- The global baking ingredients market is expected to grow at a CAGR of 5.36% between now and 2020, according to a report from Research and Markets. The ingredients are available in both natural and artificial forms.
- These ingredients not only enhance taste and texture in foods, they also prevent spoilage and add nutritional value, according to the report. Using these ingredients in bakery products leads to easier processing, packaging, transportation and storage.
- Consumer demand for naturally derived sweeteners such as stevia, monk fruit and sweet proteins, as well as gluten-free products, are key players in the expansion of the market for baking ingredients. An emerging driver is an increase in demand for baking powder with tartaric acid, which is produced by living organisms.
Competition is fierce among baking ingredient suppliers because product differentiation factors are difficult to spot, according to Research and Markets. Leading companies in this market segment include Archer Daniels Midland, Associated British Foods, Cargill, DuPont, Ingredion, the Kerry Group and Tate & Lyle.
These companies are tuned into replacing ingredients that consumers try to avoid. For example, in the area of natural sweeteners, Cargill has made a big commitment to stevia. The company's latest product, EverSweet, was made by using baker's yeast to produce glycosides from the stevia plant.
Archer Daniels Midland also recently announced a partnership with GLG Life Tech Corp. to bring stevia and monk fruit sweeteners to customers. Monk Fruit Corp., the largest producer of monk fruit in the world, partners with Tate & Lyle, which distributes the product through its Purefruit brand.