Defining keto and the inherent industrial challenge

In an era where dietary choices shape not only nutrition but also personal identity, one trend is reshaping bakery shelves worldwide: what happens when bread – the cornerstone of traditional diets – is no longer in demand? The rise of the ketogenic lifestyle has challenged traditional assumptions about baked goods. More than a diet, keto represents a broader cultural shift: a move away from carb-centric comfort toward fat-driven functionality and performance.

Originally developed in the 1920s as a therapeutic diet for epilepsy, keto is characterised by a high-fat, very-low-carbohydrate composition. Its clinical applications have since expanded to neurological disorders, metabolic diseases and even some cancers.

During the 21st century, keto entered the mainstream wellness movement, adopted for weight management, athletic performance and cognitive enhancement. The standard ketogenic diet typically consists of 70-75% fat, 20-25% protein and only 5-10% carbohydrates – often fewer than 50 grams per day. This carbohydrate restriction prompts the liver to produce ketones from fat, which then serve as the body’s primary energy source. Various keto diet variations have since emerged to meet different needs, from strict therapeutic regimens to more flexible lifestyle adaptations (see Table 1).

This shift extends far beyond home kitchens and fitness circles. It is widespread through R&D labs, food tech start-ups and industrial bakery supply chains, all seeking to create ‘zero carb’ or low carb bread. The ketogenic diet challenges baking’s core ingredients of flour, sugar and starch and replaces them with nut flours, non-nutritive sweeteners and fibre. These substitutes behave in fundamentally different ways, requiring new formulation strategies and manufacturing techniques.

What began as a niche therapeutic intervention has now evolved into a dynamic frontier of food innovation. Scaling keto bakery from artisanal to industrial production is not merely about recipe adaptation; it tests the food industry’s agility, scientific creativity and responsiveness to evolving consumer demands. Significant technical, sensory and regulatory challenges remain and overcoming them will be crucial to unlocking the market’s full potential.

Formulation and ingredient innovation

Formulating keto bakery products demands innovative ingredient replacements to replicate the texture, moisture and flavour of traditional baked goods. Key challenges arise from substituting gluten and sugar with alternatives such as nut flours, dietary fibres and non-nutritive sweeteners, each with unique functional and sensory implications. Achieving an acceptable shelf life and desirable mouthfeel without conventional starches or sugars requires careful balancing of hydration levels, binders and sweetener blends (see Table 2).

The functions and challenges summarised in Table 2 are considered in greater depth below:

Structure and texture: Gluten proteins in wheat flour create an elastic network critical for trapping fermentation gases, providing volume, softness and crumb structure. In keto baking, wheat flour is replaced with nut flours (eg. almond, coconut) which lack gluten’s viscoelastic properties. This results in poor gas retention and denser, more crumbly baked goods. Alternative proteins (such as pea and flaxseed) and hydrocolloids (like psyllium husk and flax mucilage) are often added to improve dough cohesion. However, they cannot fully replicate gluten’s unique functionality, making structural integrity a key formulation hurdle.

Moisture retention and bulk: In conventional baking, starches gelatinise during baking to bind water, contributing to bulk and softness. Keto formulations reduce or eliminate starch, replacing it with dietary fibres such as psyllium, inulin and citrus fibre. While these fibres can enhance water absorption, excessive use may cause dryness, gummy or gritty textures, and off-flavours. Achieving a moist mouthfeel comparable to traditional baked goods requires precise control of fibre type, ratio and hydration.

Sweetness and browning: Sugar plays multiple roles in baking: sweetness, bulk, moisture retention and promoting Maillard browning reactions that produce golden crusts and rich flavours. In keto products, sugar is typically replaced with sugar alcohols (eg. erythritol, maltitol) and high-intensity sweeteners (eg. stevia). Sugar alcohols provide bulk, but they do not participate in browning, leading to pale crusts. Intense sweeteners, on the other hand, lack bulk and can compromise texture and volume. To balance sweetness, texture and colour, formulators blend sweeteners and add browning agents such as caramel colour.

Fat and flavour stability: Traditional baked goods often use butter or vegetable oils to deliver flavour, mouthfeel and shelf-life stability. Keto products typically rely on nut oils or coconut oils, which are richer in unsaturated fats and prone to oxidation. This increases the risk of rancidity and off-flavours, shortening shelf life. Mitigation strategies include adding antioxidants (eg. tocopherols, rosemary extract) and employing advanced packaging technologies to preserve freshness.

Binding and elasticity: Gluten and eggs form strong protein networks that give dough elasticity and structure. Keto formulations use alternative proteins (eg. pea, soy) and seeds (eg. chia, flax), which offer weaker binding and reduced elasticity. As a result, doughs often exhibit poor gas retention and less resilience. Hydrocolloids, emulsifiers and enzymes are employed to improve dough cohesion and improve textural performance.

Shelf life and preservation: In conventional baking, sugar and starches help reduce water activity and act as natural preservatives by inhibiting microbial growth and staling. Keto baked goods, with reduced sugar and starch content and higher moisture levels, are more vulnerable to spoilage and rancidity. Addressing these issues requires a combination of natural preservatives, antioxidants, moisture control strategies and advanced packaging solutions, such as modified atmosphere packaging or vacuum sealing.

Nutritional challenges

In addition to formulation hurdles, ketogenic bakery products present specific nutritional considerations. These products typically contain low levels of available carbohydrates, achieved by reducing sugars and starches while often increasing dietary fibre content to lower net carbohydrates (Gasparre et al., 2022; 2024). While this aligns with ketogenic dietary principles, it may lead to certain nutritional imbalances. Compared to traditional wholegrain bakery products, keto alternatives may provide lower levels of intrinsic dietary fibre and essential micronutrients – such as B vitamins, iron and magnesium – naturally present in wholegrains. Moreover, some keto products are high in total fat and saturated fat, which increase caloric density and may raise concerns for long-term cardiovascular health if consumed excessively. The use of non-nutritive sweeteners and sugar alcohols, common in keto formulations, may also cause gastrointestinal discomfort, including bloating and diarrhoea. Additionally, to ensure shelf life and stability, some products contain elevated sodium levels and added preservatives, which may be unsuitable for consumers with dietary restrictions (Gasparre et al., 2024).

Production process re-engineering: From bench to plant

Scaling ketogenic bakery from artisanal development to industrial production demands significant adjustments to equipment, process parameters and quality control systems – driven by altered dough properties and the variability of novel ingredients.

Dough rheology and handling: Keto doughs are stickier, more fragile and lack the elasticity of gluten. This presents challenges for standard industrial mixers, sheeters and conveyors, as dough may clog machinery or tear during processing. Adaptations include low-shear mixers, chilled dough handling and the use of release agents. Pilot-scale trials help optimise mixing speeds, temperatures and resting times to ensure consistency and reduce waste.

Baking performance and heat transfer: The high fat content and altered water activity of keto doughs influence heat transfer during baking. Fats slow moisture evaporation, while fibre-rich ingredients bind water differently – leading to uneven crumb setting or pale crusts. Adjustments such as lower oven temperatures, extended bake times and steam injection or humidity control may improve crust development and texture. Monitoring internal temperature and moisture is essential for product consistency.

Ingredient variability: Ingredients such as nut flours, seed proteins and fibres vary naturally in moisture, particle size, fat content and oxidation levels, depending on source and storage. These factors influence dough viscosity and baking behaviour, complicating product standardisation. To manage this, rigorous raw material testing and real-time process controls (eg. near-infrared spectroscopy) dynamically adjust hydration and mixing parameters.

Limited fermentation capacity: In the absence of gluten, keto doughs retain CO2 poorly during fermentation, resulting in low loaf volume and dense textures. Industrial producers compensate by increasing chemical leaveners (eg. baking powder/soda), incorporating hydrocolloids (eg. xanthan gum, psyllium) or developing specialised low-gluten sourdough cultures to enhance rise and flavour. Proofing times and temperatures are optimised accordingly.

Shelf-life management: High fat and moisture levels increase the risk of lipid oxidation and microbial spoilage. Shelf-life extension strategies include the use of natural antioxidants (eg. tocopherols, rosemary extract), moisture control via modified atmosphere or vacuum packaging, and natural mould inhibitors such as natamycin. These approaches aim to preserve freshness without reliance on synthetic preservatives.

Equipment cleaning and allergen control: Keto bakery involves allergenic ingredients – such as nuts, seeds and soy) – necessitating strict cross-contamination prevention. This may require dedicated equipment or validated cleaning protocols, which can increase downtime and operational costs. Rigorous traceability and clear allergen labelling compliance are mandatory to ensure food safety.

Marketing, labelling and consumer trust

Regulatory landscape and labelling challenges: Regulatory compliance and clear marketing strategies are essential for the success of keto bakery products, yet the global landscape remains fragmented due to the absence of standardised definitions for ‘keto’ and ‘low carb’ claims. In the United States, the Food and Drug Administration (FDA) does not formally recognise ‘keto’ as an official nutrient content claim. Consequently, manufacturers self-define what constitutes a ‘keto’ product, commonly calculating ‘net carbs’ by subtracting fibre and sugar alcohols from total carbohydrates. However, no legally defined threshold exists to classify products as ketogenic, resulting in wide variability in product labelling and nutritional content. Gasparre et al. (2022) found that while median nutrient values of keto-labelled products often align with ketogenic dietary standards, many products fail to meet any strict ketogenic criteria. This gap underscores the need for consumers to carefully evaluate nutritional information rather than relying solely on ‘keto’ or ‘low carb’ labels.

Similarly, the European Union lacks specific regulations or official definitions for ‘keto’ claims. Instead, all nutrition and health claims must comply with the EU Regulation (EC) No 1924/2006. Although some member states have developed national guidelines for ‘low carb’ labelling, these are not harmonised across the EU, further complicating the regulatory environment. In contrast, ‘low-carbohydrate’ claims are officially defined and regulated in Australia and New Zealand by the Food Standards Australia New Zealand (FSANZ), which sets specific thresholds that foods must meet to carry such claims. Transparent disclosure of carbohydrate content, fibre and ingredient sources is therefore essential for substantiating ‘keto-friendly’ or ‘low carb’ claims in these markets. Furthermore, due to the prevalent use of nut flours and other allergenic ingredients in keto bakery products, accurate allergen declarations are critical to meeting regulatory requirements and ensuring consumer safety.

Pricing and market accessibility: Speciality keto ingredients – such as almond and coconut flours or natural sweeteners – tend to drive higher production costs compared to conventional wheat-based bakery items, often resulting in higher retail prices. To broaden market reach, manufacturers must enhance cost efficiency by scaling production, developing innovative formulations that optimise ingredient use and improve supply chain logistics. Effective distribution strategies, ranging from ecommerce platforms to mainstream grocery chains, are vital to making keto bakery products accessible to a broader and more diverse consumer base.

Consumer preferences and building trust: Consumer demand for ‘clean label’ keto products adds an additional layer of complexity. Shoppers increasingly prefer items free from artificial additives, excessive gums and synthetic preservatives, favouring transparency and natural ingredients. Formulators face the ongoing challenge of balancing ingredient functionality with clean label expectations, innovating to maintain product quality, texture and shelf life without compromising naturalness. Building consumer trust through clear labelling, ingredient transparency and consistent product performance remains key to sustaining growth in the keto bakery segment.

R&D&I considerations and future outlook

Research, development and innovation (R&D&I) are pivotal to advancing keto bakery products from niche offerings to large-scale industrial production. Current efforts focus on overcoming formulation challenges, improving ingredient functionality and enhancing sensory qualities to meet consumer expectations. Innovations in fibre blends, plant-based protein isolates and natural sweeteners continue to emerge, while cutting-edge technologies like predictive modeling and artificial intelligence accelerate product optimisation and streamline manufacturing efficiency.

Collaboration between ingredient suppliers, food tech start-ups and academic institutions fosters knowledge sharing and drives innovation. The keto bakery market is expanding beyond breads and desserts increasingly encompassing savoury snacks, meal replacements and ready-to-eat options. As ingredient diversity grows and production scales up, keto products will become more widely accessible. Although scaling keto bakery production presents complex challenges in formulation, processing, regulatory compliance and marketing, it also offers significant growth opportunities. Continued investment in R&D&I, adoption of flexible manufacturing technologies, transparent communication and agile responsiveness to market trends will be crucial to sustaining success and driving the future of keto bakery innovation.

Written by: Fatma Boukid

Food Scientist, Senior Project Manager, ClonBio Group Ltd

Originally published in Baking Europe Summer 25

References:

Gasparre, N., Pasqualone, A., Mefleh, M., & Boukid, F. (2022). Nutritional quality of gluten-free bakery products labeled ketogenic and/or low-carb sold in the global market. Foods, 11(24), 4095. https://doi.org/10.3390/foods11244095

Gasparre, N., Rosell, C. M., & Boukid, F. (2024). The growing popularity of low-carb cereal-based products: The lay of the land. European Food Research and Technology, 250(4), 455–467. https://doi.org/10.1007/s00217-023-04399-3