Bakery Enzymes Market - Forecasts from 2024 to 2029

The global Bakery Enzymes Market is expected to grow at a CAGR of 7.53% from a market size of US$615.06 million in 2022 to reach US$1,739.74 million in 2029.

Bakery enzymes are biocatalysts that break down the gluten proteins and mucilage while also converting the starch in the wheat into sugars that yeast can consume. They are added to the dough of various baked goods, such as pastries, cakes, etc., to improve their taste, texture, smoothness, gas retention, and crumbliness.

Bakery enzymes are important ingredients in baked goods. A few examples of popular commercial bakery enzymes include fungal alpha Amylase, Hydrolase, Glucose Oxidase, Proteases, Xylanase, Maltogenic Amylase, Hemicellulases, Lipase, Catalase, etc.

The use of enzymes in bakery products has grown tremendously in recent years. The highly specialized characteristics of enzymes in biological processes are one of the key factors driving the market's growth.

Due to limits on chemical additives, notably in producing bread and other fermented goods, enzymes have recently become more relevant in baking. Food safety is one of the numerous additional advantages of this natural ingredient. As a result, the market for bakery enzymes is projected to expand in tandem with the rising demand for organic food additives.

Rising disposable income and shifting consumer preferences are also significant drivers of bakery enzyme development. The general millennial population prefers processed meals as a result of lifestyle choices.

Market Drivers:

• Growing demand for baked goods is boosting the global bakery enzymes market growth

Bakery enzymes play a vital role in enhancing the quality of baked goods by improving their taste, texture, shelf life, and overall smoothness. They are incorporated into dough to optimize flour quality and ensure proper baking. Bakery enzymes are utilized in the production of a diverse range of products, including cakes, bread, muffins, pastries, biscuits, doughnuts, pies, and cupcakes.

One of the key drivers fueling the global bakery enzymes market growth is the increasing consumer demand for bakery products. According to data from the Government of Canada, retail sales of baked goods in the country are projected to experience a compound annual growth rate (CAGR) of 3.5% from 2022 to 2026, reaching a value of US$7.8 billion by 2026. This surge in demand for baked goods has prompted various companies to introduce new products, thereby positively influencing market prospects.

For example, in March 2023, the American supermarket chain Sprouts Farmers Market unveiled plans to introduce ten new bakery products across its stores. Additionally, in the same month, Milk Bar, the renowned dessert brand founded by acclaimed chef Christina Tosi, announced the debut of two new cookie variations: bite-sized crunchy cookies and ready-to-bake cookie dough, which would be available in grocery stores nationwide throughout the United States.

• Increase in clean label demand

Consumer interest in products featuring clean labels, characterized by recognizable and natural ingredients, is on the rise. Bakery enzymes are often favored in this regard, as they serve as natural catalysts performing specific functions during the baking process. Transparency is key, encompassing openness and honesty throughout the entire food supply chain and detailing all ingredients used in products. This emphasis on transparency stems largely from the growing concern for sustainability issues.

It's important to emphasize that the aim of clean-label products isn't necessarily to eliminate all additives. Rather, the focus lies on providing consumers with clear and transparent information, including the sources of such additives. Given the ambiguity surrounding what constitutes artificial or unnatural, consumers gravitate towards products containing real, pure, and familiar ingredients.

Clean labeling is widely perceived as a testament to quality and healthiness, offering consumers reassurance regarding the integrity of the products they purchase.

• Cost reduction

Bakery enzymes play a crucial role in optimizing various stages of the baking process, offering a multitude of benefits to manufacturers. By enhancing dough strength and machinability, these enzymes contribute to minimizing dough wastage and streamlining production timelines. This results in significant cost savings for bakery manufacturers.

In response to challenges such as limited sugar availability and soaring prices, leading ingredient supplier Corbion is assisting commercial bread and bun bakers in maintaining their renowned product quality while simultaneously reducing sugar content in their formulations.

One of Corbion's innovative solutions, Ultra Fresh(R) Advantage 600, leverages enzyme technology to provide a freshness solution for baked goods. Additionally, it effectively breaks down the long-chain carbohydrates present in flour into simpler sugars, thereby imparting sweetness to the product. This innovative approach allows for the reduction of sugar and yeast requirements in the formulation, addressing cost concerns while maintaining the desired product attributes.

• Demand for the innovative products

Constantly seeking novel bakery offerings, consumers drive the demand for innovative products in the industry. Enzymes play a pivotal role in facilitating this innovation by enabling the development of unique textures, flavors, and functionalities in baked goods. For instance, specific enzymes can prolong the shelf life of whole-wheat bread, a variety typically known for its shorter duration of freshness.

Market Restraint:

• High cost and regulations as restraints

The government's implementation of strict rules and regulations and the high expenses associated with R&D activities, coupled with the volatile & high cost, are obstructing the global bakery enzymes market growth during the analysis period.

APAC is anticipated to hold a significant share of the baker enzymes market

Asia Pacific region is anticipated to hold a significant market share in bakery enzymes. This region will witness high growth during the forecast period owing to the growing demand for Western-style diets, increased urbanization, and rising disposable income.

Bakery enzymes are in increasing demand in emerging economies like China and India. The market expansion in this region is due to changing eating patterns, traditional snacking behaviors, and rising consumption of processed baked food items. An increase in the participation of women in the workforce, along with the flourishing HoReCa & food service industry, are all contributing to the market's expansion.

The rise of new companies with fresh and cutting-edge products and the existence of key market players in Asia Pacific countries are also fueling the demand for bakery enzymes. Furthermore, demand for organic and natural food additives is anticipated to fuel regional market expansion.

Market Developments:

• September 2022- BASF agreed to sell the BASF Nutrilife(R) baking enzymes portfolio and business to Lallemand Inc.'s affiliate, Danstar Ferment AG. Nutrilife(R) enables food suppliers to manufacture economical, healthful, and appealing food items while contributing to resource efficiency.

Market Segmentation:

By Application

• Breads
• Cakes & Pastries
• Cookies & Biscuits

By Form

• Powder
• Liquid

By Product Type

• Carbohydrases
• Proteases
• Lipases

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• UK
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Others