The global baking ingredients market is forecast to grow at a CAGR of 5.36% during the period 2016-2020.
Commenting on the report, an analyst from the research team said: Many trends are seen in the market; one of them is a strong trend toward naturally derived sweeteners. There is growing demand for stevia as consumers are opting for natural ingredients and additives. Natural sweeteners constitute 1% of the sweetener market by volume. Due to the widespread availability of products like sugars, stevia, monk fruit, and sweet proteins, the naturally derived sweeteners segment is expected to grow. Intensifying demand for gluten-free products will also fuel the demand for baking ingredients.
According to the report, one of the emerging drivers in the market is the growing demand for baking powder with tartaric acid. Consumers increasingly prefer natural baking ingredients because of increasing health concerns and growing awareness of the health benefits of consuming natural additives. Tartaric acid is a dicarboxylic acid produced by living organisms. Growth in the consumption of processed, packaged foods are other major drivers in the market.
Further, the report states that one of the main challenges is the intense competition among vendors. It is difficult to identify the differentiating factors between the product offerings of various vendors, as product differentiation is rarely possible. This has resulted in intense competition in the global baking ingredients market.