Baking Ingredient Market

Baking Ingredient Market Outlook (2024 to 2034)

Worldwide sales of baking ingredients are estimated at US$ 22.1 billion in 2024. The global baking ingredient market is forecast to expand at a 6.5% CAGR and reach a value of US$ 41.48 billion by the end of 2034.

Baking ingredients are necessary items required to prepare baked products, such as cakes, breads, cookies, and pastries. The primary components include liquids like milk or water, which bind ingredients, sugar for sweetness and browning, eggs for texture and stability, fats such as butter or oil for moisture and richness, and leavening agents like baking powder and yeast, which aid in rising doughs and batters.

Pre-measured ingredient kits and ready-to-use baking mixes are becoming popular due to consumer demand for ease in baking. With clear directions and carefully measured ingredients, these items make baking easier for inexperienced and time-pressed bakers. People with busy schedules or those who have never baked before find baking ingredients appealing. The market for baking ingredients is growing at a steady pace as a result of the rising use of ready-to-use mixes and kits, which save time and effort while enabling more people to enjoy baking without the hassle of complicated recipes.

Key Market Growth Drivers

• Growing demand for baking ingredients is driven by the rise in home-baking activities, especially since the COVID-19 epidemic.
• Sales of flour, sugar, baking powder, and specialized ingredients are rising because consumers are baking more often, trying out new recipes, and seeking comfort in baking.
• Whole grain flour, organic and non-GMO flour or goods, and natural sweeteners such as honey and maple syrup are the most sought-after ingredients for baking.
• Consumers' rising interest in handmade and premium baked products that require special and superior baking ingredients such as specialty or functional flours, exotic spices, and organic extracts is contributing to the expansion of the baking ingredient market size.
• Growing demand for convenience has led to a rise in demand for pre-measured ingredient kits and ready-to-use baking mixes, making baking more accessible to busy individuals or those lacking baking expertise.
• In response to shifting consumer preferences, major players in the market are introducing new products, including low-sugar, high-protein, and allergen-free alternatives.
• Professional chefs and bakers rely on top-notch baking ingredients to meet the expectations of their clientele.
• Online food delivery services with 24-hour availability are boosting bakery item sales, thereby expanding the market for baking ingredients.
• The growing popularity of veganism has spurred the demand for vegan cakes, pies, and other confectionery items. To meet this demand, companies specializing in meat and dairy substitutes are developing ingredients like soy butter, soy cream, and plant-based meats, contributing to the growth of the vegan baking ingredient industry.

Report Attribute	Detail
Baking Ingredient Market Size (2024E)	US$ 22.1 Billion
Forecasted Market Value (2034F)	US$ 41.48 Billion
Global Market Growth Rate (2024 to 2034)	6.5% CAGR
North America Market Share (2024E)	23.9%
East Asia Market Value (2024E)	US$ 4.95 Billion
Oils & Fats Segment Value (2034F)	US$ 10.12 Billion
Bread Segment Value (2034F)	US$ 8.96 Billion
Key Companies Profiled	DuPont De Nemours and Company; Tate & Lyle PLC; Associated British Foods; Puratos Group N.V.; Jiangsu BoliBioproducts Co., Ltd.; Caldic B.V.; Cargill Inc.; Ingredion Inc.; AB Enzymes; BDF Ingredients; Lallemand Inc.; DSM N.V.

How are Influencers and Content Creators Sparking Interest in Baking Ingredients?

“Social Media Platforms Using Visually Appealing Content to Promote Specialty Ingredients ”

Consumer purchasing decisions are increasingly shaped by social media platforms, cooking shows, and food blogs, particularly in the realm of baking. These platforms serve as digital hubs where individuals gather ideas, discover new recipes, and enhance their baking skills. Influencers and content creators spark curiosity and aspiration among their followers by showcasing unique and specialty baking ingredients in visually captivating content.

Beyond inspiring experimentation with new recipes, this exposure is fueling the demand for a broader range of baking supplies, enabling consumers to recreate the tantalizing treats they encounter online. Consequently, social media and culinary content platforms play a pivotal role in shaping consumer preferences and fueling baking ingredient market growth.

What Challenge Do Baking Ingredient Manufacturers and Suppliers Face?

“Limited Shelf Life of Perishable Items Like Dairy and Yeast”

Baking ingredient producers and suppliers encounter challenges with limited shelf life of perishable items like dairy and yeast. To mitigate waste and maintain freshness, manufacturers and retailers must meticulously handle inventory. Efficient inventory management and transportation solutions are imperative to optimizing product turnover and preventing expiration.

In a competitive market with slim profit margins, monitoring of perishable goods is paramount to preventing losses and upholding customer satisfaction. Investing in packaging and preservation technologies is essential to prevent product deterioration and prolong the shelf life of delicate materials.

Country-wise Insights

The North American region is projected to hold a leading position with 23.9% of the global baking ingredient market share in 2024 and is projected to account for 24.3% of the share by 2034. The market in East Asia is forecasted to expand at a significant 6.8% CAGR from 2024 to 2034, driven by the strong tradition of home baking.

Why is the United States a Crowning Jewel in This Market?

“High Preference for Home Baking and Demand for Flexible Recipes”

Attribute	United States
Market Value (2024E)	US$ 2.35 Billion
Growth Rate (2024 to 2034)	6.9% CAGR
Projected Value (2034F)	US$ 4.6 Billion

Need for convenience and personalization is influencing American consumers' choice of baking ingredients. An increasing number of customers are choosing to bake at home, which is leading to a need for recipes that are more flexible to suit a range of dietary needs and taste preferences. Various baking ingredients such as specialized flours, extracts, and embellishments, are now in great demand as a result of this need.

Whether experimenting with gluten-free substitutes, adding organic ingredients, or trying out novel taste combinations, consumers value the ease with which they can modify recipes to suit their requirements.

What is Pushing Baking Ingredient Suppliers to Invest in Japan?

“Cultural Shift toward Western Food Due to Exposure to Foreign Cuisine”

Attribute	Japan
Market Value (2024E)	US$ 1.43 Billion
Growth Rate (2024 to 2034)	7% CAGR
Projected Value (2034F)	US$ 2.82 Billion

When it comes to baked items such as bread, pastries, and cakes, Japan is experiencing a significant cultural change in favor of Western food. Globalization and greater exposure to foreign cuisine trends via travel, media, and the Internet are key baking ingredient market trends. Incorporating baked goods into daily diet and lifestyle is becoming increasingly common among customers in the country as they become more acquainted with Western culinary customs. To facilitate this culinary change, there is a growing need for a variety of baking ingredients due to the growing interest in baked products.

Category-wise Insights

Based on product type, the market is segmented into emulsifiers, leavening agents, enzymes, baking powder & mixes, oils & fats, colors & flavors, dough conditioners, and starch. The baking powder & mixes segment is poised to hold 21.8% of the worldwide market share in 2024.

Why are Bakers and Manufacturers Increasingly Relying on Emulsifiers?

“Emulsifiers Contributing to Stabilizing Ingredients and Prolonging Product Shelf Life”

Attribute	Emulsifiers
Segment Value (2024E)	US$ 4.99 Billion
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 9.5 Billion

Based on product type, emulsifiers are experiencing heightened demand as they aid in achieving uniform and stable mixing of ingredients, thereby enhancing the texture, crumb structure, and shelf life of baked goods. In addition, emulsifiers enhance moisture retention, dough handling properties, and overall product quality. Given consumers' desire for high-quality, consistent, and durable baked goods, bakers and manufacturers are increasingly turning to emulsifiers to meet these requirements.

Why are Baking Ingredients Extensively Used in Bread-making?

“Baking Ingredients Enhancing Texture, Flavor, and Composition of Bread”

Attribute	Bread
Segment Value (2024E)	US$ 4.99 Billion
Growth Rate (2024 to 2034)	6.6% CAGR
Projected Value (2034F)	US$ 9.5 Billion

In terms of application, the bread segment occupies a significant portion of the baking ingredient market share. Baking ingredients are extensively used in bread-making, with each element fulfilling a crucial role. For instance, yeast facilitates dough expansion, while wheat provides structural integrity and promotes gluten formation. Salt regulates yeast activity and also enhances flavor, while water acts as a catalyst for yeast growth and assists in dough formation. Together, these components collectively influence the texture, flavor, and composition of bread.

Competitive Landscape

To guarantee quality, key players in the baking ingredient industry are introducing gourmet foods and artisanal goods at a range of pricing points and quality standards so that various bakery suppliers can select one based on their business strategy. Businesses are taking advantage of the growth of the e-commerce sector by hosting their products on these websites to reach a larger audience of prospective buyers.

• In May 2024, Sapore Lavida, Belgium's first fully traceable active sourdough, was introduced by Puratos. Because the new ingredient is composed entirely of whole wheat flour obtained via regenerative agricultural techniques, bakers in mainland Europe will be able to satisfy the increasing demand for sourdough products created locally and sustainably.
• In February 2024, to assist commercial and industrial bakeries in producing artisan-style baked goods, GoodMills Innovation unveiled Slow Milling, a new line of clean-label ingredients.
• In January 2024, Intens Soft & Fine, a substitute for mono- and diglycerides, was introduced by Puratos. The manufacturer claims that these baking ingredients extend the shelf life of products including panettone, donuts, brioche, toast bread, and hamburger buns by adding texture and quality.
• In July 2023, Henley Bridge, Dr. Oetker, and Puratos, providers of baking materials, introduced three new sweet baking ingredients: rich chocolate chips, brioche mix, and cocoa butter drops.
• In May 2023, the massive Australian agribusiness GrainCorp announced its intention to meet consumer demand for products in Asia that are both healthier and cleaner.

Fact.MR provides detailed information about the price points of key suppliers of baking ingredients positioned across the world, sales growth, production capacity, and speculative technological expansion, in this new market report.

Segmentation of Baking Ingredient Market Research

• By Product Type :

  • Emulsifiers
  • Leavening Agents
  • Enzymes
  • Baking Powder & Mixes
  • Oils & Fats
  • Colors & Flavors
  • Dough Conditioners
  • Starch

• By Application :

  • Bread
  • Biscuits & Cookies
  • Cakes & Pastries
  • Rolls & Pies

• By Region :

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • East Asia
  • South Asia & Pacific
  • Middle East & Africa