According to the report, the global bakery ingredients market is likely to grow from USD 19.6 billion in 2025 to USD 36.8 billion in 2035 at a moderate CAGR of 5.9% during the time period. The global bakery ingredient market is seen with robust growth in changing consumer inclination toward convenience, health, and indulgence. An increased demand for ready-to-eat and packaged bakery items in urban centers has imposed the creation of new ingredients. The rising QSR and café sectors across the globe maintain the demand for quality bakery ingredients emulsifiers, enzymes, and improvers at a level. With this shift, clean-label and function-specific bakery products including gluten-free and low-sugar ones are breeding the need for a re-formulation of these products by manufacturers using healthy alternatives.
For instance, in March 2025 marked the launch of a novel range of enzyme-based solutions by Lesaffre under the Livendo brand that target texture and shelf-life improvement for applications in clean-label bread. At the same time, an upward consumer preference for artisan bakeries and fine bakery creations is improving the positioning of local and global manufacturers in emerging markets such as India, Brazil, and Indonesia. With every opposing force, the bakery ingredients industry is kept at bay from further regional and segmental growth.
One of the reasons driving the bakery ingredient market is the increasing popularity of frozen and par-baked bakery products because of shelf life, storage, and handling conveniences that these products provide to the end consumers. Especially favored in institutional catering and foodservice outlets, these products became even more popular in January 2025, when ARYZTA AG extended frozen bakery production into Europe in order to sustain the growing B2B interest from hotels and airlines in superior quality easy-bake solutions.
The more evident restraint comes in the form of fluctuation in prices of raw materials, especially those for dairy, eggs, and specialty fats. These changes affect directly the costs of production and, consequently, take a toll on profit margins of manufacturers. For example, in late 2024, Corbion announced a 12% increase in its input cost for lecithin and specialty emulsifiers due to fluctuating markets of soybean and sunflower oils, which also affected supply contracts in North America and Europe.
There is an emerging opportunity to include plant-based and allergen-free bakery ingredients for the vegan and health-conscious consumer. This phase is changing our R&D and product portfolio agenda. In December 2024, the Kerry Group launched a new line of plant-based cake and cookie premixes for allergen-free baking in retail chains across Europe in response to ever-increasing consumer demand for inclusive nutrition.
Tariff rate directly influences the costs and supply dynamics on the respective markets for bakery ingredients worldwide. As tariffs are levied on raw materials such as flour, sweeteners, dairy, or enzymes for baking, the producers have increasing costs, which may be passed on to the end consumer or decrease profit margin. For example, the European Union revised tariffs in 2023 on imported dairy proteins and sugar substitutes from Southeast Asia with a view to protecting local producers, affecting European producers of bakery ingredients like Puratos Group which had been importing relatively low-cost, high-performance emulsifiers and sweeteners out of Thailand and Malaysia. This hike in tariffs forced Puratos to renegotiate supplier contracts as well as contemplate local sourcing, thereby altering its purchasing strategy and cost structure.
Retaliatory tariffs would in fact bring uncertainty into the greatest economies. The enforcement of additional tariffs on food enzymes and specialty additives imported into China in 2024 was another reason amid the U.S.-China trade tension. This directly hurt one of the main baking ingredient players from the U.S., ADM, which now had to pay higher prices for enzyme blends that it would formerly import from its partners in China. Tariffs disrupted ADM's planning in supply chain management, thus increasing inventory carrying costs and making ADM invest in alternative nearshore manufacturing as a hedge against long-term tariff threats.
Prominent players operating in the global bakery ingredients market are AAK AB, Archer Daniels Midland Company (ADM), Associated British Foods plc, Bakels Group, Camlin Fine Sciences Ltd., Cargill Incorporated, Corbion N.V., Dawn Food Products Inc., Dohler GmbH, DuPont de Nemours, Inc., Ingredion Incorporated, International Flavors & Fragrances Inc. (IFF), Kerry Group plc, Koninklijke DSM N.V. (DSM), Lallemand Inc., Puratos Group N.V., Roquette Frères, Tate & Lyle plc, Taura Natural Ingredients Ltd., Tereos S.A. and Other Key Players.
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