The latest news, trends, analysis, interviews and podcasts from the global food and beverage industry

The European bakery ingredients sector is entering a pivotal period of transformation, driven by evolving consumer expectations, tightening regulations and the urgent need for sustainable innovation. The newly released Baking Europe Ingredients Market Report 2025 provides essential intelligence for industrial bakers, ingredient suppliers and procurement leaders navigating this complex landscape.

Market fundamentals remain strong

The global bakery ingredients market is valued at $21.3 billion in 2025 and forecast to reach $28.5 billion by 2030, with Europe retaining a commanding 33–34% share. Industrial bakeries now produce over 70% of bread in Europe, underscoring the strategic importance of ingredient innovation and supply chain resilience.

The new competitive reality

Cost leadership alone no longer guarantees market position. When 66% of consumers worry about hidden ingredients, reformulation becomes risk management. When HFSS-compliant products outperform non-compliant ones by five percentage points in the UK, regulatory foresight becomes margin protection. When functional nutrition claims drive double-digit growth in adjacent food categories, ingredient strategy stops being defensive and starts being a source of differentiation.

Consumer priorities are reshaping the sector

The report reveals critical shifts in European consumer behaviour that demand strategic response. Research from NIQ shows that 47% of Western European consumers hold negative views of ultra-processed foods, whilst health and wellness trends are increasing category growth rates. Natural ingredients rank as the top health priority for 38% of consumers, yet only 48% globally understand what 'ultra-processed' actually means, highlighting a significant education gap that forward-thinking brands can address.

At the same time, economic pressures persist. Food prices remain the top consumer concern across Europe, with 39% of respondents agreeing that economic security must come first before environmental considerations. This creates a dual challenge for bakery manufacturers: delivering health-positioned products that also represent clear value, whilst managing promotional mechanics that support both retailer collaboration and consumer trial.

What's inside the report?

This comprehensive 64-page report delivers actionable insights across three critical areas that will define competitive success through 2030.

The market and industry analysis section provides detailed growth forecasts, examines the regulatory landscape including EUDR, PPWR and HFSS frameworks, and features an exclusive interview with Thomas Lesaffre, marketing director of baking with Lesaffre, on how agility, sustainability and collaboration will shape industrial baking's future.

The consumer intelligence section draws on research from NIQ, FMCG Gurus, CARMA and AHDB to reveal how health consciousness, ingredient transparency and convenience are reshaping purchasing decisions.

You'll discover why protein-enriched products are achieving 19.5% growth in some categories, how fermented ingredients are trending across social media and what the shift from home baking to ready-to-eat means for ingredient demand.

The ingredient analysis section provides in-depth coverage of wheat, sugar beet, yeast, dairy and eggs, examining how climate volatility, EU policy decisions and supply chain pressures are affecting yield, quality and availability. From the impact of spring drought on European wheat harvests to the role of yeast in circular economy models, these chapters connect agronomic realities to commercial strategy.

Strategic themes for 2025–2030

The companies that will lead this market through 2030 won't be those with the largest production lines. They'll be those that connect consumer insight to ingredient strategy, translate regulatory requirements into product advantages and build supply chains resilient enough to withstand both climate volatility and policy shifts. Growth will depend less on volume and more on value generation through digitalisation and AI, health-plus functionality, local sourcing and regional resilience, circular economy approaches and trust-building through sustainability credentials.

Essential reading for decision-makers

This report exists because fragmented information creates fragmented strategy. The bakery sector is too complex and too competitive for guesswork. Whether you're managing ingredient procurement, leading R&D teams, planning portfolio investments or navigating supply chain risks, this report provides the data to make strategic decisions with confidence.

Download your copy of Baking Europe Ingredients Market Report 2025 at BEIM Report 2025 and gain the strategic intelligence needed to transform market challenges into competitive advantage.