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The global bakery ingredients market

06 April 20218 min reading

Food processing ingredients are used to preserve, flavour, blend, thicken and colour foods, and played a key role in reducing serious nutritional deficiencies among consumers. These ingredients also help ensure the availability of flavourful, nutritious, safe, convenient, colourful and affordable foods that meet consumer expectations. It performs a variety of useful functions in foods which includes, maintaining the safety and freshness of the food, maintain nutritional value and improve taste, texture & appearance of the food.

The global bakery ingredients market size was valued at $13.9 billion in 2019 and is projected to reach $19.2 billion by 2027, growing at a CAGR of 5.7% from 2021 to 2027. Bakery ingredients are food products that help maintain freshness, softness, & taste; improve shelf life; and increase the protein content in the baked items. These items are available in different varieties in the market and are considered as the basic food for human nutrition globally. The choice of the ingredients and the compositions determine the flavor & texture of the baked food product. The demand for products, such as bread and biscuits, is increasing at a significant rate and are anticipated to provide lucrative growth opportunities for the growth of the global ingredients market during the forecast period.

The global bakery ingredients market is driven by factors such as busy lifestyle and change in dietary habits, which in turn result in higher consumption of bakery products. Moreover, change in culture and routines of people in the developing nations and growth in demand for low trans-fat & gluten-free products are expected to increase the market growth. In addition, rapid rise in obesity rates and rise in fitness-related concerns have fueled the demand for healthy bakery food products. Conversely, growing trend of replacing baked products with cereals, such as oats, is expected to hamper the growth of the global market. Furthermore, stringent regulations and implementation of international quality standards are anticipated to restrain the market growth.

Strong global concerns about the pandemic, coronavirus have largely but negatively influenced the global bakery ingredients market. Moreover, due to the high demand and low supply trends, the prices of ingredients rises in 2020 to overcome on economic instability.

According to the bakery ingredients market analysis, the market is segmented on the basis of type, the market is divided into enzymes, starch, fiber, colors, flavors, emulsifiers, antimicrobials, fats, dry baking mix, and others. On the basis of application, it is fragmented into bread, cookies & biscuits, rolls & pies, cakes & pastries, and others.

Food processing ingredients are accessible to the customers in dry and liquid form. The dry segment is likely to dominate the market and is projected to grow at a faster pace during the forecast period. Easy availability and ease of handling are the major characteristic propelling the growth of the dry form segment in the food processing ingredients market.

On the basis of type, dry baking mix segment dominated the global bakery ingredients market in 2019, accounting for around 19.0% of the overall market revenue. Fats in bakery products helps to retain gases released during baking thus ensuring richness, flavor, and moisture of the bakery products. Emulsifiers act as an intermediary between oil and water thus preventing separation of oil from water, it is also used for conditioning of dough and increasing shelf life of bakery products. This segment is expected to grow at a significant rate during the forecast period.

On the basis of application, the bread segment held the significant bakery ingredients market share in 2019. These ingredients are used in bread due to aroma, taste, and conditioning of dough required in bread making. On the other hand, cookies & biscuits are consumed as snacks and are gaining popularity among youth due to its taste, texture, and health benefits. Therefore, this segment witnessed the second highest market share in 2019.

On the basis of region, Asia-Pacific dominated the global bakery ingredients market, registering a CAGR of around 6.6% during the bakery ingredients market forecast period. Europe accounts for the highest growth rate along with a significant share in the overall global market. North America witnessed the second highest growth rate as well as market share in 2019, owing to rapid consumption of bakery products in this region.

FOOD PRESERVATIVES MARKET INSIGHTS

The food preservatives market is estimated to be valued at US$ 2.5 Bn in 2020, and expand at a CAGR of 4% during the forecast period (2020-2030). Demand for food preservative continues to gain a boost from its ability to extend shelf life and inhibit natural aging and discoloration of food products. With greater awareness about chemical and synthetic additives used in food products, health conscious consumers are increasingly shifting towards natural and allergen-free food. The result is expected to lead to increased demand for natural food preservatives.

FOOD PROCESSING INGREDIENTS MARKET BY PRODUCT TYPE

The report analyses the food processing ingredients market based on product type into modified starch, proteins, enzymes, yeast, antioxidants, emulsifiers, acidity regulators, vegetable oils & fats and others. Others includes functional ingredients, flavours, colours, etc. Modified starch segment is likely to dominate the market over the forecast period. The increase in population, rise in demand for processed food products and abundant availability of raw materials such as corn and wheat fuel the market growth for the segment. However, the yeast market is projected to grow at a rapid pace during the forecast period owing to significant growth in the bakery and beverage industries.

BAKERY & PROCESSED FOOD TAKE THE LEAD

Application of food preservatives in bakery and processed food accounts for nearly half of the total market value. Rapid expansion of bakery industry and consumers’ shift towards prepared meals-to-go in grocery and C-store chains are significantly contributing to strong demand for food preservatives.

Manufacturers are currently focusing on multiple launches of plant-based food preservatives to fulfill newer demand and innate needs of the bakery industry. Manufacturers of bakery and processed food products are rolling out better-for-you offerings that are gaining greater acceptance with today’s consumers. This, in turn, is expected to push demand for natural food preservatives over their conventional synthetic counterparts.

FOOD PROCESSING INGREDIENTS MARKET BY SOURCE

Natural and synthetic are the two sources of food processing ingredients. Natural food processing ingredients segment is likely to hold majority of the food processing ingredient market share. Factors such as increasing consumer preferences for healthy and awareness regarding food-borne diseases among consumers are fueling the growth of the market.

FOOD PROCESSING INGREDIENTS MARKET BY APPLICATION

The market finds application in food & beverages, bakery & confectionery products, dairy & frozen desserts, convenience foods and other. Others includes ready to eat, meat, etc. The bakery & confectionery products segment is likely to contribute majorly to the food processing ingredients market. Moreover, the segment is anticipated to maintain its dominance throughout the forecast period, followed by food & beverage owing to increasing trade activities in the food and beverages sector across various economies, leading to an extensive rise in import and export of food ingredients globally.

FOOD PROCESSING INGREDIENTS MARKET BY GEOGRAPHY

Geographically, the market is studied for the key countries of North America, Europe, Asia Pacific and Rest of the World. Europe is projected to hold a significant market share for the Food Processing Ingredients as it is an already established market globally. Furthermore, Asia Pacific is projected to be the fastest-growing market during the forecast period owing to Improved lifestyles and changing consumer perceptions of the consumers in the developing countries.

Players in the market have adopted business expansion and product launch as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in the report include Archer-Daniels-Midland Company, Associated British Foods Plc., Cargill Incorporated, E. I. Du Pont De Nemours and Company, Ingredion Incorporated, Kerry Group, Plc., Koninklijke DSM N.V., Dawn Food Products, Inc., Bakels Group, and Lallemand Inc. The other players in the value chain include Sdzucker, Taura Natural Ingredients Ltd., AAK AB, Tate & Lyle PLC, Corbion N.V., IFFCO Corporate, CSM Bakery Solutions, Novozymes, and Puratos Group.

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