The baking powder market is expected to grow at a compound annual growth rate of 5.98% over the forecast period to reach a market size of US$4677.559 million in 2027, up from US$3114.714 million in 2020. Baking has been a part of food production since its employment in the Fertile Crescent about six thousand years ago, and this odourless white powder, which is referred to as baking powder, has been equivalently revolutionary and has further aided in radically shortening the cooking time resulting in the development of a new breed of fast baked goods like gingerbread, cookies, and the like. It is this functional benefit that has remained the prime factor facilitating the growth of the baking powder market. Additionally, with Shifting consumer preferences for exotic bakery products in developing economies; increased availability of allergen-free variants of traditional bakery products; an increasing number of urban home bakers; expanding retail footprint; and rising female labour-force participation, particularly in high-income and emerging economies, leading to increased availability of disposable income, among other factors, are expected to propel the global baking powder market to unprecedented heights. Further, the proportion of household income that is predicted to be spent on food is anticipated to attain an average of 43% in 2029, as per FAO. Bakery products have been a staple in every household since time immemorial.
As a result of various consumer preferences and the advent of technological enhancement and food and beverage innovation, bakery and confectionery products are now made commercially available in profusion as a response to a variety of consumer preferences. Moreover, during the period of lockdown that almost the entire world was subjected to and still is in a few countries due to COVID-19, there has been an upswing in home baking that has driven the sale of baking powder essence to be used for domestic purposes. Currently, nations are gradually relaxing their restrictions, and food and beverage establishments are becoming operational for a longer duration, a renewed demand for the global baking powder market is expected to reinforce the market growth. Furthermore, the food and beverage industry, particularly food services and food additives companies, has expanded into developing countries and increased investments in developed economies, incentivizing players in the global baking powder market space to expand their geographical footprint. To put things in context, it's pertinent to note that in March 2019 it was reported that B & G Foods, Inc. (NYSE: BGS) had announced a leading retail baking powder brand called Clabber Girl Corporation, which has been around for more than 150 years, was acquired by it. Thus, from the aforementioned, it can be conclusively suggested that the baking powder market is expected to witness robust growth during the next few years.
Baking powder is expected to grow at a decent rate in the coming years. It is known as a dry chemical leavening agent, a mixture of bicarbonate and carbonate, and a weak acid. It is used for increasing the volume and lightening the texture of baked goods. Carbon dioxide gas is released into a dough or a batter by an acid-base reaction, which causes bubbles to expand and level the mixture. Baking powder is in demand because of its use in reducing labour and time required to make bread. It has replaced yeast in the bakery segments. Carbon Dioxide is more adaptable to acid-base reactions than fermentation, which is why baking powder is in high demand.
The baking powder industry is a competitive one, where regional and local players have a significant share of the market. There are some limitations to the baking powder market such as the availability of a substitute product and health problems caused by the powder. But, regardless of the limitations, the market is expected to grow.
Rapid urbanization across the globe is propelling the demand for bakery products
With the rise in income and surging urbanization, the demand for baking powder has risen. There is a significant market for ready-to-eat snacks and foods. There is a significant demand for fast food products because of the change in consumers’ eating behaviour. The consumer has become more aware and knowledgeable in terms of their wellness and health. There is a substantial surge in the consumption of health-based bakery products. Consumer demand for a balanced and healthier diet is met by the consumption of nutrition bars, high-fibre bread, and breakfast cereals. Baking powder is required for wellness and health-oriented food products. There is a substantial surge in the demand for convenience foods that are ready to eat and easily available. The demand for yeast-based food products such as doughnuts, pizzas, cakes, cookies, and hamburgers. Therefore, by the analysis of consumer behaviour, the significant change in a consumer’s lifestyle, and the surge in income, the demand for junk food products is expected to rise. Demand for baking powder is expected to surge.
Double Acting Baking Powder accounts for a significant market share
Based on product, baking powder is segmented into Phosphate, Anhydrous Phosphate, Sodium Aluminium Sulfate, Phosphate, Tartrate, and Single and Double Acting Baking Powder. Double-acting baking powder is the most popular baking powder available on the market and has a major share of the market. It is similar to single-acting baking powder, but it contains two dry acids instead of one. The first acid is in reaction with the liquid while mixing the arrangement, and the second acid is known as Sodium Aluminium Sulfate. It has two reactions, and this gives a consumer more flexibility while cooking. This is the reason for the surge in the demand, for double-acting baking powder. Other baking powder products will generate dull growth, and the double-acting powder will maintain a substantial and significant share in the future.
The bakery segment will continue to maintain its growth
Baking powder is widely popular for its use in making bakery products such as cakes, biscuits, waffles, and pastries. There is a substantial market demand for the use of baking powder in cakes. This segment will maintain a significant market share in the future. Baking powder usage in bread will also have a decent share. Furthermore, baking powder usage in waffles, biscuits, donuts, and other related products will increase because of changing consumer preferences. Consumers are becoming innovative and always want to try novel and challenging tasks. This has led to a surge in the demand for food-based preservatives and baking products.
The major buyers of the baking powder are hypermarkets, supermarkets, and industrial buyers for their usage in cooking hamburgers, bread, and pizza. Major retailers purchase substantial quantities of products directly from the manufacturers, thus eliminating distributors in the market and supply chain. The consumer market is relatively smaller; therefore, the significance of wholesalers and retailers has surged. Online sales are expected to rise as the major food companies are expanding their portfolio and are proving their baking products online. Manufacturers are also expanding and innovating their distribution channels to minimize the bargaining power of major retailers.
Baking soda has been restraining the baking powder market growth
Baking soda has a bigger share than baking powder because of its longevity and is comparatively more powerful than baking powder. Moreover, consumers are more inclined toward purchasing baking soda rather than baking powder as it is relatively easier to replace the powder, with soda. Baking soda is more alkaline in nature because of its properties. There are a lot of other challenges, such as consumer awareness of avoiding junk foods. Eating junk foods has a lot of health problems. Baking powder contains sodium bicarbonate compounds, which have a significant number of side effects on the body. This has become a major challenge in the growth of the baking powder market. There are a lot of companies that are spending a significant amount of capital to develop a substitute for baking powder.
Asia Pacific region has the biggest share in the market followed by Europe and North America. Asia Pacific and Europe have a major share in exports. Countries like India and China will register significant growth because of rising urbanization. Countries such as the USA, Brazil, and some other European countries will register moderate growth because the market has reached a saturation point in these countries. Furthermore, these already have a substantial rate of urbanization and a stable economy. There is a need for innovation in the baking powder industry without affecting the taste. Innovation will surge because of the awareness of public health.
Additionally, the increasing global population and rural-urban migration are expected to augment the growth of the baking powder market during the forecast period. In view of the above, the effectuation of swift adoption of new lifestyle trends that are expected to drive the demand for bakery and confectionery consumption is expected to occur during the next few years. This would partly stem from the increasing availability of disposable income, which would ensure the facilitation of transition from the traditional way of living to lifestyles that are common among urban dwellers. The effects of rapid urbanization also invariably lead to the obtaining of better and higher education by a relatively larger percentage of the population, which automatically results in the capacity of high-income generation as well as a conscientious investment in the integration of nutritious food into the everyday diet, viz. consuming more fortified baked products, leading to a surge in the global baking powder market among others. In this regard, it should be noted that 1.7 billion people, i.e., around 23% of the world population lived in cities in 2016 and 45 % of the world’s population resided in rural areas which is expected to fall by 40% by 2030 as per the United Nations (UN). Moreover, the increasing female population who are engaged in earning a livelihood has reportedly led to increased purchases of baking powder products as well as baked goods around the world through both offline and online channels. This development has contributed to the increasing sales of over eCommerce channels that were already in the order of 25 trillion USD in 2018 which was reportedly equivalent to 30% of the global GDP (gross domestic product) of 2018 as per UNCTAD.
The value of B2B eCommerce was registered in the order of $21 trillion, which reportedly translates to 83% of all eCommerce, and that of B2C eCommerce was $4.4 trillion. China, the United States, and the United Kingdom were the top three countries that registered the highest B2C sales. Moreover, cross-border B2C e-commerce sales have been estimated to be in the order of $404 billion in 2018. On the other hand, it is pertinent to note that newly industrialized countries are witnessing an increased presence of online retailers that are facilitating the growth of the retail food segment, apart from factors like the growing middle-income group and the rising population of working women. In the case of China, as opposed to their predecessor, today’s consumers are seeking out the swiftest and most convenient methods to meet their demands facilitated by the means to purchase via mobile payment apps like WeChat Pay and AliPay. Conversely, organizations across the world are capitalizing on the data pertaining to individual consumer preferences, which is derived from their data-centric operation model. As a result, they are better equipped to understand the various segments of consumers and appropriately target the concerned segment through better product placement, ultimately influencing marketing strategies to foster higher revenue returns and ensure repeat business. As a result of the high level of competition, data-driven innovations in retail are increasingly inclined to integrate their brick & mortar stores and online portals with social media marketing platforms. [Source: USDA].
Consumers' shifting eating habits, which favour processed and packaged goods, have aided the company's recent growth. As COVID-19 tightens its noose around the world, demand for processed and packaged foods is projected to soar. During the crisis, consumers developed a unique strategy of stockpiling crucial supplies. As a result, those who spend a lot of time alone choose food with a longer shelf life. Increased demand in the packaged and processed food categories is projected to impede growth in the baking powder market, as baking powder is typically a prominent ingredient in packaged goods. With bottlenecks in farm labour, processing, transportation, and logistics, as well as significant swings in demand, the COVID-19 epidemic has put unprecedented strains on food supply networks. In the face of these challenges, food supply chains showed extraordinary resilience. Due to forced lockdown in many nations throughout the world, the effect on processed food items, especially bread products, has been minimal, mostly through foodservice industries like bakeries.
|Market size value in 2020||US$4677.559 million|
|Market size value in 2027||US$3114.714 million|
|Growth Rate||CAGR of 5.98% from 2020 to 2027|
|Forecast Unit (Value)||USD Million|
|Segments covered||Nature, Type, Applications, Distribution Channel, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Clabber Girl Corporation (B&G Foods, Inc.), LALLEMAND Inc., AB Mauri (Associated British Foods plc)], Mondel International, Agrano GmbH & Co. KG, LA PATELIERE, Bakeland Egypt (Y.Y Fahmy Co.), PFPI, Oriental Yeast Co., ltd. (Nisshin Seifun Group Inc.) , Swiss Bake Ingredients Pvt. Ltd.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the baking powder market size by 2027?
A1. The baking powder market is expected to reach a total market size of US$4677.559 million in 2027.
Q2. What are the growth prospects for the baking powder market?
A2. The global baking powder market is expected to grow at a CAGR of 5.98% during the forecast period.
Q3. What is the size of the global baking powder market?
A3. Baking Powder Market was valued at US$3114.714 million in 2020.
Q4. What factors are anticipated to drive the baking powder market growth?
A4. Baking powder has been equivalently revolutionary which has further aided in radically shortening the cooking time resulting in the development of a new breed of fast-baked goods like gingerbread, cookies, and the likes. It is this functional benefit that has remained the prime factor driving the baking powder market growth.
Q5. Which region holds the largest market share in the baking powder market?
A5. Asia Pacific region has the biggest share in the baking powder market followed by Europe and North America.
Clabber Girl Corporation (B&G Foods, Inc.)
AB Mauri (Associated British Foods plc)]
Agrano GmbH & Co. KG
Bakeland Egypt (Y.Y Fahmy Co.)
Oriental Yeast Co., ltd. (Nisshin Seifun Group Inc.)
Swiss Bake Ingredients Pvt. Ltd.
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