The baking ingredients market is driven by factors such as rising per capita consumption of baked goods, and development of innovative baking ingredients that are cost-effective as well as beneficial for health. The high growth potential in emerging markets and untapped regions provide new growth opportunities for market players.
Increasing demand for convenience foods, functional foods, and baked goods, coupled with the constantly changing lifestyles, has increased the demand for baked products in China and other developing Asian economies.
With a rise in disposable income and inclination towards western eating habits, consumers are willing to spend on newly developed baked creations and incorporate baked items such as bread and rolls in their daily diets.
The US was the largest country-level market for baking ingredients, whereas the market in China is expected to grow at the highest CAGR of 7 percent in terms of value.
Among the types of baking ingredients—which include emulsifiers, leavening agents, enzymes, starch, oils, fats and shortenings, colours and flavours , and others—the enzymes segment is expected to grow at the highest CAGR with increasing applications in baked products. Enzymes are naturally derived components that help bakers in maximising the functionality of end products. It is also a cost-effective option which further satisfies the growing demand for clean label products from consumers as well.
On the basis of application, the baking ingredients market is led by the bread segment, followed by cakes and pastries, and cookies and biscuits. Cakes and pastries are the fastest-growing segment of baking ingredients, particularly in developing Asian economies with greater demand for convenience foods. The cakes and pastries market is driven by product development, new product introduction, changing preferences of consumers towards taste and flavour, and rising demand for premium quality products.