GCC Bakery Ingredients Market - Forecasts from 2023 to 2028

GCC Bakery Ingredients Market is projected to grow at a CAGR of 3.93% to reach US$4.55 billion in 2028 from US$3.48 billion in 2021.

Bakery ingredients prolong the shelf life of food while preserving its freshness, softness, and flavor. Additionally, it increases the protein content of baked goods and influences their flavor and texture. It is regarded as the essential food for nutrition and is sold in various forms, including baking powder, enzymes, sweeteners, leavening agents, and emulsifiers.

A surge in disposable income and customer preferences for quick-to-prepare foods are the key drivers of the demand for foreign bakery goods in the GCC market. Launching fresh flavors and creative packaging also assists the market's expansion. The health-conscious consumers who view gluten-free as a way to control their health better are what has given the gluten-free industry popularity. The switch from imported to local biscuits is the largest trend in the GCC.

The growing food processing industry and the increasing impact of Western cuisine trends drive the region's need for bakery products. Additionally, the expansion of food service businesses and the accessibility of various bakery product lines contribute to the market's expansion. The demand for the product is also supported by a notable increase in artisanal bakery stores and patisseries providing various sorts of cakes, pastries, tarts, macros, pies, etc. The increased popularity of presenting bakery foods at social gatherings, business parties, unique and festive occasions, etc., is another factor driving the GCC industry.

In addition, several local businesses are concentrating on creating premium baking ingredients to extend shelf life and give baked goods a rich flavor and texture. All of the reasons above will drive the market for bakery goods in the GCC region during the projected period.

Increasing demand for bread.

Saudi Arabians are the only nation that consumes more bread per person. With the main course, bread is consumed. It can hold the meat and vegetables and be dipped in gravy. The most popular bread in the United Arab Emirates is tandoori bread, a single-layered flatbread of medium-hard wheat cooked in a shell oven. In addition, bread is currently the most popular type of baked good and is predicted to continue to remain so in the future. These factors influence the growth of bakery ingredients in GCC.

Consumer shift toward veganism.

An increasing shift in consumer attitudes toward veganism is driving the expansion of the GCC bakery ingredients market. This is due to customers being more conscious of sustainability, social effect, and health issues. Due to concerns about human health and animal welfare, there is a growing consumer trend toward veganism. Additionally, there is a rising demand for plant goods, like vegan cakes, muffins, buns, and bread.

Saudi Arabia is projected to be the prominent bakery ingredients market in the GCC region.

The GCC region provides a vast opportunity for market players to sell their bakery goods and satisfy consumer demand. Saudi Arabia has the largest proportion of the GCC countries, but Bahrain, Kuwait, and the United Arab Emirates have the quickest economies in the area. Due to the country's climatic circumstances, Kuwait's domestic agriculture output is nonexistent, yet the demand for bakery goods or their ingredients is always rising. The 20th-largest market in the world for bread goods is Saudi Arabia. Government programs like the NITAQAT program, which encourages companies to recruit Saudi citizens, caused the market to drop in ranking.

Market Developments:

• In February 2023, Kerry opened a 21,500-square-foot facility at its Jeddah operation in Saudi Arabia.
• In October 2021, A prominent food and beverage company in Abu Dhabi named Agthia Group stated on Thursday that it had successfully finalized the acquisition of Al Faysal Bakery and Sweets, one of Kuwait's top industrial bakeries.
• In March 2021, the largest dairy firm in the Gulf, Almarai of Saudi Arabia, agreed to pay 93.5 million dirhams ($25.5 million) to acquire Bakemart, a maker of frozen bread products in the UAE and Bahrain.

Market Segmentation:

By Ingredient Type

• Sweetener
• Leaving Agent
• Enzyme
• Color & Flavor
• Emulsifier
• Preservative
• Others

By Application

• Bread
• Cake & Pastry
• Roll & Pie
• Cookie & Biscuit
• Others

By Geography

• United Arab Emirates
• Saudi Arabia
• Qatar
• Oman
• Kuwait
• Bahrain