Strategic Forecast for the Bakery Ingredients Industry: Market Outlook 2025-2034

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Bakery Ingredients Market Size Growth Forecast: What to Expect by 2025?
In recent years, the market size for bakery ingredients has seen substantial growth. The market is projected to increase from $16.99 billion in 2024 to $18.41 billion in 2025, with an 8.3% compound annual growth rate (CAGR). The growth in the past period has been driven by factors like the increasing demand for easy-to-prepare foods, enhanced popularity of artisan and specialty bakery items, expansion in the retail and foodservice sectors, increased disposable income, urbanization, and hectic lifestyle schedules.

How Will the Bakery Ingredients Market Size Evolve and Grow by 2029?
The market size for bakery ingredients is projected to witness robust expansion in the coming years, escalating to a value of $25.11 billion in 2029, bolstered by a compound annual growth rate (CAGR) of 8.1%. The anticipated growth during this forecast period can be credited to increasing awareness about health, development of e-commerce platforms, introduction of innovative products, expansion in emerging economies, and the growing demand for personalized and high-end products. Notable trends projected for this period encompass the use of uncontaminated-label ingredients, sustainable and environment-friendly methods, incorporation of technology, utilization of automation & digital tools in manufacturing, as well as sophisticated processing procedures.

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What Drivers Are Propelling the Growth of Bakery Ingredients Market Forward?
The rise in convenience food consumption is anticipated to propel the growth of the bakery ingredients market. Convenience food, whether frozen, dried, or canned, can be rapidly and easily prepared, making it quite popular. Bakery ingredients are critical in elevating the quality, texture, and taste of such convenience foods, which are pre-made or simplistic meals for swift consumption. To exemplify, as cited by Food and Drinks Malaysia by SAIL Group, a food and beverage display in Malaysia, the ease food sector saw a volume rise of 3.0% in July 2023 and is forecasted to reach 7,829.2 kg by 2027. Moreover, convenience food in Malaysia contributed to a revenue of US$31.84 billion in 2022, expecting a 5.49% increase from 2022-2027. Thus, the escalating demand for convenience foods leads to the expansion of the bakery ingredients market.

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Which Emerging Trends Are Transforming the Bakery Ingredients Market in 2025?
Leading firms in the bakery ingredients market are concentrating on ingredient formulation innovation, such as traceable active sourdough, in order to satisfy increasing demand from consumers for transparency, authenticity, and better quality, healthier baked products. Traceable active sourdough undergoes a transparent and recorded fermentation process, providing verifiable origins and ingredient quality throughout its manufacture. For instance, in May 2024, Puratos, a company based in Belgium known for its innovative infusion and solutions for bakeries, launched Sapore Lavida, the first active sourdough labelled as traceable in its entirety, manufactured in Belgium. It utilizes 100% whole wheat flour from regenerative farming, allowing bakers throughout mainland Europe to cater to the growing need for locally made, sustainably procured sourdough. Sapore Lavida introduces a sour yet fruity flavor profile containing balanced lactic and acetic nuances while also enhancing the fiber content in white bread offerings.

What Are the Key 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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Who Are the Key Players Shaping the Bakery Ingredients Market's Competitive Landscape?
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 Geographic Markets Are Powering Growth in 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.

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