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Growth of Indian Bakery Market Boosted by Introduction of Healthier Products

Published on Sep 11, 2018

The recently published report by IMARC Group, entitled “Indian Bakery Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023”, estimates that the Indian bakery market reached a value of more than US$ 6 Billion in 2017. Bakery products are extensively consumed by people of all age groups in India, owing to their taste and easily digestible nature. The availability of innovative bakery products containing multi-grains and whole wheat with low trans-fat and calorie content has further facilitated their consumption. Nowadays, the demand for bakery items is escalating in the country due to the availability of diversified products which cater to the changing needs and demands of the consumers, such as photo and designer cakes, multi-grain breads, fiber biscuits, eggless cakes, etc.

Indian Bakery Market Trends:

The increasing penetration of international bakery café chains in India, such as Café Coffee Day, Monginis, Barista, etc. have led to the proliferation of bakery products in the region. Further, the e-retailing of bakery products has gained traction in the recent years as it offers enhanced convenience to the consumers. A shift has also been witnessed towards the consumption of bakery items due to the rising influence of western culture. Additionally, the rising health-consciousness of the consumers has encouraged the manufacturers to focus on developing healthier products including brown, multi-grain, and whole wheat bread. Apart from this, the trend of home-bakers and Indianization is also helping the market to grow, whereas, environmental concerns are leading the sales of organic bakery products as consumers are focusing on the ingredients involved in food preparation. However, the major challenge faced by the bakery industry in India is the seasonal fluctuations in the prices and availability of raw materials. In addition, the rising competition in this sector is another impediment faced by the manufacturers. Looking forward, the market value is projected to exceed US$ 11 Billion by 2023, registering a CAGR of nearly 10% during 2018-2023.

Indian Bakery Market Summary:

  • On the basis of type, the market has been segmented into rusks and biscuits, breads and rolls, and cakes and pastries. Currently, biscuits represent the most popular product type as they are highly popular in India as a tea-snack and are consumed by people of all ages.
  • Based on distribution channel, the report finds that convenience stores represent the largest segment. Convenience stores are followed by supermarkets and hypermarkets, independent retailers, artisanal bakeries, online and others.
  • The competitive landscape of the market is concentrated in nature with the leading players being Britannia Industries Limited, Surya Food and Agro Limited, ITC Limited and Parle Products Private Limited.

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