Bakery Ingredients Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The global bakery ingredients market is projected to grow at a CAGR of 6.12% during the forecast period.
Impact of COVID-19 on the Market:
COVID-19 has resulted in a devastating impact on the bakery ingredients market in two main ways: by directly affecting production and demand, and by creating supply chain and market disruption. The pandemic has affected bakery players in different ways. With foodservice representing as much as 70% of their sales, frozen bakery players have seen reduced orders as food consumption changes from restaurants to home kitchens. The post pandemic consumer will likely demand new and better options. In this scenario, improved nutrition is expected to gain consumer and government attention as a way of preventing diseases and boosting immunity providing an opportunity for companies to focus on innovation. Such factors create ample room to rebalance the bakery ingredients industry even in the face of persistent COVID-19 restrictions.
The growing demand for ready-to-eat food is expected to boost the bakery ingredients market. The shift from conventional home-cooked food to convenience foods has also increased the demand for these bakery ingredients in the emerging markets. Adoption of westernized lifestyle, double-income families, emphasis on healthier lifestyles, greater nutrition awareness, and increase in disposable income are the major factors that are responsible for the growth in the baked foods industry, which, in turn, will drive the demand for the bakery ingredients manufacturers. Also, growing consumer demand for nutritional content in baked foods with low sugar, whole grain, and zero trans-fat per serving is increasing the demand for bakery food,
Europe is the biggest market for bakery ingredients, followed by North America. However, these are matured markets, in regards to bakery ingredients. Asia-Pacific is the maximum growing segment, owing to the enhanced demand for bakery products and changing lifestyles. In North America, the United States and Mexico, with an increasing number of fast-food chains, extensive use of baked foods, and the use of bakery ingredients, are expected to develop. Germany is the major revenue-generating market in Europe. India and China, with their increasing population and disposable incomes, are projected to be the fastest-growing markets, globally, during the forecast period.
The leading market players have been using strategies, such as expansions and new product launches, to increase their global presence and their productivity. Innovations in food ingredients by consumer preferences also meet the company objectives of reducing costs. Several companies find it important to meet the local regulatory requirements, apart from meeting their standard safety and quality criteria. The leading players in the bakery ingredients market are - Associated British Foods, Cargill Inc, DSM, DuPont, and Kerry Group, among others.