Bakery Ingredients Market Size

Bakery Ingredients Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The world market for bakery ingredients is expected to be worth $22,592,800,000 by 2023. The stable size of this market, coupled with a CAGR of 5.9 per cent from 2022 to 2030, suggests a healthy demand for bakery products and their associated ingredients. This growth is being driven by a combination of increasing disposable incomes, urbanization and a growing preference for convenience foods. The development of new food processing and preservation techniques is also a key contributor to this market’s growth. These innovations, such as clean label ingredients, gluten-free products and natural preservatives, are reshaping consumers’ expectations and forcing manufacturers to adapt. The key players in this market, such as Cargill, Archer Daniels Midland and Ingredion, are responding with strategic moves, such as acquisitions, acquisitions and product launches. Moreover, recent investments in research and development to create healthier and more sustainable baking solutions demonstrate the industry’s response to these evolving trends.

Regional Market Size

Regional Deep Dive

The Bakery Ingredients Market is growing dynamically in various regions. This is due to changing consumers’ preferences, the increasing demand for convenience food, and the rising trend towards healthier food. In North America, the market is characterized by a strong tendency towards clean-label products and innovation in baking solutions. In Europe, the rich tradition of artisan baking and the demand for high-quality ingredients are determining the market. In Asia-Pacific, the rapid urbanization and the growing middle class are boosting the consumption of bakery products significantly. The Middle East and Africa are experiencing increasing demand for bakery products due to changing eating habits. In Latin America, the wide culinary tradition is used for innovation.

North America

• The demand for organic and gluten-free products has changed the face of the flour market. Companies like Bob’s Red Mill and King Arthur Flour are providing the best gluten-free flours on the market.
• The manufacturer's adherence to new regulations, such as the Food and Drug Administration's labeling requirements, is influencing the consumers' trust and purchasing decisions.
• In addition, there is a trend towards the use of plant-based raw materials, with companies such as Ingredion and Cargill investing in the research of sustainable and health-oriented bakery solutions.

Europe

• The European market is witnessing a growing demand for clean-label products, and with the support of the European Food Safety Authority (EFSA) and other bodies, stringent regulations are being imposed on the food industry to make sure that the origin of the ingredients in food products is known.
• Local bakers are reviving old baking methods and are using high-quality, locally sourced ingredients, supported by the European Union's promotion of local foodstuffs.
• The environment is a major concern. The companies Puratos and Lesaffre have invested in the most sustainable production methods and ingredients, responding to consumers’ desire for socially responsible products.

Asia-Pacific

• The rise in urbanization and the growing middle class in China and India has given rise to a greater demand for ready-to-eat bakery products. In this way, companies such as Britannia and Bisk Farm have been expanding their product lines.
• A new flavour profile is also emerging, with local bakeries experimenting with the traditional tastes of the region to create new products.
• Government initiatives to improve food safety are influencing the market. The Food Safety and Standards Authority of India (FSSAI) is enforcing stricter regulations on bakery ingredients.

MEA

• In recent years, the popularity of Western breads has had an effect on local markets. The local bakeries have begun to expand their range of products to include more international flavours.
• The growing demand for ready-made and pre-prepared bakery ingredients is due to the cultural shift towards convenience food, which is being met by local wholesalers and retailers expanding their product ranges.
• Regulatory frameworks are developing, governments are focusing on food safety and quality, which encourages investment in sourcing and production practices.

Latin America

• The rich culinary heritage of the region is being used by local bakers to develop new products, with companies like Bimbo and Lala leading the way in the development of new flavours and formats.
• In the same way, food is becoming a priority in the United Nations’ Food and Agriculture Organization (FAO).
• E-commerce is changing the distribution of bakery products. Platforms offer small producers a way to compete with larger ones.

Did You Know?

“In the United States, about ninety per cent of the families consume some kind of bakery, which shows the importance of this industry for the diet.” — American Bakers Association

Segmental Market Size

The market for bakery ingredients is currently growing at a steady pace, as a result of the rising popularity of artisanal breads and the growing demand for convenience foods. Also driving this market is the increasing demand for clean label products and the growing preference for healthier ingredients, such as whole grains and natural sweeteners. Also, the growing awareness of food safety standards is also expected to boost the demand for quality bakery ingredients.

At the moment, the market is in a very advanced stage of development. Cargill and ADM are the leading producers of new ingredients. They are mainly used in bread, pastries and cakes, where emulsifiers and preservatives play a decisive role in the quality and shelf life of the products. These are mainly gluten-free and plant-based products. Sustainability initiatives, which encourage the use of eco-friendly packaging and sourcing, also support the growth of the market. Enzyme applications and fermentation processes are determining the development of the market and enabling manufacturers to respond to changing consumer trends.

Future Outlook

The Bakery Foods Market is expected to grow at a CAGR of 5.9% from 2023 to 2030. This growth trajectory is likely to lift the market from $22.59 billion in 2023 to $32.12 billion by 2030. The growing demand for convenience food and the burgeoning trend for artisanal and specialty bakery products are the major factors driving the growth of the bakery foods market. In addition, the increasing health consciousness of consumers has led to a rise in the preference for natural and organic ingredients. This trend is likely to enhance the penetration of bakery products, especially in the premium category.

Among the technological developments which are expected to play a significant role in the future of the bakery ingredients market are the development of clean-label ingredients and new methods of preservation. Also, the growing influence of e-commerce is facilitating greater access to a wider range of bakery ingredients, thus influencing the market’s growth. Also, regulations aimed at improving food safety and quality are expected to encourage manufacturers to invest in higher quality ingredients, thus contributing to the market’s growth. These developments will shape the bakery ingredients market in the future. This will bring about a more dynamic and competitive landscape.