The global bakery ingredients market is expected to grow at a CAGR of 5.5 percent in the forecast period 2017-2022. It witnesses a high consumption rate in the categories of cakes, pastries, pies, scones, bread, biscuits, and cereals in the developed markets of North America and Western Europe.
The growing demand for healthier and innovative products & ingredients are driving the growth of this market in the emerging markets of Asia, Latin America, and Middle-East & Africa. The global demand for bakery products is expected to grow at a CAGR of 7.0 percent in the coming years. The bakery ingredients market has been witnessing significant growth in the recent years.
The rising demand for ready-to-eat food is expected to boost the bakery ingredients markets during the forecast period (2016-2024). It has been observed that the market for bakery ingredients is expanding significantly, due to consumers' food preference and changing lifestyle. Also, it is observed that consumers prefer to prepare meal in a short time. Recently, consumers have been preferring healthy bakery products with good taste, use of quality ingredients, and availability at convenience.
Moreover, companies are investing in different projects through research and development to innovate new products and attract large sections of population to increase the company's profitability. Among product innovations, it has been seen that time-saving products and healthy food products are being given prior importance. Time-saving products are gaining importance as they attract a large section of busy population.
The ingredients used in the bakery products are termed as bakery ingredients and are essential to ensure high quality standards and longer shelf life of these bakery products. Baking ingredients are used in a wide range of baking applications that include bread, cookies & biscuits, cakes & pastries, rolls & pies, pizzas, and donuts. In 2016, the bread segment dominated the global market. The most common bakery ingredients include flour, butter, honey, yeast, eggs, fruits, flavor enhancers, and color additives.
There is a growing consumer demand for nutritional content in baked foods with low sugar, whole grain, and zero Trans-fat per serving. Increasing obesity rates and aging population have put the usage of healthy ingredients in the U.S. on a national front. The shift in the conventional home cooked food to convenience foods has also increased the demand of these bakery ingredients in the emerging markets.
Adoption of westernized lifestyle, double income families, emphasis on healthier lifestyles, greater nutrition awareness, and increase in disposable income are the major factors that are responsible for the growth in baked foods industry, which in turn will drive the demand for the bakery ingredients manufacturers. The focus would be on innovation in sweeteners, dry ingredients, starches and derivatives, oil and shortenings ingredients to meet the consumer demand for low trans fats and gluten free products, without modifying the quality, texture, and taste of these products.
The U.S. and Europe with their long-standing culture of consuming bakery and baked foods are the matured markets of this industry. China and India, with their growing population and increasing disposable incomes, are the major markets for the baked goods, and hence the bakery ingredients.