According to Adroit Market Research, the market for baking ingredients was valued at US$15.19 billion and is projected to grow, at a CAGR of 6.78% over the forecast period, reaching $24.41 billion by 2030.
As a pasttime, baking has grown significantly in popularity. The popularity of baking as a hobby among many people has raised demand for baking ingredients. There is also a desire for easy-to-use baking supplies including pre-made mixes, dough that is ready to bake, and pre-packaged baked goods.
More health-conscious consumers are looking for better alternatives to baked goods. Due to this demand, there is a need for baking ingredients that are whole grain, organic, gluten-free, and low in sugar and saturated fats. Gourmet bread, pastries and cakes, as well as other artisanal and specialised baked goods have seen an increase in popularity.
Demand for better-for-you and specialised baking ingredients continues to grow. Manufacturers have the opportunity to create and market ingredients that satisfy dietary requirements such as gluten-free, organic, natural sweeteners and low-sugar alternatives. Egg alternatives, plant-based lipids and alternative flours all have development possibilities, according to the report.
Transparency and items with clear labels are becoming more popular among consumers, which presents another opportunity for manufacturers to create organic, minimally processed products free of synthetic chemicals, preservatives and GMOs.
Customers are also searching for practical and time-saving baking solutions as hectic lifestyles remain the norm. Manufacturers can look at chances to provide convenience-oriented baking ingredient kits, premeasured mixes, and ready-to-use dough or batter without sacrificing flavour or quality.
Functional foods and additives that provide additional health advantages are also becoming increasingly popular with consumers. By including fortification with vitamins, minerals, fibre, or protein in their goods, producers of baking ingredients may profit from this trend.
However, the growth of the market is impeded by variables such as the weather, worldwide demand and supply, and trade restrictions, the prices of raw commodities used in baking components, such as wheat, sugar, and dairy, might fluctuate. Cost fluctuations can have an effect on profit margins and impede market expansion.
The market for baking ingredients is also crowded with businesses vying for market share and due to intense competition from well-known brands and private-label products, it is challenging for new entrants to thrive in the market. The manufacturing of baking ingredients must go follow strict guidelines for food safety and quality, which can prove challenging for smaller businesses.
The market for baking ingredients in the US in particular is developed and well-established, as demand for baking ingredients is quite high in the US and Canada due to their strong baking cultures. Convenience, health concerns, and the appeal of handmade baked items are some of the main drivers. Demand for gluten-free and organic baking ingredients has grown significantly in this area.
ADM stated in 2021 that it would build a new soy protein concentrate production facility in Brazil, increasing its capacity to produce plant-based proteins, to address the rising demand for ingredients including plant-based proteins, especially those utilised in baking applications. The factory has since been built.
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