The Global Raising Agents market reached USD 29,288.3 million in 2019. Worldwide demand for Raising Agents saw a 2.8% CAGR from 2019 till 2023, suggesting an expansion of the industry to USD 33,874.2 million in 2024. Projections for the period between 2024 and 2034 indicate a 3.4% CAGR for global Raising Agents sales, resulting in a market size of USD 47,323.2 million by the end of 2034.
The global raising agents market is a dynamic industry prominent within the food and baking industries. This industry is quite broad and includes products such as baking powder, baking soda, cream of tartar and newer organic and natural leavening agents, which are necessary for desired texture, rise and other attributes in various baked and processed foods.
The industry consists of multinational companies as well as small regional producers that can meet the needs of their local markets. Even though the core of this industry consists of baking powder and baking soda, slowly but steadily, the sensibility for the clean-label trend is pushing manufacturers into newer sustainable formulation solutions.
New technological measures, including data analysis and automation, have also changed the face of the industry by improving efficiency, quality management and traceability across the entire supply chain. The scope of the F&B industry is changing faster than ever and so is the Raising agents industry, which is evolving along with the requirements of its consumers and manufacturers.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2024E) | USD 33,874.2 Million |
| Projected Global Value (2034F) | USD 47,323.2 Million |
| Value-based CAGR (2024 to 2034) | 3.4% |
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The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the Global Raising Agents industry.
This analysis reveals crucial shifts in industry performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the ecosystem growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 2.6% (2023 to 2033) |
| H2 | 3.7% (2023 to 2033) |
| H1 | 3.1% (2024 to 2034) |
| H2 | 3.5% (2024 to 2034) |
The above table presents the expected CAGR for the Global Raising Agents industry over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 2.6%, followed by a slightly variable growth rate of 3.7% in the second half (H2) of the same decade.
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to change slightly 3.1% in the first half and remain relatively moderate at 3.5% in the second half.
Bakery products remain the primary application of Raising agents
Owing to trends of rapid urbanization, social change and globalization, the bakery industry is maintaining its leadership position in the usage of raising agents owing to their widespread application in almost all types of baking products.
The baking sector focuses its various development needs on the production of specialized raising agents that deliver high quality to the end user's target products in the competitive market.
Rise of innovative Raising Agents with enhanced functionalities
Raising agents are witnessing the introduction and enhancement of new products that do not fit the usual description of traditional baking powder or baking soda.
The raising agents industry is advancing and small businesses are innovating products such as leavening agents, new textures, or that are targeted to very specific foods such as low-sodium or gluten-free food categories. This is aimed at meeting the varied expectations of bakers, food manufacturers and health-minded consumers, by encouraging innovations and diversifications in the industry.
Companies shifting towards catering personalized and customized Raising Agent solutions
Many brands of raising agents are attempting to offer customized products for small-scale users or individual clients. This means developing tailored mixes and giving access to online recipe tools or delivering bespoke raising agent pre-packs for a fee on a regular basis. Such a development of the industry meets the growth in popularity of personalization and the need for niche offerings in the field of baking and food processing.
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Global sales increased at a CAGR of 2.8% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on the industry will rise at 3.4% forecast CAGR.
Overall, the industry has emphasized raising agents that work and give consistent quality results in baked and food products. With changes in consumer patterns and demand for healthy and sustainable products, the industry has been adopting diverse organic, natural and clean-label products in response to the changing market conditions.
Looking into the future, chances and possibilities for the raising agents industry look optimistic. The long-term growth of the industry, which depends on the markets of bread and other baked goods, as well as ready-meal businesses, is likely to create strong demand in the Raising agents market.
Also, the prospects of the other segments of the industry to bring and create new types of functional ingredients will be essential for the industry's growth. Producers of raising agents are developing new products, broadening their distribution networks and utilizing new technologies to improve the effectiveness, quality and eco-friendliness of their products.
The players in the global raising agents market are quite diverse and consist of a few large global firms, regional ones and many smaller, more specialized companies.
Tier-1 players in the industry are large food and ingredient manufacturing companies engaged in the production of not only baking powder, baking soda and cream of tartar but also several other food product lines.
Companies like Clabber Girl Corporation, Rumford and Calumet Baking Powder, benefit from economies of scale, widespread distribution networks, coordinated marketing and other factors. These companies cover up to 45% of the entire market.
Tier-2 players are regional or specialized manufacturers with a particular focus on the raising agents sector. These companies include Bob's Red Mill, Frontier Co-op and Hain Celestial Group. Such companies focus on particular product lines and operate in specialized geographic markets. They control nearly 35% of the market share by providing more tailored raising agent solutions to the requirements of particular segments of the market.
Tier-3 players are small independent manufacturers focused on a local or specialized market. Companies such as Ener-G Foods, Hoosier Hill Farm and Spicely Organics may be relatively small in terms of the product type produced or the regions served, however, they have a competitive edge in terms of product niche, such as producing organic or natural raising agents. This category of manufacturers makes approximately 20 % contribution of the overall raising agents market.
With consumers becoming more and more informed of the ingredients and components of their food, the Raising agents sector will witness the expansion and emergence of new products, backed by all companies of all tiers, as they strive to expand their presence in the changing environment.
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Clabber Girl Corporation, the baking powder manufacturer, holds a significant place in the raising agents market. The company's range of products involves baking powders of various types as well as specialty ones that meet the needs of both commercial and retail customers.
Considering the increased market for clean and organic products, Clabber Girl has recently launched a range of organic baking powders with non-GMO constituents. Due to its consistent emphasis on new developments and quality, the company has been able to maintain its leadership position in this segment and spends resources on R&D for further improvement of the performance and properties of its raising agents.
According to the company management, there is a consistent global trend in changing to healthier and more sustainable baking ingredients and the company aims to leverage that trend.
Rumford, a subsidiary of Associated British Foods, is a leading British brand in baking powders and cream of tartar products and holds a significant market share in raising agents. It has also established a strong foothold among North American customers. Rumford's range of products includes several formulations for bi-carb and non-branded baking powder as well as double-acting, low sodium and other specialized baking powders.
The company's goals include enhancing the core strengths of its distribution channels, broadening its capabilities and increasing the brand's prestige in order to maximize the opportunities in the raising agents Industry.
Calumet Baking Home, owned by Kraft Heinz Company, has cemented its position in the global raising agents market through its most popular product, Calumet Baking Powder, which has generally been present in American households for decades thanks to its dependability and quality.
More recently, Calumet expanded its product range and now offers several lines of specialty baking powders, including low sodium and aluminum-free ones for the needs of health-based target markets. The company is increasing its expenditure on marketing and brand development in order to affirm its stand as a reputable and creative player in the Raising agents market.
The following table shows the estimated growth rates of the top five markets. These countries are set to exhibit high consumption, recording high CAGRs through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| USA | 3.1% |
| UK | 2.7% |
| Germany | 2.9% |
| Japan | 3.5% |
| China | 4.2% |
USA is the leading market for the global raising agents industry, supported by baking and food processing industries that are huge and fully developed. The consistent inclination of American consumers toward baked items such as assorted loaves and desserts has boosted the demand for quality Raising agents that can deliver desired results efficiently.
The USA industry is changing, with various producers creating new and modified formulas and new types of products to take advantage of the growing USA baking industry. The industry for Raising Agents in USA is projected to exhibit a CAGR of 3.1% during the assessment period and revenue from the sales of Raising Agents in the country is expected to reach USD 13,250.5 million with a market share of 28%.
Germany's significant participation in the global raising agent's market can be attributed to the food manufacturing industry in the country as well as the demands of the consumers. The German industry is premiumized with local citizens having increased demand for high-quality baked goods coupled with a nutritional trend towards incorporating more organic and natural ingredients.
Manufacturers in the industry are developing some key raising agents in order to accommodate the requirements of the local food processing industry in Germany for growth in advanced production technology. These trends are leading to a projected value of USD 4,732.3 million by 2034 with Raising Agents demand calculated to rise at a value CAGR of 2.9% during the forecast period (2024 to 2034) with a value share of 10%.
The fast-paced growth of China's economy along with rise of its middle class population and urbanization have helped China gain market share in the raising agents industry globally. Due to the changing lifestyle habits of consumers and the role of e-commerce as a market changer, there has been a rapid increase in the consumption of baked and processed foods.
Manufacturers are customizing their products to suit Chinese consumers and using the online retail channel to expand their reach in the vast country. These factors are responsible for the robust projected forecast CAGR of 4.2% from 2024 to 2034, with the country achieving a global value share of 21% in 2034 with a value of USD 9,937.9 million.
| Segment | Organic Agents |
|---|---|
| Main Segment | Product Type |
| Value Share (2034) | 21% |
As societal trends and attitudes are shifting, demand for healthier and greener food products is being expressed by consumers. The Raising agents industry is thus, expanding its focus towards organic and natural products. In order to capture more of this rapidly growing market segment, companies are focusing on creating organic baking powder and sodas that will match health-conscious customers' needs.
This growth has propelled the segment's value to USD 9,937.9 million in 2034 with a market share of 21% and further projections suggest its growth at a CAGR of 4.0%.
| Segment | Offline Retail |
|---|---|
| Main Segment | Sales Channel |
| Value Share (2034) | 36% |
Consumers have developed a clear consumer preference for raising agents in-store. Before choosing a brand and a type of baking soda or baking powder, many consumers feel the need to first examine and compare various brands and types on the market. This can occur only in traditional retail stores, which is driving this segment.
These trends of consumers preferring shopping in supermarkets and other baking stores have ensured that offline sales have remained the major supplier channel for manufacturers in the Raising agents industry. Bolstering from these trends, this segment is set to achieve a market share of 36% with a market value of USD 17,036.3 million by 2034 due to growth at a forecast CAGR of 3.7%.
The global Raising agents industry is set to become an increasingly competitive space in the next few years. With key market players engaging in product innovations and expansion, mergers and acquisitions are expected to be a strategy that companies will employ to improve their market share and competitiveness.
Such manufacturers are likely to seek the development of new and improved formulations of baking powder, baking soda and other Raising agents to meet the changing consumer demands for better and more eco-friendly options.
Also, due to technological advancements and research collaborations, other industry stakeholders are forming strategic alliances with researchers and technology firms in a bid to improve the technology and science which can increase the performance and functionality of all Raising agents. Their ability to optimize production processes and reduce costs, while minimizing adverse environmental impact can be beneficial to the stakeholders.
As per Product Type, the industry has been categorized into Baking Powder, Baking Soda, Cream of Tartar, Organic Agents and Others.
As per Application, the industry has been categorized into Bakery Products, Confectionery Products, Biscuits and Crackers, Packaged Food Products, Fried Food Products and Other Food Products.
As per Sales Channel, the industry has been categorized into Direct Sales & Wholesalers, Modern Grocery Retailers, Independent Grocery Retailer and Non-Store Retailers.
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe Eastern Europe, Balkans & Baltic, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific and Middle East & Africa.
The global market is estimated at a value of USD 33,874.2 million in 2024.
Prominent players in the landscape include Clabber Girl Corporation, Rumford, Calumet Baking Powder, Arm & Hammer, Bob's Red Mill, Frontier Co-op and Hain Celestial Group.
The Global Industry grew at a Historical CAGR of 2.8% from 2019 to 2023.
The USA sales are projected to hold a revenue share of 28% over the forecast period.
The industry is projected to grow at a forecast CAGR of 3.4% from 2024 to 2034.
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