(Entertainment-NewsWire.com, May 08, 2024 ) According to the latest analysis by Virtue Market Research, the Plant- Based Oils for Bakery Market was valued at USD $10.82 billion and is projected to reach a market size of USD $23.62 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 11.80%.
The plant-based oils for bakery market has experienced sustained growth driven by a long-term market driver: the increasing consumer preference for healthier and sustainable alternatives in baked goods. Over the years, consumers have become more health-conscious, seeking products that are free from trans fats and have lower saturated fat content. Plant-based oils, such as olive oil, coconut oil, and sunflower oil, have gained popularity as healthier substitutes for traditional baking fats like butter and margarine. This long-term trend towards healthier eating habits has significantly contributed to the growth of the plant-based oils market in bakery applications.
The outbreak of COVID-19 had a notable impact on the plant-based oils for bakery market. During the pandemic, there was a surge in home baking activities as lockdown measures restricted dining out and increased demand for packaged bakery products. This led to a temporary disruption in the supply chain, affecting the availability of certain plant-based oils. However, the pandemic also highlighted the importance of healthy eating and immune-boosting foods, further driving interest in plant-based alternatives and sustaining market demand amidst challenging circumstances.
In the short term, a key market driver for plant-based oils in bakery is the growing consumer awareness of allergen-free ingredients. As more consumers seek allergen-free or vegan bakery options, plant-based oils offer a suitable alternative to common allergens like dairy and eggs. This short-term driver is complemented by an emerging opportunity in clean label bakery products. Plant-based oils align with the clean label trend, as they are perceived as natural and minimally processed ingredients, appealing to health-conscious consumers seeking transparency in food products
Alongside these drivers, a notable trend observed in the industry is the innovation in oil blends for specific bakery applications. Manufacturers are developing custom oil blends tailored for different bakery products, such as bread, cakes, and pastries, to optimize taste, texture, and shelf life. This trend reflects the demand for versatile plant-based oils that can meet the functional requirements of various bakery formulations while maintaining clean label credentials.
Market Segmentation: By Type: Soyoil, Rapeseed/Canola Oil, Palm Oil, Sunflower Oil, Corn Oil, Peanut Oil, Olive Oil, Others In the market segmented by type, the largest subsegment is Sunflower Oil. Sunflower oil holds a significant share in the plant-based oils market for bakery due to its neutral flavor profile, high smoke point, and versatility in baking applications. It is widely preferred by bakeries and food processors for its light texture and ability to enhance the taste and texture of baked goods. On the other hand, the fastest-growing subsegment within this category is Olive Oil. Olive oil's perceived health benefits and distinctive flavor profile are driving its increasing adoption in bakery products, particularly in artisanal and premium segments.
By Application: Foodservice outlets, Household, Food processing Moving to the market segmented by application, the largest subsegment is Household. Household consumers represent the largest market for plant-based oils in bakery, as more individuals are baking at home and seeking healthier alternatives to traditional fats. The convenience of using plant-based oils in home baking aligns with the trend towards homemade and healthier baked goods. Conversely, the fastest-growing subsegment within this category is Foodservice Outlets. The foodservice sector is witnessing a surge in demand for plant-based bakery products, driven by changing consumer preferences, menu diversification, and the expansion of vegan and allergen-free offerings in restaurants and cafes.
By Packaging type: Cans, Bottles, Pouches, Others In terms of market segmentation by packaging type, the largest subsegment is Bottles. Bottled packaging is widely used for plant-based oils in bakery applications, offering convenience, portability, and easy dispensing for both household and commercial use. The popularity of bottled plant-based oils reflects consumer preferences for convenient packaging formats. On the other hand, the fastest-growing subsegment within this category is Pouches. Pouch packaging is gaining traction in the plant-based oils market due to its lightweight, space-saving design, and eco-friendly attributes. The growing demand for on-the-go and sustainable packaging solutions is driving the rapid growth of pouches in the bakery oil segment.
Regional Analysis: North America emerges as the largest market for plant-based oils in bakery. The region's robust bakery industry, coupled with increasing consumer demand for healthier baked goods, drives the significant consumption of plant-based oils. North America's well-established foodservice sector and growing adoption of plant-based diets contribute to the dominance of this region in the market for bakery oils. Asia Pacific represents the fastest-growing market for plant-based oils in bakery applications. The region's burgeoning bakery industry, fueled by changing dietary preferences and rising health consciousness among consumers, propels the rapid adoption of plant-based oils.
Latest Industry Developments: • One trend among companies is the focus on product innovation and diversification to meet evolving consumer preferences. Bakery oil manufacturers are developing new formulations and blends of plant-based oils tailored for specific bakery applications, such as cakes, breads, and pastries. These innovative products aim to optimize taste, texture, and shelf life while catering to growing demand for healthier and cleaner label ingredients. Recent developments in oil extraction techniques and sourcing methods have enabled companies to expand their product portfolios and differentiate themselves in the competitive market.
• Collaboration is a strategic approach adopted by companies to strengthen market presence and distribution networks. Bakery oil suppliers are forming partnerships with bakery ingredient suppliers, food manufacturers, and retail chains to expand market reach and enhance product visibility. Collaborations enable access to new markets and customer segments, facilitating the introduction of plant-based oils into diverse bakery applications. Recent partnerships between oil manufacturers and bakeries have led to co-branded product launches and joint marketing campaigns, driving mutual growth and market penetration.
• Another notable trend is the increasing focus on sustainability and traceability throughout the supply chain. Companies are investing in sustainable sourcing practices, such as sourcing oils from certified organic farms or implementing traceability systems to track the origin of raw materials. This trend aligns with consumer preferences for ethically sourced and environmentally friendly products, enhancing brand reputation and market competitiveness. Recent developments in sustainable packaging solutions, such as recyclable bottles and pouches, further contribute to companies' efforts to enhance sustainability credentials and appeal to eco-conscious consumers.
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