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2022

Leavening Agents Market

Leavening Agents Market Size, Share, Competitive Landscape and Trend Analysis Report by Form, by End User industry : Global Opportunity Analysis and Industry Forecast, 2021-2031

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Author's: Anil Kamble | Roshan Deshmukh
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The global leavening agents market was valued at $6 billion in 2021 and is projected to reach $9.2 billion by 2031, growing at a CAGR of 4.2% from 2022 to 2031.

A leavening agent is a substance or ingredient whose primary functions are producing, including, and entrapment of gas in a dough or batter. It is the third most essential component in baking after flour and water. A leavening agent can be produced using yeast, sourdough bacteria, and baking powder. It is majorly used in the food industry owing to its benefits, such as it helps improve the eating quality of cake by tenderizing the crumb of the final baked product. Furthermore, it provides aeration, elasticity, and consistency in doughs during dough preparation and baking processes.

The increase in popularity of baked food products, rise in demand for bread as functional food, and drastic changes in lifestyle & food habits of emerging countries, including India and China, are likely to upsurge the growth of the leavening agents market during the forecast period. Furthermore, convenience food, including frozen ready-to-eat baked food products, has been gaining significant traction among urban consumers owing to hectic lifestyles, increased spending capacity, and the working women population. Increasing use of leavening agents in bakery and other industries, rise in demand for bakery healthy snacking products, and dynamic changes in eating habits are likely to favor the growth of the leavening agents market during the forecast period. Leavening agents are substances that contribute to the structure and texture of baked goods by allowing gas to expand, hence retaining the fluffiness and volume of the finished product. Aside from that, leaveners are responsible for PH regulation, taste development, and crumb color development. Physical, chemical, and biological agents are the three types of leaveners that are commonly accessible. The function of leavening agents in the food and beverage sectors has been vast, enhancing the prospects for innovative new product creation. The trend in customer preference for baked foods is mainly owing to their convenience, palatability, and seasonal availability. The global leavening agents market is predicted to develop significantly because of increased consumer interest in novel baked goods and party cultures, thereby strengthening the market size.

Convenience food products have been gaining significant popularity among the urban population owing to hectic lifestyles and demand for healthy bakery-snacking food products. Convenience food refers to products that require minimal processing and can be prepared quickly without much effort. The preference for on-the-go food products, which are readily available in the market, has increased due to changes in eating habits. For instance, the availability of various leavening agents, including instant dry yeast, in the market to easily make desserts and cake bread at home without much effort significantly contributes toward the growth of the leavening agents market. Various categories of frozen bakery products such as cakes & pastries, croissants, cookies, muffins, scones, bread, and biscuits are available in the market, saving time and effort. Consumers prefer frozen foods that require minimal food processing due to the increased working population and time constraints. Moreover, freezing preserves the quality of products without compromising the taste. Furthermore, Packed baked goods, such as cake, are expected to witness significant demand in the upcoming years, owing to a rise in preference for eating packed cakes as snacks among children. In addition, pizza consumption has been increasing considerably in the past four years, which is expected to drive the demand for instant dry yeast, one of the leavening agents which foster the growth of the leavening agents market. Moreover, the sales of bread and bakery products have been driven by a surge in demand for free-from ranges and specialty bread and the impact of inflation on retail prices, which caused the need for leaveners for bread and bakery product applications. All these factors are expected to increase the demand for bakery products and bolster the growth of the leavening agents market during the forecast period.

An increase in customers' preference toward gluten-free bakery products such as cakes, pastries, bread, and muffins, owing to a rise in health consciousness, further drives the growth of the leavening agents market. Furthermore, the surge in demand for bread in wheat base and whole grains, which are rich in fiber and proteins, supplement the growth of the leavening agents market. The increase in demand for bread as a functional food in developing countries, including India, Brazil, China, and Saudi Arabia, and the rise in concerns about the healthy lifestyle has been accelerating the demand for bread as functional food, which in turn boosts the growth of the leavening agents market. Health-conscious consumers opt for functional foods that help them to stay fit and healthy.

Leavening agents market demand in emerging economies, including China, India, Brazil, and South Africa, has been growing at the highest CAGR growth during the forecast period. This is majorly attributed to the growth in demand for baked products and an increase in foreign investment in the food sector of emerging countries, including India, China, and Indonesia. For instance, according to the India Brand Equity Foundation, FDI inflows in the food processing sector stood at $393.41 million in 2020–21.

Using leavening agents in restaurants, hotels, and residences is a new trend in developing economies such as China and India; as a result, leavening agents are in high demand, creating chances for small and mid-sized businesses to participate in this sector. Because the food industry's many participants have a restricted footprint, stakeholders intend to invest and expand their business by creating new items. As a result, small and medium-sized companies (SMEs) can benefit from lower-cost food additives, ingredients, and tastes. Furthermore, emerging nations such as India and China are focusing heavily on made-in-country initiatives, leading to the rise of small and medium-sized food production facilities. Thus, growing small and mid-sized businesses and expansions of the hotel and fast food outlets are likely to propel the growth of the leavening agents market during the forecast period.

An increase in purchasing power of consumers and a rise in spending on luxury foods have led to rapid growth of the food service industry, resulting in an increased demand for bakery and confectionary and other food products. The food service industry is the primary user of food additives, ingredients, and flavors, which significantly contributes toward the growth of the global leavening agents market. Moreover, the food services industry is trying to serve its customer in less time. Thus the use of various leavening agents such as chemical and biological agents shortens the rising time in traditional baking by as much as 50%.

The growing travel and tourism sector provides roadside shops an opportunity to sell bakery products, which can be quickly sold and carried with low selling and storage costs. Thus, an increase in sales of bakery food products is expected to generate more demand for leavening agents. Furthermore, growth in the use of leavening agents in personal & healthcare products such as face creams, hair care, deodorants, and cosmetics is likely to favor growth of the leavening agents market.

The regulations associated with bakery products are related to various ingredients used in the process, food hygiene labeling & packaging, health claims, and others. For instance, according to the Food and Drug Administration (FDA), regulations about menu labeling insist on providing various information such as nutrition facts, ingredients used including baking ingredients, the common name of the bakery products, name & address of manufacturers, and others on labels, which are sold in various supermarkets, retail stores, and bakeries. Thus, these regulations regarding various ingredients and quality of ingredients used in the bakery products are expected to hamper the leavening agents market growth.

Leavening Agents Market

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The market is segmented into form, end-user industry, and region. Based on state, the market is bifurcated into biological and chemical. According to the end-user industry, the market is categorized into food, personal & healthcare, and others. Region-wise, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia, and the rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, UAE, South Africa, Saudi Arabia, and rest of LAMEA).

Based on form, the biological segment was the highest contributor to the leavening agents market size, with $4,017.1 million in 2021, and is estimated to reach $5,967.7 million by 2031 at a CAGR of 3.8% during the forecast period. Yeast is a widely used leavening agent in the food industry. Active dry yeast, fresh yeast, and instant dry yeast are some of the popular leavening agents used in the food industry, especially bakery. It is are naturally occurring microorganisms that aid in the fermentation process during baking. Biological leavening agents degrade the sugars in bread dough, producing carbon dioxide gas and taste compounds that lift and flavor baked foods. Consumer spending on healthy and premium food items is increasing, and fast food, bakery products, and other lifestyle food products are increasing. Biological leavening agents are used to lighten the dough and impart characteristic aroma and flavor to the bread.  Furthermore, the availability of advanced cooking appliances and cooking encouragement through social media is likely to increase the number of home bakers, which generates the demand for leavening agents, including instant dry yeast. Thus, the abovementioned factors will likely supplement leavening agents' market growth during the forecast period.

Leavening Agents Market by Form

According to the end-user industry, the food segment was the highest contributor to the leavening agents market size and is expected to sustain its contribution throughout leavening agents market forecast period. An increase in health consciousness, a rise in demand for low calories &  fat-free food products with taste appeal & texture, and changing lifestyles make the market for leavening agents more demanding in the future. For instance, according to the USDA, one teaspoon (4.6g) of baking powder contains calories (2.4), sodium (363mg), carbohydrates (1.1g), and no sugar & fat.  The rise in consumption of bread through food services industries and demand for bread-based ready-to-cook and ready-to-eat bakery products are likely to garner the growth of the market through the food segment during the forecast period.

Leavening Agents Market by End User industry

                                                   

Region-wise, North America garnered significant leavening agents market share in 2021 and is expected to maintain its leavening agents market share throughout the leavening agents market forecast period. North America has gained the second highest market share after Europe in 2021 and is expected to sustain its claim during the forecast period. An increase in demand for processed food and a rise in awareness about innovative applications of leavening agents are some of the major drivers that foster the market growth in North America. In addition, surge in demand for fast food and expansion of hotels, casual dining restaurants, and quick services restaurants in the U.S. are likely to contribute for the growth of the North America leavening agents industry during the forecast period.

Leavening Agents Market by Region

The players operating in the global leavening agents industry have adopted various developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include Archer-Daniels-Midland Company, Associated British Foods PLC, Cargill, Inc., Corbion N.V., Kerry Group PLC, Koninklijke DSM N.V., Kraft Heinz Company, Novozymes A/S, Puratos Group NV, and Stern-Wywiol Gruppe GmbH Co. KG.

Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the leavening agents market analysis from 2021 to 2031 to identify the prevailing market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the leavening agents market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global leavening agents market trends, key players, market segments, application areas, and market growth strategies.

Leavening Agents Market Report Highlights

Aspects Details
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Market Size By 2031

USD 9.2 billion

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Growth Rate

CAGR of 4.2%

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Forecast period

2021 - 2031

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Report Pages

339

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By Form
  • Biological
  • Chemical
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By End User industry
  • Food
  • Personal and Health Care
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, France, U.K., Italy, Spain, Russia, Rest of Europe)
  • Asia-Pacific  (China, Japan, Inda, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Argentina, UAE, South Africa, Saudi Arabia, Rest of LAMEA)
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Key Market Players

Kraft Heinz Company, Novozymes AS, Archer Daniels Midland Company, Puratos Group NV, Koninklijke DSM NV, SternWywiol Gruppe Gmbh Co KG, Associated British Foods Plc, Kerry group PLC, Cargill Inc, Corbion NV

Analyst Review

According to the CXOs of leading companies, the leavening agents market is expected to grow at a significant rate during the forecast period, owing to various factors such as change in lifestyle patterns of consumers, increase in demand for convenience foods, and consumer preferences for healthier bakery products. Furthermore, rise in demand for various types of yeasts, including instant dry yeast, from target customer makes way for manufacturers to come up with innovative ideas.

Key players operating in the global market have adopted developmental strategies such as new product launches, acquisitions, mergers, and geographical expansions to strengthen their foothold in the market in terms of value sales. They emphasize on continuous innovation to formulate products to gain a competitive edge in the global market and to boost demand for leavening agents.

The CXOs further added that rise in internet penetration around major parts of the world makes way for manufacturers to initiate several key online marketing programs. These online platforms are one of the easiest ways to create awareness about the specifications and features of leavening agents among target customers. Hence, tapping into such markets is expected to create opportunities for leavening agents market expansion. Rise in number of working women, increase in workload, and busy & hectic lifestyle of consumers are likely to propel demand for bakery food products across the globe.

Asia-Pacific is expected to be significant contributor toward growth of the leaveneing agents market. Huge consumer base, industrialization, rapid growth of food & beverages industry, rise in disposable income, growth in number of working people, and demand for healthy lifestyle are major factors that drive the global leavening agents market.

In addition, rise in number of bakeries & outlets, such as in-store bakeries, convenience stores, supermarket & hypermarket bakeries, café bakers, and artisan bakeries, has fueled the demand for baking additives including leavening agents across the globe.

Author Name(s) : Anil Kamble | Roshan Deshmukh
Frequently Asked Questions?

The global leavening agents market size was valued at $5,971.9 million in 2021, and is estimated to reach $9,198.1 million by 2031.

4.2% is the CAGR of leavening agents market.

Europe region holds the maximum market share of the leavening agents market.

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Archer-Daniels-Midland Company, Associated British Foods PLC, Cargill, Inc., Corbion N.V., Kerry Group PLC, Koninklijke DSM N.V. and Kraft Heinz Company, are some of the top companies in the leavening agents market report.

2021 is the base year calculated in the leavening agents market report.

The leavening agents market is segmented into form, end user industry and region.

Growing demand fast food and rapid expansion of the food processing industry are some of the key factors shaping the growth of the leavening agents market.

Outbreak of COVID-19 was negatively impacted the growth of the leavening agents market.

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Leavening Agents Market

Global Opportunity Analysis and Industry Forecast, 2021-2031