The baking ingredients market is projected to grow at a CAGR of 5.4% from 2017 to reach a projected value of USD 16.91 Billion by 2022. Market growth is driven by growing customer demand for healthier foods, convenience foods, and functional baked goods. The market is also driven by factors such as demand for gluten-free foods and innovative product developments for improved baking ingredients such as modified starch, enzymes, emulsifiers, baking powders & mixes that can be cost-effective as well as used in a wide range of baked items.
Based on the types of ingredients used, the baking ingredients market is led by the baking powders & mixes segment, followed by the oils, fats & shortenings segment, in terms of value. In terms of volume, the market was led by the starch segment. Baking ingredients are used on a large scale in regions where there is high per capita consumption of bread and other baked goods.
Among the varied applications for baking ingredients, such as bread, biscuits & cookies, cakes & pastries, rolls & pies, bread accounted for the largest market share, followed by cookies & biscuits and cakes & pastries. Bread is widely consumed in European countries and is being incorporated in regular diets in most developing Asian and Latin American countries as well.
Europe accounted for the largest market share for baking ingredients, followed by North America and Asia-Pacific. Ingredients such as baking powder, baking mixes, leavening agents, and enzymes are among the most widely used ingredients in Europe; high per capita consumption of bread was one of the major factors driving the baking ingredients market in this region. The Asia-Pacific region is projected to be the fastest-growing market with investments from several multinational manufacturers, especially in countries such as China, India, and Japan.