The Bread Improvers Market valued at USD 1.5 Billion in 2023, highlights a remarkable growth projection, anticipated to escalate to USD 1.9 Billion by 2028, indicating a robust compound annual growth rate (CAGR) of 5.9% from 2023 to 2028 according to a report published by MarketsandMarkets.
According to the USDA Report on Food Processing Ingredients published in March 2021, the sales of bakery products experienced an increase of 7% to reach an impressive U.S. $1.2 billion in 2020. This growth coincided with a significant rise in consumer expenditure on bread and cereals, which reached U.S. $206.9 per capita, marking an 8.3% increase from the previous year (2019). Alongside this upward trajectory in the bakery sector, the demand for bread improvers has also seen a corresponding increase. As bakery manufacturers strive to meet consumer expectations for high-quality, flavorful, and longer-lasting bread products, the use of bread improvers has become increasingly prevalent. By enhancing the texture, volume, and shelf life of bread, bread improvers play a crucial role in ensuring consistent product quality and meeting consumer preferences.
Additionally, changing lifestyles, urbanization, and the growing demand for convenience foods have boosted the consumption of bakery products, further driving the demand for bread improvers. The rise in busy lifestyles and the growing population of working individuals have spurred an increased demand for convenient, grab-and-go bakery products, presenting bakery manufacturers with opportunities to elevate their product range by utilizing bread improvers all of which are driving the adoption of bread improvers and propelling the market growth.
Increasing demand for convenience food products in the market
The market environment is changing significantly as a result of consumers’ increased preference for convenience foods. The desire for food products that are convenient to prepare, easy to consume, and portable is growing as modern lifestyles become more fast-paced. Customers are increasingly looking for ready-to-eat solutions that can easily fit into their hectic schedules, and this trend is especially noticeable in the bakery sector. Bread improvers are essential for improving the quality, texture, and shelf life of convenient bakery items. As a result, bakeries are concentrating on creating novel products to meet this demand.
Moreover, the rise of online shopping and food delivery services has further fueled the demand for convenient bakery products. Consumers are increasingly turning to e-commerce platforms and mobile apps to purchase their favorite baked goods, seeking hassle-free options that can be delivered directly to their doorsteps. In this competitive landscape, bakery manufacturers are leveraging bread improvers to ensure that their products not only meet consumer expectations for convenience but also stand out in terms of quality and freshness in the rapidly growing online marketplace. By incorporating bread improvers into their formulations, bakery manufacturers can improve the resilience of bread, buns, and rolls, ensuring that they maintain their freshness and texture throughout the delivery process. This not only enhances consumer satisfaction but also helps build brand loyalty and a positive reputation in the online marketplace.
Furthermore, as the demand for convenient bakery products continues to rise with the popularity of online shopping and food delivery services, the bread improvers market experiences a corresponding growth. Bakery manufacturers increasingly rely on these additives to meet the demands of online consumers for high-quality, convenient, and fresh bakery products, driving the overall expansion of the bread improvers market.
Adherence to international quality standards and regulations
Manufacturers of bakery ingredients, especially those that make bread improvers, face a great problem in adhering to worldwide quality requirements and laws. Maintaining compliance with various regulatory frameworks across multiple areas can be difficult and resource-intensive in the context of an increasingly globalized industry. International quality standards, like ISO certifications and food safety authorities’ rules, place strict limitations on the contents, production methods, and labeling of baking ingredients including bread improvers. The operational expenses and administrative load for producers of baking ingredients are increased when meeting these standards frequently necessitates thorough testing, documentation, and ongoing monitoring throughout the manufacturing process. Overall, adherence to international quality standards and regulations presents a significant restraint for bread improvers manufacturers, requiring careful management and strategic planning to mitigate compliance risks while maintaining product quality and competitiveness in the market.
Pastries Are One Of The Fastest-Growing Application Segments
Pastries emerge as one of the fastest-growing application segments within the forecast period in the bread improvers market, fueled by shifting consumer preferences and evolving culinary trends. As consumers seek indulgent and diverse bakery experiences, the demand for pastries continues to rise, driving bakery manufacturers to enhance their pastry offerings with the use of bread improvers. These versatile ingredients play a crucial role in improving the texture, volume, and consistency of pastries, ensuring a superior sensory experience for consumers.
Furthermore, the growing popularity of artisanal and premium pastries further accelerates the demand for bread improvers in this segment. 2023, 27% of bakery products in Europe are from artisanal manufacturers. Artisanal bakeries and specialty pastry shops are increasingly leveraging bread improvers to elevate the quality of the pastries, offering unique and innovative creations that cater to discerning consumer tastes. Additionally, the convenience factor associated with pre-packaged and ready-to-eat pastries drives the adoption of bread improvers among bakery manufacturers looking to streamline production processes while maintaining product quality and freshness. Overall, the rapid growth of the pastry segment presents lucrative opportunities for bakery manufacturers to capitalize on the versatility and functionality of bread improvers in meeting the evolving demands of pastry enthusiasts.
The enzymes segment is the fastest-growing market
Enzymes have become a pervasive ingredient group in various types of bread, playing a crucial role in the modern bread-making process. Despite evolving regulatory standards, enzymes remain indispensable processing aids in the baking industry. Their functional versatility, clean label attributes, capacity to streamline processes, and cost-saving benefits underscore their essential role in bakery products. A significant advantage of enzymes is their natural occurrence in common bakery ingredients such as wheat and soy flour. Additionally, since enzymes are typically deactivated by the high temperatures of the baking process, their use enables bakers to achieve a desirable clean label image for their products.
As mentioned in the Baking Europe Spring 2020 Report, the EU compiles a comprehensive list of permitted enzymes, this regulation will likely have far-reaching implications for bakery manufacturers operating within the region. The report also mentions that the significance of enzymes is poised to grow further in the region as consumers increasingly seek natural products devoid of synthetic additives.
As consumer demand for consistently high-quality, flavorful, and visually appealing baked goods with extended shelf lives persists, enzymes will remain integral to the bakery industry. Thus, the potential implementation of specific EU legislation regarding the use of enzymes in food production signals a significant development for the baking industry.
Europe acquires a dominant position within the bread improvers market
According to the Federation of Bakers (UK), Bread consumption patterns vary significantly across the EU, with the majority of countries averaging a consumption of 50 kg of bread per person per year. The market structure across Europe exhibits diversity. For instance, in the UK, the industrial sector represents 80% of production, while it accounts for 40% in Germany, 35% in France, approximately 81% in the Netherlands, and 19% in Spain. Moreover, bread consumption remains steady in Western Europe, although it differs significantly from country to country. Germans and Austrians lead in bread consumption, averaging around 80 kg per year, while the UK and Ireland have the lowest annual consumption, with less than 50 kg. The widespread consumption of bread across the European region indicates a substantial market for bread and related products, creating a significant demand for technologies and solutions that can enhance the quality, texture, and shelf life of bread.
As mentioned in the Baking Europe 2020 Report, the majority of bread consumed in Europe is currently manufactured by large-scale plant bakeries, which produce bread and other baked goods on an industrial level. These facilities utilize machinery, technology, and scientific advancements to their fullest extent in automated bread-making processes that aim to meet consumer demands for quality, consistency, convenience, and affordability. Thus, bread improvers play a crucial role by providing bakery manufacturers with the tools and formulations needed to optimize their production processes and meet the evolving demands of consumers. By incorporating bread improvers into their operations, large-scale plant bakeries can enhance the quality and consistency of their bread products, thereby maintaining competitiveness in the market and satisfying consumer expectations.
China Is One Of The Fastest Growing Markets In Asia Pacific
China accounts for one of the fastest-growing markets for bread improvers in the Asia Pacific region, driven by the increasing affluence and urbanization in China. This led to shifting dietary preferences, with a growing demand for bakery products, including bread, rolls, and pastries. As a result, bread consumption in China has been steadily rising, fueled by factors such as changing lifestyles, increasing disposable incomes, and a desire for convenient food options. According to USDA Report 2021, on “China’s Rising Bakery Sector”, per capita consumption of baked products in China is currently 7.2kg per person, and the bread consumption in China stated by World of Statistics as of September 2023 is 5.83kg. It indicates a relatively high level of bread consumption in China compared to other baked products and that bread is a significant component of the overall baked product consumption in China. This reflects the growing popularity and demand for bread among Chinese consumers, highlighting the expanding market opportunities within China’s bakery sector. The surge in bread consumption creates a significant market opportunity for bakery manufacturers, prompting them to invest in bread improvers to meet the growing demand while ensuring product quality and consistency.
In response to the growing demand for bread improvers, local producers are increasing output, and foreign producers are entering the Chinese market to take advantage of its development potential.