Global Bakery Ingredients Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Global Bakery Ingredients Market Growth

The global bakery ingredients market revenue is witnessing tremendous growth in several developing countries because of the expansion of the bakery sector, and evolution of eating habits as well. The love for bakery products as breads, pastries, cakes, and cookies are also increasing in many regions especially in Asia-Pacific and Latin America owing to better pay and influence from western diets including fast food. As for baked goods, the sales in the US reported stable performance reaching a value of USD 82.9 billion with a Compound Annual Growth Rate (CAGR) of 5.9% during 2018 and 2022 period. This growth has in most cases been attributed to busy consumer lifestyles especially in urban areas where people are more often on the move. One such consequence has been increased popularity for the easy, effortless and almost instant types of baked snacks out of the pack. Such desserts also create the demand for some specific baking components including preservatives, emulsifiers, enzymes, which help keep the quality parameters such as freshness, structure and self-life in a busy packaged only range of ready-to-eat foods for instant storage and consumption.

At a broader view, the increase in clear choice for healthier clean label products is one very strong reason why the bakery ingredient industry is expanding-most especially now that health indicators are in excess with consumers looking for organic and good tasting ingredients. This is in turn creating more and more innovation throughout the entire business with a more health-focused and cleaner label products.

The bakery ingredient market dynamics and trends are oriented towards cleaner and more wholesome options. Also, the growing demand by consumers for gluten-free, low-calorie and low-sugar bakery items offers market players an opportunity to grow and diversify their product portfolio. In return, the businesses are responding by producing foods that dot these dietary needs, thus enabling the ever-evolving customer base which is health, nutrition and wellness focused.

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Global Bakery Ingredients Market Analysis

The factors that are driving the growth of the bakery ingredient market demand include changing land and broadcasters’ preferences for the convenient shopping, living and delivery of products and especially baked foods, as well as soft & hard breeds of collaboration with the Four rendering effective dominance in further promotion of baked foods in will.

In addition, various development in technology regarding the processing of the ingredients and the changing trends toward demand for clean label and natural products is the reason behind upsurging growth of bakery ingredients in developed as well as developing countries.

Consumer connection strategies and development of frequent purchase behavior include the need for new products. New customer acquisition is done by searching for new tastes, textures, and shapes of the products. Moreover, companies are focusing on developing new healthier variants and launching bakery goods made of superfoods, natural products, probiotics and additional health-enhancing ingredients. These trends are leveraging the need for new and improved bakery ingredient which is crucial for the bakery ingredient industry growth.

Bakery Ingredient Industry Outlook

Bakeries are key end users and propellers of bakery ingredient industry, and this plays an important role in terms of driving in revenue growth in the global bakery ingredients market. Bakeries sales have increased gradually with U.S. coming first as top exporters of baked goods worth USD 4.35 billion according to 2023 Foreign Agricultural Services data with Canada following closely at USD 2.8 billion. On the other hand, Baked goods export revenues for the European Union amounted USD 55.14 million where Germany was the top exporter in the European Union. Alone bakeries in the US brings approximately 3 trillion USD each year, with the smaller bakeries having earnings of about 32,5000 USD to 45,0000 USD every year which indicates good market.

Over the years the global bakery market has permanently grown and thus positively affecting the revenues in the bakery ingredient market. The year 2020 to 2021 saw an increase of 16 percent in the exportation of baked goods reaching USD 43.5 billion up from USD 37.5 billion. In contrast, the European Union ranked first in the exported goods while the baked goods imported country was the United States which recorded USD 7.47 billion worth of Baked goods imports. This depicts that there is high demand of bakery goods in the United States as well as high volume of inter industry trading which is expected to create new opportunities for bakery ingredient market.

With the bakery industry is proliferating, Asia pacific is fast becoming a promising region for the bakery ingredient market demand growth. All this comes at the back of increasing consumer demand for diverse and healthier bakery options, including gluten-free and low-sugar products, and rising adoption of Western eating habits. Meanwhile, upcoming bakery processing units and manufacturing facilities in Asian countries pick up the speeding demand in the bakery ingredients market. 

Similarly, in the Middle East and Africa, the bakery industry in Saudi Arabia has transformed significantly to become the largest in the region and the 20th largest in the world. This growth is mainly a result of relatively high consumption in the country since bread is a staple food. The evolution of Saudi Arabia’s bakery sector, from traditional to modern, has been a key factor in its regional dominance.

Additionally, as of 2024, there are approximately, 32,000 bakeries in US and ,406 retail bakeries in Canada. In 2021 there were 2,720 businesses making bread, fresh pastry goods and cakes in the UK. As of 2023, in France there were 30,000 independent bakeries and in Germany there were roughly 10,000 bakeries.  As number of new bakery outlets and manufacturing units are expected the increase in the coming years, the bakery ingredient industry revenue is bound to increase significantly by 2032.

Increasing global consumption of bakery products and technological advancements in bakery processing technologies are driving the demand for bakery ingredients.

• Rising demand for gluten-free, organic, and clean-label products boosts the market.
• Innovations in ingredient processing improve product shelf life and quality.

Fluctuations in raw material prices impact ingredient cost structures

• Stringent food safety and labeling regulations add complexity for manufacturers.
• Many bakery ingredients have minimal differentiation, leading to intense price competition.

Rapid urbanization and growing middle-class populations in Asia-Pacific and Latin America offer significant opportunities for bakery ingredient market.

• Increasing demand for healthier and functional bakery ingredients opens avenues for innovation.
• Growing interest in eco-friendly and sustainably sourced ingredients creates new market segments.

Volatility in agricultural commodity prices could affect profitability of bakery ingredient demand growth.

• The presence of numerous global and regional players increases market competition.
• Rapid shifts in dietary trends may require constant product adaptation to meet new demands.

Key Players in the Global Bakery Ingredients Market and Their Key Initiatives

Koninklijke DSM N.V.

• DSM has been extending its footprint in the bakery ingredients market by catering enzymes and nutrition solutions to enhance the quality patterns and sustainability of the product.
• DSM merged with the Swiss flavourings company Firmenich in 2023.

DuPont de Nemours, Inc.

• DuPont has been developing functional bakery ingredient solutions with its Danisco portfolio.
• DuPont de Nemours, Inc. finalized a USD 26.2 billion deal with International Flavours & Fragrances (IFF) to power up advancements in sweeteners, probiotics and preservatives.

Kerry Group plc

• Plans to strengthen its portfolio of clean label and plant-based ingredients, including products for health-oriented offerings in the bakery segment.
• In 2024, launched Biobake Fresh Rich an enzyme system for sweet baked foods.

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Global Bakery Ingredient Industry Segmentation

“Global Bakery Ingredients Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Ingredient Type

• Baking Enzymes
• Leavening Agents
• Fats and Shortenings
• Sweeteners
• Colours and Flavours
• Preservatives
• Others

Market Breakup by Application

• Bread
• Cake and Pastries
• Biscuit and Cookies
• Rolls, Puffs and Pies
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

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Bakery Ingredient Market Share

In addition, the rising bakery sector across the globe, urbanisation, and the changes in eating habits of the consumers are contributing to the bakery ingredient industry growth. The bread segment has the major share in the bakery ingredients market, being one of the most important part of the food we eat. According to FAO, 80% of the world’s population ate bread in 2022, taking bread as a common staple food. Bread is consumed by European countries with the highest percentage, especially in France, Italy, Germany, and the UK. Countries like Germany and Austria consume the most of bread in the European region, having a consumption of 80 kilograms of bread per human being per year, and the UK and Ireland consume less, having the percentage of bread consumption below 50 kilograms of bread annually.

These enzymes support bread-making about by facilitating flour and dough quality as well as the specific end-use properties of the final product. Three distinct sources of bread-making enzymes can be found in traditional dough systems: endogenous enzymes present naturally in the flour, microbially produced enzymes from fermentation, and exogenous enzymes added as part of the baking process. We can refer to these as enzyme improvers. These are added during the production of flour to standardise its quality for optimal dough performance, and as such they support the texture, volume, and shelf-life of baked goods. This bread-making enzyme enhancement process continues to be crucial in maintaining the high demand for bread as a food source worldwide.

Leading Companies in the Bakery Ingredient Market

These companies are global leaders in supplying essential ingredients for food manufacturing, ensuring product quality, nutritional value, and market differentiation.

• Cargill, Incorporated
• Koninklijke DSM N.V.
• DuPont de Nemours, Inc.
• Ingredion Incorporated
• Kerry Group plc
• EMU AG

Bakery Ingredients Market Report Snapshots

Bakery Ingredients Market Size

Bakery Ingredients Market Growth

Bakery Ingredients Companies