The
first evidence of baking dates back to the Babylonian era, and Man
has come a long way since then. New products as well as techniques of
baking have been developed. However, the main ingredients have
remained more or less the same. Baking ingredients include baking
powder, baking soda, flour, butter, eggs, yeasts, honey, fruits,
nuts, and several flavor and color additives. Baked products come in
a wide variety, and the consumption trends depend on the preference
of the local population. General bakery products include biscuits,
cookies, breads, cakes, pastries, pies, torts, donuts, and chalets.
Baking ingredients are not just industry specific, but also have many
domestic markets scattered around the world.
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The
growth in the bakery ingredients market is directly related to the
changing dimensions of the baking industry as a whole. Breads and
cakes are the staple food of the western culture, and not as much
relevant in Asia-Pacific. The annual per capita consumption of baked
food in these geographies is more than twenty-five times the
consumption in the Asia-Pacific region. The bakery market is matured
in these countries, but it is expected to grow exponentially in the
Asia-Pacific region. India and China have clocked double digit
growths in this market recently, and even if the consumption per
capita is not set to match the western standards, the population is a
key factor for the estimated increase in the market for baking
ingredients here.
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This
industry is driven by culture and taste-buds. Even though the
diffusion of a common or similar global food habit has occurred due
to globalization, staple food consumption is unlikely to alter
substantially in any culture. The key markets of the U.S. and Europe
are not going to dissipate, although there is a high chance of growth
in the Asia-Pacific region where the food culture is gradually
changing. Changing lifestyles, better distribution channels, and
progress in science and technology has driven the growth of this
industry.
This
industry is highly affected by the macro-economic situation of an
economy, as the consumption of fancy bakery products decline sharply
due to economic downturns. Also, the industry is highly competitive
in nature, and constant innovation of products is absolutely
necessary to sustain in the market. A large number of firms compete
in this arena and some of the major players in the baking ingredient
market are Taura, AAK UK, British Bakels Ltd, CSM, Dawn Foods Ltd,
and Muntons plc.
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