The popularity and consumption of baked goods in India has increased enormously and so has the bakery industry. So, it is only logical to find out what this industry has to offer us and what’s the future of bakery industry in India.
India is the world's second-largest food producer, after China, and has the potential to overtake China in the food and agriculture industry. In India, the bread business is one of the most important contributors to the processed food industry. Bakery products, such as bread and biscuits, account for more than 82 percent of all bakery items produced in the country.
According to Expert Market Research, India's bakery industry will be worth roughly USD 7.60 billion in 2020. Between 2021 and 2026, the market is expected to increase at an annual rate of 8.5 percent, reaching a value of USD 12.39 billion. India's bakery business is bolstered by the region's flourishing biscuits and cookies business.
In India, the bakery industry is divided into three categories: bread, biscuits, and cakes. In India, the organized bakery business generates roughly 1.3 million tons of products, with the balance coming from the unorganized sector and small-scale local producers. Even though India has a large number of automatic and semi-automated bread and biscuit making machines, most of us prefer fresh bread and other bakery products.
However, there are many challenges which are being faced by the bakery industry in India. People's tastes are shifting as a result of MNCs offering pizzas and burgers. The market has become more competitive as a result of the influx of domestic and international firms.
Consumer demand for whole wheat, light, natural, and additive-free products has increased dramatically as the trend of "natural nutrition," "healthy living," and "organic products" has grown. The rise in sales of packaged, whole wheat, whole meal, gluten-free, and natural products in recent years is a strong indicator of this new and healthy way of life.
There are challenges which are category specific as well. In recent years, the biscuit category has experienced remarkable expansion. Packaging standardization requirements appear to be a significant barrier to adopt. Input cost volatility is projected to persist, adding to the problems. For a long time, profitability has been the main focus in the bread industry. Players have been attempting to grow their share of value-added products while focusing on daily distribution operational efficiencies. The challenge for cakes would be to increase packaged cake consumption.
Bakery industry in India is not just successful in following the food trends or in terms of its expansion over the country. It has also emerged out as one of the most significant sources of providing employment and start-up opportunities to women as well. Women are entering the bakery sector in regions like Gurgaon, Chandigarh, and south Indian states in greater numbers than last year.
The India Cake market is expected to reach US$ 882.24 million by 2024, increasing at a CAGR of 12.5 percent between 2019 and 2024. Cake consumption is increasing as a result of shifting consumer views, as well as their convenience and health benefits, resulting in a growth in popularity of on-the-go cake goods, which are baked or produced at the convenience of the consumer.
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