- Ingredients can be artificial or natural
- Changing lifestyles contributes to growth
- Bakery and cereals market to reach $541 billion
By 2022, the baking ingredients market is forecasted to reach $16.91 billion, according to MarketsandMarkets. This year, the market is expected to be valued at $13.03 billion. This represents a compound annual growth rate (CAGR) of 5.4%.
Baking ingredients are used to add nutritional value, add or enhance taste, maintain quality consistency, provide texture and color, and prevent spoilage. They also aid in processing, packaging, storage and transportation.
Baking ingredients can be artificial or natural.
Some common bakery ingredients are added flavors, baking soda, baking powder, butter, color additives, eggs, flavors enhancers, flour, fruits, honey, nuts and yeasts.
The market is segmented by ingredient type, application and region.
Growth Factors and Challenges
Multiple factors are contributing to the market’s growth.
Societal factors include population growth, an increased demand for packaged food, busy lifestyles and rising per capita consumption of baked goods.
Economic factors include the expanding middle class and the development of innovative baking ingredients that are cost-effective as well as beneficial for health.
Areas of future growth include untapped markets and an increased demand for organic bakery products.
Challenges to the market include rigorous health and safety checks, the excess usage of trans-fatty acids, the contamination of raw materials and health concerns.
Bakery and Cereals Market
By 2020, the bakery and cereals market is forecasted to be valued at $541.2 billion globally, according to GlobalData. The market is highly fragmented; the top five brands collectively hold a 5.4% market share.
In developed countries, demand for bakery and cereal products is stable. Western Europe is the largest region, holding a 28.7% market share by region. In the U.S., the market was valued at $102.7 billion and is expected to grow at a CAGR of 2.8% between 2015 and 2020.
In developed countries, innovation and product differentiation will contribute to growth, especially those related to the reformulated of products with healthy, high quality ingredients.
Bakery and cereal products are not considered to be staple food in most of the Asia-Pacific region. However, between 2015 and 2020, the market is forecasted to grow at a CAGR of 6.9%.
This growth is attributed to exposure to developed cultures through the media and travels, rapid urbanization, and the increasing feeling of time-scarcity thanks to a growing economy.
China is forecasted to have the largest projected growth, increasing at a CAGR of 10.9% between 2015 and 2020.
Bakery Ingredients and Equipment Markets
- The bakery equipment market is forecasted to grow at a CAGR of 7%.
- In 2015, the bakery equipment market was valued at $9 billion.
- In 2015, the leading distribution channel for bakery and cereal products was hypermarkets and supermarkets, with a 41.1% market share.
- In most regions, Quaker is a leading breakfast cereals brand.