Global Raising Agents Market By Product Type (Baking Powder, Baking Soda, Cream of Tartar, Organic Agents, Others), By Form (Powder, Liquid, Granules, Others), By Application (Bakery Products, Confectionery Products, Biscuits and Crackers, Packaged Food Products, Fried Food Products, Others), By End User (Household, Foodservice Providers, Confectioneries, Others), By Distribution Channel (Direct Sales and Wholesalers, Modern Grocery Retailers, Independent Grocery Retailer, Non-Store Retailers, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2024-2033

Raising agents are crucial in baking and food production, enabling doughs and batters to rise by releasing gas. These agents, including baking powder and baking soda, play a vital role across various industries such as bakery, confectionery, and processed foods. This growth underscores the increasing demand for food additives driven by evolving consumer preferences and technological advancements in food production.

In 2022, the U.S. imported food additives worth around $15 billion, with raising agents contributing significantly to this figure. The global production of baking powder alone was estimated at 1.5 million tons in 2023, with North America accounting for approximately 30% of this output. This reflects the region’s strong presence in the bakery and processed food sectors.

Governments and private companies are actively supporting the development of innovative food technologies. In the U.S., federal grants totaling $10 million have been allocated to enhance food processing methods that utilize raising agents. Such initiatives aim to improve efficiency and sustainability in food production.

Meanwhile, the shift towards cleaner labels has driven companies to invest heavily in research and development. For instance, a leading baking ingredient manufacturer recently announced a $5 million investment to develop natural alternatives to synthetic raising agents.

The market has also seen increased merger and acquisition activities. A notable example is a leading food ingredient company acquiring a smaller firm specializing in organic raising agents for approximately $20 million. These consolidations are strategic moves to strengthen market positions and cater to the rising demand for organic and natural products. Collectively, these trends indicate a dynamic and rapidly evolving market for raising agents, shaped by regulatory support, technological advancements, and changing consumer preferences.

Key Takeaways

• Raising Agents Market size is expected to be worth around USD 50.7 Bn by 2033, from USD 34.9 Bn in 2023, growing at a CAGR of 3.8%.
• In 2023, Baking Powder held a dominant market position, capturing more than a 38.4% share.
• In 2023, Powder held a dominant market position, capturing more than a 58.4% share.
• Bakery Products held a dominant market position, capturing more than a 43.3% share.
• Household held a dominant market position, capturing more than a 36.1% share.
• Direct Sales & Wholesalers held a dominant market position, capturing more than a 34.4% share.
• Asia Pacific (APAC) is the most dominant region, holding a 42.3% market share with revenues reaching approximately USD 12.04 billion.

By Product Type

In 2023, Baking Powder held a dominant market position, capturing more than a 38.4% share. This segment benefits significantly from its widespread use in both household baking and commercial food production. The versatility and effectiveness of baking powder as a leavening agent drive its high adoption rate.

Baking Soda, also a key player in the market, is favored for its multipurpose roles, ranging from cooking to cleaning. Its accessibility and affordability contribute to its substantial market penetration, particularly in regions with a strong culture of home baking.

Cream of Tartar, while less prominent, is an essential component in niche baking applications that require precise pH control and stabilization. Its market presence is bolstered by the gourmet baking trend and the growing consumer preference for specialty baked goods.

Organic Agents have seen a rise in demand, aligned with the increasing consumer shift towards organic and natural food products. This segment caters to health-conscious consumers looking for cleaner labels and environmentally friendly baking solutions.

By Form

In 2023, Powder held a dominant market position, capturing more than a 58.4% share. This form is highly preferred due to its ease of storage and precise measurement in baking recipes. Its widespread availability and convenience drive its popularity in both domestic and industrial applications.

Liquid raising agents are valued for their ability to integrate seamlessly into various mixtures, offering consistent dispersion throughout doughs and batters. This segment is particularly advantageous in large-scale baking operations where automation and speed are prioritized.

Granules, similar to powders, provide ease of use but with the added benefit of reduced dust and potential for clumping. This makes granules a preferred choice in environments where precision and cleanliness are critical.

By Application

In 2023, Bakery Products held a dominant market position, capturing more than a 43.3% share. This segment thrives due to the essential role of raising agents in producing bread, cakes, and pastries. The continuous demand for fresh and artisanal bakery goods fuels growth in this category.

Confectionery Products also significantly utilize raising agents to enhance texture and volume in items such as marshmallows and nougats. The innovation in confectionery formulations continues to drive this segment’s expansion.

Biscuits and Crackers rely on raising agents to achieve the desired crispness and lightness. This segment benefits from the steady consumption of snack foods globally, which keeps the demand for biscuits and crackers robust.

Packaged Food Products, which include prepared mixes and ready-to-eat meals, often incorporate raising agents to improve product consistency and shelf life. This segment’s growth is supported by the increasing consumer preference for convenience foods.

Fried Food Products utilize raising agents to enhance batter performance, contributing to the texture and appeal of fried goods. This application taps into the global snack and fast food market’s extensive customer base.

By End User

In 2023, Household held a dominant market position, capturing more than a 36.1% share. This segment’s strength lies in the consistent demand for raising agents among home bakers who use these products to make a variety of baked goods. The availability of easy-to-use products that deliver reliable results underpins its ongoing popularity.

Foodservice Providers, which include restaurants, bakeries, and catering services, also rely heavily on raising agents to ensure the quality and consistency of their offerings. This segment benefits from the broadening consumer demand for freshly baked and high-quality culinary experiences.

Confectioneries use raising agents to craft a diverse range of sweets and treats, emphasizing texture and volume. The creativity and innovation in confectionery, combined with traditional recipes, drive the need for specialized raising agents.

By Distribution Channel

In 2023, Direct Sales & Wholesalers held a dominant market position, capturing more than a 34.4% share. This channel is pivotal for efficiently moving large volumes of raising agents to manufacturers and professional bakers, benefiting from economies of scale and established business relationships.

Modern Grocery Retailers, such as supermarkets and hypermarkets, are crucial for reaching consumers directly. They offer a variety of raising agents under one roof, providing convenience and choice, which attracts a steady stream of customers.

Independent Grocery Retailers maintain a significant role, especially in regions where such stores are a staple of community shopping habits. These retailers cater to local preferences and can offer specialized products that might not be available in larger chains.

Non-Store Retailers, which include online platforms and direct-to-consumer sales, have seen growth with the increase in digital shopping. They offer consumers the convenience of home delivery and often provide a broader selection of niche or specialty raising agents.

Key Market Segments

By Product Type

• Baking Powder
• Baking Soda
• Cream of Tartar
• Organic Agents
• Others

By Form

• Powder
• Liquid
• Granules
• Others

By Application

• Bakery Products
• Confectionery Products
• Biscuits and Crackers
• Packaged Food Products
• Fried Food Products
• Others

By End User

• Household
• Foodservice Providers
• Confectioneries
• Others

By Distribution Channel

• Direct Sales & Wholesalers
• Modern Grocery Retailers
• Independent Grocery Retailer
• Non-Store Retailers
• Others

Driving Factors

Growth in Bakery and Confectionery Consumption:

The rising consumption of bakery and confectionery products globally acts as a primary driver for the raising agents market. The increasing demand is spurred by the widespread consumption of bread, cakes, pastries, and convenience foods that rely heavily on raising agents to achieve the desired texture and volume. This trend is further fueled by a growing preference for ready-to-eat and quick-preparation foods, reflecting changing lifestyle dynamics that favor convenience​

Shift Toward Natural and Organic Ingredients:

There is a significant shift towards natural and organic food products among consumers, driven by an increasing awareness of health and wellness. This shift is influencing the raising agents market as well, with a notable demand for products that are labeled as natural or organic, free from artificial additives and preservatives. This consumer preference is steering manufacturers towards reformulating their products or introducing new ones that meet these clean-label standards​

Technological Innovations and Product Enhancements:

Technological advancements in food processing and raising agent formulation continue to spur market growth. Innovations aimed at improving the performance, consistency, and health benefits of raising agents are key factors driving their adoption in the food and beverage industry. Enhanced product offerings that cater to specific dietary needs and preferences are also expanding the market reach​

Restraining Factors

Health and Wellness Trends

The rising consumer focus on health and wellness is driving a preference for natural and organic food products, including raising agents. Consumers are increasingly opting for products that are perceived as more natural, which has led to a greater use of alternatives like vinegar, lemon juice, and cream of tartar in home baking, potentially diminishing the market for conventional chemical raising agents.

Shift Towards Egg Alternatives

The trend towards vegan and plant-based diets has bolstered the use of egg substitutes, which often incorporate leavening properties that can replace the need for traditional raising agents in recipes. This is particularly impactful in markets where dietary preferences are rapidly evolving towards plant-based ingredients.

Consumer Preferences and Product Perception

The perception of chemical leavening agents as less healthy or less natural can also deter consumers, particularly in markets with a strong preference for clean-label products. This is compounded by the growth in popularity of artisanal and homemade baked goods, where there is a marked preference for traditional methods of leavening such as yeast or sourdough cultures, which are often viewed as more natural and wholesome compared to manufactured raising agents.

Growth Opportunity

Expansion in the Asia-Pacific Market

The Asia-Pacific region is projected to experience the fastest growth in the raising agents market, driven by rising standards of living and increasing consumer spending on processed and convenience foods. Countries like China and India are leading this expansion, with their large populations and growing middle classes that are increasingly adopting Western eating habits​

Demand for Natural and Organic Products

There is a rising consumer preference for natural and organic ingredients within the food sector, which extends to raising agents. This trend is influencing manufacturers to innovate and expand their offerings of natural raising agents to meet the clean label demands of consumers. This shift is not only seen as a response to health-conscious trends but also aligns with global sustainability goals​

Technological Advancements and Product Innovation

Advancements in food technology and product development are crucial drivers. The market is seeing significant investments in the innovation of raising agents that cater to a variety of dietary needs, including gluten-free and vegan options. This innovation extends to improving the performance of raising agents in bakery and confectionery products, which remains a core segment for the application of these ingredients

Latest Trends

Increased Demand for Natural and Organic Products

There is a growing consumer preference for natural and organic food products, influencing the demand for natural raising agents. This trend is driven by health-conscious consumers looking for products with clean labels and minimal processing. Manufacturers are responding by reformulating their products to include natural ingredients, which is boosting the market for natural and organic raising agents​

Technological Innovations in Product Development

Technological advancements are enabling the development of new and improved raising agents that offer better functionality and health benefits. Innovations in food technology are not only improving the efficiency of raising agents but also their appeal in terms of texture, taste, and health attributes. This is particularly relevant in the bakery sector, where the demand for high-quality raising agents continues to rise​.

Expansion in Emerging Markets

Emerging markets, particularly in the Asia-Pacific region, are showing rapid growth in the raising agents market. This is attributed to increasing urbanization, rising disposable incomes, and the westernization of dietary habits. Countries like China and India are witnessing a surge in demand for bakery products and processed foods, which in turn fuels the demand for raising agents. The market is also benefiting from improved retail distribution channels in these regions, making it easier for consumers to access a wide range of products​.

Regional Analysis

Asia Pacific (APAC) is the most dominant region, holding a 42.3% market share with revenues reaching approximately USD 12.04 billion. This region’s market prominence is driven by rapid urbanization, increasing disposable incomes, and the growing influence of Western dietary habits, particularly in China and India. The rising middle-class population and expanding food service sectors contribute significantly to the demand for raising agents used in bakery and confectionery products.

North America follows, with a mature market characterized by high demand for convenience foods and a robust presence of global food processing companies. Innovations in food technology and a shift towards natural and organic baking ingredients are key trends driving the North American market.

Europe also presents a significant market for raising agents, supported by a rich baking tradition and increasing consumer demand for premium baked goods. European consumers’ focus on sustainable and clean-label products influences manufacturers to innovate and reformulate products with natural ingredients.

Middle East & Africa (MEA) and Latin America are emerging as potential growth areas. In MEA, the market is expanding due to the rising urban population and increasing investments in food processing and bakery sectors. Latin America is witnessing growth driven by economic recovery and the increasing popularity of bakery products among the expanding middle class.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

Top Key Players in the Market

• ACH Food
• Angel Yeast
• Associated British Foods plc
• Blue Bird Foods India Pvt. Ltd.
• Caravan Ingredients
• Clabber Girl Corporation
• Corbionnv
• Foodchem International Corporation
• Lesaffre
• McCormick & Company
• Newseed Chemical
• Shandong SunKeen Biological Engineering Co., Ltd.
• Solvay S.A.
• Tartaros Gonzalo Castello, S.L.
• The Kraft Heinz Company
• Ward McKenzie Pty Ltd
• Weikfield Products

Recent Developments

In 2023, ACH Food continues to leverage its expertise in the sector by focusing on high-quality fermentation and biological raising agents, which are essential in the production of bread, pastries, and other bakery items.

Angel Yeast has reinforced its position as a key player in the Raising Agents sector in 2023 by focusing on expanding its supply and innovation capabilities.

Report Scope