Bakery Ingredients Market, Analysis By Type (Starch, Sweeteners, Emulsifiers, Colors & Flavors, Fats, Leavening Agents, and Others), By Application (Cakes & Pastries, Bread, Cookies & Biscuits, Rolls & Pies, and Others), and Regional Forecast, 2024-2032

Bakery ingredients are used to prepare several bakery products. These ingredients are mixed to prepare batter or dough, which is further put into a sheet or pan and heated. They perform numerous functions, such as adding color, texture, and flavor, or also serve a particular purpose like a setting agent or as a thickener. Each bakery ingredient used in the baked product preparation reacts with other ingredients to produce new combinations and create flavor, texture, and structure. 

The key players of the bakery ingredients market supplying bakery ingredients are focusing on mergers and acquisitions, entering into partnerships to generate potential opportunities to enhance their digital platforms for their bakery ingredients business. For instance, in June 2022, Puratos, a supplier of food ingredients for bakeries and confectionery, acquired Rapidle, a provider of personalized e-commerce solutions. The acquisition allowed the digital transformation of Puratos business in France and increased the visibility and digitalization to increase the turnover.    

The demand for bakery ingredients in a wide range of end-use applications, such as fast food restaurants, franchisees, and cafes, is a significant factor driving the growth of the bakery ingredients market. An increase in in-store bakeries and surging demand for fresh bakery products further support the market's growth. Increased health issues owing to excess consumption of trans fatty acids and the rising trend of replacing baked products with nutritious cereals, such as oats, are restraining the bakery ingredients market growth.

Impact of COVID-19 on the Bakery Ingredients Market

COVID-19 had a positive impact on the bakery ingredients market. During the COVID-19 pandemic, there was an increase in sales of bakery ingredients such as flour, ingredients for cakes, baking powder, baking soda, and cocoa powder as consumers were stranded at home, resulting in increased at-home baking. Further, the shutdown of offices and schools made consumers opt for at-home breakfast, lunch, and dinner, resulting in increased demand for ready-to-cook, bakery products, and convenience foods with longer shelf lives.

During the second phase of COVID-19, the need for bakery ingredients increased compared to the pandemic's start. The supply chain of bakery ingredients was negatively affected due to the lockdown; however, the post-pandemic scenario had a tremendous increase in demand for bakery ingredients boosting the bakery ingredients market growth.

Key Insights 

The report will cover the following key insights:

• Overview of parent/related market


• Partnership, merger, and acquisition by key players


• Key trends and innovation


• Regulatory analysis


• Impact of COVID-19 on the bakery ingredients market

Analysis by Application

Based on application, the market is segregated into cakes & pastries, bread, cookies & biscuits, rolls & pies, and others. The bread segment is expected to hold a major market share, owing to increasing bread consumption worldwide for breakfast and the rising preference of consumers for healthy claimed bread variants such as whole grain, gluten-free, and fortified bread.

Analysis by Region

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Based on region, Asia Pacific is anticipated to hold a significant bakery ingredients market share. The bakery industry in Asia Pacific is advancing faster with increasing consumption of bakery products and convenience foods, an increase in the middle-class population, and increased purchasing power of consumers. Further, increasing demand for fondant cakes, cheesecakes, artisanal cakes, and various other bakery products among consumers in India, combined with an increased number of cake shops, bakery outlets, food courts, and easy availability of bakery products, is favoring the market growth.

Key Market Players

This report includes the profile of key players such as Archer Daniels Midland Company (U.S.), Associated British Foods Plc (U.K.), Cargill (U.S.), Kerry Group Plc (Ireland), AAK AB (Sweden), Dawn Food Products (U.S.), Royal DSM (Netherlands), Ingredion (U.S.), Taura Natural Ingredients (New Zealand), and Tate & Lyle (U.K.).

Segmentation

Key Industrial Developments

• May 2019, Ingredion launched three new starches named NOVATION Lumina. This functional native starch is ideal for bakery cream fillings and delivers optimal texture, color, and flavor for baked products.


• January 2020, British Bakels introduced vegan baking ingredients with four new vegan fillings such as orange, caramel, chocolate, and lemon. The vegan fillings can be injected into doughnuts and muffins, delivering a smooth texture with superior flavors to baked products.