Bakery Ingredients Market to generate $32.1 billion by 2035, registering with a CAGR of 6.3%

Consumer preference for healthy bakery products, changes in culture & lifestyle & demand for convenient foods drive the growth of the bakery ingredients market. WILMINGTON, DE, UNITED STATES, June 19, 2025 /EINPresswire.com/ -- Allied Market Research has released a report titled, “Bakery Ingredients Market Size by Type (Enzymes, Starch, Fiber, Colors, Flavors, Emulsifiers, Antimicrobials, Fats, Dry Baking Mix, and Others), Application (Bread, Cookies and Biscuits, Rolls and Pies, Cakes and Pastries, and Others): Global Opportunity Analysis and Industry Forecast, 2024–2035.” The report indicates that the bakery ingredients market was valued at $15.5 billion in 2023 and is projected to reach $32.1 billion by 2035, growing at a compound annual growth rate (CAGR) of 6.3% from 2024 to 2035.

Bakery ingredients include a broad spectrum of components that influence the structure, taste, and texture of baked items. Core ingredients like flour provide structure; sugar adds sweetness; eggs serve as binders and contribute moisture; and salt enhances flavor. Leavening agents such as baking powder, baking soda, and yeast are essential for the rising of baked goods like bread and cakes. Fats including butter, oils, and shortening enhance flavor and tenderness, while dairy ingredients such as milk and cream improve overall texture and richness.

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Additional elements such as vanilla, spices (e.g., cinnamon, nutmeg), chocolate, fruits, and nuts enrich flavor and mouthfeel. Sweeteners like honey, molasses, and corn syrup also serve functional roles such as moisture retention and preventing crystallization. Thickening agents such as gelatin and cornstarch are key in many dessert applications. When creatively combined, these ingredients enable bakers to produce a wide variety of delicious baked products.

The expansion of the bakery ingredients market is primarily fueled by several key factors. As modern lifestyles grow increasingly hectic, the demand for convenience foods such as ready-to-bake and ready-to-eat bakery products is on the rise. Simultaneously, heightened awareness around health and wellness has encouraged the use of organic components, whole grains, and natural sweeteners in baked goods. Market growth is further driven by innovation, including the development of plant-based proteins and alternative flours that appeal to health-conscious consumers.

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The popularity of artisanal and specialty bakeries, which focus on premium and unique ingredients, is also contributing to industry growth. A growing prevalence of food allergies and intolerances such as gluten and lactose sensitivities has led to the development of tailored bakery ingredients that address these dietary needs. Furthermore, increasing urbanization and rising disposable incomes are enabling greater consumer spending on high-quality and convenient food options. The rapid expansion of online retail and e-commerce platforms has boosted accessibility, while global cultural influences continue to introduce new flavors and ingredient trends into the bakery market.

By region, Europe held the highest market share in 2023, accounting for more than one-third of the dry baking mix market revenue and is estimated to maintain its leadership status throughout the forecast period. Europe holds the highest market share in the bakery ingredients industry due to its rich baking traditions, expansive bakery industry, and culturally ingrained consumption of baked goods. European countries have deep culinary roots that span from French pastries to German bread and Italian desserts, creating a diverse and sustained demand for bakery ingredients. The region's well-established bakery sector, with its combination of large-scale commercial bakeries and artisanal shops, highlights the need for a consistent supply of high-quality ingredients.

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This focus on craftsmanship and traditional recipes drives the demand for premium flour, butter, eggs, and other essential components. In addition, Europe is known for its innovation in baking, with a constant development of new products and flavors, leading to a broader range of required ingredients. Stringent food safety and regulatory standards ensure high-quality products, while a growing health-conscious consumer base has led to a surge in demand for gluten-free, organic, and low-sugar options. Europe's strong retail and distribution networks further contribute to the efficient supply of bakery ingredients.

Leading Market Players: -

Archer-Daniels-Midland Company
Associated British Foods Plc.
Cargill Incorporated
E. I. Du Pont De Nemours and Company
Ingredion Incorporate
Kerry Group, Plc
Koninklijke DSM N.V.
Dawn Food Products, Inc.
Bakels Group
Lallemand Inc.

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David Correa
Allied Market Research
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