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Baking Ingredients Market Size - By Product Type (Oils, Fats and Shortenings, Baking powder and mixes, Emulsifiers, Color and Flavors, Enzymes, Preservatives) By Form (Dry, Liquid) By Application (Bread, Cookies, Cakes, Pastries) & Forecast, 2024 – 2032

  • Report ID: GMI9614
  • Published Date: May 2024
  • Report Format: PDF

Baking Ingredients Market Size

Baking Ingredients Market size was valued at USD 17.4 billion in 2023 and is anticipated to register a CAGR of over 6.2% between 2024 and 2032. The market encompasses the segment of oil, fats, and shortenings witnessing a surge in demand across various industries owing to its versatile applications. Oils, fats, and shortenings are widely used in the market due to their essential roles in achieving desirable texture, flavor, and moisture in baked goods.

Baking Ingredients Market

They serve as key ingredients in recipes for cakes, cookies, pastries, and bread, contributing to the overall quality and mouthfeel of the finished products. Oils and fats help tenderize doughs and batters, enhance the richness of flavors, and provide structure and moisture retention during baking. Additionally, shortenings, which are solid fats, are prized for their ability to create flaky and tender crusts in pastries and pies. With their versatility and functional properties, oils, fats, and shortenings are indispensable components of baking formulations, catering to the diverse preferences of consumers and professional bakers alike.

However, a general trend influencing the baking ingredients market for oils, fats, and shortenings is the increasing demand for healthier alternatives driven by growing consumer awareness of nutritional concerns and health-conscious lifestyles. As consumers seek to reduce their intake of saturated fats and trans fats, there is a shift towards plant-based oils, such as olive oil, coconut oil, and avocado oil, which are perceived as healthier options.

Additionally, there is a rising interest in alternative fat sources like nut butters, seed oils, and plant-based margarines, which offer similar functional properties while aligning with dietary preferences such as veganism and gluten-free diets. This trend towards healthier options is reshaping product formulations and driving innovation in the bakery ingredients market, with manufacturers focusing on developing products that meet both nutritional requirements and sensory expectations.

In the dynamic landscape of the baking ingredients market, competition from substitute products presents a significant restraint. Alternatives such as pre-made mixes or ready-to-bake products offer convenience and time-saving benefits, appealing to busy consumers. Moreover, dietary trends like gluten-free or vegan lifestyles drive demand for specialized substitutes, challenging traditional ingredient providers. Price sensitivity among consumers further amplifies the threat of substitutes, as cheaper alternatives may sway purchasing decisions.

Additionally, the rise of home baking kits and meal delivery services adds another layer of competition, offering comprehensive solutions tailored to individual preferences. To stay competitive, companies must innovate, emphasizing unique qualities and benefits to differentiate themselves amidst a sea of substitutes.

Baking Ingredients Market Trends

The burgeoning consumer demand for artisanal products has emerged as a potent driver within the baking ingredients industry. With a palpable shift towards quality, authenticity, and craftsmanship, artisanal ingredients have become the cornerstone of modern baking ventures. Discerning consumers, seeking superior taste and unique experiences, are turning to artisanal offerings to elevate their culinary creations. This trend is fueled by a desire for wholesome, natural ingredients, often sourced locally and imbued with traditional methods. Artisanal ingredients not only promise superior flavor but also evoke a sense of nostalgia and connection to heritage.

As consumers increasingly prioritize health-conscious and ethically-sourced options, artisanal baking ingredients present a compelling proposition, catering to both sensory pleasure and conscientious consumption. This growing demand underscores a pivotal transformation in the baking landscape, where authenticity and quality reign supreme, propelling artisanal products to the forefront of market innovation and consumer preference.

Furthermore, the surge in home baking trends has ignited a remarkable growth trajectory in the baking ingredients market. With more people finding solace and joy in creating delectable treats at home, the demand for high-quality ingredients has skyrocketed. This trend is not merely a passing fad but a profound shift towards homemade goodness and healthier alternatives.

From organic flours to artisanal chocolates, consumers are seeking premium ingredients to elevate their baking experiences. This burgeoning interest in home baking serves as a significant driver, propelling innovation and diversity in the market. As households embrace the artistry of baking, suppliers are poised to cater to this expanding consumer base with a wide array of top-notch products, driving further growth and opportunities in the industry.

Baking Ingredients Market Analysis

Baking Ingredients Market Size, By Product Type, 2021 - 2032 (USD Billion)

Based on product type, the market is divided into oils, fats and shortenings, baking powder and mixes, emulsifiers, color and flavors, enzymes, preservatives, and others. Oils, fats, and shortenings held the dominant market share of USD 4.18 billion in 2023. Oils, fats, and shortenings hold a dominant position in the market due to their versatile applications and wide-ranging end uses.

In baking, they serve as essential components for achieving desired textures, flavors, and moisture levels in various products. From creating flaky pastries to tender cakes and crispy cookies, these ingredients play a crucial role in defining the sensory experience of baked goods. Moreover, they contribute to product consistency, shelf stability, and extended freshness, making them indispensable for commercial and home bakers alike. Whether it's butter for rich flavor, vegetable oil for moistness, or shortening for a tender crumb, these ingredients offer unparalleled functionality across a spectrum of baked delights, driving their prominence in the market.

Baking Ingredients Market Revenue Share, By Form, (2023)

Based on form, the baking ingredients market is categorized as dry and liquid. Dry accounted for 56% of the market share in 2023 and is projected to grow through 2032. Dry ingredients dominate the market due to several factors. Firstly, dry ingredients like flour, sugar, and baking powder have long shelf lives, providing convenience and cost-effectiveness to both consumers and manufacturers. Secondly, dry ingredients are versatile and can be easily stored, transported, and used in various baking recipes.

Additionally, the rise in home baking trends has fueled the demand for dry ingredients as they form the foundation of most baking recipes. Furthermore, dry ingredients often offer consistent quality and performance, crucial for achieving desired baking results. Lastly, the ease of measuring and handling dry ingredients makes them preferred choices in both household and commercial baking settings, cementing their dominance in the market.

Based on application, the market is categorized as bread, cookies, cakes, pastries, and others. Bread dominates the baking ingredients market due to its timeless appeal and widespread consumption. As a staple food in many cultures, the demand for bread remains consistently high. Its versatility allows for a wide variety of recipes, from artisanal loaves to quick and convenient sliced bread. Additionally, bread's relatively simple ingredients make it accessible to both commercial bakeries and home bakers alike.

With the rising interest in homemade bread and artisanal baking, there's a growing demand for premium-quality ingredients such as flours, yeast, and grains. Moreover, bread's reputation as a comfort food has only been amplified during times of uncertainty, further solidifying its position as a cornerstone of the baking industry.

North America Baking Ingredients Market Size, 2021- 2032 (USD Billion)

North America baking ingredients market generated a revenue of USD 3.64 billion in 2023. In North America, the market boasts a rich diversity of products catering to a wide range of culinary traditions and consumer preferences. Flour, sugar, and baking powder stand as staples, alongside a growing demand for specialty items like gluten-free flours, natural sweeteners, and organic alternatives. The region's market is characterized by a vibrant mix of large-scale producers and artisanal suppliers, each contributing to the dynamic landscape of baking ingredients.

The US emerges as a dominant force in the baking ingredients sector. With a robust economy and a culture deeply rooted in baking traditions, the U.S. market thrives on innovation and quality. Major players in the industry continuously introduce new products and formulations to meet evolving consumer demands, driving growth and competition within the market. Additionally, the growing emphasis on health and wellness has spurred the popularity of organic and non-GMO ingredients, reshaping the preferences of American bakers.

Baking Ingredients Market Share

Baking Ingredients Market Company Share, (2023)

AB Enzymes, ADM, Associated British Foods plc, Bakels Group, and Caldic B.V.  collectively dominate the market with their extensive industry experience, innovative product offerings, and widespread global presence. AB Enzymes offers a range of specialized enzymes tailored for the baking industry. These enzymes enhance dough handling, improve volume, texture, and shelf-life of baked goods. With their innovative solutions, AB Enzymes plays a crucial role in optimizing baking processes and delivering consistent quality in finished products.

ADM (Archer Daniels Midland Company) is a major player in the baking ingredients market, offering a wide range of products to meet diverse baking needs. With a focus on innovation and sustainability, ADM provides high-quality ingredients such as flours, oils, sweeteners, and emulsifiers to bakeries, food manufacturers, and consumers worldwide. Their extensive portfolio and commitment to excellence make them a trusted partner in the baking industry.

Associated British Foods plc is a leading player in the baking ingredients sector, offering a wide range of products under its various brands like Allinson, Kingsmill, and Fleischmann's. With a global presence and a focus on quality and innovation, ABF consistently delivers premium baking ingredients trusted by professionals and home bakers alike. Bakels Group is a renowned global supplier of baking ingredients, serving the industry for over a century. Their extensive product range includes emulsifiers, enzymes, mixes, and more, catering to both industrial and artisanal bakers. With a commitment to innovation and quality, Bakels Group remains a trusted partner for bakeries worldwide.

Caldic B.V. is a prominent global distributor of baking ingredients, offering a comprehensive range of products to meet the diverse needs of bakeries and food manufacturers. With a focus on quality, innovation, and customer satisfaction, Caldic B.V. provides tailored solutions and technical expertise to support the success of its clients in the baking industry, further solidifying its position as a key player in the market.

These market leaders collectively shape the competitive landscape of the baking ingredients market, driving innovation, setting industry standards, and meeting the evolving demands of customers worldwide. With their focus on research and development, technological advancements, and strategic partnerships, these companies continue to expand their market share and strengthen their foothold in key regions. Their relentless pursuit of excellence, coupled with their customer-centric approach, positions them as preferred suppliers of baking ingredients, contributing significantly to the growth and development of the global construction industry.

Baking Ingredients Market Companies

Major companies operating in the baking ingredients industry include:

  • AB Enzymes
  • ADM
  • Associated British Foods plc
  • Bakels Group
  • Caldic B.V. 
  • Cargill, Incorporated
  • DSM
  • Ingredion
  • Kerry Group plc.
  • Lallemand Inc.
  • Tate & Lyle

Baking ingredients Industry News

  • In September 2023, Moyu, a U.S.-based baking mix brand, announced the launch of better-for-you bakery mix. The bakery features konjac-based mixes under the better-for-you baked goods category.
  • In June 2023, the Kerry Group announced the launch of enzyme solutions that help bakers reduce their egg use by 30% in a variety of bakery products. The move comes as the European Commission is expected to propose legislation to phase out cages in animal agriculture by 2027, a proposal that has gathered support from some heavyweights in the industry for several years now.

The baking ingredients market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue and volume (USD Billion) (Kilo Tons) from 2021 to 2032, for the following segments:

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Market, By Product Type

  • Oils, Fats and Shortenings
  • Baking powder and mixes
  • Emulsifiers
  • Color and Flavors
  • Enzymes
  • Preservatives
  • Others

Market, By Form

  • Dry
  • Liquid

Market, By Application

  • Bread
  • Cookies
  • Cakes
  • Pastries
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • UK
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Australia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • MEA
    • Saudi Arabia
    • UAE
    • South Africa
    • Rest of MEA


Authors: Kiran Pulidindi, Kunal Ahuja

Frequently Asked Questions (FAQ) :

The market size of baking ingredients reached USD 17.4 billion in 2023 and is set to witness 6.2% CAGR from 2024 to 2032, led by a surge in demand across various industries owing to their versatile applications.

The oils, fats, and shortenings segment recorded USD 4.18 billion in 2023, due to their growing importance as essential components for achieving desired textures, flavors, and moisture levels in various products.

The dry form segment accounted for 56% of the market share in 2023, as they are versatile and can be easily stored, transported, and used in various baking recipes.

North America market size was USD 3.64 billion in 2023, owing to the presence of a rich diversity of products catering to a wide range of culinary traditions and consumer preferences.

Baking Ingredients Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 12
  • Tables & Figures: 532
  • Countries covered: 22
  • Pages: 300
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