The global baking ingredients market was valued at USD 16.6 billion in 2021 and is projected to reach USD 22.3 billion by 2026, growing at a CAGR of 6.0% during the forecast period.
Growing Demand for Bakery Products Drives Baking Ingredients Market
The increasing demand for bakery products has significantly contributed to the rise in demand for baking ingredients. Professional bakers require large quantities of essential ingredients to create a wide variety of baked goods, ranging from muffins and cupcakes to multi-tiered cakes and delightful cookies.
Europe: The Largest Market for Baking Ingredients
Europe is projected to hold the largest market share in the baking ingredients market. Factors such as increased consumption of baked goods, especially as convenient food products, and growing awareness about natural baking ingredients, such as yeast extracts, enzymes, and fibers, contribute to Europe’s dominant position. European consumers have a substantial per capita consumption of bread and bakery products, with various production methods ranging from large industrial companies to traditional smaller-scale bakeries and home-based baking.
Asia Pacific: The Fastest-Growing Market
The Asia Pacific region is expected to be the fastest-growing market for baking ingredients, with a projected CAGR of 7.2% from 2021 to 2026. Factors such as changing eating habits, increasing urbanization, and rising consumption of baked products drive the market’s growth in this region. In emerging economies like India, China, and Indonesia, the penetration of packaged and convenience food plays a pivotal role in propelling the baking industry.
Key Players in the Baking Ingredients Market
The baking ingredients market is led by key players such as Cargill, Archer Daniels Midland Company, Associated British Foods plc, Koninklijke DSM N.V., Kerry Group plc, and AAK AB. Other players include Taura Natural Ingredients Ltd, British Bakels, Muntons plc, Corbion, and Dawn Food Products, Inc. These companies are expanding their presence through new product launches and strategic deals. With strong manufacturing facilities and distribution networks in North America, Asia Pacific, and Europe, these players are well-positioned to cater to the growing demand in the global baking ingredients market.
