Global Bakery Ingredients Market - Growth, Trends, and Forecast (2018 - 2023)
Evolving retail landscape of retail bakery products has been one of the crucial factors for the expansion of the market over the last few years. The market witnessed a high consumption rate in the categories of cakes, pastries, pies, scones, bread, biscuits, and cereals in the developed markets of North America and Western Europe. Growing popularity for artisan bakeries coupled with high per capita consumption of bakery products is likely to fuel the expansion of bakery ingredients market during the forecast period.
The global bakery ingredients market was estimated at USD 10.2 billion in 2016 and is expected to register a CAGR of 5.8%, during the forecast period, 2018-2023.
There is a growing consumer demand for nutritional content in baked foods with low sugar, whole grain, and zero Trans-fat per serving. Increasing obesity rates and aging population have put the usage of healthy ingredients in the U.S. on a national front. The growing demand for ready-to-eat food is expected to boost the bakery ingredients market. The shift in the conventional home cooked food to convenience foods has also increased the demand of these bakery ingredients in the emerging markets. Adoption of westernized lifestyle, double income families, emphasis on healthier lifestyles, greater nutrition awareness, and increase in disposable income are the major factors that are responsible for the growth in baked foods industry, which, in turn, will drive the demand for the bakery ingredients manufacturers. The focus would be on innovation in sweeteners, dry ingredients, starches and derivatives, oil and shortenings ingredients to meet the consumer demand for low trans fats and gluten free products, without modifying the quality, texture, and taste of these products. The growing substitution of the baked goods with the cereals and corn flakes categories is difficult to sustain unless there are healthier and innovative products in the bakery ingredients in compliance with GMP. The future scope for the bakery ingredient manufacturers would lie in the advancements of food ingredients systems and thereby, providing a common platform for food makers, food service providers, and retailers to meet the strategies of the company in meeting with the consumer consumption trends and preferences.
Bakery ingredients are broadly categorized in different product segments, which are fats and shortenings, emulsifiers, bases and mixes, functional blends, colors and flavors, leavening agents, and others. The bases and mixes segment accounts for the largest share followed by fats and shortenings. Enzymes are used to replace chemical additives and also help the companies reduce their processing time while saving energy costs. Emulsifiers are the ingredients that are used to obtain soft crumb-like and tenderness in the texture of some bakery products. Leavening agents, such as baking powder and yeast extracts, held the largest share in the global bakery ingredients market, as they are widely used for fermentation in baked products. In 2016, the global market for baking powder was valued at USD 4.1 billion.
The U.S. and Europe with their long-standing culture of consuming bakery and baked foods are the matured markets of this industry. Although Germany in the European region is dominating the bakery ingredients market, the European crisis has affected the consumer spending on baked goods. China and India, with their growing population and increasing disposable incomes, are the major markets for the baked goods, and bakery ingredients. Consumers are willing to pay more for a healthier profile in the bakery products, which drives the growth of this market.
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