So many of the trends and market changes that have happened in the last two years can be traced back to Covid-19. While some trends have come and gone, others are still going strong today: the baking boom is one of them.

During months of lockdown, people picked up all sorts of new hobbies but baking was among the most popular. What started out as a necessity during bread supply shortages quickly turned into something bigger.

In just two years, many home bakers that started baking as a hobby have now expanded into full-fledged bakeries. The combination of lockdowns and rising online shopping created the perfect environment for bakers to launch their business from home – many of them starting with Instagram shops.

Home baking and the demand for flavour innovation are major contributors to the bakery market, which experts predict will grow 2.5% by 2026.

What Keeps the Industry Going for Bakers?

Consumers are always looking for unique culinary experiences – and baked goods are one of the ways they get to explore new flavours. 

This is one of the reasons why so many bakers have popped up in the last few years, each with its own unique offerings. Some bakeries specialise in cakes or sourdough bread. Meanwhile, other bakeries set themselves apart by experimenting with different flavours.

Why Finding the Right Supplier is the Key to Bakers' Success
Image credit: Sugar and I

The best example is Lotus Biscoff – which changed the baking scene. Consumers could not get enough of the caramelised biscuits and bakers saw an opportunity to tap into the craze by creating Lotus Biscoff desserts. For many bakers, that first Lotus Biscoff cake, pie or pudding they sold was the gateway to expanding their small business. 

Some bakeries made a name for themselves by combining western baking techniques with Asian flavours. Matcha, durian, pandan and gula Melaka are just some of the ingredients that appeal to local palates that bakers profit from.

The demand for innovative flavours keeps the baking industry going – as long as bakeries can keep coming up with new and exciting products.

Common Challenges Bakers Face

Continuously Innovating

As the baking industry grows, it becomes more competitive. There are only so many types of baked goods that customers enjoy. This means that for some bakers, it’s not about what your products are but how they are made. Ingredients like high-quality butter and whole vanilla pods differentiate you from other bakers and can be the key selling point. 

Finding that unique niche to appeal to your target customers is now crucial to stand out in a saturated market. And it’s something that bakers have to continuously keep up to sustain their business. 

Supply Disruptions

Getting a stable supply of ingredients is an issue many bakers grapple with – especially since the global pandemic. Many ingredients used by bakers are imported and difficult to source due to shortage in supplies and their seasonality. 

But lockdowns in different parts of the world complicated things even more. With operational or shipping restrictions, supplies can get delayed for weeks at a time. 

This also ties in with the previous problem bakers face. Without certain ingredients that make their products unique, bakers lose their niche factor that attracts consumers.

Poor Cash Flow

While it may seem that bakeries shot up to success quickly, most of them started out as home-based businesses with limited resources. Bakery businesses that grew out of their home kitchens are still made up of mostly SMEs and for these small businesses, cash flow is one of the biggest setbacks.

Without cash in hand, bakers can only buy so many supplies at a time to make their products. And with limited products in stock, there isn’t as much cash coming in to cover expenses and purchase more supplies.

This was an even bigger issue at the height of Covid-19, when there were supply shortages or a drop in sales due to lockdowns. 

Finding the Right Supplier for your Business Needs

It all comes down to sourcing the right products from suppliers that can cater to your specific needs.

A platform like Dropee that is optimised for wholesale trade is the ideal solution to the common problems bakers face. With hundreds of suppliers and an extensive F&B catalogue, bakers like yourselves can find the ingredients you need at the best prices.

Our client Sugar and I is an artisanal bakery that specialises in premium desserts. While Sugar and I are known for their unique flavours and high-quality ingredients, they are all too familiar with the supply and cash flow issues that affect bakeries.

Sugar and I credits Dropee with helping them source key ingredients and getting them delivered on time. Our services are tailored to you, because every business trade is different and requires different solutions that we can offer.

As for improving cash flow – Dropee helps Sugar and I with that too. The 60-day credit term offered at Dropee allows you to purchase supplies without having to pay upfront. This way, you’ll have ample time to sell your products and get more cash in hand to comfortably cover expenses.

Ingredients Bakers Love on Dropee


At the top of the list is the ingredient that defines baking. Whether it’s all-purpose or speciality flours like wholemeal, you can find a variety of flour on Dropee at the best prices.


Fats are essential in baking to aid the baking process and to add moisture to doughs. You can find high quality imported butter, oil, margarine and shortening on Dropee for all manners of baked goods.


Leaveners are the workhorse in a bakery because they’re what makes baked goods rise. Whether you need yeast, baking powder or baking soda, you can find it on our site.


Many baked goods fall under the dessert category, which needs copious amounts of sugar. We also know not just any sugar will cut it, which is why Dropee has different types of sugars for all your baking needs.

Extracts & Spices

Extracts and spices add layers of flavour to elevate baked goods. You can find the staple vanilla essence and even special flavours like the pandan extract on our site. We also have a vast catalogue of dried spices, from cinnamon to nutmeg to choose from.

Strengthen Your Supply Chain with Dropee

With the right suppliers to provide a stable source of ingredients, as well as suitable payment terms, bakers like yourselves will be better equipped to scale your business. And Dropee can help connect you with the right suppliers.
Sign up as a buyer for free and get the ingredients most important to you here.


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