Global Baking Ingredients Market- Market Overview:

The global Baking Ingredients market is expected to grow from USD 16.92 billion in 2021 to USD 27.79 billion by 2029, at a CAGR of 6.6% during the Projection period 2022-2029. The growth of this market is mainly driven by an increase in health cautiousness and ongoing demand for readily available, easy food items.

Baking ingredients comprise food coloring, baking flours, food extracts, leaveners, salt, sugar, cake premixes, and fondant, among other add-ins such as chocolate chips and vanilla extract. Such bakery ingredients are being used to make incredible baking goods. The ingredients mentioned above essentially determine the texture, appearance, and flavor of almost all bakery items. In addition, it is used to enhance the softness, freshness, and flavor of baked goods, extend their shelf life, and boost protein content.

There is a global availability of different healthy alternatives in baking ingredients with characteristics such as fat-free, cholesterol-free, and low-calorie content. This has boosted the growth of the global baking ingredients market.

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Market Dynamics:

Drivers:

• Increasing consumption of confectionery and bakery products

Increasing demand for convenience food and consumer preference for tastier, attractive, & textured delicacies has led to the increased consumption of confectionery and bakery products.  In addition, such products are easily accessible with lower prices and enhanced nutrition. Moreover, the significant rise in the population of lower and middle-income groups across developing countries is projected to boost the consumption of confectionery and bakery products. This has driven the growth of the global baking ingredients market.

• Increased focus on improving shelf life and quality and lessening production costs.

Factors such as pH, water activity, and moisture content affect the quality of baked products, leading to deterioration and contamination, which affect the shelf life. However, manufacturers in the market focus on improving the shelf life of products by using preservatives such as sorbates and benzoates, which have the ability to inhibit yeasts. Moreover, effective packaging helps preserve the shelf life of baked products, which is expected to provide lucrative opportunities for the market. Furthermore, innovative technologies such as long fermentation, new refrigeration technologies, and modern baking concepts have helped improve the quality of bakery products.

Restraints:

• Availability of healthier substitutes

A rise in preference of consumers toward cereals such as wheat, oat, and barley, which are high in proteins, fiber, minerals, vitamins, and carbohydrates, over baked products such as bread, cookies, and rolls is expected to hamper the growth of the bakery ingredients market. Although various healthy bakery products are available on the market, cereal grains are considered the ideal energy source and help combat various diseases such as cancer, blood sugar levels, constipation, and others. Thus, the availability of healthier substitutes hampers the growth of the market.

Opportunities:

• Upsurge in demand for frozen bakery products

Various categories of frozen bakery products such as cakes & pastries, croissants, cookies, muffins, scones, bread, and biscuits are available in the market, thereby saving time and effort. Consumers prefer frozen foods that require minimal food processing due to the increasing working population and time constraints. Moreover, freezing preserves the quality of products without compromising the taste. All these factors together are expected to provide potential opportunities for market expansion.

Challenges

• Price fluctuations of raw material

Availability and price of raw materials are crucial factors impacting the price of the end products. In the global baking ingredients market, there is a significant price fluctuation of seasonal goods. The raw materials are abundant during some months and become considerably rare in other months. For instance, wheat prices commonly fluctuate by about 40% from one year to the next. Also, there is a rising fluctuation in the prices of vegetable oil, an essential raw material in the baking ingredients market. Such price fluctuations affect the baking ingredients market, thus, posing a significant challenge to the market players.

Segmentation Analysis:

The global Baking Ingredients market has been segmented based on type, application, and region.

By Type                                                                                              

The packaging type segment includes emulsifiers, enzymes, starch, fiber, oils, fats, and shortenings, baking powder and mixes, preservatives, colors & flavors, leavening agents, and others. The baking powder and mixes segment led the baking ingredients market with a market share of around 26.8% in 2021. Baking powder is a chemical leavening agent used to lighten the texture and increase the volume of baked goods. It is a mixture of a weak acid and a carbonate or bicarbonate. Rising trends mainly drive demand for baking powder and mixes among consumers to reduce the usage of artificial ingredients, sweeteners, and preservatives.      

By Application

The application segment includes bread, cookies & biscuits, rolls & pies, confectionary, and others. The cookies & biscuits segment witnessed a considerable market share in the baking ingredients market of around 30.3% in 2021. Cookies & biscuits are consumed as snacks and are rapidly gaining popularity, especially among the youth. Recurrent product innovations to enhance the taste, texture, and health benefits of the food item fuel the demand for cookies & biscuits. Manufacturers are focusing on introducing new flavors and innovative packaging to appeal to consumers. Moreover, cookies & biscuits serve as a standard choice for gifting and other confectionery items such as chocolates. In addition, low-calorie cookies & biscuits are gaining high popularity among health-conscious consumers, which fuels the growth of the baking ingredients market.

By Regional Analysis:

The regions analyzed for the baking ingredients market include North America, Europe, South America, Asia Pacific, and the Middle East, and Africa. North America dominated the Baking Ingredients market and held the 38.90% market revenue share in 2021.

• North America region witnessed a major share. This is because the rise in demand for ready-to-eat and convenient products is boosting the sales of bakery ingredients in the region. In addition, Canada and the U.S. have seen an increased prevalence of obesity. This has compelled manufacturers to develop low trans fat and organic baked products. In addition, consumers are shifting their preference toward minimally processed, protein-rich bakery products with lesser additives and preservatives. Thus, all the above factors drive the sales of baking ingredients in this region.
• Asia-Pacific is expected to witness a considerable growth rate during the Projection period. The rise in demand for processed bakery products and surge in consumer awareness toward clean-label products and healthy ingredients has driven market growth in this region. Global market players are investing in this region to introduce new bakery ingredients and increase the new customer base & revenue. This has contributed to the growth of the market. Furthermore, the increase in affluence of middle-income groups has created scope for customized bakery ingredients products such as cakes & pastries, dairy products, and cookies.

Global Baking Ingredients Market- Country Analysis:

• Germany

Germany's Baking Ingredients market size was valued at USD 1.86 billion in 2021 and is expected to reach USD 3.00 billion by 2029, at a CAGR of 6.4% from 2022 to 2029.

Germany has one of the leading baking ingredients industries in Europe. In addition, the country produces more than 3,200 types of bread every day due to the availability of various cereals in the country. For instance, the Germans use almost all types of grains, including wheat, rye, spelled wheat, barley, millet, corn, oats, and rice, in their bread.  This significance of baking bread in the country is a major contributor to the baking ingredients market.

In addition, the industrial manufacturers in this country are responsible for creating some of the most widely known bakery products. Moreover, increased consumer awareness about baking ingredients and mounting chocolate consumption among the teenage population in this country have driven demand for Baking Ingredients.

• China

China's Baking Ingredients market size was valued at USD 3.38 billion in 2021 and is expected to reach USD 5.37 billion by 2029, at a CAGR of 6.2% from 2022 to 2029. China's rising population and increased disposable income have favored the demand for baking ingredients. In addition, this country is one of the leading consumers of baked products. This has significantly boosted the country's baking ingredients sector's growth.

Moreover, according to FAS China, tree nuts, butter, and dried & processed fruits are seeing huge growth potential as a baking ingredient in this country. Also, female consumers aged 26-40 years are accounted for 94% of the home baking population in the country.

Such factors are expected to create lucrative growth opportunities for the market.

• India

India's Baking Ingredients market size was valued at USD 0.85 billion in 2021 and is expected to reach USD 1.42 billion by 2029, at a CAGR of 6.9% from 2022 to 2029. India is one of the strongest growing economies in Asia. The factors, including increasing population, increasing disposable income, and changing lifestyles, have driven the growth of the India Baking Ingredients market.

In addition, the upsurge in biscuits, bread, and fast-moving consumer goods consumption in India further fuels the demand for Baking Ingredients. Also, the country is seeing a significant rise in western food trends. Such factors are expected to create lucrative growth opportunities for the market.

Key Industry Players Analysis:                                                     

To increase their market position in the global Baking Ingredients business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.

• Ingredion Incorporated
• Darling Ingredients Inc.
• Archer Daniels Midland Company
• Roquette Frères
• Omega Protein Corporation
• SunOpta
• Koninklijke DSM N.V.
• Cargill Incorporated
• Kerry Group Plc
• BASF SE

Latest Development:

• In June 2022, Roquette launched two rice proteins. This launch has added a new botanical origin to its current product portfolio. This launch includes NUTRALYS rice protein that offers consumers a safe, familiar, and nutritious alternative protein with high production quality.
• In November 2021, Ingredion Incorporated introduced FILMKOTE® 2030 barrier starch, a new fluorochemical-free addition to its extensive offering of barrier starches for Canada and the U.S. This starch helps paper & packaging producers to meet the rising demand for sustainable, high-performing Oil and Grease Resistant (OGR) packaging.

Report Metrics

Report Attribute	Details
Study Period	2021-2029
Base year	2021
CAGR (%)	6.6%
Market Size	16.92 billion in 2021
Projection period	2022-2029
Projection unit	Value (USD)
Segments covered	Type, application, and Regions
Report Scope	Revenue Projection, competitive landscape, company ranking, growth factors, and trends
Companies covered	Ingredion Incorporated, Darling Ingredients Inc., Archer Daniels Midland Company, Roquette Frères, Omega Protein Corporation, SunOpta, Koninklijke DSM N.V., Cargill Incorporated, Kerry Group Plc, and BASF SE among others
By Type	Emulsifiers Enzymes Starch Fiber Oils, fats, and shortenings Baking powder and mixes Preservatives Colors & flavors Leavening agents Others
By Application	Bread Cookies & biscuits Rolls & pies Confectionary Others
Regional scope	North America Europe Asia-Pacific South America Middle East and Africa

Scope of the Report

Global Baking Ingredients Market by Type:

• Emulsifiers
• Enzymes
• Starch
• Fiber
• Oils, fats, and shortenings
• Baking powder and mixes
• Preservatives
• Colors & flavors
• Leavening agents
• Others

Global Baking Ingredients Market by Application:

• Bread
• Cookies & biscuits
• Rolls & pies
• Confectionary
• Others

Global Baking Ingredients Market by Region:

• North America
  • USA
  • Canada
  • Mexico
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Russia
• Asia-Pacific
  • Japan
  • China
  • India
  • Korea
  • Southeast Asia
• South America
  • Brazil
  • Peru
• Middle East and Africa
  • UAE
  • South Africa
  • Saudi Arabia

Political Factors- The advancement of technology has enabled the extension of the shelf life of baked goods and further redefined the bakery ingredients market key trends. Regulatory approvals have also opened the door for bakery enzyme manufacturers, who recognize the potential of this business and have begun to supply new-age products. According to FAS China, tree nuts, butter, and dried & processed fruits are seeing huge growth potential as baking ingredients in this country. Also, female consumers aged 26-40 years are accounted for 94% of the home baking population in the country.

Economical Factors- Availability and price of raw materials are crucial factors impacting the price of the end products. In the global baking ingredients market, there is a significant price fluctuation of seasonal goods. The raw materials are abundant during some months and become considerably rare in other months. For instance, wheat prices commonly fluctuate by about 40% from one year to the next. Also, there is a rising fluctuation in the prices of vegetable oil, an essential raw material in the baking ingredients market. Such price fluctuations affect the baking ingredients market, thus, posing a significant challenge to the market players.

Social Factor- The rise in demand for ready-to-eat and convenient products is boosting the sales of bakery ingredients in the region. In addition, Canada and the U.S. have seen an increased prevalence of obesity. This has compelled manufacturers to develop low trans fat and organic baked products. In addition, consumers are shifting their preference toward minimally processed, protein-rich bakery products with lesser additives and preservatives.

Technological Factors- Manufacturers in the market focus on improving the shelf life of products by using preservatives such as sorbates and benzoates, which have the ability to inhibit yeasts. Moreover, effective packaging helps preserve the shelf life of baked products, which is expected to provide lucrative opportunities for the market. Furthermore, innovative technologies such as long fermentation, new refrigeration technologies, and modern baking concepts have helped improve the quality of bakery products.

Environmental Factors- Enzymes are rapidly emerging as alternatives to emulsifiers as they are natural catalysts. Enzymes are produced by living organisms to increase the rate of a diverse set of chemical reactions. Enzymes are also used to improve dough structure, CKGXJsoftness, and increase the shelf-life of bread products. Enzymes such as α-amylases, ß-xylanases, and lipases are derived from natural sources. According to the Austrian Federal Environment Agency, about 158 enzymes are used in the food industry. In comparison, only 64 enzymes are used in technical applications, while 57 enzymes find usage in feed.

Legal Factors- Roquette launched two rice proteins. This launch has added a new botanical origin to its current product portfolio. This launch includes NUTRALYS rice protein that offers consumers a safe, familiar, and nutritious alternative protein with high production quality. Ingredion Incorporated introduced FILMKOTE® 2030 barrier starch, a new fluorochemical-free addition to its extensive offering of barrier starches for Canada and the U.S. This starch helps paper & packaging producers to meet the rising demand for sustainable, high-performing Oil and Grease Resistant (OGR) packaging.

1. Introduction
   • Objectives of the Study
   • Market Definition
   • Research Scope
2. Research Methodology and Assumptions
3. Executive Summary
4. Premium Insights
   • Porter’s Five Forces Analysis
   • Value Chain Analysis
   • Top Investment Pockets
     • Market Attractiveness Analysis By Type
     • Market Attractiveness Analysis By Application
   • Industry Trends
5. Market Dynamics
   • Market Evaluation
   • Drivers
     • Increasing consumption of confectionery and bakery products
     • Increased focus on improving shelf life, quality, and lessen production costs
   • Restrains
     • Availability of healthier substitutes
   • Opportunities
     • Upsurge in demand for frozen bakery products
   • Challenges
     • Price fluctuations of raw material

6. Global Baking Ingredients Market Analysis and Projection, By Type
   • Segment Overview
   • Emulsifiers
   • Enzymes
   • Starch
   • Fiber
   • Oils, fats, and shortenings
   • Baking powder and mixes
   • Preservatives
   • Colors & flavors
   • Leavening agents
   • Others
7. Global Baking Ingredients Market Analysis and Projection, By Application
   • Segment Overview
   • Bread
   • Cookies & biscuits
   • Rolls & pies
   • Confectionary
   • Others
8. Global Baking Ingredients Market Analysis and Projection, By Regional Analysis
   • Segment Overview
   • North America
     • USA
     • Canada
     • Mexico
   • Europe
     • Germany
     • France
     • UK
     • Italy
     • Spain
   • Asia-Pacific
     • Japan
     • China
     • India
   • South America
     • Brazil
   • Middle East and Africa
     • UAE
     • South Africa

9. Global Baking Ingredients Market-Competitive Landscape
   • Overview
   • Market Share of Key Players in the Baking Ingredients Market
     • Global Company Market Share
     • North America Company Market Share
     • Europe Company Market Share
     • APAC Company Market Share
   • Competitive Situations and Trends
     • Type Launches and Developments
     • Partnerships, Collaborations, and Agreements
     • Mergers & Acquisitions
     • Expansions

10. Company Profiles
    • Ingredion Incorporated
      • Business Overview
      • Company Snapshot
      • Company Market Share Analysis
      • Company Type Portfolio
      • Recent Developments
      • SWOT Analysis
    • Darling Ingredients Inc
      • Business Overview
      • Company Snapshot
      • Company Market Share Analysis
      • Company Type Portfolio
      • Recent Developments
      • SWOT Analysis
    • Archer Daniels Midland Company
      • Business Overview
      • Company Snapshot
      • Company Market Share Analysis
      • Company Type Portfolio
      • Recent Developments
      • SWOT Analysis
    • Roquette Frères
      • Business Overview
      • Company Snapshot
      • Company Market Share Analysis
      • Company Type Portfolio
      • Recent Developments
      • SWOT Analysis
    • Omega Protein Corporation
      • Business Overview
      • Company Snapshot
      • Company Market Share Analysis
      • Company Type Portfolio
      • Recent Developments
      • SWOT Analysis
    • SunOpta
      • Business Overview
      • Company Snapshot
      • Company Market Share Analysis
      • Company Type Portfolio
      • Recent Developments
      • SWOT Analysis
    • Koninklijke DSM N.V.
      • Business Overview
      • Company Snapshot
      • Company Market Share Analysis
      • Company Type Portfolio
      • Recent Developments
      • SWOT Analysis
    • Cargill Incorporated
      • Business Overview
      • Company Snapshot
      • Company Market Share Analysis
      • Company Type Portfolio
      • Recent Developments
      • SWOT Analysis
    • Kerry Group Plc
      • Business Overview
      • Company Snapshot
      • Company Market Share Analysis
      • Company Type Portfolio
      • Recent Developments
      • SWOT Analysis
    • BASF SE
      • Business Overview
      • Company Snapshot
      • Company Market Share Analysis
      • Company Type Portfolio
      • Recent Developments
      • SWOT Analysis

List of Table

1. Global Baking Ingredients Market, By Type, 2021–2029(USD Billion)
2. Global Emulsifiers Baking Ingredients Market, By Region, 2021–2029(USD Billion)
3. Global Enzymes Baking Ingredients Market, By Region, 2021–2029(USD Billion)
4. Global Starch Baking Ingredients Market, By Region, 2021–2029(USD Billion)
5. Global Fiber Baking Ingredients Market, By Region, 2021–2029(USD Billion)
6. Global Oils, fats, and shortenings Baking Ingredients Market, By Region, 2021–2029(USD Billion)
7. Global Baking powder and mixes Baking Ingredients Market, By Region, 2021–2029(USD Billion)
8. Global Preservatives Baking Ingredients Market, By Region, 2021–2029(USD Billion)
9. Global Colors & flavors Baking Ingredients Market, By Region, 2021–2029(USD Billion)
10. Global Leavening agents Baking Ingredients Market, By Region, 2021–2029(USD Billion)
11. Global Others Baking Ingredients Market, By Region, 2021–2029(USD Billion)
12. Global Baking Ingredients Market, By Application, 2021–2029(USD Billion)
13. Global Bread Baking Ingredients Baking Ingredients Market, By Region, 2021–2029(USD Billion)
14. Global Cookies & biscuits Baking Ingredients Baking Ingredients Market, By Region, 2021–2029(USD Billion)
15. Global Rolls & pies Baking Ingredients Baking Ingredients Market, By Region, 2021–2029(USD Billion)
16. Global Confectionary Baking Ingredients Baking Ingredients Market, By Region, 2021–2029(USD Billion)
17. Global Others Baking Ingredients Baking Ingredients Market, By Region, 2021–2029(USD Billion)
18. Global Baking Ingredients Market, By Region, 2021–2029(USD Billion)
19. Global Baking Ingredients Market, By North America, 2021–2029(USD Billion)
20. North America Baking Ingredients Market, By Type, 2021–2029(USD Billion)
21. North America Baking Ingredients Market, By Application, 2021–2029(USD Billion)
22. USA Baking Ingredients Market, By Type, 2021–2029(USD Billion)
23. USA Baking Ingredients Market, By Application, 2021–2029(USD Billion)
24. Canada Baking Ingredients Market, By Type, 2021–2029(USD Billion)
25. Canada Baking Ingredients Market, By Application, 2021–2029(USD Billion)
26. Mexico Baking Ingredients Market, By Type, 2021–2029(USD Billion)
27. Mexico Baking Ingredients Market, By Application, 2021–2029(USD Billion)
28. Europe Baking Ingredients Market, By Type, 2021–2029(USD Billion)
29. Europe Baking Ingredients Market, By Application, 2021–2029(USD Billion)
30. Germany Baking Ingredients Market, By Type, 2021–2029(USD Billion)
31. Germany Baking Ingredients Market, By Application, 2021–2029(USD Billion)
32. France Baking Ingredients Market, By Type, 2021–2029(USD Billion)
33. France Baking Ingredients Market, By Application, 2021–2029(USD Billion)
34. UK Baking Ingredients Market, By Type, 2021–2029(USD Billion)
35. UK Baking Ingredients Market, By Application, 2021–2029(USD Billion)
36. Italy Baking Ingredients Market, By Type, 2021–2029(USD Billion)
37. Italy Baking Ingredients Market, By Application, 2021–2029(USD Billion)
38. Spain Baking Ingredients Market, By Type, 2021–2029(USD Billion)
39. Spain Baking Ingredients Market, By Application, 2021–2029(USD Billion)
40. Asia Pacific Baking Ingredients Market, By Type, 2021–2029(USD Billion)
41. Asia Pacific Baking Ingredients Market, By Application, 2021–2029(USD Billion)
42. Japan Baking Ingredients Market, By Type, 2021–2029(USD Billion)
43. Japan Baking Ingredients Market, By Application, 2021–2029(USD Billion)
44. Japan Baking Ingredients Market, By End-User, 2021–2029(USD Billion)
45. China Baking Ingredients Market, By Type, 2021–2029(USD Billion)
46. China Baking Ingredients Market, By Application, 2021–2029(USD Billion)
47. China Baking Ingredients Market, By End-User, 2021–2029(USD Billion)
48. India Baking Ingredients Market, By Type, 2021–2029(USD Billion)
49. India Baking Ingredients Market, By Application, 2021–2029(USD Billion)
50. South America Baking Ingredients Market, By Type, 2021–2029(USD Billion)
51. South America Baking Ingredients Market, By Application, 2021–2029(USD Billion)
52. Brazil Baking Ingredients Market, By Type, 2021–2029(USD Billion)
53. Brazil Baking Ingredients Market, By Application, 2021–2029(USD Billion)
54. Middle East and Africa Baking Ingredients Market, By Type, 2021–2029(USD Billion)
55. Middle East and Africa Baking Ingredients Market, By Application, 2021–2029(USD Billion)
56. UAE Baking Ingredients Market, By Type, 2021–2029(USD Billion)
57. UAE Baking Ingredients Market, By Application, 2021–2029(USD Billion)
58. South Africa Baking Ingredients Market, By Type, 2021–2029(USD Billion)
59. South Africa Baking Ingredients Market, By Application, 2021–2029(USD Billion)

List of Figures 

1. Global Baking Ingredients Market Segmentation
2. Baking Ingredients Market: Research Methodology
3. Market Size Estimation Methodology: Bottom-Up Approach
4. Market Size Estimation Methodology: Top-Down Approach
5. Data Triangulation
6. Porter’s Five Forces Analysis
7. Value Chain Analysis
8. Global Baking Ingredients Market Attractiveness Analysis By Type
9. Global Baking Ingredients Market Attractiveness Analysis By Application
10. Global Baking Ingredients Market Attractiveness Analysis By Region
11. Global Baking Ingredients Market: Dynamics
12. Global Baking Ingredients Market Share By Type(2021 & 2029)
13. Global Baking Ingredients Market Share By Application(2021 & 2029)
14. Global Baking Ingredients Market Share by Regions (2021 & 2029)
15. Global Baking Ingredients Market Share by Company (2020)