Bakery Improvers Market Report

In the global bakery improvers market, enzymatic solutions, particularly amylases and xylanases, emerge as the leading segment, revolutionizing baking processes. These enzymes enhance dough fermentation by breaking down starches and hemicelluloses, resulting in improved gas retention and a robust gluten network. This synergy not only promotes fluffy, voluminous loaves with an appealing crust but also optimizes production efficiency by reducing human error in dough handling. Manufacturers increasingly favour these natural enzymatic improvers over traditional chemical additives, aligning with the growing demand for clean-label products. Companies like Ultreze are setting benchmarks in this sector, delivering consistent, high-quality enzyme formulations that empower bakers to achieve superior texture and flavour in their baked goods. Moreover, in November 2023, Bakels Sweden launched two new bread improvers, Lecimax 3000 and Lecisoft Rye, enhancing bread volume and softness.

In the global bakery improvers market, the organic nature segment is gaining significant traction as consumer preferences shift toward healthier, natural ingredients. Modern consumers, particularly the younger demographic, increasingly favour functional bakery products that utilize organic improvers over synthetic alternatives due to rising health consciousness. Organic bread improvers not only enhance the gluten network, improving dough stability and texture, but they also extend the shelf life of products like whole wheat and multigrain bread. Furthermore, the use of natural enzymes derived from microorganisms enables bakers to achieve superior dough performance while meeting the demand for clean-label products. This growing tendency towards organic solutions is reshaping the landscape of the bakery industry, driving innovation and elevating product quality.

The ongoing advancements in enzyme-based bakery improvers present a wealth of opportunities in the global bakery market. With the ability to streamline production processes, these innovative solutions enable bakers to produce consistent and high-quality bread while reducing ingredient complexity. Enzymes like amylases, xylanases, and lipases allow for the formulation of all-in-one products that enhance freshness, improve dough strength, and extend shelf life, ultimately leading to cost efficiencies. Moreover, the potential to explore diverse flavours and textures through enzyme applications can inspire creativity and innovation in product offerings. As sustainability becomes a priority, enzyme-based solutions that reduce acrylamide levels and lower overall ingredient use align with consumer demand for cleaner, healthier products, positioning brands favourably in a competitive landscape. 

The global bakery improvers market faces significant challenges driven by rising production costs. Fluctuations in the prices of essential raw materials, such as flour and emulsifiers, directly inflate production expenses, squeezing profit margins for manufacturers. This financial pressure may compel companies to raise prices, potentially deterring cost-sensitive consumers and reducing overall demand for baked goods. Additionally, the competitive landscape forces some manufacturers to temporarily absorb costs to maintain market share, further straining profitability. Inventory management becomes complex amid volatile prices, as manufacturers deal with forecasting and supplier negotiations. To navigate these challenges, businesses must invest in innovative formulations and strategically position premium products that validate higher price points, thereby offsetting some of the financial impacts associated with raw material costs.

Producers of bakery ingredients, and those making bread improvers more particularly face substantial difficulty meeting global quality standards and regulating stipulations. Compliance with diversified and localized regulations in regions is resource-consuming and costly. Such international standards like ISOs and food safety standards result in severe constraints on formulations, production processes, and even labeling of such products. This requires full testing, careful documentation, and monitoring which in turn contribute to more operational costs and administrative burdens. Consequently, the need for rigorous compliance management represents a considerable constraint for bread improver manufacturers, compelling them to develop strategic approaches to navigate these challenges while ensuring product quality and sustaining market competitiveness.

Major market leaders employ marketing tactics focused on introducing new products, merging with other companies, and acquiring new businesses to grow their customer base and enhance their range of products. In June 2024, AB Enzymes, a subsidiary of ABF Ingredients based in Germany, launched two innovative proteases tailored for the bakery sector: Veron HPP and Veron S50. These enzymes aimed to mitigate issues like browning and cracking in long-life baked goods such as biscuits and crackers. Veron HPP notably reduced dough resting time and enhanced extensibility, minimizing product waste. Additionally, Veron S50 provided a cost-effective alternative to Sodium Metabisulphate, addressing allergy concerns while improving the overall quality of baked products.

Furthermore, in June 2024, DSM-Firmenich announced the divestment of its yeast extract business to Lesaffre, a leader in fermentation. This strategic decision followed a portfolio review aimed at prioritizing core segments. With annual sales of approximately EUR 120 million, the Yeast Extracts division will continue to supply products to DSM-Firmenich for its Savory business until 2025. Additionally, a technology partnership was established to enhance yeast extract development. The transaction, subject to regulatory approvals, was set to finalize by the end of the year, with some DSM-Firmenich employees transferring to Lesaffre.

Moreover, in June 2023, Kerry launched Biobake™ EgR, an innovative enzyme solution designed to reduce egg usage in baking, catering to European manufacturers transitioning to free-range or organic eggs amid rising costs. This product addressed not only the financial pressures stemming from a 30% increase in egg prices since early 2022 but also the regulatory push against caged eggs by 2027. Biobake™ EgR promised consistent baking performance while offering potential CO2 savings of up to 14%, aligning with sustainability goals in the bakery improvers industry.

However, in April 2023, Innophos recently expanded its LEVAIR® baking portfolio with the launch of LEVAIR® Select, a calcium-based, non-aluminum leavening agent designed to meet clean label demands in the bakery industry. Complementing the existing LEVAIR® range, which includes solutions for shelf life extension, volume enhancement, and batter stability, LEVAIR® Select offers a unique alternative to traditional sodium aluminum phosphate. Sherry Duff, SVP of Marketing and Technology, highlighted the addition as a step forward in addressing key industry challenges.

The dominant region in the global bakery improvers market is Europe, driven by its rich bread culture and innovative baking practices. According to the International Trade Association, Europe stands as the third-largest retail e-commerce market, with projected revenues soaring to US$ 902.3 billion by 2027, highlighting the increasing consumer access to diverse baked goods. Countries like Germany exemplify this trend, where a strong cultural emphasis on high-quality baked products fuels demand for advanced bread improvers. Companies such as Lesaffre are responding to this demand by providing tailored solutions, like sourdough and rye improvers, that cater to the preferences of local consumers. Additionally, growing environmental awareness is encouraging brands to adopt sustainable practices, further shaping the market landscape.

The global bakery improvers market is experiencing robust growth, particularly in the Asia Pacific region, which is emerging as the fastest-growing area. One major driver of this trend is the rising desire for convenient foods; as people prefer ready-made choices, the demand for top-notch bakery products grows. According to UN-Habitat, over 2.2 billion people, representing 54% of the global urban population, reside in Asia, and this figure is projected to surge by 50% by 2050. This rapid urbanization fuels the demand for quick meal solutions, including baked goods. In addition, more and more people care about what they eat, and this forces producers to come up with new improvers for baking healthy pastries and other Thai food, enhancing those pastries with natural ingredients and without functional additives. The proliferation of e-commerce in general allows for easy availability of various types of bakery products and hence increases the need for efficient improvers.