Indian Bakery Market Research Report and Industry Forecast

India Bakery Market Summary:

The Indian bakery market size reached USD 13.8 Billion in 2024. The market is expected to reach USD 31.5 Billion by 2033, exhibiting a growth rate (CAGR) of 9.12% during 2025-2033. The market growth is attributed to the rising urbanization, increasing disposable incomes, growing demand for convenient and ready-to-eat food products, rapid expansion of organized retail, and evolving consumer preferences for healthier and premium bakery items.

Market Insights: 

• Based on region, the market is segmented into North, West and Central, South, and East India.
• On the basis of product type, biscuits lead the market in 2024.
• Based on the distribution channel, convenience stores lead the market in 2024.

Market Size and Forecast:

• 2024 Market Size: USD 13.8 Billion
• 2033 Projected Market Size: USD 31.5 Billion 
• CAGR (2025-2033): 9.12% 

A bakery is an establishment that prepares and sells flour-based baked products, such as bread, tortilla, cookies, donuts, cakes, pastries, and pies. These products are prepared using a variety of grains, such as rye, maize, wheat, and oats. They offer essential nutrients and are rich in calcium, fiber, iron, energy, fat, protein, vitamins, and minerals that promote health. Besides this, bakery products offer convenience and affordability to consumers, thereby gaining immense popularity across India.

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Indian Bakery Market Trends:

The growing population is resulting in the increasing demand for bakery food products in India. This represents one of the key factors positively influencing the market. In addition, the rising consumption of bread, biscuits, and fast-moving consumer goods (FMCG) is contributing to market growth. Apart from this, the increasing influence of western food trends is catalyzing the demand for bakery products in the country. This, in confluence with the rising consumption of cakes on birthdays and other special occasions, is stimulating market growth. Along with this, the burgeoning food and beverage (F&B) industry, coupled with the expansion of quick service restaurants (QSRs) and fast-food chains, is increasing the usage of bread for preparing sandwiches, soups, burgers, and snacks. Furthermore, the thriving e-commerce industry that offers doorstep delivery, exciting offers, and online payment methods is augmenting the Indian bakery market. Additionally, hectic lifestyles and changing dietary patterns are driving the consumption of ready-to-eat (RTE) food and bakery products, which, in turn, are creating a positive outlook for the market in India. Furthermore, the rising health awareness among individuals is propelling manufacturers to introduce healthy, low trans-fat, multi-grain, and whole wheat bakery products. Besides this, the expansion of hypermarkets, supermarkets, convenience stores, and departmental stores is offering lucrative growth opportunities to manufacturers operating in the country. In line with this, the rising focus of leading market players on promotional activities to expand their market reach and increase profitability is impelling the market growth. They are also increasingly investing in research and development (R&D) activities to launch organoleptically improved products.

The bakery industry in India is experiencing a strong shift toward health-focused formulations, driven by growing health consciousness among urban consumers and a surge in lifestyle-related disorders such as diabetes and obesity. Traditional bakery offerings are rapidly replaced by functional variants that incorporate whole grains, millet, oats, multigrain flours, and natural sweeteners. Products fortified with protein and fiber, as well as those featuring superfoods like flaxseed, chia, quinoa, pumpkin seeds, and amaranth, are gaining traction across urban centers and Tier I cities. Gluten-free, vegan, and low-sugar bakery items are no longer niche but are becoming mainstream, particularly in premium and artisanal segments. Major players and startups alike are forming alliances and investing in research and development (R&D) to create innovative and premium offerings. Notably, on June 13, 2024, Mondelez International entered into a licensing agreement with Belgium’s Lotus Bakeries to locally manufacture, market, and distribute the premium Biscoff cookie brand in India, shifting away from its previous import-only model to reduce costs through domestic production. The partnership leverages Mondelez’s extensive distribution network and manufacturing capabilities to accelerate Biscoff’s reach in India. Besides, the government’s millet promotion campaigns have also helped normalize the use of ancient grains in bakery formats. This trend is also shaping consumer expectations around clean labeling and ingredient transparency.

The rapid digitization of India’s food service ecosystem has reshaped bakery consumption patterns, particularly in urban and semi-urban clusters. This trend is significantly expanding the bakery market size in India. Online ordering, along with social commerce on Instagram and WhatsApp, has led to the emergence of agile, direct-to-consumer (D2C) bakeries. Food delivery platforms generally observe that 30–40% of their users place at least one order per month. For instance, Zomato’s user base translates to approximately 15.4 million active users every month. These digital-first brands are leveraging customer data and feedback to offer hyper-personalized and freshly made products, bypassing traditional retail formats. Simultaneously, cloud kitchens dedicated solely to bakery items, such as gourmet cakes, cupcakes, bread boxes, and festive hampers, are scaling rapidly due to lower overhead costs and faster go-to-market capabilities. Improved cold chain logistics and last-mile delivery networks ensure consistent product quality, even for temperature-sensitive baked goods. Startups and homegrown labels are capitalizing on special occasions, personalization trends, and subscription-based models for curated bakery boxes. This trend aligns with consumers’ increasing preference for convenience, quick delivery, and artisanal quality without the need to visit a physical bakery.

Current Status of the Bakery Industry in India:

The bakery industry in India is witnessing robust growth, driven by changing consumer preferences, urbanization, and increased disposable incomes. Bread, biscuits, and cakes dominate the market, while emerging categories such as artisanal baked goods, functional bakery items, and ready-to-eat desserts are gaining ground. Demand from both urban and semi-urban regions is rising, supported by the proliferation of modern retail, online platforms, and quick-service outlets. The industry comprises a mix of organized players, multinational brands, regional bakeries, and a significant unorganized sector. With growing health awareness, innovation in ingredients, and the adoption of automation in production processes, the sector is evolving rapidly. Moreover, government support for millet-based and nutritionally enriched products is also influencing product diversification, signaling a transition from volume-based offerings to value-driven, health-conscious innovations.

Indian Bakery Industry Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the Indian bakery market report, along with forecasts at the country and regional level from 2025-2033. Our report has categorized the market based on product type and distribution channel.

Breakup by Product Type:

• Biscuit
  • Cookies
  • Cream Biscuits
  • Glucose Biscuits
  • Marie Biscuits
  • Non Salt Crackers Biscuits
  • Salt Crackers Biscuits
  • Milk Biscuits
  • Others
• Bread
  • Sandwich Breads
  • Hamburgers
  • Croissants
  • Others
• Cakes and Pastries
  • Packed Cupcakes
  • Pastries
  • Muffins
  • Layer Cakes
  • Donuts
  • Swiss Roll
  • Others
• Rusk

Biscuits are the most consumed bakery products due to their innovative flavors, designs, nutritional value, and affordable prices. Additionally, the introduction of innovative product variants is increasing their sales.

Breakup by Distribution Channel:

• Convenience Stores
• Supermarkets and Hypermarkets
• Independent Retailers
• Artisanal Bakeries
• Online
• Others

Convenience stores represent the largest segment as they allow easier access to a wide variety of bakery items for consumers.

Breakup by Region:

• North India
• West and Central India
• South India
• East India

On the basis of the region, the market has been segmented into North, West and Central, South, and East India.

List of Bakery Industry Players in India:

The competitive landscape of the industry has also been examined, with some of the top Indian bakery companies including:

• Anmol Industries Limited
• Bonn Group
• Britannia Industries Limited
• ITC Limited
• Mondelēz International
• Mrs Bectors Food Specialities Ltd
• Parle Products Pvt. Ltd.
• Ravi Foods Pvt Ltd
• Surya Food & Agro Limited

This report provides a deep insight into the Indian bakery market covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the Indian bakery market in any manner.

Latest News and Developments:

• On June 2, 2025, the Karnataka Milk Federation (KMF) introduced an extensive line of 18 bakery offerings under its Nandini Goodlife brand. The launch forms part of a strategic initiative to replace external branded products in Nandini parlours with home-grown, dairy-enriched baked goods. The new in-house bakery line, featuring attractive packaging, will soon be available across Nandini parlours throughout Karnataka.
• On April 12, 2025, CK's Bakery, a prominent bakery chain under CavinKare Group's CKR Retail Foods, made its formal entry into the Karnataka market by inaugurating a flagship 700 sq ft outlet in Jayanagar, Bengaluru, marking its first expansion beyond Tamil Nadu. The brand has outlined an ambitious plan to open 25 additional stores, supported by partnerships with quick-commerce platforms to ensure fresh product availability and a seamless omnichannel customer experience. The store introduced Bengaluru-specific desserts such as Jelly Cakes and Milky Cakes to cater to the city's urban palate.
• On December 30, 2024, Bikaji Foods International Limited announced the incorporation of its wholly-owned subsidiary, Bikaji Bakes Private Ltd (BBPL), following Ministry of Corporate Affairs approval. BBPL will focus on manufacturing, distributing, and operating outlets for a diverse portfolio of premium frozen bakery products, hereby marking Bikaji's strategic expansion into the bakery and frozen-food segment.
• On September 27, 2024, ITC Sunfeast Baked Creations launched its first physical bakery café at the FabIndia Experience Store in Whitefield, Bengaluru, marking a strategic shift from its earlier cloud-kitchen delivery model to an omnichannel retail format. The café offers a curated selection of premium bakery products, all crafted by ITC's culinary experts to cater to Indian palates.

Report Coverage: