Transparency Market Research has identified Archer Daniels Midland Company, Associated British Foods Plc, DSM N.V., and Cargill Incorporated as some of the leading players in the global baking ingredients market. These companies are expected to focus on product development in the coming years. Additionally, players are expected to make significant investments in research and development to continue their dominance during the forecast period. “The market can be defined as a highly competitive one with a constant need for innovation to stay above the rest,” observes the leading author of this research report. The opportunity in the global baking ingredients market was worth US$11.7 bn in 2015 and is projected to reach US$18.1 bn by the end of 2024. This soaring revenue is estimated to progress at a CAGR of 4.9% from 2016 to 2024.
Asia Pacific Market to Bank on Changing Food Habits
Of the various ingredients, the research report states that the consumption of flavor and color additives will remain on the upswing. Analysts estimate that the flavor and color additives segment will progress at a CAGR of 5.6% during the forecast period. The demand for myriad flavors and color additives will continue to remain high as the baking sector evolves to cater to changing consumer preferences. In terms of geography, Asia Pacific is projected to show a robust demand for baking ingredients during the forecast period. The regional market is estimated to surge at a CAGR of 5.3% between 2016 and 2024. Adoption of western food habits and the growing consumption of bakery products is anticipated to keep Asia Pacific at the forefront of the global market.
Introduction of Innovative Products Expands Consumer Base
The global baking ingredients market is expected to flourish at a rapid rate in the coming years due to changing eating habits of several consumers across the globe. The demand for baking ingredients such as yeast, baking powder and baking soda, sweeteners, flour, fats, and flavor and color additives will be propelled due to the increasing consumption of bakery items across North America and Europe as a staple food. The rising disposable income and improving purchasing power of the youth across the world is expected to boost the demand for baked food items such as cakes, pizzas, and biscuits.
Emerging economies such as Latin America and Asia Pacific are also expected to open up lucrative opportunities for the baking ingredients market as the regions are witnessing an emergence of sophisticated confectioneries. Growing inclination toward western food habits in developing nations of India and China will also fuel the uptake of baking ingredients in the coming years. Additionally, the introduction of innovative baking ingredients that are gluten free is also expected to fuel the growth of this market. Such baking ingredients is poised to attract a large number consumers who were unable to indulge in fine bakes due to dietary restrictions.
Fitness-conscious Consumers Challenge Consumption of Baking Ingredients
Just as there are a growing number of consumers spending on baked items, there are ones that are against the consumption of these food products. Known to be fattening and unhealthy, baked food products are a strict no-no amongst the fitness-conscious consumers, who are growing in number. Furthermore, the strict regulations pertaining to the quality standards of baked items are also hampering the overall market.
This review is based on Transparency Market Research’s report, titled “Baking Ingredients Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2024.”
Global Baking Ingredients Market: By Ingredients Type
- Baking Powder and Baking Soda
- Flavor & Color Additives
Global Baking Ingredients Market: By Product Type
- Biscuits & Cookies
- Cakes & Cupcakes
- Pastries & Pie
- Pizza & Buns
- Bagels & Donuts
Global Baking Ingredients Market: By Sector
- Organized Sector
- Unorganized Sector
Global Baking Ingredients Market: By Geography
- Rest of Europe
- Rest of Asia Pacific
Middle East and Africa
- North Africa
- South Africa
- Rest of Middle East and Africa
- Rest of Latin America