The global baking ingredients market was estimated at USD 16.6 billion in 2021 and is projected to reach USD 22.3 billion by 2026, at a CAGR of 6.0% from 2021 to 2026.
Asia pacific is projected to be the fastest-growing market for baking ingredients market, recording a CAGR of 7.2% from 2021 to 2026.
Factors such as changes in eating habits of consumers, increasing urbanization, and rising consumption patterns of baked products have driven growth in the market in this region. In emerging economies such as India, China, and Indonesia, the penetration of packaged and convenience food is the key driver for the baking industry.
Bread is among one of the cheapest and basic instant food available for consumption globally. A report published on the Snacking Motivations and Attitude in the US in 2015 states that nearly 94% of the US population consume snack items.
The growing consumption of various bakery products, such as pastries, tarts, donuts, as snacks, has led to a surge in demand for baking ingredients, such as bakery mixes, baking powder, leavening agents, preservatives, flavors & colors, and many others. Today, convenience foods supply much of the food requirements of the world's population in industrial countries.
The universal consumption of convenience foods has arisen from the demands of modern, busy lifestyles, which has shifted the consumer demand pattern to grab-and-go foods. For most people, their daily nourishment is being supplied by commercial enterprises rather than by their food-producing endeavors.
The key players holding a large share in the baking ingredients market include Cargill (U.S.), Archer Daniels Midland Company (U.S.), Associated British Foods plc (U.K.), Koninklijke DSM N.V. (The Netherlands), Kerry Group plc (Ireland), and AAK AB (Sweden). Other players include Taura Natural Ingredients Ltd (New Zealand), British Bakels (U.K.), Muntons plc (U.K.), Corbion (the Netherlands), and Dawn Food Products, Inc. (U.S.). These players in this market are focusing on increasing their presence through new product launches and deals. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
