Baking Ingredients Market Report

Baking Ingredients Market Analysis, By End-use (Bread, Cookies & Biscuits, Cakes & Pastries, Rolls & Pies), By Product (Emulsifiers, Leavening Agents, Enzymes, Baking Powder, Oils, Fats, Flavors, Starch), And Segment Forecasts, 2014 - 2025

Published: August 2017  |  113 Pages  |  Format: PDF  |  Report ID: GVR-1-68038-520-5

Industry Insights

The global baking ingredients market size was valued at USD 11.8 billion in 2016 and is expected to grow at a CAGR of 5.8% over the forecast period on account of changing consumer preferences for wide variety of baked goods. In addition, factors such as rising demand for more shelf-life products coupled with demand for natural products in the final baked product is expected to fuel the market development.

Baking ingredients are an essential part of bakery ingredients market. Baking ingredients such as enzymes, emulsifiers, leavening agents, baking powders among others are predominantly used in the processing of bakery products such as bread, pastries, cakes, rolls, pies, tarts and others. Good quality products offer several advantages such as flavor enhancements, texture, color and economies of scales in production.

U.S. baking ingredients market revenue by end-use, 2014 - 2025 (USD Million)

U.S. baking ingredients market

Global market is driven by individual contribution from end-use segments consisting of bread, cookies & biscuits, cakes & pastries, rolls and pies. The increasing consumer’s preference for diverse bakery products and the growing concern among people for healthy dietary supplements is expected to increase the demand. New applications and innovation in developed economies to produce quality products is expected to drive the demand further.

However, the customer’s proximity to affordable bakery products is a substantial change in the developing economies. Growing urbanization in transition economies is leading to the increase in the consumption of baked food. Key manufacturers in developing economies tending to increase the production levels is expected to propel overall market.

The U.S. market is anticipated to grow at a CAGR of 5.9% from 2017 to 2025. The on-the-go food lifestyle in the country is boosting the demand over the forecast period. The convenience and easy to carry options offered by the bakery manufacturers such as pocket rolls, wraps among others is also an additional factor driving the growth. 

End-use Insights

Bread, the largest contributor of end use segments, is primarily driven by new production methods employed that imparts nutritional content and affordability to the price sensitive customers in the developing countries.

Usage of baking ingredients in the cakes & pastries segment is anticipated to register the fastest growth rate owing to increased consumption of snack items and availability of freezers in retail stores to store frozen processed foods such as pastries and cookies. In cookies & biscuits segment, demand is primarily driven by food processing companies looking to diversify their product portfolio by entering cookies & biscuits manufacturing business. 

Product Type Insights

Baking powder & mixes was the largest segment contributing 30.41% of the global revenue share in 2016.  It is a source of vitamins, proteins and carbohydrates, which is consumed globally as a primary ingredient in bakery products. On account of rising awareness among consumers for organic products, wheat baking powder which is low in saturated fat and low in cholesterol is gaining importance.

Global baking ingredients market revenue, by product, 2016 (%)

Global baking ingredients market

Enzymes is expected to become the fastest growing among other ingredients such as emulsifiers, leavening agents, oil and fats. Owing to increasing bakery products manufacturing, Asia Pacific region is expected to use enzymes extensively. This factor is expected to make Asia Pacific region the largest consumer of enzymes.

In addition, products such as leavening agents and emulsifiers that enhance flavor, texture and other physical properties in the bakery product, are also expected to witness a significant growth over the forecast period of 2017-2025.

Regional Insights

In terms of revenue, Europe was the most dominating player, accounting for 36.2% of global revenue share in 2016. Changing life styles have created a need for alternatives for conventional home food, which is driving the demand for packaged and processed food. However, bakery products continue to be the staple food in Europe and North America. Ongoing revolution in the food processing industry is leading to development of new packaged food which caters to the growing demand for convenient food from consumers in Europe and North America.

Asia-Pacific was estimated as the third largest regional segment in 2016 and is expected to witness fastest growth influenced by the growing demand in China, India and Japan. Customers inclination towards western style food is expected to fuel the product demand in developing countries. Stringent regulations on the usage limit of certain baking ingredients in various countries may challenge the manufacturing methods over the forecast period.

Competitive Insights

The key players in the global market includeFlowers Foods Inc, Hostess Brands LLC, Mckee FoodsCorporation, George Weston Ltd., Grupo Bimbo. S.A.B. de C.V., Uniferm GmbH & Co., Koninklijke DSM N.V, General Mills Inc, Associated British Foods Plc.

Intense competition among the global players and from domestic players has forced the manufacturers to focus on innovation, large scales of production, competitive pricing structure. Hence many manufactures invest in R&D to develop diverse products that caters to the needs of various consumers in the market.

Several companies are integrating vertically through third party agreements, acquisitions, partnerships to capture the existing potential in various geographies. Companies as part of increasing their profitability, diversify their business portfolio by acquiring small companies that produce high quality ingredients and having dynamic growth rate.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2016

Forecast period

2017 - 2025

Market representation                         

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Germany, UK, China, India, Japan, Brazil,

Report coverage      

Revenue forecast, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts revenue and revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global baking ingredients market on the basis of end-use, product type and region:

  • End-use Outlook (Revenue, USD Million, 2014 - 2025)

    • Bread 

    • Cookies & Biscuits 

    • Cakes & Pastries 

    • Rolls & Pies 

    • Others

  • Product Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Emulsifiers 

    • Leavening Agents 

    • Enzymes 

    • Baking Powder & Mixes 

    • Oils, Fats, and Shortenings 

    • Colors & Flavors 

    • Starch 

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

    • Europe 

      • UK

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

    • MEA

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