Bakery Premixes Market (2022-2029)

The growing consumer demand for bakery products, the convenience of using multiple ingredients in a single product, increasing demand for fortified food products, and increasing urbanization and inclination towards convenience foods are the key factors driving the growth of the bakery premixes market. However, an increase in the number of health-conscious consumers and high costs of bakery premixes products are expected to hinder the growth of this market to a notable extent.

Furthermore, emerging economies are expected to provide significant growth opportunities for the manufacturers of bakery premixes in the coming years.

The COVID-19 pandemic has severely affected human health and well-being. To control the spread of the virus, governments worldwide announced partial or complete lockdowns, which severely impacted many industries, including food & beverage, pharmaceuticals, home & personal care, and dietary supplements. However, the pandemic had a positive impact on the baking premixes market.

The COVID-19 outbreak created a severe public health emergency globally, spreading rapidly in more than 150 countries. Many countries worldwide announced complete nationwide, state-wide, or citywide lockdowns to combat and control the spread of the virus, halting all travel, transport, manufacturing, educational institutions, and non-essential trade, significantly impacting many industries globally.

The pandemic led to the adoption of some best-practice models for the bakery premixes industry as it conveyed to the forefront the importance of hygienic and shelf-stable packaged foods in preventing the disease. This industry has faced unprecedented demand from manufacturers, retailers, and consumers, particularly for products such as bread premixes and bakery premixes, such as pizzas and cakes, from the storage and distribution point of view. Many companies in the bakery industry changed their strategies, witnessing sudden growth in demand. According to the World Bank, women's overall global labor force was 47% in 2019. In 2019, the employment rate for women in the U.S. was 46% and in China was 44%, while in 2021, the women's labor force increased to 46.3% in the U.S. and 44.5% in China, showcasing an increase in the working women population. This led to the high demand for packaged bakery premixes as it saved maximum cooking time.

Furthermore, school and office closures have compelled consumers to opt for at-home breakfast, coffee, and lunch, which has driven a significant increase in the demand for convenience, ready-to-cook, and ready-to-bake bakery products with longer shelf lives, such as bread, rolls, and buns. Additionally, due to restrictions, no fast food products were available in the market, and the closure of all restaurants made people cook at home. Likewise, the more indulgent bakery items, such as pastries, doughnuts, and bakery snacks, also witnessed increased demand.

With the increasing urbanization, the demand for convenience food products is increasing rapidly, mainly due to changing lifestyles, the rising number of nuclear families, an increasing proportion of working women, and less time for food preparation. These factors create a strong case for the accelerated growth of the bakery premixes market, as bakery premixes are easily portable and have a long shelf life, which led to the high consumption of bakery premixes during the pandemic.

In recent years, the rise of fortified foods and dietary supplements has played a key role in healthy habits due to the growing concerns about health and the perception that diet directly affects health. The global demand for fortified food is mainly driven by increasing consumer awareness regarding micronutrient deficiencies, growing health concerns, rising incidence of disease, and increasing disposable income. Bread and bakery products fortification with iron, folic acid, and other vitamins help overcome micronutrients and malnutrition issues among children.

According to an NIH-funded study, a healthy eating diet is directly proportional to overall health improvement and reduces heart disease, stroke, and type 2 diabetes. A healthy eating trend is gaining traction and evoking interest, significantly driving healthful food formulation. Fortified bakery premixes are emerging due to their properties and health benefits. It is used to deal with or overcome the deficiencies in which different micronutrients are incorporated into food products for health benefits. Nowadays, folic acid deficiencies are seen less in females. Folic acid is added to bread premixes to overcome deficiencies.

The U.K. is one of the 85 countries globally with mandatory wheat flour fortification. According to Food Fortification Initiative (FFI), Switzerland has 250 food products fortified voluntarily with folic acid. Adding vitamins and minerals to food is permitted in the European Union through regulation 1925/2006. While the current Europe market for food fortification premix is being driven by the increase in the demand for nutritionally enriched food, it is also being aided by the mandatory fortification of wheat in European countries like the U.K. and Ireland.

Furthermore, in response to the COVID-19 pandemic, consumers are increasingly demanding products that offer immunity-boosting benefits as a preventive measure. The fortified food industry is seeing a rapid surge in demand for products containing immune-boosting natural ingredients. For instance, according to the International Food Information Council’s (IFIC) 2020 Food and Health Survey, in 2020, 43% of people followed a specific diet, with an increase of 38% from 2019, followed by a 7% low-carb diet. The motivation for healthy diets is weight loss (47%), enhanced physical health (39%), prevention from future health concerns (37%), and preventing weight gain (36%).

Thus, rising demand for fortified food products is expected to boost the growth of the fortified bakery premixes market.