India Bakery Products Market: Overview
India Bakery Products market is expected to grow with a significant growth rate during the forecast period 2018-2025 owing to their pleasant taste and health-benefits as they are made from a variety of grains like maize, wheat, and oats. Rise in the innovation of bakery product offerings, increasing per capita household income, surge in consumer spending on food products will lead the market over the forecast period. Moreover, the consumers are more conscious than ever before and the movement toward healthy eating habits is one of the greatest influencers of the India Bakery Products industry.
Bakery Industry is one of the largest segments of the food processing industry in India. The availability of innovative bakery products containing multi-grains and whole wheat with low trans-fat and calorie content has further facilitated their consumption. India is the second largest producer of biscuits (cookies) in the world after the USA. Bakery industry is one of the oldest businesses in India, which is modernizing and is constantly changing in terms of product range and services due to the high nutrient value and affordability bakery products will drive the bakery market over the forecasted period.
India Bakery Products Market: Scope
On the basis of the Product, the bakery market is categories as Biscuits, Bread, Cakes, Bun, Pastries, and Rusks. On Sales channel basis market is segmented as Retail stores, Specialty store and On-line distributor. Finally, the report covers the analysis of these segments across North, West, East, and South along with the qualitative analysis for market estimates that boosts the growth of the India Bakery Products market during the forecast period.
India Bakery Products Market: By Product Type
Biscuits: The Biscuit Market is estimated to grow with the highest growth rate in terms of value during the forecast period due to the innovative packaging, new flavors, and shapes. In term of volume, Parle dominates the biscuit market. Biscuits are a small baked product, one of the most-loved food products for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonably priced.
Bread: Bread is the second-most consumed bakery product in India, after biscuits and cookies. Bread is a low margin-high volume based processed food. The increasing disposable incomes, urbanization, and changing consumer preferences and lifestyles have given a boost to the bread industry. The southern region is the leading region in bread consumption. Britannia Industries Limited dominates the bread market in India over the projected period.
Cakes: The cake market in India is expected to witness notable growth during the forecast period, owing to change in spending patterns of consumers, on the back of expanding middle-class population and increasing consumer preference for cakes as a regular sweet rather than an occasional treat. Moreover, growing population base of the young working class, which prefers to spend on lifestyle & luxury products, availability of innovative packaged products, and aggressive marketing & promotional activities expected to boost demand for dry cakes in India in the coming years.
India Bakery Products Market: By Sales Channel
Retail Store: Retail stores are the leading Sales channel for the bakery market in India. Retail stores have high growth potential due to the presence of a large middle-income group further new wave of expansion through the compact store format will favor the bakery demand in retail stores. Convenience stores represent the largest segment followed by supermarkets and hypermarkets owing to the rising number of health-conscious consumers, expanding the working population and increasing urbanization are boosting the country’s bakery market.
Specialty store: The India Bakery Products product market is highly dominated by specialist stores due to their unique and creative concepts, and the evolving demand of the industry. Bakeries are providing a wide range of specialty baked products according to different people needs; likewise for those who are allergic or sensitive to certain foods or specially designed cakes for different occasions like wedding and birthdays or even preparing baked products for health-conscious people covers up the specialty bakery market. Home bakers hold a huge influence in the Indian specialist store segment.
Online: Online Suppliers are the fastest growing Sales channel for bakery market in India owing to the policies that encourage consumers to purchase online includes secured transactions, cash on delivery options, convenient return policies, integrated and centralized customer service. The growth opportunity for the sales of cakes through online channel has forced online retailers to improve their purchase processes in terms of security and reliability, which, in turn, has propelled the demand for these products. Many retail cake brands in India are entering the online sales portal or partnering with companies to make their products available online.
India Bakery Products Market: By Region
Southern Region of the bakery market accounted for the maximum market share in 2018 and it is projected to dominate the Indian market over the forecast period. Changing consumer taste about baked products and the working population in big cities prefer on-the-go foods like pies, snacks and cakes will propel the market. The arrival of bakery product manufacturing multinationals, rising popularity of quick-service restaurants, modern retail trade, tourism, changing urban lifestyles fuelled the growth of packaged bakery food industry. Andhra Pradesh had emerged as the “most-preferred” tourist destination in the southern region of India and the consumption pattern has been shifted from raw food to processed food that will drive the bakery market industry for the forecasted period.
Eastern region is the fastest growing region for the bakery product market in India owing to changing consumer taste preference about various desserts and the diversification of food consumption patterns backed by increasing economic growth among people will lead the bakery industry market in Eastern Indian region.
India Bakery Product Market: Competitive Dynamics
Companies such as Parle Products Private Limited, Britannia Industries Limited, Surya Food and Agro Limited, ITC Limited, Monginis Foods Private Limited, Bonn Nutrients Private Limited, Elite Foods Private Limited, Anmol Industries Limited, Saj Food Products Private Limited, and Dream Bake Private Limited are the key players in India bakery product industry. In term of volume, Parle dominates the biscuit market and Britannia Industries Limited dominates the bread market in India over the projected period. Companies in this industry are following different strategies to strengthen their market position.