Baking ingredients such as flour, baking powder, yeast, etc., are used to make bakery products. The most popular bakery products include cakes and breads. Baking ingredients are widely used in a range of food products. These products have high consumption rate; hence, the demand is huge. Bakery products are part of the staple food in western cultures and this is the major factor driving the market. Cakes, cookies, breads are consumed on a daily basis and are part of the staple food in these regions. Economic slowdown has resulted in a lower consumption of fancy bakery goods, which is a challenge to growth of this market. Opportunities for this market are tremendous, due to the growing acceptance of western food cultures, higher disposable incomes and advancement in technology.
Baking Ingredients Market by Ingredients
The ingredients used for baking are baking powder, flour, baking soda, butter, eggs, yeast, honey, fruits, nuts , flavor additives, preservatives, enzymes, color additives etc. Pre-mixes for cakes and bread are available in the market and are in high demand, as these are very convenient to use for baking.
Baking Ingredients Market by products
The products made are breads, cakes, biscuits, pastries, cookies, pies, torts, donuts etc. Breads and cakes are consumed regularly in the western countries and are the staple food in these regions, which is the reason why these products are in high demand.
Baking Ingredients Market by Geography
The baking ingredients market is segmented geographically into North America, Europe, Asia Pacific and RoW. North America and Europe are the major markets as bakery products are regularly consumed in these regions. However, it is expected that there would be tremendous growth in Asia-Pacific as lifestyles in these regions are changing and there is a gradual acceptance of western food culture. Countries such as China and India would witness growth mainly due their large population, which would be the driving force for growth in the market.
The companies in this market are Dawn Foods Ltd, Muntons Plc. British Bakels, Taura, Lesaffre, DSM and AAK UK. In January 2012, Lesaffre launched a new product ‘Star Bake’, which is a ready to use blend of yeast, dough improvers, and other ingredients. The products would help professionals in food industry to produce high quality products.
High Level Analysis
Analysis of the market based on porter’s five force model suggests that the bargaining power of the buyer is high in this market as there are many suppliers producing high quality baking ingredients. Threat of new entrants is high as capital investment required is moderate for this market. The market has many regional specific players. Competition is very stiff in this market and companies need to constantly innovate and come up with new products.
The Baking ingredients market is segmented by type of ingredients, products and geography.
Market By Ingredients
Market By Products
Market By Geography