The global bakery ingredients market is projected to experience robust growth, increasing from $18.41 billion in 2025 to $25.11 billion by 2029, according to a new industry analysis from The Business Research Company.

This reflects a compound annual growth rate (CAGR) of 8.1%, driven by evolving dietary preferences, sustainability expectations and technological advancements in food production [1].

This anticipated growth builds on strong momentum in recent years. In 2024, the market stood at $16.99 billion, supported by rising demand for convenience foods, greater consumer interest in artisanal and premium baked goods and the expansion of the foodservice and retail bakery sectors. Urbanisation and increased disposable incomes, particularly in developing markets, continue to shape consumption patterns globally.

A key factor underpinning future growth is the increasing emphasis on health and wellness. European consumers, in particular, are showing a heightened awareness of nutritional content and ingredient sourcing, with growing demand for clean-label, high-fibre and functionally enhanced bakery products.

This shift is encouraging manufacturers to reformulate traditional offerings, incorporating enzymes, natural emulsifiers and non-artificial colourings and flavours to meet both regulatory requirements and customer expectations.

Sustainability is emerging as another central concern. In response, producers are exploring regenerative agriculture, waste-reducing processing methods and fully traceable ingredient supply chains. One notable example is the 2024 launch of Sapore Lavida by Puratos, a fully traceable active sourdough developed in Belgium. Produced with whole wheat flour sourced entirely from regenerative farming, this ingredient exemplifies how traceability and sustainability are now integrated into product development. It also reflects consumer interest in locally sourced, minimally processed ingredients with verifiable origins [2].

The market’s structure is broad, encompassing a range of product types such as emulsifiers, leavening agents, enzymes, baking powders and mixes, oils and shortenings, as well as colour and flavour compounds. These ingredients support a wide variety of baked goods, from bread and pastries to cakes, biscuits and savoury items. While ingredients are supplied in both dry and liquid formats, dry forms dominate industrial usage due to their shelf life and ease of handling in automated environments.

Industrial bakeries remain the primary end users of these ingredients, particularly in Europe, which currently leads the global market. The region benefits from a well-established baking tradition, high levels of food safety regulation and advanced manufacturing capabilities. However, Asia-Pacific and Latin America are expected to show the most rapid expansion over the next five years, fuelled by urban growth, rising incomes and increasing exposure to Western-style bakery products [1].

Innovation in ingredient technology is also playing a pivotal role. Advances in fermentation, enzymatic functionality and digital production control are enhancing consistency, enabling personalisation and supporting product diversification. These developments are not only improving operational efficiency but also helping bakers respond to emerging consumer preferences with greater agility.

Industrial bakers across Europe are being urged to consider how these global shifts affect their own operations. Reformulation for clean-label compliance, investment in sustainable sourcing partnerships, and implementation of traceable production systems are no longer optional. As the market approaches the $25 billion mark, success will depend not merely on scale but on an organisation’s ability to align with changing consumer values and regulatory standards.

References

[1] The Business Research Company. Bakery Ingredients Global Market Report 2024–2029. Published 2025. Available at: https://www.thebusinessresearchcompany.com/report/bakery-ingredients-global-market-report

[2] Puratos. Sapore Lavida Product Announcement. Company news release, May 2024.