Key Business Outlooks for 2024 (1/10): Bastian Hörmann, ADM

The year 2023 has brought more international turmoil, supply chain disruption and historic inflation all over the globe, putting a lot of pressure on the baking industry. Concerns about the availability of raw materials, the cost of energy, transport capacity, regulations, labor shortage and purchasing power had companies and professionals worried and looking for solutions.

That is what we see in these interviews with top managers from the most important industry players: the industry fought back and invested in research and development to provide sustainable solutions that address these challenges. 

For 2024, representatives of some of the most important equipment and ingredients manufacturing companies talk in unison about sustainability, automation, energy-saving technology, traceability and working for the customers, to make sure their access to good bakery products is unhindered by the setbacks of the world. None of the viewpoints shared with us is lacking in hope, an essential attribute for a long-term winning business.

Conventional food production systems have enjoyed uninterrupted growth over the last few decades. While this trend is expected to continue in the short term, resource constraints may dampen expansion in the long term. Furthermore, the sector is increasingly ripe for disruption.

It is up to the bakers, transporters and retailers to find the right way to stay profitable and capitalize on the market opportunities that await them in 2024.

Bastian Hörmann, Global Marketing Director, Sweet Goods, Dairy, Specialized Nutrition, ADM

What are your expectations for 2024 keeping in mind the legacy of 2023, but also current challenges?

In reflection of 2023, where consumer preferences and health considerations played a pivotal role, the bakery sector is expected to continue its focus on innovation and adaptability. An emphasis on healthier eating habits and nutritional awareness are likely to persist, influencing formulation challenges in the industry.

Significant development of formulations that align with health-conscious preferences is expected, including gluten-free, vegan and low-sugar options. The industry’s commitment to innovation will be essential to staying ahead of consumer expectations. The Nutri-Score (NS) system is anticipated to have continued impact on baked goods and snacks, with manufacturers seeking ways to optimise formulations to achieve better scores. This could involve tweaking ingredient ratios, exploring new combinations or incorporating ingredient alternatives.

Sugar reduction is also an area of focus. Bakery brands will continue to explore and implement formulations that reduce sugar content without compromising on taste and quality, including the integration of sweetening solutions derived from natural sources, such as stevia or agave. In addition to sweetener alternatives, functional ingredients like ancient grains, plant proteins and fibre, which can support tailored, nutrition-forward options, will resonate well with consumers. 

Ingredient sourcing is also crucial, with an emphasis on sustainable and locally sourced options. Bakeries might explore alternative flours, natural sweeteners, and plant-based ingredients to cater to the growing demand for diverse dietary choices.

We anticipate the bakery industry in 2024 to be characterised by a delicate balance between tradition and innovation. We’re supporting our customers through technologies and solutions that address these challenges head-on, delivering products that meet consumer expectations while also contributing to a healthier and more sustainable future.

Which are the most important drivers of change for your business in 2024? How do you plan to prepare for them?

As the world grapples with challenges associated with a growing population and the strains it puts on our natural resources, there is an increasing need to enact widespread industry improvements to how food is grown and produced.

Adopting practices like regenerative agriculture is an important part in addressing challenges throughout the entire food production chain, including reducing carbon emissions. Specifically, regenerative agriculture can minimise soil disturbance, maintain living roots year-round, continuously cover bare soil, maximise diversity by emphasising crops, soil microbes and pollinators, as well as responsibly manage inputs like fertilizers and pesticides. Implementing these holistic practices can help reduce greenhouse gas (GHG) emissions, increase soil carbon sequestration, improve water quality, promote biodiversity and enhance overall soil health.

At ADM, our commitment lies in advocating for the planet through sustainability initiatives across our global supply chain. We engage with farmers to integrate regenerative agriculture practices, as well as spearhead traceability efforts, promote regional and local capabilities and support the well-being of grower communities. For example, our European grown and sourced protein portfolios are designed to support egg replacement, protein enhancement and texture improvement in bakery items.

Read the rest of the story in the January / February edition of European Baker & Biscuit.