A new report by Persistence Market Research (PMR) has anticipated the global market for baking ingredients to exhibit a steady 5.5% CAGR over the forecast period 2017 to 2022. Revenues from the global baking ingredients market are expected to surpass US$ 16,000 Mn by 2022-end.
Vendors Focusing on Product Differentiation and Service Offering to Increase their Presence in the Market
One of the popular trends being observed in the market is the hike in demand for organic baking ingredients, which include natural flavors, oils, and sweeteners. This is mainly because of growing health-conscious population, and rise in awareness about benefits regarding organic baking ingredients. The global baking ingredients market is highly fragmented in nature, with a large number of large and small vendors operating across the globe.
In a bid to save time of end-users in production, vendors have developed freshly finished products, bake-off products, pre-packed long-life products, and pre-packed ready-to-use part-baked bakery items such as tortillas and donuts. These vendors compete on factors including quality, innovation, service, price, reputation, and distribution of products, while focusing on product differentiation and service offerings, in order to increase their presence in the market.
Global leaders in baking ingredients are making huge investments in various projects through research & development activities, with an aim of developing new innovative products, and increase their customer base.
Preference of Consumers toward Baked Food Products over Time-consuming Food to Propel Market Growth
Surging need for leisure, time constraints, and hectic lifestyles of people have led them towards adoption of packaged and convenience food. Improvement in economic conditions, and lifestyles of population across developed as well as developing regions have further augmented demand for convenience and packaged food products. This in turn has driven demand for baked products such as bread, pizza, cake, and pastries, consequently fuelling demand for baking ingredients. Increased spending on away-from-home food has led toward a rise in number of artisan bakeries, in-store bakeries, coffee shops, convenience stores, and retail outlets, which are providing various innovative baked food items. Consumers around the world, particularly in North America and Europe, are preferring wraps, pocket sandwiches, and rolls over time-consuming food, on the back of their fast-paced lifestyle. The aforementioned factors are expected to propel the market growth in the upcoming years.
Key Takeaways from PMR’s Report on Global Baking Ingredients Market
Accounting for the largest revenue share of the market, North America is expected to remain the most attractive region in the global baking ingredients market. Sales of baking ingredients in North America will register an impressive expansion through 2022. Europe will remain the second largest market for baking ingredients over the forecast period.
Colors & flavors, and baking powder & mixes are expected to emerge as the fastest growing products in the market, followed by oils & fats. In addition, sales of baking powder & mixes, and colors & flavors are expected to exhibit similar CAGRs through 2022.
Baking ingredients will continue to experience the largest application in bread, with sales poised to surpass US$ 5,000 Mn in revenues by 2022-end. Sales of baking ingredients for application in bread will account for nearly one-third revenue share of the market over the forecast period.