Food Leavening Agent Market Rises with Demand for Baked and Processed Foods

Food Leavening Agent Market Size, Share and Trends Analysis

The global food leavening agent market size was stood at USD 7.33 billion in 2024, is predicted to increase from USD 7.64 billion in 2025 to nearly USD 11.06 billion by 2034, growing at a CAGR of 4.2% over the forecast period from 2025 to 2034. The increasing demand for bakery products around the world drives the growth of the market.

Key Highlights

• By region, Asia Pacific dominated the global food leavening market by holding a market share of 35-40% in 2024, due to the increasing demand for fresh bakery products.
• By region, North America is expected to grow at a notable CAGR from 2025 to 2034 during the forecast period, which is driven by increasing health awareness. 
• By type, the baking powder (chemical leavening agent) segment held a major market share of 40-45% in 2024, driven by increasing demand for bakery products. 
• By type, the yeast (biological leavening agents) segment is projected to grow at a CAGR between 2025 and 2034, driven by the increasing demand for breads. 
• By application, the bread & rolls segment dominated the market share of 50% in 2024, due to the increasing demand for bakery items. 
• By application, the cakes and pastries segment is expected to grow rapidly during the forecast period, due to the increasing preference towards special occasions.
• By form, the powder segment dominated the market share of 70% in 2024, due to the increasing consumer demand for powder form agents such as baking powder.
• By form, the liquid segment is expected to grow rapidly during the forecast period, due to the increasing consumer preference towards beverages. 
• By end-user, the commercial bakeries segment contributed the biggest market share of 60% in 2024, due to the increasing demand for commercial bakeries. 
• By end user, the household/kitchen use segment is expanding at a significant CAGR between 2025 and 2034, due to the increasing consumer preference towards home cooking.

Industry Coverage

The Increasing Demand for Baked Goods May Enhance Consumer Experience

Food Leavening Agent market deals with materials used in baking and cooking to make gas (usually carbon dioxide) that causes dough or batter to expand and rise, resulting in a light and porous texture in baked goods. These agents play a crucial role in determining the texture, volume, and overall quality of food products such as bread, cakes, and pastries. Leavening agents can be chemical, biological, or physical, depending on their mechanism of producing gas.

Some of the major factors driving the growth of the market are increasing disposable income and rapid urbanization. There is an increasing demand for leavening agents widely used in baking processes, as consumers adopt international food trends and become more experimental. In addition, various benefits driving the market growth, such as reducing acid concentration in a batter, improving consistency and taste, enhancing the fermentation process, and increasing product quality, which is further expected to further enhance the growth of the market.

Food Leavening Agent Market Market Trends

• Increasing demand for natural and clean-label ingredients: The increasing consumer preference towards gluten-free, organic, natural, and clean-label products is expected to contribute to consumer shift, contributing to propel the market growth.
• Rising technological innovation: The rising technological innovations in food leavening agents, such as encapsulation, fermentation, mixing, and granulation, which further enhance shelf life, texture consistency, and better performance expected to enhance the growth of the food leavening agent market. 
• Increasing eco-friendly and sustainability: The increasing pressure from regulators and consumers is pushing for eco-friendly packaging, reduced waste, and sustainable sourcing, which is further expected to drive the global market.

Market Opportunity

Rising Technological Innovations in Formulations

The rising technological advancements in food science and technology are revolutionizing the food leavening agent in the coming years. This includes various encapsulation technologies to control the release of leavening gases and improve stability. Such innovations ensure that food leavening agents maintain and contribute to the longevity of products. In addition, increasing demand for gluten-free products and the use of plant-based leavening agents are also major future trends that may create significant opportunities. These advanced factors are expected to shape the growth of the food leavening agent market in the coming years.

Market Challenge

Raw Material Price and Supply Volatility

One of the major challenges in the market is the increasing limited availability of raw materials and price fluctuations. Major ingredients such as soda, yeast, and other materials are high in costs based on their problems, such as transportation problems, labor shortages, and climate change, which may create market challenges. This makes it challenging for manufacturers to produce affordable products and have constant production costs. In addition, the dependence on raw materials disrupts the supply chain, which may result in cost increases and product shortages, which is further expected to restrain the growth of the food leavening agent market.

Regional Insights

How Asia Pacific Dominates the Food Leavening Agent Market Revenue in 2024?

Asia Pacific dominated the food leavening agent market in 2024. The segment growth in the global market is attributed to the increasing demand for eco-friendly and sustainable food products, increasing research and development activities, increasing consumer preference towards natural and clean-label products, and the growing e-commerce industry. China, India, Japan, and South Korea dominate the global market growth in the region.

China dominated the food leavening agent market revenue in 2024, driven by the increasing demand for healthier and cleaner leavening solutions, increasing awareness of healthier eating habits, increasing demand for ready-to-eat food products and convenience, increasing use of baked food products, and growing presence of the food processing industry. In addition, the bakery and bread consumption are rapidly growing in China due to the high usage of yeast. It is expected that 470 million consumers are consuming bakery items, and increases by 30% every year. More than 13,44 bakery companies are rapidly using food leavening agents such as yeast, baking soda, and baking powder, which may further drive the market demand in China.

North America Food Leavening Agent Food Leavening Agent Market Trends

North America is expected to grow fastest during the forecast period. The market growth in the region is driven by factors such as the increasing presence of market players, rising adoption of advanced technologies, increasing demand for processed food, and changing lifestyles. The U.S. and Canada are fastest fastest-growing countries driving the market growth.

The U.S. is expected to grow fastest during the forecast period. The market growth in the U.S. is driven by factors such as rising innovations in yeast-based products, increasing evolving leavening agents, increasing demand for gluten-free diets, demand for baking powder and baking soda, and increasing consumer preference towards non-synthetic and natural ingredients.

Segmental Insights

Type Insights

How Baking Powder Dominates the Global Food Leavening Agent Market in 2024?

The baking powder segment dominated the food leavening agent market in 2024. To make or raise baked foods, baking powder generates gas during cooking. It is made from acid and sodium bicarbonate and needs only moisture for the chemical reaction. There are various health benefits related to baking powder, such as the ability to clean vegetables and fruits, may have active anti-inflammatory properties, may enhance exercise performance, may promote oral health, and may improve kidney function. In addition, consumers need a very small amount of baking powder while cooking. One teaspoon of baking soda offered about 60% of the phosphorus and 33% of the daily dose of calcium. It contains a significant amount of phosphorus and calcium, which play an important role in maintaining healthy teeth, nails, and bones, further accelerating the segment demand.

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

The yeast helps in a gluten-free and dairy-free way to add a nutty flavor and savory taste to dishes. It provides protein, minerals, and vitamins to the diet, which helps to support the immune system and boost energy. Yeast is commonly used in beer, bread, and other foods. The yeast has various nutritional benefits, such as supporting pregnancy, improving glucose levels, promoting nail, hair, and skin health, boosting energy, and supporting the immune system, further expected to drive the segment growth.

Application Insights

Why did the Bread & Rolls Segment Held the Largest Food Leavening Agent Market Revenue in 2024?

The bread and rolls segment dominated the food leavening agent market in 2024. Bread and rolls are rich in fibre and an essential source of dietary fibre, which helps to control cholesterol levels and blood sugar, helps to maintain the consumer's digestive system, and makes them feel fuller. For example, for all the age groups, bread provides 17-21% of fibre consumption in the UK. About 65% of flour is manufactured in the UK and is highly used in bread and rolls, making a wide range of bread products, such as cakes, biscuits, and others. The bread production has been recorded as 3.75 million tons every year in India, which may drive the segment growth.

The Cakes and Pastries Segment Expects the Fastest Growth in the Market During the Forecast Period. 

The segment growth in the market is attributed to the increasing busy and modern lifestyles, increasing consumer trend towards parties, birthdays, and small occasions, and increasing consumer preference towards sweet food products. The bakery products, such as cakes and pastries, are valued at Rs. 3,295 crores in India, which may increase the demand for cakes and pastries.

Form Insights

What Factors Help the Powder Segment Grow in 2024?

The powder segment dominated the food leavening agent market in 2024. The powder segment plays an important role in baked goods. It helps in achieving volume and lightness in baked foods. In addition, there are various health benefits related to the powder segment, such as industrial preference, versatility in applications, cost-effectiveness, longer shelf life, and ease of use, which are further expected to drive the segment's growth.

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

The liquid segment includes various baked solutions such as ready-to-cook premixes and batters, waffle and pancake batters, chilled or frozen dough, and packaged baked food products. Through mechanical action, egg whites or cream can create foams. In addition, growing rapid urbanization, increasing modern lifestyles, rise in food services, increasing demand for ready-to-cook and frozen premix, and increasing demand for natural and clean-label products are expected to drive the growth of the segment in the global market.

End-User Insights

How Commercial Bakeries Segment Dominates the Food Leavening Agent Market Revenue in 2024?

The commercial bakeries segment dominated the food leavening agent market in 2024. The commercial bakeries deal with large-scale production of baked products by utilizing industrial procedures. To produce thousands of similar baked goods, commercial bakeries in a shorter amount of time. Commercial products often contain artificial flavours, emulsifiers, and stabilizers to maintain texture and increase shelf life. Commercial baked goods are commonly found in large-scale bakeries, fast-food chains, and supermarkets across the globe, which is expected to drive the segment's growth.

The Household/Kitchen Use Segment is Expected to Grow Fastest During the Forecast Period. 

The segment growth in the global food leavening agent market is attributed to the increasing consumer preference towards organic and clean-label options, increasing growth of packaged leavening products, increasing growth in home baking culture, rising influence of social media, and increasing presence of developing markets.

Recent Developments in the Food Leavening Agent Market

Asahi Group

• Launch: In April 2025, Asahi Group Japan launched “LIKE MILK”, the first yeast-derived milk in Japan. Through the crowdfunding platform “Makuake”, this milk uses proprietary yeast technology. The aim behind this launch was to increase consumer needs, including ethical preferences and allergies. (Source: Foovo Bridge-japan)

Grover Zampa Vineyards

• Launch: In January 2025, a home grown brand, Grover Zampa Vineyards in India, is thrilled to announce the launch of Grover Essence De Cabernet Sauvignon. The aim behind this announcement is to enhance the taste and flavor of baked goods. (Source: PR Newswire) 

Food Leavening Agent Market Leading Companies

• Ajinomoto Co., Inc.
• AB Mauri
• The Kraft Heinz Company
• Corbion N.V.
• Lesaffre Group
• Associated British Foods plc
• Kerry Group plc
• Puratos Group
• Tate & Lyle PLC
• Givaudan SA
• Brenntag AG
• BASF SE
• ADM (Archer Daniels Midland Company)
• Chr. Hansen Holding A/S
• Bakels Group
• Angel Yeast Co., Ltd.
• Lallemand Inc.
• Novozymes A/S
• Dawn Food Products, Inc.
• Pilgrim’s Pride Corporation

Segments Covered in the Report

By Type

• Chemical Leavening Agents
  • Baking Powder
  • Baking Soda (Sodium Bicarbonate)
  • Ammonium Bicarbonate
  • Other Chemical Leavening Agents (e.g., Potassium Bicarbonate)
• Biological Leavening Agents
  • Yeast
    • Active Dry Yeast
    • Instant Yeast
    • Fresh Yeast (Cake Yeast)
• Sourdough Starter
• Physical Leavening Agents
  • Steam
  • Air (mechanical incorporation via whipping or folding)

By Application

• Bread & Rolls
• Cakes & Pastries
• Biscuits & Cookies
• Frozen Desserts
• Others (e.g., Savory snacks, Confectionery)

By Form

• Powder
• Liquid
• Paste

By End-User

• Commercial Bakeries
• Household/Kitchen Use
• Foodservice Industry
• Industrial Food Processing

By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa (MEA)
• Latin America