Much like in the confectionery sector, the bakery industry is facing changing consumer habits – and what can appear to be conflicting demands.
Bakery remains a core part of consumer diets around the world but shoppers are becoming increasingly aware of the nutritional profile of products, fuelling demand for healthier options. At other times, however, a desire to indulgence can shape purchasing behaviour. Both trends offer opportunities for bakery companies and the right mix of ingredients can help businesses capture market share.
Against that backdrop, how can bakery groups use their product recipes to meet demand? Ai Palette, GlobalData’s innovation and consumer insights platform, has identified ingredients it believes offer opportunities for bakers to tap into either the rising interest in healthier products, or can attract consumers seeking “novel experiences” through unusual flavours, or appeal to demand for “high quality” ingredients in bakery – and sometimes a mix of two or three of these trends.
Ai Palette, like Just Food, is owned by GlobalData. The UK-based research and analytics group analysed Ai Palette’s database to identify one “stand-out ingredient” across six geographic markets – the US, the UK, Germany, the UAE, China and Australia.
Each ingredient is classified as having “high growth” and “high engagement” based upon consumers interactions with them across social media, retail and restaurant industry sites over recent years.
In a new research report, GlobalData argues why the six ingredients – miso, morello cherries, cardamom, fig, durian and purple yam – should be of interest to bakery manufacturers, provides suggestions on ingredient pairings and reviews how brands can use the ingredients in their products.
GlobalData says the key market for miso is the US, with morello cherries the principal ingredient of interest in for bakery groups operating in the UK and cardamom for those doing business in Germany.
The analysts selected fig as of interest to product developers selling bakery products in the UAE, durian for NPD teams in China and purple yam for research execs in Australia.
The engagement score GlobalData gives to an ingredient is based on the number of data points in the month. Growth is then calculated based on the increase of the monthly data points over the last two-year period to provide a two-year CAGR.
Credit: GlobalData / AI Palette
According to GlobalData, the fermented paste has grown in popularity due to its health benefits and its sweet and spicy taste profile.
Estimates suggest there are more than 1,000 types of miso, which is crafted primarily from steamed soybeans, grains like rice or barley, salt and koji. The ingredient is making inroads into the bakery category, with GlobalData’s report highlighting the foodservice market in the US.
Miso’s flavour profile ranges from sweet to salty, with lighter varieties generally being sweeter and darker ones exhibiting a more intense umami taste.
The researchers say miso is touted for its potential health benefits, including antioxidant properties and probiotics but nutritionists advise moderation due to the ingredient’s high sodium content. Nevertheless, miso’s popularity is growing in a range of western markets, from Japan to the UK, the report adds.
And, looking ahead, GlobalData suggests miso could be used to boost the functional benefits of stevia, citing PureCircle securing approval for a patent to developing a version of the ingredient especially for bakery products. The company intends to enhance the functional properties of the sugar substitute stevia by incorporating phytoestrogens, derived from sources including miso, into upcoming formulations.
Morello cherries, known for their tart flavour, were originally grown in the UK. They are commonly found in syrups, jams and as garnishes but, GlobalData says, the ingredient has increased in popularity among UK bakery manufacturers.
Used in products like cheesecakes, cupcakes and panna cotta can elevate taste and also attract consumer interest through vibrant colour contrasts.
“For manufacturers, this versatility is crucial; it allows for innovation and differentiation in a competitive market,” the report reads. “As consumer preferences shift towards unique and visually appealing desserts, leveraging morello cherries can enhance product offerings and drive sales.”
Morello cherries, the researchers say, can help bakery manufacturers tap into demand for quality. GlobalData cites consumer research the company conducted in the second quarter of this year in which it asked: “What does ‘good value for money’ mean to you when buying bakery, cereals and morning goods?”
Top of the list of answers came “high quality products/ingredients” at 36%. However, “low price/cheap” was second at 27%. The scores may cause furrowed brows among NPD teams at bakery manufacturers but GlobalData argues morello cherries can provide an answer.
“Morello cherries can enhance the overall quality of products while remaining cost-effective, making them an appealing option for manufacturers,” the report reads. “By incorporating morello cherries, producers can meet consumer expectations for both superior quality and reasonable pricing, ultimately fostering customer loyalty and driving sales in a competitive market.”
The research suggests the UK is a market where the ingredient is proving popular among bakery manufacturers. GlobalData points to recent new products from Tesco, from foodservice supplier Dawn Foods and from upmarket, Mars-owned chocolate retailer Hotel Chocolat.
Purple yams, also known as ube, are gaining recognition for their nutritional benefits and culinary versatility.
Native to South East Asia, the starchy vegetable boasts a vibrant purple hue, a sweet, nutty flavour and is rich in antioxidants.
They are a staple in Filipino cuisine, used in both sweet and savoury dishes and, as health-conscious consumers seek out nutrient-dense foods, purple yams are emerging as a popular choice in bakery.
GlobalData’s researchers have picked out Australia as a potential market for the ingredient, especially in Australia. The researchers suggest Australian Gen Zers are more likely than older cohorts to have a positive sentiment towards the health properties of purple yams. They cite consumer research from the first quarter of the year in which more than half Australians expressed a “positive” view towards antioxidants. “This presents a future opportunity for manufacturers to position purple yams as a nutritious option rich in antioxidants, appealing to health-conscious consumers,” they write.
The ingredient is emerging specifically in independent restaurants in Australia (Nimbo’s launch of an Ube Toastie in 2024 has led to industry awards) but there is education to be done. More than half of Australians (52%) remain unfamiliar with the ingredient, GlobalData says.
For more from GlobalData’s report ‘Industry Insights: Emerging Flavors and Ingredients in Bakery’, or to find out more about GlobalData’s Ai Palette innovation and consumer insights platform, please contact the company here.
“Bread winners? The emerging ingredients in bakery” was originally created and published by Just Food, a GlobalData owned brand.
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