Overall, the global bakery ingredients market is set to witness growth at a value CAGR of 6.4% from 2022 until 2032, a report by Persistence Market Research shows. A CAGR of 7.3% is anticipated for South Asia and Pacific, where Oceania countries are evaluated to have a market share of 30% this year. In Europe, this market is expected to reach 5,345.5 MT by the end of 2032. Consumers’ preference for convenience food has a positive influence on the sales of bakery ingredients across global markets. Based on application, the demand for raw materials used for cakes and pastries is expected to increase at a CAGR of 6.5%.
Although by product type, the colors and flavors segment holds the highest market share, the yeast segment of bakery ingredients is set to surge at a CAGR of 6.3%.
The outbreak of COVID-19 has had an impact on the supply chain of bakery ingredients, which somewhat hindered the sector’s growth. However, the market is expected to witness significant growth over the coming years with economies providing opportunities to bakery ingredient manufacturers.
Innovation in ingredients
Innovation in bakery supplies is aimed at enhancing the nutritional profile of products and addressing their calorie density. Consumer awareness regarding calorie density is increasing, as is the need for healthier food products. On the other hand, there is still significant craving for indulgent products, the study revealed. Overall, customers are looking for healthier alternatives to their favorites delicacies, which is being catered to by market players.
For instance, H.C. Brill, a subsidiary of CSM, launched a product portfolio of healthier cupcakes, dubbed Sensibly Indulgent. Whole a regular Brill slice of frosted cake contains 320 calories and 16 g of fat, the sample prototype (80 g serving size) has 200 calories and 5 g of fat, the research company illustrates.
A dynamic landscape
Frozen bakery products and thaw-and-serve bakery products are two essential categories in this space, product ranges including pizza, breads, pies, cakes, crepes and waffles. The growth of baked goods overall favors the growth curve for baking ingredients, in both foodservice and retail, PMR finds: convenience stores such as 7-Eleven (24/7) mainly retail thaw & serve bakery products such as cakes, muffins, and waffles, for instance.
“Manufacturers are offering bakery ingredients with diverse flavors, textures, and varieties to customers. With the utilization of advanced ingredients and state-of-the-art manufacturing techniques, companies are providing pioneering solutions. Moreover, offering flavor, color, and clean label bakery ingredients are among the strategies being adopted by market participants,” said a Persistence Market Research analyst.
The main market players are focusing on expanding their product portfolios by adding innovative flavors to their bakery ingredients, the PMR study found, while also providing clean-label solutions to help maintain transparency about their offerings.