Comprehensive 2025 Leavening Agents Market Overview: Trends, Forecasts, and Growth Drivers

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What Is the Expected CAGR for the Leavening Agents Market Through 2025?
The market size of leavening agents has progressively expanded in the last few years. There is a projection of an increase from $6.74 billion in 2024 to $7.05 billion in 2025, reflecting a compound annual growth rate (CAGR) of 4.6%. The growth recorded in the historical period is associated with the surging demand for bakery and confectionery items, widening of the food processing sector, consumer inclination towards ready-to-eat foods, escalated intake of baked commodities, rise in dispensable income, and evolving lifestyles.

What's the Projected Size of the Global Leavening Agents Market by 2029?
In the coming years, the market for leavening agents is anticipated to experience robust growth, with an expected value of $8.8 billion in 2029, growing at a compound annual growth rate (CAGR) of 5.7%. The growth projected for this period is attributed to factors such as health and wellness trends that impact baking choices, a focus on natural and clean label leavening agents, the rise of emerging markets, increased urbanization, online retail and e-commerce for baking ingredients, and regulatory backing for safety and quality standards. The forecast period is expected to see trends such as gluten-free leavening agents, utilization of organic and natural leavening agents, the use of clean label ingredients in baking, applications in specialty and artisanal baking, personalized leavening solutions for various products, and the use of microencapsulation technology for controlled release.

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Top Growth Drivers in the Leavening Agents Industry: What's Accelerating the Market?
The leavening agents market is projected to surge due to the growing demand for bakery goods. Foods created from baked dough or batter, such as bread, cakes, cookies, among others, constitute bakery products. Leavening agents play a crucial role in these products by making them fluffy, soft, and light. For instance, the International Dairy Deli Bakery Association (IDDBA), a non-profit organization based in the US, reported in August 2022 that bakery sector revenues for June stood at about $3.1 billion, marking a 9.3% increase compared to the previous year. Consequently, the escalating preference for bakery goods is fueling the growth of the leavening agents market.

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What Trends Will Shape the Leavening Agents Market Through 2029 and Beyond?
A key trend gathering momentum in the leavening agent market is product innovation. Major players in the leavening agent domain are unveiling novel leavening agents to improve the taste and texture of food items. For example, Angel Yeast, a Chinese company focused on yeast extract manufacturing for various purposes such as baking, seasoning, and brewing, launched a high-sugar dry yeast product in September 2022. This innovative creation was designed to tackle baking issues associated with high sugar, increased salt, and weak organic acids. The latest offering from Angel Yeast, the Premium high-sugar dry yeast, is designed to ensure swift and superior fermentation, even in conditions where the sugar, salt, and oil content would usually interfere with typical yeast fermentation. Moreover, it helps extend the lifespan of bread and other baked products due to its resistance toward weak organic acids.

What Are the Main Segments in the Leavening Agents Market?
The leavening agents market covered in this report is segmented -

1) By Form: Biological, Physical, Chemical
2) By Application: Sea Food, Bakery Products, Fried Foods, Wheat Flour, Soy Products
3) By Sales Channel: Direct Sales And Wholesalers, Independent Grocery Retailer, Non-Store Retailers, Other Sales Channels

Subsegments:
1) By Biological: Yeast, Bacterial Cultures
2) By Physical: Steam, Air
3) By Chemical: Baking Soda, Baking Powder, Ammonium Bicarbonate

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Which Top Companies are Driving Growth in the Leavening Agents Market?
Major companies operating in the leavening agents market include Kudos Blends Ltd., Puratos Group, Cargill Incorporated, AB Mauri North America, Shandong Sunkeen Co. Ltd., Archer Daniels Midland Company, Associated British Foods (ABF) plc, Corbion N.V., Kerry Group plc, Koninklijke DSM N.V., The Kraft Heinz Company, Novozymes A/S, Stern-Wywiol Gruppe, Lesaffre Yeast Corporation, Lallemand Inc., Angel Yeast Co. Ltd., Oriental Yeast Co. Ltd., Watson Inc., Caravan Ingredients, Bakels Group, AB Vista an AB Agri company, Biorigin, Fazer Group, Kemin Industries Inc., LFI Inc., MGP Ingredients Inc.

Which Regions Will Dominate the Leavening Agents Market Through 2029?
North America was the largest region in the leavening agents market in 2024. Asia-Pacific is expected to be the fastest-growing region in the leavening agents market share during the forecast period. The regions covered in the leavening agents market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

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