Bakery Release Agents Market – Snapshot

Global demand for bakery release agents is increasing primarily due to the increased bakery products consumption, supported by the ever increasing population. Bakery release agents are an integral part of the baking process. Release agents with diverse properties are used at different stages by bakery product manufacturing companies. Leading bakery companies across the globe are driving demand for bakery release agents. These companies mainly produce bread, but also other items such as cakes, cookies, crackers, and pastries. They use bakery release agents in their products. Liquid bakery release agents are widely manufactured and consumed globally due to its properties that result in a smooth texture of the products, easy application, and easy availability of ingredients. Solid and semi-solid release agents’ gives desired results under circumstances where viscosity and stickiness is a concern due to the high sugar levels in the bakery products. Bakery release agents find applications in various bakery products such as breads, cakes, pastries, and others.Bread being the highest consumed bakery product, has the largest application of bakery release agents. The use of a low-viscosity, high-performance release agent is generally recommended for these baked products. Transparency Market Research analyses the global bakery release agents market in terms of value in US Mn and volume sales in terms of ‘000 Tonnes.

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The global bakery release agents market is expected to reach around US$ 597.3 Mn by 2026. The market is expected to grow in terms of volume sales at a CAGR of 5.2% during the period 2016-2026.The North America bakery release agents market recorded the highest market share, accounting for US$ 135.4 Mn in 2016. Global bakery release agents market dynamics are subject to factors mainly related to the expanding bakery industry across the globe for various applications such as bread, cakes, pastries and other products.

Release agents are an integral part of many manufacturing processes. These products are usually used to prevent cakes or other baked products from sticking to their containers. Along with this, specialty release agents can enhance productivity, extend tool/die/mold life, increase cycle times, improve surface quality, and reduce scrap and defect rates.This value added purpose of release agents has resulted in increased use of bakery release agents in the bakery industry.

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One of the main challenging factors impacting the growth of the bakery release agents market is the intense competition from local unorganized bakery release agent manufacturers. The bakery release agents market is fragmented with the presence of a large number of players. A major restraint to the expansion of the market is the rise in price of ingredients such as vegetable oils and also the regulations imposed. Bakery release agents being produced by fewer manufacturers are offered in the market at a higher price than the prevailing price levels in the market, based upon their ingredients. Ingredients such as vegetable oils are an important ingredient for bakery release agents. Oils such as soybean, sunflower, safflower, cottonseed, corn, canola, and coconut can be found in release agent formulations. However, the use of these ingredients is affected due to their rising prices. Bakery release agents industry has been facing constraints due to a rise in the prices of these ingredients. Price hikes can be attributed to fluctuations in currency exchange rates.

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Countries in Asia such as China and India have a large number of unorganized local bakery release agent manufacturers. Global manufacturers are focusing on entering emerging countries such as India, Japan, and China. However, the presence of a large number of regulatory policies prevailing in the market are projected to create a hindrance to the entry of new bakery release agent suppliers in these emerging markets. Presence of relatively fewer suppliers of release agents is causing vendors to offer products at rather higher prices. Vertical integration has many benefits for the bakery industry. Vertical integration improves the coordination of the supply chain for both small and large firms. Small firms are able to manufacture and sell their products at wholesale prices, while large firms find it easy to invest in extensive distribution networks with retail outlets. In addition, large firms such as ADM, Cargill, and AAK AB are able to gain access to downstream markets that greatly increase their sales. Vertical integration also helps in synchronizing supply and demand of bakery release agents. Also, the market is largely affected by the global food consumption patterns that are changing due to population growth and economic development. As people buy more food in supermarkets, their food preference changes from more traditional foods to processed foods. Such shifts place increased pressure on bakery products, confectionery, meat, and other products. Also, new product inventions and introductions from companies have made it easier for bakery product manufacturers to increase their value chain results

Some of the key players profiled in the global bakery release agents market are Archer Daniels Midland Company, Mallet & Company, Inc., Masterol Foods Pty. Ltd., Cargill, AAK AB, Avatar Corporation, Sonneveld Group B.V., British Bakels Ltd., Lasenor Emul, S.L., and Maverik Oils, L.L.C.

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