Dive Brief:
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A new market report from Transparency Market Research claims the value of the global bakery ingredients market should rise from approximately $11 million in 2015 to $18 million by 2024, expanding at a CAGR of 4.9% from 2016 to 2024.
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This growth trend is spurred by changing eating habits, including demand for more organic and other baked goods perceived as healthy, and consumer willingness to spend more on products containing natural ingredients.
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Bakery product manufacturers will continue to add to their health portfolios in order to keep pace with growing consumer health trends, increasing demand for clean and free-from solutions to ingredients mixes.
Dive Insight:
Ingredients and sourcing have become top of mind for consumers as desire for transparency and whole chain traceability increases. Consumers demand ingredients that are simple, recognizable and familiar, but at the same time, are also looking for authentic cultural flavors in their products.
Baking soda and baking powder had the leading 2015 market share, accounting for more than 25% of the global ingredients market's growth, according to the news release. Flour ingredients were the strongest by volume in 2015, and is expected to dominate in 2016 tallies as well. As more and more consumers try to eliminate gluten from their diets, alternative flour innovations, such as algal flour, have come about. This trend is also likely to continue into the new year.