Global Baking Powder Market: Players to Focus on Launching Healthier Variants with Low-aluminum Raising Agents, says TMR
The global baking powder market is consolidated with key players such as ACH Food Companies Inc., Clabber Girl Corporation, Hansells Food Group,Caravan Ingredients, Inc., and Weikfield accounting for significant part of the market. The threat of new substitutes is expected to be high as baking soda is a viable substitute for baking powder. The threat of new entrants will also remain high owing to low capital requirement for entering the market. Transparency Market Research (TMR) in its new study, has found that key players are focusing on product innovation and attempting to reduce production costs by conducting forward and backward integration and achieving economies of scale. Players in the market are focusing on wholesalers and retailers as the consumption of baking powder by end consumers is very low.
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According to the report, the global market opportunity for baking powder is expected to rise from US$2,723 mn in 2015 to US$3,361.9 mn by 2019. On the basis of product, the tartrate segment is expected to continue to lead and account for 30.2% of the market by 2019. By geography, Asia Pacific led in 2012 and will continue to do so in the coming years. Asia Pacific is expected to account for 37.1% of the global baking powder market by 2019. Europe is also projected to be a key regional segment in the coming years.
Rising Consumption of Ready-to-eat Foods to Boost Demand for Baking Powder
Busy lifestyles and a rise in the disposable income of the people are having a huge impact on their food choices. Consumers are relying more on ready-to-eat and convenient foods and this has led to a rise in the demand for baking-powder-based foods such as pizzas, donuts, burgers, and pastries. Thus, the trend of consuming junk food is leading to heightened demand for baking powder across the globe. In contrast, a growing number of health conscious people are increasingly demanding well-balanced meals such as nutrition bars, high fiber breads, and breakfast cereals. Since these food products require baking powder, the market is expected to witness a growth.
Adverse Effects of Junk Food to Threaten Baking Powder Market
As consumers are increasingly becoming more aware about the adverse effects of consuming excessive junk food, the demand for this type of food is gradually declining and this is expected to threaten the global baking powder market. The U.S. and Europe, which were key markets for junk food are now reducing their demand for baking powder as people are shifting towards healthier lifestyles. Another factor hampering the growth of the market is the lack of awareness among people regarding the difference between baking powder and baking soda and thus, purchasing the latter owing to ignorance.
Product Differentiation through Innovations to Create Opportunities of Growth in Market
“Players in the market are focusing on launching newer products with a low-aluminum raising agent so as to achieve salt reduction in baking powder,” says a TMR analyst. This is expected to reduce salt amounts in baking powder without hampering the quality of the product. Initiatives and innovations such as these are expected to create new opportunities in the market. Manufacturers such as Kudos Blends have launched innovative and healthier baking powder variants which will be in favor of public health.
This information is based on the findings of a report published by Transparency Market Research titled “Baking Powder Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 – 2019.”
The global baking powder market is segmented as follows:
Phosphate-based Baking Powder
Anhydrous Phosphate-based Baking Powder
Sodium Aluminum Sulfate Phosphate-based Baking Powder
Tartrate-based Baking Powder
Aluminum-free Baking Powder
Phosphate-free Baking Powder
Rest of the World