Northbrook, IL 60062 -- (SBWire) -- 05/16/2023 --The global baking ingredients market is estimated at USD 16.6 billion in 2021 and is projected to reach USD 22.3 billion by 2026, at a CAGR of 6.0% from 2021 to 2026.
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The global baking ingredients market is experiencing significant growth, driven by various factors such as the increasing demand for bakery products and confectionery, the surge in home baking during the Covid-19 lockdown, and the rise in international cafe and bakery chains. This article explores the drivers, restraints, opportunities, and challenges in the baking ingredients market. We will also discuss the market's current state, key participants, and the future outlook.
Drivers: Global Rise in the Consumption of Bakery Products and Confectionery
Bakery products have long been a staple food item, enjoyed for their taste, texture, and convenience. In recent years, there has been a growing demand for bakery products and confectionery, fueled by consumers' preference for attractive and flavorful delicacies. The accessibility and relatively lower prices of these products have further contributed to their popularity. As a result, bakery products have become an integral part of consumers' lives, driving the demand for various baking ingredients that enhance the taste and texture of these items.
Restraints: Stringent Regulations and International Quality Standards
Baking ingredients undergo rigorous health and safety checks to comply with governmental regulations in different countries. Regulatory bodies, such as the National Food Safety and Quality Service (SENASA), Canadian Food Inspection Agency (CFIA), U.S. Food and Drug Administration (FDA), World Health Organization (WHO), and Committee on the Environment, Public Health and Food Safety (EU), play a crucial role in ensuring food safety. These organizations monitor the usage of chemicals and materials in food processing, setting daily intake allowances (DIA) and classifying products based on their impact on human health. Compliance with these standards poses a challenge for baking ingredient manufacturers.
Opportunities: Growing Trend of Veganism and Vegetarianism Among Consumers
Consumers are increasingly concerned about health, sustainability, and the ethical implications of their food choices. The environmental impact of animal-based foods and ethical objections to their use have led to a rising trend of veganism and vegetarianism. The market for plant-based foods, including plant-based milk and meat substitutes, has witnessed significant growth. This trend extends to bakery products, with an increasing demand for vegan alternatives such as vegan cakes, muffins, bread, and buns. As a result, the demand for vegan baking ingredients is expected to rise, presenting opportunities for market players.
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Challenges: Increase in Awareness About Health and Wellness
Growing awareness of health issues, such as obesity and diabetes, has influenced consumer preferences for healthier food options. The need for alternatives with lower fat and sodium content has become a key challenge in the food industry. Salt and sugar reduction, in particular, has gained prominence as consumers prioritize healthier choices. Companies like Biospringer are addressing these concerns by producing leavening agents with reduced salt content. The impact of these health issues on the consumption of bakery products could significantly affect the demand for baking ingredients used in their production.
Market Overview and Key Participants
Europe currently holds the largest market share in the baking ingredients market, accounting for 32.4% in 2020. The average per capita consumption of bread and bakery products in Europe is approximately 58 kg. The market comprises large industrial companies, traditional smaller-scale bakeries, and individuals baking at home.
Key participants in the baking ingredients market include Cargill (U.S.), Archer Daniels Midland Company (U.S.), Associated British Foods plc (U.K.), Koninklijke DSM N.V. (The Netherlands), Kerry Group plc (Ireland), and AAK AB (Sweden). Other notable players include British Bakels (U.K.), Corbion (the Netherlands), IFF (U.S.), and Dawn Food Products, Inc. (U.S.).
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The Global Baking Ingredients Market: Trends, Opportunities, and Challenges
Baking Ingredients Market by Type (Emulsifiers, Leavening Agents, Enzymes, Baking Powders & Mixes, Oil, Fats & Shortenings, Starch, Colors & Flavors, Preservatives, Fibers), Application (Bread and Sweet Bakery), and Region - Forecast to 2026