GLOBAL – The global bakery ingredient market is poised for significant growth, projected to increase from US$20.79 billion in 2023 to US$39.87 billion by 2033, reflecting a compound annual growth rate (CAGR) of 6.7%.
This upward trend is largely attributed to evolving consumer preferences and continuous innovations within the bakery sector.
Increasing consumer awareness regarding healthy eating habits is driving demand for bakery products that cater to dietary restrictions, such as gluten-free and lactose-free options.
Nandini Roy Choudhury, Client Partner at Future Market Insights, notes, “The inclusive nature of the bakery ingredient industry is creating a conducive environment for chefs and bakery enthusiasts who continuously innovate their dishes in line with consumer trends.”
This shift towards healthier baking options is prompting key players in the market to focus on cleaner and more wholesome ingredients.
In addition to health-conscious products, the market is witnessing a surge in the popularity of plant-based bakery items.
Governments are also playing a supportive role by investing in the bakery ingredient sector, further propelling growth.
The demand for innovative baking solutions is compelling manufacturers to develop new ingredients that enhance the formulation and shelf life of baked goods.
Regulatory approvals have facilitated the entry of advanced bakery enzymes into the market, broadening the scope for ingredient suppliers.
Geographically, the United States is expected to experience a remarkable CAGR of 9.3% during the forecast period, while Germany leads the European market with a projected CAGR of 9.4%.
Japan is also anticipated to register an 8% growth rate through 2033. Australia is emerging as a significant player, with a staggering growth rate of 14.2%, attracting interest from key stakeholders and investors. Conversely, China is expected to grow at a more modest rate of 3%.
The bakery ingredient market is diverse, encompassing various segments such as baking mixes and concentrates, which are projected to account for 17% of the market in 2023.
The foodservice sector is also a major contributor, expected to capture 28.4% of the market share this year.
The increasing experimentation by chefs to create new delicacies is another factor driving the demand for bakery ingredients.
Recent developments in the industry highlight the ongoing innovations and expansions by leading companies.
For instance, in October 2023, Kluman & Balter celebrated a century of contributions to baking innovation.
Earlier in February, Puratos US expanded its operations on the West Coast, introducing a new manufacturing line dedicated to sweet and bakery goods.
Additionally, Moyu, a superfood-driven baking company, is set to launch nationwide shipping services across the United States in August 2023.
The bakery ingredient market’s trajectory suggests a robust future, fueled by consumer trends towards healthier, innovative products and the industry’s adaptability to meet these demands.
As the market evolves, it presents ample opportunities for manufacturers and suppliers to capitalize on the growing interest in artisanal and high-quality bakery offerings.
With the continuous influx of new products and technologies, the bakery ingredient market is well-positioned for sustained growth in the coming years.
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