Bakery Ingredients Market Size to Climb USD 23.65 Billion in 2025

Bakery Ingredients Market Size, Growth, and Trends 2025 to 2034

The global bakery ingredients market size is forecasted to expand from USD 23.65 billion in 2025 to USD 45.72 billion by 2034, growing at a CAGR of 7.6% during the forecast period from 2025 to 2034. This growth is fueled by the rising consumption of baked goods worldwide, increasing demand for clean-label and fortified ingredients, and the expanding use of specialty flours, enzymes, and emulsifiers to enhance product quality and shelf life.

Last Updated: 03 October 2025 Category: Food & Beverages Ingredients Insight Code: 5861 Format: PDF / PPT / Excel

Bakery Ingredients Market Size, Share and Growth Insights

The global bakery ingredients market size estimated at USD 21.98 billion in 2024 and is anticipated to increase from USD 23.65 billion in 2025 to an estimated USD 45.72 billion by 2034, witnessing a CAGR of 7.6% during the forecast period from 2025 to 2034. The market is driven by the increasing demand for baking ingredients and multi-cuisine bakery products to reduce fermentation time. 

Bakery Ingredients Market Size 2025 to 2034

Key Highlights

  • By region, Europe dominated the bakery ingredients market share of approximately 41% in 2024.
  • By region, Asia Pacific is expected to grow fastest during the forecast period.
  • By ingredient type, the baking powder & mixes segment held a major market share of approximately 28% in 2024.
  • By ingredient type, the enzymes segment is projected to grow at a CAGR between 2025 and 2034.
  • By form, the dry segment held a major market share of approximately 65% in 2024.
  • By form, the liquid segment is projected to grow at a CAGR between 2025 and 2034.
  • By application, the bread segment held a major market share of approximately 45% in 2024.
  • By application, the cakes & pastries segment is projected to grow at a CAGR between 2025 and 2034.
  • By end use, the industrial segment held a major market share of approximately 50% in 2024.
  • By end use, the foodservice segment is projected to grow at a CAGR between 2025 and 2034.

Industry Coverage

Study Coverage Details
Growth Rate from 2025 to 2034 CAGR of 7.6%
Market Size in 2025 USD 23.65 Billion
Market Size in 2026 USD 45.72 Billion
Market Size by 2034 USD 45.72 Billion
Largest Market Europe
Base Year 2024
Forecast Period 2025 to 2034
Regions Covered North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

What is a Bakery Ingredients Market?

The bakery ingredients market is driven by the increasing consumer preference towards natural and healthier ingredients and increasing consumer demand for baked products. The global market bakery ingredients deal with distribution channels, products and companies included in supplying and manufacturing the raw materials and components, including flavorings, fats, yeast, sugar and flour, widely utilized to make baked products such as pastries, cakes and bread.

In addition, the market is also driven by factors such as the increasing demand for specialty and convenience bakery products, increasing consumer preference towards healthier options, such as functional, organic and gluten-free ingredients, increasing consumption of cookies, cakes and bread, growing urbanization, growing food and beverage industry, increasing popularity of grocery and retail stores and increasing consumer busy and changing lifestyles during the forecast period.

Frequency

Bakery Products Once a day Once in a week Twice in a week Once in a month Twice in a month Once in six months
Bread 10 55 30 3 2 0
Biscuits 5 9 11 53 18 4
Cookies 3 21 15 26 23 31
Cakes 0 3 1 37 43 15
Pastries 0 6 5 31 35 6
Wafer 0 13 5 19 24 8
Waffle 0 6 3 11 10 4

(Source: Acta Scientific

Bakery Ingredients Market Outlook

  • Industry Growth Overview: Between 2025 and 2030, the industry is expected to see accelerated growth due to the rising development of bakery product, low-calorie and sugar-free bakery ingredients. Growth is being driven by consumer shifts toward functional and organic high quality bakery ingredients, especially in Asia-Pacific and Europe.
  • Increasing sustainability trend: The increasing consumer preference towards bakery ingredients includes sourcing plant-based, organic or local ingredients, using heritage and whole grains to reduce food waste and reduce environmental impact, further improve shelf life and product quality and enhance water and energy efficiency, which further drives the market growth.
  • Startup Ecosystem: Startup ecosystems trends in the market for bakery ingredients is driven by the increasing focus on sustainability, rising technological advancements in monitoring and production of bakery ingredients, increasing demand for nutrient-rich and clean-label food ingredients and rising development of smart manufacturing with the expansion of online sales channels, such as artificial intelligence (AI) and Internet of Things (IoT).

Key Technological Shifts in Bakery Ingredients Market

The rising technological advancements in bakery ingredients focuses on enhanced sustainability, personalization and functionality, leveraging technologies such as the development of functional fats, AI-driven recipe optimization and microencapsulation for controlled release of nutrients. The innovations also involved ingredients especially designed for high-speed production and automation, supporting allergy avoidance and dietary needs.

In addition, adoption of innovative technologies such as 3D printing enables for the innovation of pastries and breads, offering personalized textures, natural and nutritional profiles. To predict popular flavores and purchasing trends, AI technologies analyze consumer data, which further expected to revolutionize the growth of the bakery ingredients market in the coming years.

  • Major players such as Cargill Incorporated and Kerry Group plc in the bakery ingredients industry are adopting technological advancements such as IoT and AI for digitalization for supply chain automation and transparency, 3D printing for functional and customized products and data-driven insights to address increasing consumer demand for convenience, customization and health. These major players are continuously launching advanced bakery ingredients that promote healthier options, improve freshness and enhance shelf life.

Trade Analysis of Bakery Ingredients Market: Import & Export Statistics

  • India is the third leading country in bakery industry. The production of bakery products such as biscuits expected as 1.95 million tonnes per year and bread production is expected as 3.75 million tonnes per year, which may expected to accelerate the demand for bakery products in India.
  • The United Kingdom held the largest market revenue in the market. 65% of the flour produced is utilized for bread production in the UK and remaining 35% offering ample opportunities within the market and serves various range of culinary products, further accelerates the demand for bakery products in the UK.
  • China is the leading nation in the market. Major bakery ingredients used in China such as eggs, dairy, sugar, yeast and flour etc. These ingredients account for more than 80% of all baked ingredients. 40.9% snacks are consumed for special occasions in China, which further expected to drive the demand for bakery snacks products in China.

Value Chain Analysis of Bakery Ingredients Market

Raw Material Procurement

  • In the bakery ingredients industry, the raw material procurement deals with strategic procedure of purchasing, evaluating and sourcing of fish oil from the various vitamins, minerals and other probiotics.

Packaging and Branding

  • Branding and Packaging for bakery ingredients market focuses on creating packaging which may ensures remain stable, safe and fresh by protecting them from contamination, light and moisture.

Waste Management and Recycling

  • The waste management and recycling in the bakery ingredients industry are including rejected batches and leftover raw materials such as sweeteners, flavors and tastes, which may drive market growth during the forecast period.

Bakery Ingredients Regulatory Landscape: Global Regulations

Country Regulatory Body Key Regulations Focus Areas Notable Notes
India overarching Food Safety and Standards Food Safety and Standards (Packaging and Safety Regulations) and Licensing and Registration of Food Businesses) Ingredients: It focuses in to specify standards for several ingredients, such as milk products, oils, flours and additives. Updates the standards for certain products such as cheese powder and ghee and also specify fortification with Vitamin B12, Folic Acid and Iron. 

Bakery Ingredients Market Regional Insights

Europe Dominated the Bakery Ingredients Market Revenue in 2024. 

The market growth in the region is fueled by factors such as the increasing supportive regulatory frameworks, increasing demand for traditional and high-quality baking ingredients, rising technological advancements in ingredient technology, increasing consumer focus on traceability and sustainability and increasing prevalence of dietary intolerances and food allergies. The UK, Germany and France are dominating countries driving the market growth in the region.

Bakery Ingredients Market Share, By Region, 2024 (%)

Asia Pacific Bakery Ingredients Market Trends

Asia Pacific is expected to grow fastest during the forecast period. The market growth in the region is driven by factors such as the increasing adoption of western processed foods and dietary habits, increasing demand for convenience foods, increasing disposable incomes, growing rapid urbanization and increasing consumer awareness towards health and wellness. China, India, Japan and South Korea are the fastest growing countries propelling the market growth.

Segmental Insights

Ingredient Type Insights

How Baking Powder & Mixes Segment Dominates the Bakery Ingredients Market Revenue in 2024?

The baking powder & mixes segment dominated the global market revenue in 2024. Baking powder plays an important role in the bakery ingredients, as it provides a leavening and balanced lift to baked products by creating an airy, fluffy texture and volume. Baking mixes offer consistency and convenience by simplifying operations for bakeries, ensuring consistent results across various locations and combining functional ingredients such as baking powder with flavors, sugar and flour. In addition, baking powder contributes to a tender, porous crumb and fine in finished products, such as quick breads, muffins and cakes by creating a network of uniform and tiny air cells. The simplifies scaling, foundation of customization, reduced cost and waste, increased speed and efficiency, and guaranteed consistency are the major benefits of baking powder, which further expected to drive the segment growth. 

The Enzymes Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the global bakery ingredients market is driven by reduced need for additives, help to control the baking process, offer label-friendly and natural alternatives, provides a rich crust color, enhances browning reactions, increased shelf life, enhanced texture and volume and improved dough quality.

Form Insights

Why Dry Segment Dominated the Bakery Ingredients Market Revenue in 2024?

The dry segment dominated the global market revenue in 2024. The segment growth in the market is attributed to the factors such as the increasing demand for convenience and ready-to-eat foods, increasing cost-effectiveness, versatility, convenience and ease of handling, reduced spoilage and extended shelf life. Dry ingredients in baking, such as dried fruits, powders, starches and flour are crucial for versatility, consistent portioning, ease of handling and convenience.

They also help to simplify logistics by reducing waste and spoilage, provide the foundational texture, flavor and structure and enable for precise recipe adherence from breads to cookies and cakes, which further expected to drive the segment growth in the global market.

The Liquid Segment is Expected to Grow Fastest During the Forecast Period. 

Liquid ingredients play a crucial role in baking for establishing structure by contributing moisture for desired mouthfeel and texture, producing steam for leavening and volume, acting as a solvent for sugars and leavening agents and hydrating flour to form gluten. They also help in ingredient binding and add color and flavor and make them crucial for a huge range of bakery products. 

End User Insights

What Factors Help Industrial Ingredient Segment to Grow in 2024?

The industrial segment dominated the bakery ingredients market revenue in 2024. Industrial segments in bakery ingredients are major for offering various products such as enzymes, emulsifiers and fats that allow cost-effective, high-quality consistent production of bakery products. These industrial ingredients enable for enhanced nutritional profiles, shelf life, flavor and texture, addressing consumer demands for healthier options, convenience and specific dietary needs such as gluten-free. Industrial segments offer ingredients that ensure continuous texture and quality across huge batches. Industrial bakery ingredients such as emulsifiers and enzymes act as functional ingredients, enabling bakers to create improved and new products and enhancing freshness, volume and dough handling, which further expected to enhance the segment growth in the global market.

The Foodservice Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the global bakery ingredients market is driven by the various benefits such as increasing consumer awareness towards health and wellness, increasing demand for sustainable ingredients, increasing demand for specialty and healthy options, increasing need for concentrated and powdered mixes formats, reducing labor cost and increased efficiency and convenience.

Application Insights

How Bread Segment Dominates the Bakery Ingredients Market Revenue in 2024?

The bread segment dominated the global market revenue in 2024. The segment growth in the global market is driven by factors such as the increasing expenditure on premium products, increasing disposable incomes, growing urbanization, increasing demand for specialty and nutritious breads, increasing consumer health awareness, increasing busy and changing lifestyles and increasing demand for convenient foods.

The Cakes and Pastries Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the market is attributed to the factors such as the increasing demand for allergen-free, natural and premium ingredients, increasing awareness of dietary and health restrictions, increasing demand for convenient bakery products, increasing busy lifestyles, increasing consumer preference in functional and gourmet ingredients and increasing demand for convenient snacks.

Recent Developments in the Bakery Ingredients Market

Meala FoodTech

  • Launch: In September 2025, a clean-label, single-ingredient pea protein, Groundbaker was launched by Food-tech innovator Meala FoodTech that replicates the multi-functional performance of eggs in bakery products. (Source: Nutraceutical Business Review)

Corbion

  • Launch: In April 2025, Corbion launched Vantage™ 12E and Vantage™ 11E its latest innovations as bakeries continue to navigate fluctuating egg supply and pricing. These high-performing egg replacers give bakery manufacturers the cost-efficiency, consistency and flexibility. (Source: GlobeNewsWire)

Top Vendors in Bakery Ingredients Market & Their Offerings

  • Kerry Group: Kerry Group held the largest market revenue in bakery ingredients industry as a major provider of value-added and innovative solutions and ingredients that serve to trends such as health & wellness, premiumization and clean-label bakery ingredients.
  • Cargill Incorporated: Cargill is a significant key player leveraging its broad commitment, global reach, technical expertise and product portfolio to innovation to address increasing consumer needs. This company focuses on delivering personalized solutions for plant-based alternatives, texturizing and sweetening.

Other Major Companies

  • Cargill Incorporated
  • Archer Daniels Midland Company
  • Associated British Foods plc
  • Südzucker AG
  • Royal DSM N.V.
  • Kerry Group plc
  • Ingredion Incorporated
  • Wacker Chemie AG
  • Glanbia plc
  • Lesaffre ET Compagnie
  • Novozymes A/S
  • Dawn Foods Ltd.
  • Puratos Group
  • Tate & Lyle PLC
  • Corbion N.V.
  • Lallemand Inc.
  • CSM Bakery Solutions
  • MGP Ingredients Inc.
  • Zeelandia International B.V.
  • British Bakels Ltd.

Segments Covered in the Report

By Ingredient Type

  • Baking Powder & Mixes
  • Colors & Flavours
  • Emulsifiers
  • Enzymes
  • Preservatives
  • Oils, Fats, and Shortenings
  • Starch
  • Yeast
  • Others

By Form

  • Dry
  • Liquid

By Application

  • Bread
  • Cakes & Pastries
  • Cookies & Biscuits
  • Rolls & Pies
  • Others

By End-User

  • Industrial
  • Foodservice
  • Retail

By Region

  • North America
  • Europe
  • Asia Pacific
  • Middle East and Africa (MEA)
  • Latin America
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  • Report Covered: [Revenue + Volume]
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Vidyesh Swar, Senior Research Analyst at Towards Food & Beverages, specializes in market research, focusing on supply-demand evaluation, pricing analysis, alternative proteins, plant-based foods, and sustainable food technologies within the industry.

Learn more about Vidyesh Swar

Aditi Shivarkar, with 14+ years in Food and Beverages market research, specializes in food, beverage, and eco-friendly packaging. She ensures accurate, actionable insights, driving Towards FnB's excellence in industry trends and sustainability.

Learn more about Aditi Shivarkar

Related Insights

FAQ's

The bakery ingredients market was valued at USD 21.98 billion in 2024 and is projected to grow steadily, reaching nearly USD 45.72 billion by 2034 at a CAGR of 7.6%, driven by preventive healthcare adoption and an aging population.

Europe currently holds the largest share, but Asia-Pacific offers the strongest growth potential due to rising disposable incomes, westernized food habits, and rapid urbanization in markets like China and India.

Baking powder & mixes lead the market due to their essential role in achieving consistent quality and efficiency. Enzymes, however, are the fastest-growing category thanks to their natural, label-friendly appeal and shelf-life benefits.

Sustainability is becoming central, with demand rising for plant-based, organic, and locally sourced ingredients. Companies are investing in eco-friendly production, waste reduction, and energy-efficient supply chains to meet regulatory and consumer expectations.

Bread remains the dominant segment due to daily consumption worldwide. However, cakes and pastries are expected to grow fastest as consumers demand premium, allergen-free, and indulgent bakery experiences.

Leading players such as Kerry Group, Cargill, and Corbion are leveraging AI, IoT, and supply chain digitalization. They are also launching innovative clean-label and egg-replacement solutions to address cost pressures and changing dietary needs.

The sector offers strong investment opportunities, particularly in Asia-Pacific and functional ingredient segments. Demand for organic, premium, and health-focused products makes it attractive for long-term investors.

By 2034, the industry will be shaped by sustainability, functional nutrition, and advanced technologies. Personalized bakery solutions, clean-label formulations, and digitalized supply chains will define market leaders and investment opportunities.