Baking Ingredients Market: Key Opportunities and Challenges

Northbrook, IL, USA, 2019-Nov-11 — /EPR Network/ —

The Baking Ingredients Market estimated to be valued at USD 13.03 billion in 2017 and is projected to grow at a CAGR of 5.4% from 2017 to 2022, to reach a value of USD 16.91 billion by 2022, as per a report by MarketsandMarkets.

Why alternatives for emulsifiers reducing production cost present an opportunity?

Emulsifier substitutes are used in applications such as cakes, muffins, and bread. The most common emulsifiers used in baking are DATEM, CSL/SSL, or GMS. Enzymes are increasingly being used as alternatives to emulsifiers in baked products. Enzymes, when used in baking, restrict the use of emulsifiers in baking applications. One reason for this is that the raw materials used for emulsifiers are chemically synthesized esters of fatty acids which are expensive. For instance, DATEM (diacetyl tartaric acid ester of monoglyceride) is typically used for about 0.3% of the total flour weight. However, this is derived from raw materials such as palm oil, prices of which fluctuate due to seasonal changes. Thus, as prices of emulsifiers increases, production costs also increase. Depending on the amount of DATEM replaced by enzymes, there can be up to 50%-70% reduction in production costs. Therefore, enzymes have a good chance to act as alternatives for emulsifiers for reducing overall production costs.

How growing substitution of baked products with cereals poses a challenge?

As a result of the health-conscious approach of consumers, manufacturers are constantly searching for alternative ways to develop low-calorie products. Consumers are looking to cut down their sugar, fat, and bread consumption. Hence, they prefer healthy snacks, granola bars, and cereal. The growing substitution of baked goods with cereals and other options is difficult to counter unless there are nutritious and innovative products in the bakery ingredients category. To meet this challenge, many baking ingredient manufacturers have introduced numerous high-fiber additives as ingredients in a variety of foods, especially baked products, to satisfy consumer demand for increased fiber content in foods.

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Health issues due to excess consumption of trans fatty acids

In developing nations, trans-fatty acids are widely used in food manufacturing owing to their melting point at room temperature between saturated and unsaturated fats. They are found in hard margarine, partially hydrogenated oils, and in some bakery products and fried foods. Trans-fatty acids are most commonly found in processed foods containing partially hydrogenated vegetable oils, such as margarine, palm oil, and butterfat which are used as baking ingredients. Epidemiologic and biochemical evidence suggests that excessive usage of trans-fatty acid in the diet may lead to a significant risk of cardiovascular diseases and cancer in humans. Awareness about such negative health effects of trans-fatty acids is affecting the baking fats & shortenings market, and in turn, the baking ingredients market.

Baking ingredient manufacturers are focusing on reducing the trans-fatty acid content in their products and are also developing alternatives for them. The governments of many countries have fixed the intake level of trans-fatty acids for various food products. Currently, trans-fatty acids in foods are labeled in the U.S., but not in the U.K. and Europe. The UK Food Standards Agency (FSA) is in favor of the revision of the European directive that governs the content and format of nutrition labels in the U.K. (and the Rest of Europe) so that trans-fatty acids are labeled.

This research study involved the extensive use of secondary sources, which included directories and databases, such as Hoovers, Forbes, Bloomberg Businessweek, and Factiva, to identify and collect information useful for a technical, market-oriented, and commercial study of the baking ingredients market. The primary sources that have been involved include industry experts from the core and related industries and preferred suppliers, dealers, manufacturers, alliances, standards & certification organizations from companies; and organizations related to all the segments of this industry’s value chain. In-depth interviews have been conducted with various primary respondents such as key industry participants, subject matter experts, C-level executives of key market players, and industry consultants to obtain and verify critical qualitative and quantitative information as well as to assess future prospects. The following figure depicts the market research methodology applied in drafting this report on the baking ingredients market.

The key participants in the baking ingredients market are the baking ingredients manufacturers, suppliers, and regulatory bodies. The key players that are profiled in the report include Archer Daniels Midland Company (US), Koninklijke DSM N.V. (Netherlands), Cargill, Incorporated (US), BASF SE (Germany), Ingredion Incorporated (US), Roquette Frères (France), SunOpta (Canada), Darling Ingredients Inc. (US), Omega Protein Corporation (US), DowDuPont Inc. (US), Kemin Industries, Inc. (US), InVivo (France), and John Pointon & Sons Ltd. (UK).

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