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.
The fiber segment by type is projected to achieve the fastest growth in the baking ingredients market.
The fiber is the fastest-growing segment type during the forecast period. Increased health awareness has triggered the interest in products with functional ingredients, such as dietary fiber. Fiber can add additional health benefits to baked goods while enhancing the overall quality.
By application, the bread segment is projected to account for the largest market share in the baking ingredients market.
The bread segment is projected to dominate the baking ingredients market by application. Bread is one of the oldest basic food products of human beings. Bread and bakery products are widely consumed as part of traditional diets and are an important source of dietary energy leads to the large market share of bread in application segment globally.
The dry ingredients segment by form is projected to account for the largest market share of the baking ingredients market over the forecast period.
The dry ingredients segment is projected to hold the largest market share during the forecast period. This large market size is attributed to the use of more dry ingredients, such as flour, baking powder, baking soda, yeast, sugar, and salt, in baking than liquid ingredients. Baking mixes have become popular which contain all dry ingredients and can be used for various applications, such as bread, cakes, waffles, muffins, and pizza crusts.
Europe projected to be the largest market.
Factors such as increased consumption of baked goods, especially as convenient food products, and awareness about natural baking ingredients, such as yeast extracts, enzymes, and fibers are the major factors for the large market size of Europe in the baking ingredients market. According to AIBI bread market report 2012, Europeans on average consumed 58 kgs of bread and bakery products per capita. Bread and bakery products are produced in a number of different ways: by large industrial companies, by traditional smaller-scale bakeries, and by people at home.
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.
