According to a new report published by Allied Market Research, titled,"Bakery Ingredients Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2018 - 2025,"the global bakery ingredients market was valued at $12,588 million in 2017 and is projected to reach $18,596 million by 2025, growing at a CAGR of 5.0% from 2018 to 2025. In 2017, the bread segment accounted for more than half of the share by value in the global bakery ingredients market.
Bakery ingredients are the building blocks of baked products such as bread, cookies & biscuits, rolls & pies, cakes & pastries, and others. Consumer trend of eating healthy and convenient food is one of the primary factors boosting the growth of the market. Prominent players and large corporates are developing their products to follow the consumer trends and boost the company growth to occupy a major share in the bakery ingredients market.
The global bakery ingredients market is driven by the factor such as busy lifestyles of people, which needs convenient, easily accessible, and time-saving bakery products. Moreover, change in culture and growth in demand for Western-style diets in the developing countries and rise in trend for low trans-fat & gluten-free products are expected to fuel the market growth. In addition, alarming obesity rates and increasing fitness-related concerns have shifted the interest of consumers toward healthier bakery items. However, preference for healthier cereals such as oats than baked products and stringent regulations & international quality standards hamper the growth of the global market. The potential market for frozen foods along with efforts of the key players to innovate & manufacture healthier food items, reduce production costs, and increase shelf life of products are anticipated to provide lucrative opportunities for the growth of the global bakery ingredients market.
The fats segment dominated the global bakery ingredients market size with nearly 18% share of the overall revenue in 2017. The fiber segment is expected to witness significant growth during the forecast period due to the associated health benefits. In addition, it accounted for the second highest share in bakery ingredients market in 2017. The enzymes segment is expected to grow at the highest CAGR during the forecast period.
The global bakery ingredients market is classified based on application into bread, cookies & biscuits, rolls & pies, cakes & pastries, and others. The bread segment dominated the bakery ingredients market with the largest share in 2017 and is expected to exhibit significant growth during the forecast period. Bread is consumed as one of the major staple food across the globe, especially in Western countries. There are two major types of bread available in the market white bread and brown bread, the white bread dominates the market. In the coming years, the brown bread market is expected to grow at a faster rate due to growing awareness of health benefits among consumers. Cookies & biscuits are popularly consumed as snacks among youth. The current product innovation in cookies & biscuits has enhanced the taste, texture, and health benefits offered by the products, thus escalating the bakery ingredients market size. In addition, low-calorie products, increase in trend of customizable bakery products, and increase in urbanization are the factors anticipated to fuel the growth of the global bakery ingredients market.
Key Findings of the Bakery Ingredients Market:
- The enzymes segment of bakery ingredients market is projected to witness the highest CAGR of 8.5%, in terms of revenue, during the forecast period.
- Europe is expected to dominate the global market by 2025 due to high per capita consumption and increase in demand for new & healthier variety of bakery ingredients.
- The bread segment accounted for the highest value in bakery ingredients market share of around 70.2% in 2017 and is expected to grow at a decent CAGR during the forecast period.
- Asia-Pacific is expected to witness the highest growth rate during the forecast period due to growth in population and rise in disposable income.
- The dry baking mix segment is anticipated to occupy the highest value in bakery ingredients market share till 2025 due to its 5.3% CAGR.
In 2017, North America and Europe collectively accounted for around 68.4% share of the global bakery ingredients market and are anticipated to maintain a dominant position in the bakery ingredients market throughout the forecast period. This is attributed to the high consumption rates, rise in health-conscious population, and increase in popularity of various bakery ingredients types.
The key market players of global bakery ingredients industry include Archer Daniels Midland Company; Associated British Foods plc.; Bakels Group; Cargill, Incorporated; Dawn Food Products Inc.; E. I. du Pont de Nemours and Company; Ingredion Incorporated; Kerry Group plc; Koninklijke DSM N.V.; 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.