Baking Ingredients Market Research Report and Outlook by 2028

The baking ingredients market is anticipated to grow significantly, reaching an estimated US$ 22,278.10 million by 2028, up from US$ 16,444.97 million in 2022. This growth represents a compound annual growth rate (CAGR) of 5.2% from 2022 to 2028.

Baking ingredients encompass a variety of components, including flour, yeast, sweeteners, emulsifiers, flavors, colors, stabilizers, hydrocolloids, and enzymes, among others. As health and wellness trends continue to evolve, consumers are increasingly concerned about the presence of chemical preservatives and synthetic additives in baked goods. This shift is prompting a move towards products that utilize natural preservatives, colors, and flavors. Consequently, there is a growing demand for functional, organic, and clean-label baking ingredients. Additionally, consumers are becoming more mindful of their nutritional intake, seeking products that can enhance their diets with essential vitamins, minerals, and proteins. In response, manufacturers of bakery products are focusing on creating offerings that are rich in vital nutrients. For instance, DSM, a prominent ingredient supplier, provides omega-3 powder and vitamin D powder suitable for a wide array of bakery applications, including bread, cookies, rolls, cakes, muffins, bagels, and waffles. Thus, the increasing emphasis on health and wellness is expected to open new avenues for players in the baking ingredients market in the years ahead.

The baking ingredients market is categorized by application into several segments: bread & rolls, biscuits & cookies, cakes & pastries, and others. In 2021, the bread & rolls segment held the largest market share. However, the cakes & pastries segment is projected to experience the highest CAGR during the forecast period. Bakery products are often linked to comfort and stress relief, with sweet items like cakes serving as easily accessible indulgences that can be enjoyed in social settings. Consumers are increasingly engaging in guilt-free or conscious indulgences, balancing health with pleasure, which is likely to propel the growth of the cakes & pastries segment in the near future.

Regionally, the baking ingredients market is divided into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM). In 2021, Asia Pacific dominated the market, while the Middle East & Africa is projected to exhibit the fastest CAGR during the forecast period. The bakery sector in Asia Pacific is rapidly evolving, driven by the rising consumption of convenience food products, increasing disposable incomes, and the expansion of the middle-class population. According to the US Department of Agriculture (USDA), the bakery market in China is experiencing remarkable growth, with retail sales of bakery products reaching US$ 34 billion in 2020. This growth trajectory in the Asia Pacific region is significantly contributing to the overall expansion of the baking ingredients market.

Key players in the baking ingredients market include Cargill, Incorporated, ADM, Associated British Foods Plc., Koninklijke DSM N.V., Kerry Group Plc, AAK AB, British Bakels, Corbion, International Flavors & Fragrances Inc., and Dawn Food Products Inc., among others. These companies are dedicated to developing innovative and cost-effective baking ingredients. For example, in January 2020, Puratos introduced Smoobees, a new line of bakery inclusions designed to enhance both texture and flavor in baked goods. Available in various flavors, Smoobees are soft beads that add a creamy texture to bakery items.

The overall size of the baking ingredients market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. Additionally, numerous primary interviews were conducted with industry stakeholders to validate the findings and gain deeper analytical insights. Participants in this research included VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders specializing in the baking ingredients sector.