Insights On The Bakery Ingredients Market

Monday, March 30th, 2020

The Asia Pacific region is projected to be the fastest-growing market for bakery ingredients. Its economic importance has increased in the last decade. With the rising population and improving the purchasing power of consumers in developing countries such as China and India, the market in this region is expected to witness high growth in the future. By Nimish Shinde, Research Analyst—Food & Beverage & Nishikant Yadav Associate Manager—Food & Beverage from MarketsandMarkets Research.

In 2018, the global market for bakery ingredients was valued at US$13.76 billion. It is projected to reach US$16.99 billion by 2022, growing at a CAGR of 5.4 percent from 2019. The growth of the bakery ingredients market is majorly driven by the rising demand for baked goods, which again, is increasing owing to the changing consumer preference toward ready-to-eat and healthy & convenient foods.

Bakery ingredients are used to maintain the softness, freshness, taste, appearance, and increase the protein content in baked items; they also extend the shelf-life of the baked product. Frequently used bakery ingredients include baking powder, baking soda, flour, butter, nuts, honey, eggs, fruits, yeasts, flavour enhancers, and colour additives.

With heavy investment in R&D, new innovations across various bakery ingredients are emerging rapidly, such as protein-based fat replacements, flavour enhancements, textural improvements, solutions to prolong the shelf-life of products. The rising consumer awareness and the introduction of non-GMO/clean-label ingredients for the bakery industry drive the market for organic ingredients, especially in the North American and European markets.

 

Enzymes act as an alternative to emulsifiers in baked products

The market for enzymes is projected to grow at the highest CAGR of more than 6 percent, during the forecast period. The growth of enzymes as a bakery ingredient is attributed to properties such as reduced mixing time, increasing oxidation, managing the speed of fermentation, and improving machinability in various bakery products.

Furthermore, enzymes are rapidly emerging as alternatives to emulsifiers as they are natural catalysts. Enzymes are produced by living organisms to increase the rate of a diverse set of chemical reactions. Enzymes are also used to improve dough structure, softness, and increase the shelf-life of bread products. Enzymes such as α-amylases, ß-xylanases, and lipases are derived from natural sources. According to the Austrian Federal Environment Agency, about 158 enzymes are used in the food industry. In comparison, only 64 enzymes are used in technical applications, while 57 enzymes find usage in feed.

Other baking ingredients, such as leavening agents (yeast extracts), are primarily used for fermentation in baking. Emulsifiers such as lecithin are used in baked products to improve water absorption, crumb structure, and slicing characteristics of bread. Lecithin is a natural emulsifier that holds a major share in the bakery ingredients market and also drives the market for low-fat foods.

Emulsifier substitutes are used in applications such as cakes, muffins, and bread. The most common emulsifiers used in baking are DATEM, CSL/SSL, or GMS. Enzymes are increasingly used as alternatives to emulsifiers in baked products. This is because the raw materials used for emulsifiers are chemically synthesised esters of fatty acids, which are expensive.

 

Increased demand for Artisan bread, Speciality bread, and Gluten-Free and Whole Grain bread drives the growth of the bread segment

On the basis of application, the market for bakery ingredients was dominated by bread, with a share of ~46 percent in the global market, and it is expected to grow at a steady rate during the forecast period. On the other hand, the market for cakes & pastries—categorised as indulgence products— is projected to grow at the highest CAGR of 5.9 percent, by application, during the forecast period. This growth is driven by innovative flavour combinations and consumer demand for new varieties of products. Bread is the staple food for many countries in Europe, owing to which the bread segment is relatively matured compared to other regions, specifically, Asia Pacific and Africa.

Figure 1:  Growth Prospects Of The European Bakery Ingredients Market (2018-2022)

Product innovation presents substantial scope for the bakery market to grow in Europe since consumer preferences are changing wherein the demand is increasing for bakery products that offer better taste, quality, and variety. Consumer inclination toward clean-label products has also presented manufacturers with an opportunity to produce bakery products that are aligned with consumers’ requirements, leading to positive growth in the market. The trend of convenience has also influenced consumer preferences for industrial baked goods over craft bakery products in the region.

The Asia Pacific region is projected to be the fastest-growing market for bakery ingredients. Its economic importance has increased in the last decade. With the rising population and improving the purchasing power of consumers in developing countries such as China and India, the market in this region is expected to witness high growth in the future. Factors such as changes in the eating habits of consumers, rapid urbanisation, and rise in the consumption patterns of baked products are estimated to drive the growth of the bakery ingredients market in this region.

In emerging economies such as India, China, and Indonesia, the penetration of packaged and convenience food is a key driver. For instance, baked food, especially bread, is replacing Chinese traditional breakfast items such as porridge and fried dough sticks, thereby boosting the demand for baking ingredients in the country.

 

Check these articles out:

Exploring The Market For Fortified Food With WACKER

Asian Consumers Desire Natural And Tasty Confectionery

Palsgaard Expands In Shanghai

Health-Consciousness Fuels The Demand For Functional Dairy Blends

Bakery Processing Equipment Market To Exceed USD 11 Billion By 2025

Fermented Ingredients Market To Display 7.4 Percent CAGR, Driven by Bio-Pharma and Food Processing Applications

Baker Perkins And Rousselot Reduces Setting Time For Gelatin Gummies

Functional Ingredients Market Valued At US$96.1 Billion By 2026

Baking Ingredients Market Forecast To Reach US$16.9 Billion

Plant-Based Beverages: Global Scenario & Market Highlights

 


SHARE WITH FRIENDS:


TAGS: