A Deep Dive into Bakery Ingredients Market 2025: Key Drivers, Growth Factors, and Projections 2025-2034

What Are the Market Size and Growth Forecast for the Bakery Ingredients Market?
In recent times, the market size for bakery ingredients has seen significant growth. It is set to expand from a value of $16.99 billion in 2024 to $18.41 billion in 2025, showing a compound annual growth rate (CAGR) of 8.3%. The past growth in this sector can be linked to the rising desire for convenient meals, growing interest in artisan and specialty baked products, retail and foodservice sectors broadening, escalating disposable income, increasing urbanization, and our increasingly fast-paced lifestyles.

Expectations are for the bakery ingredients market to experience significant growth over the next few years, increasing to a value of $25.11 billion in 2029 with a compound annual growth rate (CAGR) of 8.1%. Factors contributing to this growth are expected to include the increase in health awareness, the expansion of e-commerce platforms, innovation in product offerings, the rise of emerging markets, and an increasing demand for custom and premium products. Noteworthy trends in the forecast period comprise the use of clean label ingredients, the implementation of sustainable and eco-friendly practices, the integration of technology, the use of automation and digital tools in production, and the adoption of advanced processing methods.

What Is Contributing to the Growth of the Bakery Ingredients Market?
The growth of the bakery ingredients market is anticipated to be propelled by the rising consumption of convenience foods. Convenience food, defined as food that is frozen, dried, or canned and can be prepared quickly and easily, greatly benefits from bakery ingredients. These ingredients significantly contribute to improving the quality, texture, and taste of convenience foods, which are pre-made meals or meals easy to prepare designed for fast and efficient consumption. For example, according to the Food and Drinks Malaysia by SAIL Group report in July 2023, a food and beverage exhibition in Malaysia, there was a 3.0% volume increase in the convenience food sector in 2023, which is forecasted to hit 7,829.2 kg by 2027. Moreover, Malaysia's convenience food revenue stood at US$31.84 billion in 2022 and is predicted to rise by 5.49% from 2022 to 2027. As such, the escalating demand for convenience foods is fueling the expansion of the bakery ingredients market.

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Which Key Market Leaders Are Driving Bakery Ingredients Industry Growth?
Major companies operating in the bakery ingredients market are Cargill Incorporated, Archer Daniels Midland Company, Associated British Foods plc, Südzucker AG, Royal DSM N.V., Kerry Group plc, Ingredion Incorporated, Wacker Chemie AG, Glanbia plc, Lesaffre ET Compagnie, Novozymes A/S, Dawn Foods Ltd., Puratos Group, Tate & Lyle PLC, Corbion N.V., Lallemand Inc., CSM Bakery Solutions, MGP Ingredients Inc., Zeelandia International B.V., British Bakels Ltd., Grain Millers Inc., Muntons Plc, Taura Natural Ingredients Ltd., Uniferm GmbH & Co. KG, Orkla Latvija

What Are the Emerging Trends in the Bakery Ingredients Industry?
Leading firms in the bakery ingredients sector are leaning towards ingredient formulation innovation, such as trackable active sourdough, in response to the growing consumer urge for transparent, authentic, and healthy high-quality baked products. The trackable active sourdough is developed through a documented and clear fermentation process, allowing the source and quality of its constituent ingredients to be verified at all production stages. For example, in May 2024, Puratos, a Belgium-based firm known for its innovative baking ingredients and solutions, introduced Sapore Lavida, Belgium's first entirely traceable active sourdough. It is prepared using 100% whole wheat flour obtained through regenerative agriculture. This novel ingredient aids bakers throughout mainland Europe to cater to the escalating demand for locally made, sustainably sourced sourdough. Sapore Lavida presents a tangy taste with fruity, balanced lactic and acetic undertones. It also raises the fiber content in white bread applications.

What Are the Main Segments in the Bakery Ingredients Market?
The bakery ingredientsmarket covered in this report is segmented -

1) By Product Type: Emulsifiers, Leavening Agents, Enzymes, Baking Powder And Mixes, Oils, Fats And Shortenings, Colors And Flavors, Starch, Other Products
2) By Form: Dry, Liquid
3) By Application: Bread, Cookies and Biscuits, Rolls And Pies, Cakes And Pastries, Other Applications
4) By End Users: Industrial, Foodservice, Retail

Subsegments:
1) By Emulsifiers: Mono- And Diglycerides, Lecithin, Polyglycerol Esters
2) By Leavening Agents: Baking Soda, Baking Powder, Yeast
3) By Enzymes: Amylases, Proteases, Lipases
4) By Baking Powder And Mixes: Single-Acting Baking Powder, Double-Acting Baking Powder, Pre-mixed Baking Dough
5) By Oils, Fats, And Shortenings: Vegetable Oils, Margarine, Shortening
6) By Colors and Flavors: Natural Colors, Artificial Colors, Flavoring Agents

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Which Geographic Area Leads the Bakery Ingredients Market?
Europe was the largest region in the bakery ingredients market in 2024. The regions covered in the bakery ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

What Is Covered In The Bakery Ingredients Global Market Report?

- Market Size Analysis: Analyze the Bakery Ingredients Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the Bakery Ingredients Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall Bakery Ingredients Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the Bakery Ingredients Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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