Bakery Ingredients Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The Bakery Ingredients Market is projected to register a CAGR of 6.12% during the forecast years.

The rising demand for convenience food and consumer preference for attractive, tasty and textured delicacies, easy accessibility, and lower prices are expected to increase the demand for bakery ingredients. The evolving retail landscape of bakery products has been one of the crucial factors in expanding the market over the last few years. The market witnessed a high consumption rate in the categories of cakes, pastries, pies, scones, bread, biscuits, and cereals in the developed markets of North America and Western Europe. The trend of developing healthy alternatives is possible owing to the provision of adding fiber. Also, the enhancement of the nutritional level in bakery products has gained momentum. Incorporating functional ingredients, such as omega-3, multigrain, probiotics, multivitamins, and phytosterols, in bakery products adds additional nutritional value. However, stringent regulations and international quality standards are expected to slow down the market's growth.

The market is also driven by the rising demand for superior, authentic, and high-quality ingredients that fulfill the consumer's expectations for fresh, nutritious, and flavorful baked commodities. Consumers have shown greater interest in the simplicity and sustainability of bakery products; they are increasingly curious about the quality and origin of the ingredients, along with the health-promoting label claims. This trend has prompted manufacturers to source ingredients with superior nutritional and sensory characteristics. The recent trend toward more natural- and artisan-type bakery products has led to the utilization of minimally processed baking ingredients. Bakers are putting greater emphasis on higher-quality flours and the inclusion of specialty ingredients.

Bakery Ingredients Market Trends

Growing Demand for Ready-to-eat Bakery Products

The market is witnessing a shift in consumer preferences for ready-to-eat products, owing to working individuals' busy lifestyles and hectic work schedules. This change in consumer behavior will likely uplift the market studied significantly in the forecast period. Ready-to-eat products are considered the closest alternative to regular food, which can be consumed at any time. The surging demand for baked foods can be attributed to the rising food trend of convenience foods. In developed countries like the United States and the United Kingdom, several local bakery businesses, cafes, and supermarkets have emerged in recent years to cater to the increased demand for fresh and frozen bakery goods and varied bakery ingredients. The growing demand for ready-to-eat food is expected to boost the bakery ingredients market.

The shift from conventional home-cooked food to convenience foods has also increased the demand for these bakery ingredients in emerging markets. Adoption of a westernized lifestyle, double-income families, emphasis on healthier lifestyles, greater nutrition awareness, and increase in disposable income are the major factors that are responsible for the increasing expenditure on bakery products and growth in the baked foods industry, which, in turn, will drive the demand for bakery ingredient manufacturers. Also, growing consumer demand for nutritional content in baked foods with low sugar, whole grain, and zero trans-fat per serving is increasing the demand for bakery food.

Europe Holds Major Market Share

Europe accounted for the largest bakery ingredients market share and is predicted to remain the leading segment during the forecast period. The European market growth is supported by more than 150 bakery companies and the growing trend of snacking culture. Due to the high consumption of the product in the region, consumers constantly seek healthier alternatives such as bread with whole grains, high-fiber, and omega-3 content. Many consumers buy gluten-free and reduced trans-fat bakery products to support the health and wellness trend in the region. Also, gluten-free bread is easy to digest and better for health. The European market is chiefly flourishing because of the higher percentage of bread consumed in the region. This, combined with factors like rising consumer demand for healthy and convenient products and an increased focus towards cost reduction while simultaneously improving the quality & shelf life of the products is propelling the market growth.

Cookies and biscuits are becoming increasingly popular, particularly among youngsters. Continuous product developments that improve the taste, texture, and health advantages of the food item are driving up demand for cookies and biscuits. To appeal to consumers, manufacturers are emphasizing new flavors and packaging, which is propelling the demand for flavors and color ingredients in products. Additionally, cookies and biscuits, as well as other confectionery items like chocolates, are popular gift presents. Low-calorie cookies and biscuits are also gaining popularity among health-conscious consumers, which is helping the bakery ingredients business.

Bakery Ingredients Industry Overview

The bakery ingredients market is highly competitive, with the presence of global players such as Cargill Inc., Archer Daniels Midland Company, Associated British Foods PLC, Kerry Group PLC, and Koninklijke DSM NV. The leading market players have been using strategies, such as partnerships, expansions, and new product launches, to increase their global presence and their productivity. Innovations in food ingredients by consumer preferences also meet the company's objectives of reducing costs. For instance, Corbion unveiled the Pristine 3000 last year, the company's most robust dough conditioning innovation yet, adding to its Pristine range of clean-label solutions. The solution enables bakers to overcome common challenges, such as wheat protein inconsistencies and high-speed processing, without relying on gluten supplementation and conventional solutions, like diacetyl tartaric acid ester of monoglycerides (DATEM).

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• The market estimate (ME) sheet in Excel format
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