global baking ingredients market growth.

Existing Challenges:

Stringent quality standards and government regulations hamper the global baking ingredients market growth

Bakery goods are made with several baking ingredients, which are mixtures of compounds. These compounds are subjected to passing through several rigorous quality and safety checks. Different governments and regulatory bodies have different standards for quality, health, and safety, which manufacturers of baking ingredients need to adhere to. This factor is estimated to restrain the global baking ingredients market growth in the coming years.

Emerging Opportunities:

Increasing demand for high-quality baking ingredients offers growth opportunities

Growing awareness regarding the health benefits of consuming nutritious and fresh baked products results in the increasing demand for high-quality baking ingredients among consumers. The wide adoption of high-quality ingredients in baking various bakery products offers growth opportunities for the market players.

Scope of the Baking Ingredients Market Report

The report on the global baking ingredients market includes an assessment of the market trends, segments, and regional markets. Market overview and dynamics have also been included in the report.

Baking Ingredients Market Segment Insights

Baking mixes segment registers a rapid growth

On the basis of type, the global baking ingredients market is divided into flour, baking mixes, emulsifiers, fats & shortenings, enzymes, colors & flavors, sweeteners, baking powder, starches, oils, preservatives, leavening agents, and others. The baking mixes segment is projected to hold a significant market share during the forecast period, due to increasing usage of ready-to-use baking mixes to make cakes, waffles, pizza dough, cookies, and others.

Baking mixes typically have pre-measured baking ingredients such as flour, sugar, salt, baking soda, and others according to the type of baked good. Baking mixes help users save baking time and save their time in the kitchen. This factor facilitates the baking mixes segment growth.

The baking powder segment is expected to register growth in the coming years, as this is one of the most important ingredients used in baking several bakery products. Baking powder is used to increase the volume and lighten the texture of baked products. This factor aids in the expansion of the baking powder segment.

The emulsifiers segment is anticipated to expand rapidly during the forecast period, as emulsifiers are used to increase the shelf life of bakery products. Emulsifiers prevent oil from separating from water by acting as a bridge between these two substances. Emulsifiers are used to condition dough, which helps in lengthening its shelf life. This factor helps in spurring the emulsifiers segment growth.

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Dry segment holds a key market share

In terms of form, the global baking ingredients market is bifurcated into dry and liquid. The dry segment is projected to witness significant growth during the forecast period, owing to the wide availability of several dry baking ingredients. Dry ingredients such as flour are the most commonly used ingredients in baking than other ingredients.

Dry baking ingredients are easy to sort and store than the ingredients in liquid form. The increasing availability of measuring cups in various shapes, materials, and colors to measure dry ingredients spurs the dry segment growth.

The liquid segment is anticipated to grow in the coming years, as liquid ingredients can be measured more precisely than dry ingredients. There are several liquid measuring cups available that have spouts and volume marks to help users measure and pour liquid ingredients such as colors, flavors, and others exactly.

Bread segment register a significant CAGR

Based on application, the global baking ingredients market is segregated into cakes & pastries, bread, cookies & biscuits, rolls & pies, and others. The bread segment is projected to register continuous progress during the forecast period, as bread is one of the most consumed bakery products across the globe. Bread is considered a rich source of carbohydrates, vitamin B, vitamin E, and others.

Bread is a staple food in several cultures across the globe. Sliced bread is a popular type of bread in several countries across the globe. The wide availability of various types of bread and other bread products such as sandwiches, burgers, breadsticks, and others drive the bread segment growth.

The cakes & pastries segment is anticipated to register a high CAGR in the coming years, due to the wide utilization of cakes and pastries to celebrate special occasions. Cakes and pastries are easy to customize according to the preferences of consumers in tastes, colors, textures, shapes, and ingredients, which boosts the demand for cakes and pastries globally. This factor facilitates the expansion of the cakes & pastries segment.

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Europe to dominate the market

In terms of regions, the global baking ingredients market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The baking ingredients market in Europe is expected to register a high CAGR during the forecast period, owing to the rising demand for bakery products in the region.

Flexitarian and plant-based diets are increasingly becoming popular in Europe, which creates a large demand for various non-dairy baking ingredients across the region. Several industrial bakeries in countries such as Germany are competing with each other to produce plant-based bakery products. Growing demand for plant-based products in Europe drives the baking ingredients market in the region. 

The baking ingredients market in North America is estimated to expand rapidly in the coming years, owing to the rising number of fast-food chains, growing adoption of baked food products in daily diets, increasing number of hybrid baked food products such as Cronuts, Macaringues, & Croffles, and a wide variety of baking ingredients available in the region.

Growing demand for ready-to-eat and convenient food products in the region is estimated to boost the baking ingredients market in North America. The baking ingredients market in Asia Pacific is anticipated to register rapid growth during the forecast period, due to changing lifestyles and taste preferences of consumers across the region.

According to the Indian Bakers Federation (IBF), biscuits are the most popular baked product sold in India in comparison with other types of baked goods. Bread, pastries, cakes, and brownies are some of the other baked products popular in the region. Growing demand for processed baked food products, rising consumer awareness regarding clean label products, and increasing disposable income in countries such as India, China, Japan, and South Korea fuel the baking ingredients market in Asia Pacific.

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