Bakery Ingredients Market Growth

The Indian bakery industry has been growing at a rapid pace due to the busy lifestyles, changing eating habits and western influence, particularly among the millennial. The rising health consciousness, not only of the millennial but of consumers of all ages, has encouraged manufacturers to focus on healthier products like brown, multi-grain and whole wheat breads. Environmental concerns are also increasing sales of organic bakery products. The rapid growth of the bakery industry and the quick changes that are taking place provides an opportunity for entrepreneurs to venture in the bakery ingredients market which is in a fast-growth mode. Ashok Malkani looks at the changing scenario in the bakery industry and the ingredients commonly used by the bakery industry, to help entrepreneurs planning to enter the bakery ingredients’ arena.   

The Indian bakery industry is in a growing phase. Harsha Bhagwat, executive sous chef, Rich Graviss, while speaking at ‘Rich’s Gourmet Guide - The Bakers’ Lounge’, some time back in Mumbai, said, “As far as the size of the bakery market is concerned, Tier-I and II cities are growing, but in Tier-III cities, there is a boom. There has been a shift f r o m mainstream breads, toasts and khari to cakes. There is immense growth and potential in the bakery industry.”
It may be mentioned that the Indian bakery market reached a value of $7.22 Billion in 2018. Bakery is one of the largest food industries comprising of different products like breads, biscuits, pastries, cakes, buns, rusks, etc. Most of these products, due to the changing lifestyle of Indians, are gaining in popularity trends.  
India, with its growing population and increasing disposable incomes, is the major market for the baked goods, and bakery ingredients. Consumers are willing to pay more for a healthier profile in the bakery products, which drives the growth of this market. The growth in the Bakery industry has been rapid. It may be mentioned that India has over 2,000 organised or semi-organised bakeries and 1,000,000 unorganised bakeries.
India’s bakery industry, which generally includes biscuits, cakes, pastries, flat-bread, tortilla, bun, croissant, etc., has been growing at a rapid pace owing to their pleasant taste and health benefits as they are made f r o m variety of grains such as rye, maize, wheat and oats, among others.
Since bakery items provide convenience as well as affordability to the consumers, their consumption level has increased over the last few years. According to the latest report, “Indian Bakery Market: Industry Trends, Share, Size, Growth Opportunity and Forecast 2019-2024”, by IMARC group, the Indian bakery market is projected to exceed $12 billion by 2024, expanding at a CAGR of 19.3 per cent during 2019-2024.
The swift and speedy growth is attributed to the fast moving consumer goods – breads and biscuits – which are eaten on a daily basis. In addition to this, the growth of fast food chains further stimulates the demand for bread, as they are used in sandwiches, burger, snacks, etc. 
Harsha Bhagwat has claimed that India’s bakery industry is in a growing phase and is all set to witness a boom in flavours to cater to the taste buds of customers and meet their requirements. He adds that the trends of fusion and Indo-Western flavours are at their peak. 

Low Trans-Fat Ingredients

Bakery ingredients are the food products responsible to maintain the freshness, softness, & taste; improve shelf life; and increase the protein content in the baked items. These items are available in different varieties in the market and are considered as the basic food for human nutrition globally.
The global bakery ingredients market was valued at $12,588 million in 2017 and is projected to reach $18,596 million by 2025, growing at a CAGR of 5.0% f r o m 2018 to 2025.  
An entrepreneur planning to enter into the bakery business could venture into the ingredients market as the progress of bakery would entirely depend on the ingredients market. And the ingredients market is all set for a dynamic growth!
There is a growing consumer demand for nutritional content in baked foods with low sugar, whole grain, and zero Trans-fat per serving. Increasing obesity rates and aging population have put the usage of healthy ingredients in the U.S. on a national front. Health consciousness in India, too, has seen a spiraling growth in ingredients which help bakery products attain zero trans-fat level. The replacement of hydrogenated fats by fats containing almost zero trans-fatty acids has long been a major target for many bakery manufacturers. According to a recent report published by Consumers’ Association, trans-fat consumption has almost halved.
In bakery products, one of the main requirements is that the fat, be it a dough fat, pastry fat or cream fat, should have some structure and solidity. Without the use of hydrogenation, this can only be achieved by using oils such as palm oil, palm kernel oil and coconut oil. Of these palm oil is the most popular and the most versatile.

Boost for Ingredients’ Market

The growing demand for ready-to-eat food is expected to boost the bakery ingredients market. The shift in the conventional home cooked food to convenience foods has also increased the demand of these bakery ingredients in the emerging markets. Adoption of westernized lifestyle, double income families, emphasis on healthier lifestyles, greater nutrition awareness, are the major factors that are responsible for the growth in baked foods industry, which, in turn, will drive the demand for the bakery ingredients manufacturers. 
The focus would be on innovation in sweeteners, dry ingredients, starches and derivatives, oil and shortenings’ ingredients to meet the consumer demand for low trans fats and gluten free products, without modifying the quality, texture, and taste of these products. The future scope for the bakery ingredient manufacturers would lie in the advancements of food ingredients systems and thereby, providing a common platform for food makers, food service providers, and retailers to meet the companies’ strategies in meeting with the consumer consumption trends and preferences.
For those planning to enter the bakery ingredients’ business it may be mentioned that bakery ingredients are broadly categorised in different product segments, which are fats and shortenings, emulsifiers, bases and mixes, functional blends, colours and flavours, leavening agents, and others. 
The bases and mixes segment accounts for the largest share followed by fats and shortenings. Enzymes are used to replace chemical additives and also help the companies reduce their processing time while saving energy costs. Emulsifiers are the ingredients that are used to obtain soft crumb-like and tenderness in the texture of some bakery products. Leavening agents, such as baking powder and yeast extracts, hold the largest share in the global bakery ingredients market, as they are widely used for fermentation in baked products. 

Important Ingredients

If one wants to enter the bakery ingredients market there is a necessity to know the different ingredients and their demand. 
FLOUR is one of the most essential ingredients. The global wheat flour reached a consumption volume of 385 Million Tons in 2018, registering a CAGR of 1.3% during 2011-2018. Wheat flour, due to its health benefits like lowering cholesterol levels, improving metabolism, controlling obesity and regulating blood sugar levels, is one of the most popular ingredients.
There are different kinds of flour used by the bakery industry. These are:  
Whole wheat flour: It is often used to replace a portion of all-purpose flour to boost the nutritional profile.
Bread flour: It contains more protein and gluten for baking chewy yeast breads.
Cake flour: It has lower protein and gluten as compared to all-purpose flour. It is finely ground to produce cakes with a lighter texture.
Pastry flour: It is ideal for tender pie crusts.
Self-rising flour: It has baking powder and salt already mixed in. 
Alternative non-wheat flours: They are milled f r o m other grains like ragi, jowar, etc. 
Cornmeal: It is used for cornbread, waffles, pancakes, etc.
With people becoming more health conscious there is now ample scope for organic gluten free flours. Some of these are:
Brown Rice Flour
Buckwheat Flour
Amaranth Flour.
Corn Massa (Masa Harina)
Millet Flour
Sorghum Flour
Chickpea Flour (Besan, Garbanzo Bean Flour)
Teff Flour (A traditional Ethiopian flour)
Nut Flours (Almond, Hazelnut)
The use of whole and alternative grains and grain products continues to drive new product development. To cater to the health conscious there is now a demand for glutten and other allergen free flours like those f r o m buckwheat, quinoa, millet, amaranth, flax, corn, rice, sorghum wild rice and other non-wheat grains.  
‘Leaveners’ are also important ingredients for bakery. They produce gas which causes bread and other baked goods like cakes, cookies and muffins to rise when they enter the oven. The basic work of any leavening agent is to cause foaming which results in lighter and softer batter. Leavening agents create air pockets into the batter by producing gas. This makes the batter to rise & become fluffy.
‘Baking Powders’ are chemical leavening agents containing sodium bicarbonate, commonly known as baking soda or bicarb soda, plus one or more leavening acids. Baking powder is a chemical leavening agent. It is integral to the rise of various batters during baking. It has a built in acid that activates it. There is also a double acting baking powder which reacts to the liquid in the batter and heat in two stages.  
‘Baking Soda’ is also called as Sodium Bicarbonate. This fine white powder is manufactured by adding carbon dioxide to huge vats of water containing sodium chloride and ammonia. When the resultant sodium bicarbonate settles at the bottom, it is filtered, washed in cold water, dried and ground to a fine powder.  
‘Baker’s Yeast’, another leavening agent,  is used for baking bread and other bakery products. The primary function of yeast is to convert fermentable sugars present in the dough into carbon dioxide and ethanol.
There are several types of ‘Food Colours’. They are: liquid, gel and powder. Liquids are used for tinting icings, batters and dough 
Gel dye is normally used for large scale baking or candy making projects. 
Powder dye is used for tinting crystal sugar, coloring chocolates and preparing dry mixes.  It is also used for Macarons and meringues, which are very sensitive to added liquid. 
‘Flavours’ are used for a wide range of applications in the bakery industry. They are used to enhance, add to or change the taste of the base product, be it cake, cookies, sauces, yeast doughs, pastries, candies, etc. These flavours need to be able to withstand high temperatures. 
Vanilla is one of the popular flavourings. It is an aromatic flavouring made f r o m the beans of the vanilla orchid. When used in food, vanilla enhances other flavours and adds sweetness. Vanilla is not only used as a flavour but also to enhance other flavours, such as chocolate, caramel, and coffee. Vanilla beans and vanilla extract are used extensively by bakers to flavour a wide range of desserts and other items.
Another one of the flavourings that is commonly used is Cocoa. This is a key ingredient in chocolate cake recipes. It has the benefit of not needing to be melted and is completely stable. 
Unsweetened desiccated coconut is also used as a flavour for cakes.   
As far as ‘Shortenings’ are concerned, butter and margarine are the two major shortenings used by the bakery industry. 

Sugar & Spice

Besides the ingredients mentioned above, two other important ingredients for bakery are sugar and spices. Sugar, as everyone knows, is needed to add sweetness to cakes, pastries, cookie, biscuits, etc. Beside sweetness sugar also creates tenderness and fineness of texture by weakening the gluten structure. It also gives crust colour, increases keeping qualities by retaining moisture and acts as creaming agent with fat.  
Sugar can be classified as:
Granulated/grain/table Sugar
Very fine/super fine/castor Sugar - for making cakes and cookies 
Confectioner’s/icing Sugar 
Brown Sugar
Corn Syrup
Malt Syrup
Spices are aromatic substances obtained f r o m the dried parts of plants such as the roots, shoots, fruits, bark, and leaves. 
Some of the common spices are:
 Allspice has a flavour resembling a blend of cloves, nutmeg, and cinnamon. Allspice is grown principally in Jamaica and to a lesser degree in Mexico. Allspice is available whole or ground.
Anise is native to Mexico and Spain, with the latter being the principal producer. Anise seeds are added to pastries, breads, cookies, and candies.
Caraway is a small crescent-shaped brown seed with a pleasant aroma but somewhat sharp taste. Although it is most familiar in rye bread, caraway is also used in cookies and cakes.
Cardamom in ground form flavours Danish pastries and coffee cakes, Christmas baking, and Easter baking such as hot cross buns. 
Cinnamon (ground) is used in pastries, breads, puddings, cakes, candy, and cookies. Cinnamon sticks are used for preserved fruits and flavouring puddings. 
Cassia, sometimes known as Chinese cinnamon, is similar to cinnamon but a little darker with a sharper taste. It is considered better for savoury rather than sweet foods. 
Cloves are the dried, unopened buds of a tropical evergreen tree. The ground version of this spice heightens the flavour of baked goods, fruit pies, and plum pudding.
Ginger, in its ground form, is commonly used in fruitcakes, cookies, fruit pies, and gingerbread. Candied ginger is used in pastries and confectionery.
Mace is usually sold ground. It is used in pound cakes, breads, puddings and pastries. 
Nutmeg in ground format is extensively used in custards, cream puddings, spice cakes, gingerbread and doughnuts. 
Poppy Seeds are used in breads and rolls, cakes and cookies, and fillings for pastries 
Sesame or Benne Seed are tiny, shiny and creamy-white with rich almond-like flavour and aroma. Bakers use sesame seeds in breads, buns, coffee cakes and cookies.  

Health Consciousness

As health consciousness grows, the market for healthy ingredients will increase. Today there is a growing consumer demand for nutritional content in baked goods which have low sugar, whole grain and zero trans-fat per serving. Increasing obesity has not only encouraged people to exercise regularly but also to cut down on trans-fat and other unhealthy foods, particularly bakery products. Thus the bakery ingredients have to be catering to these elements.
Health consciousness has also resulted in a demand for organic baking ingredients, which is expected to gain higher traction in the future. 
Greater nutrition awareness, and increase in disposable income are the major factors that are responsible for the growth in baked foods industry, which, in turn, will drive the demand for the bakery ingredients manufacturers. Innovation in sweeteners, dry ingredients, starches and derivatives, oil and shortenings ingredients which will meet the consumer demand for low trans-fat and gluten free products, without modifying quality, texture and taste of the products would be the need of the hour.    
One can say that the future scope of the bakery ingredient manufacturers would lie in the advancement of food ingredients.
 Growing popularity for artisan bakeries coupled with high per capita consumption of bakery products is likely to fuel the expansion of bakery ingredients market.
India, with its growing population and increasing disposable incomes, is one of the major global markets for the baked goods, and bakery ingredients. Consumers are willing to pay more for a healthier profile in the bakery products, which drives the growth of the bakery ingredients market.

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