Research firm Markets and Markets, which valued global baking ingredients at $11.17bn in 2014, has published a new study predicting the market will grow to $11.79bn at a compound annual growth rate (CAGR) of 5.2% from 2015 to 2020.
The company's research – which defined the baking ingredients market as emulsifiers, enzymes, baking powder & mixes, starch, oils, fats & shortenings, and colors & flavors – said enzymes would be the fastest-growing ingredient type, with a projected CAGR of 8.1% from 2015 to 2020 (see table below).
“The growth of the baking ingredients market is driven by rising demand for healthier and nutrition-rich products from the baking industry,” said Markets and Markets analyst Aslam Shaikh.
“Key growth drivers are: the changing lifestyles of consumers with little time for preparing meals; rise in per capita consumption of baked goods; consumer preference for gluten-free foods and nutrient-enhanced products; and increasing demand for natural ingredients due to increasing consumer awareness about healthy diets,” he added.
Asia-Pacific: fastest growing market
While Europe accounted for the largest share of the baking ingredients market in 2014, the report predicted the Asia-Pacific market would show the fastest growth in baking ingredients from 2015 to 2020. This is expected to be driven by rising demand for leavening agents, enzymes and emulsifiers in major baking applications such as bread, rolls, cakes, biscuits and cookies.
“The growing consumer demand for healthy baked goods such as low-fat, low-sugar, and high-fiber foods is projected to fuel demand for baking ingredients in the Asia-Pacific region,” Shaikh said.
For further information on the Markets and Markets Baking Ingredients Report see here.