SOURDOUGH MARKET ANALYSIS

Sourdough Market 2017-2027

Sourdough is a dough that is prepared by fermentation of dough by using naturally lactobacilli and yeast culture. The sourdough is widely used to prepared bread, pizza, buns, cakes, cookies, and waffles & pancakes. The bacteria present in dough help to neutralize the acid and make these products easily digestible and are good for health. A sourdough culture may compose of different types of bacteria depending on the growth and production of environmental conditions. Also, the presence of other important nutrients, such as iron, folic acid, magnesium, B vitamins, and zinc, which make these products an ideal for digestive system due to its numerous health benefits.

The global sourdough market is projected to reach over US$ 6.0 billion by the end of 2027, in terms of revenue, growing at CAGR of 7.0% during the forecast period (2019 to 2027).

Drivers

Rising demand for sourdough from the bakery industry owing to its various health benefits is predominantly fueling the market growth of sourdough. For instance, in mid-2016, popular bakery Greggs, which is famous for its butter-based steak bakes and chicken slices, introduced a range of low-fat healthy pastries for calorie-conscious target customers. These pastries prepared using heat-friendly sourdough. Therefore, the growing demand for this product from the bakery is augmenting the market growth of sourdough.

Growing number of artisan bakeries that use of type I sourdough, which is made by using only wild yeasts, is accelerating the market growth of sourdough. Moreover, the number of artisan bakeries is rapidly growing owing to shifting consumer preference for traditional and healthy food products, especially in the bakery products sector is expected to foster the market growth of sourdough over the forecast timeframe. Moreover, increasing penetration of online stores is also projected to augment the market growth of sourdough. 

Regionally, Europe dominated the global sourdough market in 2018, reporting 54% market share in terms of revenue, followed by North America and Latin America, respectively. The rise demand for gluten-free bakery products among European consumers is expected to further boost the market growth substantially in the next few years.

Figure 1. Global Sourdough Market, Revenue Share (%), By Region, 2018

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Market Restraints

Increasing penetration of commercial sourdough in which high quantities of baker’s yeast is used to quicken time of fermentation and make sure consistency. These products only mimic sourdough taste but do not offer its beneficial properties. Commercial sourdough can impart bad effects on the health of people. This factor is projected to hinder the market growth of sourdough over the forecast period.

The high cost of sourdough as it is not a native product across countries such as India and Latin America is often categorized and compared with healthy foods, which ultimately make it a high price-influenced market. Moreover, owing to the higher cost of sourdough culture compared to the baker’s yeast, the price of sourdough is slightly high. Therefore, the high cost of the sourdough is expected to restrict market growth over the forecast period.

Market Opportunities

Growing demand for clean-label products that contain fewer artificial ingredients and more natural ingredients is projected to offer lucrative growth opportunity to the market of sourdough. Clean-label products offer transparency with respect to the manufacturing process and the use of ingredients in products. Therefore, shifting Consumers' preference towards the clean-label product is projected to propel the market growth of sourdough over the forecast period.

Rising demand for dehydrated sourdough as a dehydrated version of sourdough (Type III) is the most used as a starter in the bakery industry. Dehydrated sourdough offers protection against microorganisms while protecting the important culture from heat damage. Moreover, dehydrated sourdough provides a cost-effective production of end-products. Therefore, the rising usage of dehydrated sourdough across the bakery industry is augmenting the market growth. 

Figure 2. Global Sourdough Market – Opportunity Analysis

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Market Trends

The growing trend of using sourdough products as an option for breakfast and brunch in hotels, cafes, restaurants, and pubs owing to its easy-digestibility, is propelling the market growth of Sourdough and this trend is expected to continue over the forecast period. According to the Coherent Market Insights, specialty bread, which is an artisan bakery based in the U.K., recently launched a new product called sourdough and poppy seed bloomer, particularly targeting the foodservice sector.

Rising demand for 100% Whole wheat sourdough and chocolate sourdough loaves due to growing consumer preferences for healthy and tasty foods is encouraging several new and innovative products. This factor is expected to propel the market growth. According to the Coherent Market Insights, U.S. based bakery – Albemarle Baking Co. – provide chocolate cherry levain, which is a sourdough loaf flavored with chocolate and dried cherries.

Figure 3. Global Sourdough Market, Revenue Share (%), By Type, in 2018

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On the basis of type, in 2018, type III accounted the largest market share of 50% in terms of revenue, followed by type II and type I, respectively. Type III sourdough is extensively used for commercial purposes as it extends the shelf-life of the products and keeps the quality intact.

Figure 4. Global Sourdough Market – Value Chain Analysis

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Competitive Section

Key players active in the global sourdough market are Puratos, Ernst Böcker GmbH & Co. KG, IREKS GmbH, Kampffmeyer Food Innovation GmbH, Philibert Savours, Lesaffre, Dr. Otto Suwelack Nachf. GmbH & Co., ITALMILL S.r.l., Alpha Baking Co., Bread SRSLY, Lallemand Inc., Cultures for Health, German Bakehouse, Boudin SF, Madison Sourdough, and backaldrin International the Kornspitz Company GmbH

Few Recent Developments

Puratos NV

• In May 2016, the company acquired Bidvest Bakery Solutions (Pty) Ltd, which is a wholly-owned subsidiary of Bidvest Food Africa (Pty) Ltd. Bidvest Bakery sells bakery ingredients and raw materials such as bread and roll premixes, confectionery premixes to various industrial bakers and in-store bakery sections of supermarket retailers. This acquisition is expected to help the company in expanding its presence in the market in Africa. 

Kampffmeyer Food Innovation GmbH (GoodMills Innovation GmbH)

• In July 2016, the company introduced a cereal-based powdered marzipan replacer, which can be used in the production of various bakery products. This is a cost-effective ingredient for the production of bakery products. 
• In September 2015, the company introduced wheat textures in the form of flakes that can be used in vegan dishes, minced meat substitutes, bakery products, and snack fillings