Global Vegan Baking Ingredients Market (2023-2028) Competitive Analysis, Impact of Covid-19, Ansoff Analysis

In South Korea, a Starbucks outlet expanded its vegan products range by adding vegan focaccia bread in its menu, thereby generating the market demand 

The Global Vegan Baking Ingredients Market is estimated to be USD 1.63 Bn in 2023 and is expected to reach USD 2.16 Bn by 2028 growing at a CAGR of 5.81%.

The vegan baking ingredients are used to create a variety of goods that serve as healthy substitutes for the fake and processed foods and ingredients that are typically utilized in the baking sector. Ingredients for baking that are vegan do not include any animal products or by-products. Starch, raising agents, emulsifiers, baking powder, mixes, vegetable oils, colors and flavors, and enzymes are the primary categories of vegan baking ingredients. Plant-based milk, such as almond, soy, oat, coconut, or cashew milk, can be used as an alternative to conventional animal-based ingredients. Vegan butter is produced without the use of dairy by using plant-based oils such as coconut, olive, or sunflower oil. It can substitute it for ordinary butter. The liquid found in chickpea or other bean cans is known as aquafaba. It can be whipped like egg whites and used for eggs in recipes for cakes, macarons, and meringues.

The market is driven by rising consumption of vegan bakery products and the growing health awareness and changing food preference. Vegan diets are becoming more popular as a result of health consciousness because they are plant-based and among the healthiest foods one can eat. Growing interest in veganism and plant-based diets is reflected in the popularity of vegan baking ingredients. For ethical, environmental, or health grounds, many people are making the switch to a vegan diet. The demand for vegan-friendly substitutes for conventional baking ingredients made from animals is rising as a result. In addition to being lower in saturated fat and cholesterol than non-vegan products, vegan ingredients for baking are frequently more sustainable and environmentally friendly. Because of this, they are a well-liked option for people who desire to prepare morally and aesthetically superior desserts. Because to their growing availability and diversity in grocery shops and online sellers, vegan baking ingredients are becoming more and more popular.

However, the market is restrained by specialists and fluctuating raw material costs. Due to a number of variables, including supply and demand, the environment, shipping costs, and other market forces, the price of vegan baking ingredients may change. Plant-based oils, nuts, and grains, which are utilized as raw materials to make vegan baking components, can all fluctuate in price. Moreover, elements like seasonal availability and crop harvests may have an impact on the cost of vegan baking supplies. For instance, depending on the time of year and the weather, the cost of fresh berries, which are frequently used in vegan baking, can change. For some customers, especially those on a tight budget, the price of these ingredients can be a deterrent.

However, the market has an opportunity of growing trend of clean label vegan ingredients for bakery products as consumers are getting aware of the consumption of the benefits of probiotics. Probiotics have been added to vegan baking ingredients, which is a key contributing element to the rise in sales of vegan baking ingredients. It speaks of vegan ingredients that have undergone minimum processing and don't include any artificial preservatives or additives. As they are manufactured with real foods and don't contain synthetic chemicals, the ingredients are frequently thought of as being more natural and healthier. Vegan components with a clean label include natural sweeteners, nuts, seeds, fruits, vegetables, whole grains, spices, and herbs, in addition to offering health advantages, plant-based protein sources in baking can help to ensure that baked goods are created with wholesome, natural ingredients that are devoid of synthetic chemicals and additives. Vegan emulsifiers may now be produced thanks to growing research and development in the field, which is essential for creating bakery goods that have exactly the same texture and flavor as traditional baked goods.

• However, the market is challenged by Quality Issues of Vegan Bakery Ingredients. Vegan baking ingredients may not taste or feel the same as regular components due to quality difficulties. This might be because of the lack of ingredients like milk, eggs, and butter. If vegan components are processed in facilities that also process animal products, they may be at risk of contamination from other ingredients. Ingredients that are vegan might go bad very rapidly, especially if they have natural preservatives. The Vegan Baking Ingredients Market's growth path may be hindered by the negative environmental effects of vegan baking ingredients, changes in government regulations, escalating environmental concerns, and a change in administration.

Market Segmentations

• The Global Vegan Baking Ingredients Market is segmented based on Product, Nature, Application, Distribution Channel, and Geography.
• By Product, the market is classified into Sweeteners, Flavoring Agents, Flour, Oils, and Others.
• The Flour segment holds the biggest share. It gives baked goods structure, texture, and volume, making it a crucial component in vegan baking. The majority of vegan baking recipes may be made with all-purpose flour because it is a versatile flour. It can be used for cakes, cookies, and bread and gives baked goods structure and texture. Whole wheat flour contains more fiber and nutrients than all-purpose flour since it is made from the complete wheat kernel. It's crucial to pay attention to the recipe and the type of flour used when using flour in vegan baking. For the recipe to produce the appropriate results, different flours may need to have their qualities adjusted. The popularity of flour is growing as a result of business developments in its products. The groups are taking into consideration vegan flours such teff flour, sorghum flour, buckwheat flour, and almond flour. These flours also have high vitamin and mineral content, antioxidant characteristics, and are gluten-free.
• By Nature, the market is classified into Conventional and Organic.
• The Conventional segment shares the largest revenue. Due to its greater accessibility and lower cost compared to organic alternatives, it is frequently utilized and favored. Starch, a rising agent, an emulsifier, baking powder, mixes, vegetable oil, colors and flavors, and enzymes are among the vegan baking components. For the preparation of goods like cakes and pastries, biscuits and cookies, bread and buns, these ingredients come in a variety of forms, including conventional vegan baking ingredients and organic vegan baking components.
• By Application, the market is classified into Biscuits & Cookies, Bread & Buns, Cakes & Pastries, and Rolls & Pies.
• The cakes and pastries segment holds the largest share, followed by biscuits and cookies. The segment is driven by shifting customer preferences and the need for high-end baked goods in the APAC region. Around 68.0% of people worldwide are lactose intolerant, according to the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK). Due to the fact that milk is one of the primary ingredients in cakes and pastries, the demand for vegan cakes and pastries is increasing. Vegan butter and margarine manufactured from plant-based oils like soy, coconut, or vegetable oil can be used in place of regular butter. Agar agar, a vegan substitute for gelatin, can be used to add firmness to cakes and pastries. Plant-based sweeteners like maple syrup, agave nectar, or coconut sugar can be used in place of regular sugar. For instance, German Bakery offers a large selection of vegan cakes in various flavors in India.
• By Distribution Channel, the market is classified into Offline and Online.
• The online segment holds the largest revenue share. It is concentrating on adding several bread products made from vegan ingredients in order to meet the growing demand and profit from the small number of businesses that are introducing their own versions of these goods. For instance, a large distribution network is offered by Waitrose & Partners, a British grocery chain, which has designated distinct departments for vegan items. The benefit of online shopping is the convenience of being able to order food from home and have it delivered right to your door. There may also be vegan bakeries or cafes that sell vegan baking supplies in some locales. Vegan bread comes in many varieties, and some companies are even starting to sell their own vegan bread items online. Several supermarkets are designating a specific, dedicated section for vegan products to increase public awareness.
• By Geography, the market is classified into the Americas, Europe, Middle East & Africa, and Asia-Pacific.
• Europe shares the largest revenue. Following the discovery of residues of fipronil in eggs in 2017 and 2018, Europe and the USA are increasingly favoring bread products made without eggs. Europe is one of the biggest markets for vegan baking ingredients thanks to rising interest in plant-based foods and an understanding of the advantages of a plant-based diet for one's health and the environment. With more people choosing vegan and vegetarian diets, the vegan food business in Europe has seen tremendous expansion in recent years. In order to make bread in the U.K. in 2018, almost 11,000 tonnes of vegan baking materials were sold there. The use of these substances in the food sector helps the European market meet the needs and preferences of a sizable consumer base. Also, the European food business is prone to innovation and product improvement to satisfy the demands of vegan consumers. Aquafaba, plant-based milk, vegan butter and margarine, agar agar, nutritional yeast, and plant-based sweeteners are a few of the widely used vegan baking ingredients in Europe. Depending on the region and local demand, vegan baking ingredients may not always be readily available in Europe. Nonetheless, a large variety of vegan baking ingredients are available in Europe at numerous health food stores, specialist shops, and internet vendors. Also, there are an increasing number of vegan bakeries and cafes that use and sell vegan baking ingredients in certain European nations, including Germany and the UK.

Recent Development

• Two Canadian startups received millions in funding from the Canadian government to help them further develop technology to produce the next generation of vegan seafood. - February 2023
• Dawn Foods launched a full vegan portfolio from ingredients to finished products, a must-have option for bakeries to expand offer to keep up with the growing demand for plant-based products. - September 2020

Company Profiles

The report provides a detailed analysis of the competitors in the market. It covers the financial performance analysis for the publicly listed companies in the market. The report also offers detailed information on the companies' recent development and competitive scenario. Some of the companies covered in this report are Associated British Food, Bakels Sweden AB, Barry Callebaut, BASF SE, Cargill, Inc., Dawn Food Products, Inc., Dohler Group, etc.

Countries Studied

• America (Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, United States, Rest of Americas)
• Europe (Austria, Belgium, Denmark, Finland, France, Germany, Italy, Ireland, Luxemburg, Netherlands, Norway, Poland, Russia, Spain, Sweden, Switzerland, United Kingdom, Rest of Europe)
• Middle East and Africa (Egypt, Israel, Qatar, Nigeria, Saudi Arabia, South Africa, United Arab Emirates, Rest of MEA)
• Asia-Pacific (Australia, Bangladesh, China, India, Indonesia, Japan, Malaysia, Philippines, Singapore, South Korea, Sri Lanka, Thailand, Taiwan, Rest of Asia-Pacific)
• The report includes Competitive Quadrant, a proprietary tool to analyze and evaluate the position of companies based on their Industry Position score and Market Performance score. The tool uses various factors for categorizing the players into four categories. Some of these factors considered for analysis are financial performance over the last 3 years, growth strategies, innovation score, new product launches, investments, growth in market share, etc.

Ansoff Analysis

• The report presents a detailed Ansoff matrix analysis for the Global Vegan Baking Ingredients Market. Ansoff Matrix, also known as Product/Market Expansion Grid, is a strategic tool used to design strategies for the growth of the company. The matrix can be used to evaluate approaches in four strategies viz. Market Development, Market Penetration, Product Development and Diversification. The matrix is also used for risk analysis to understand the risk involved with each approach.
• The publisher analyses the Global Vegan Baking Ingredients Market using the Ansoff Matrix to provide the best approaches a company can take to improve its market position.
• Based on the SWOT analysis conducted on the industry and industry players, the publisher has devised suitable strategies for market growth.

Why buy this report?

• The report offers a comprehensive evaluation of the Global Vegan Baking Ingredients Market. The report includes in-depth qualitative analysis, verifiable data from authentic sources, and projections about market size. The projections are calculated using proven research methodologies.
• The research report also provides a detailed market size analysis and projections in volume and value terms. The projections are calculated using verified research methodologies.
• Excel data sheet for the market size will also be provided with the report.
• The report has been compiled through extensive primary and secondary research. The primary research is done through interviews, surveys, and observation of renowned personnel in the industry.
• The report includes an in-depth market analysis using Porter’s 5 forces model, PESTLE Analysis, and the Ansoff Matrix. In addition, the impact of COVID-19 on the market is also featured in the report.
• The report includes the regulatory scenario in the industry, which will help you make a well-informed decision. The report discusses major regulatory bodies and major rules and regulations imposed on this sector across various geographies.
• The report includes Self-Assessment Form, which helps customers evaluate their position in the market compared to their competitors.
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Report Highlights:

• A complete analysis of the market, including the parent industry
• Important market dynamics and trends
• Impact Analysis - a comprehensive assessment to confront risk and make strategic & operational decisions to counter the changes in the market environment.
• Market segmentation
• Competitive Analysis: Comparative analysis of competitor
• Historical, current, and projected size of the market based on value and volume
• Market size of the US states
• Market shares and strategies of key players
• Recommendations to companies for strengthening their foothold in the market