Report Overview

Various factors are driving the growth of the India bakery products market, such as the availability of products made from multiple of grains, innovations in bakery products, rising per capita household income, and much more.

India Bakery Products Market- Industry Trends & Forecast Report 2027

The India bakery products market was worth USD 7.5 billion in 2020 and is projected to reach USD 13.0 billion by the year 2027, growing at a CAGR of 8.3% in the forecast period. Because of their high nutritional value and low price, baking products have become popular choices among consumers across the length and breadth of India. Due to the rising working population and health benefits offered by products made out of various grains like maize, wheat, oats, and so on, the Indian bakery products market is gaining significant traction and innovations in the product line-ups. In addition, the growing share of working women in the Indian population is contributing significantly to the market growth.

Source: BlueWeave Consulting

India Bakery Products Market- Overview

The India bakery market is one of the largest segments of the food processing industry in India. The busy lifestyle and the increasing demand for western tastes have contributed to the growing popularity of bakery products in the country. Innovative bakery products containing multi-grains and whole wheat with low trans-fat and calorie contents have 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. Additionally, the affordability of bakery products is likely to drive the bakery market over the forecast period.

India Bakery Products Market Forecast and Trends

Growth Drivers

Growing Consumer Preference Towards Healthier Bakery Products

As Indian consumers increasingly turn to healthier snacking options like whole wheat and multi-grain bakery products, healthy snacking is gradually spreading throughout the country. Biscuit manufacturers are, therefore, launching healthy bakery products to gain market share in response to this growing demand. For instance, Danone India Pvt. Ltd. launched Protinex Bytes, a protein multigrain biscuit targeted towards office-going consumers looking for healthy snacks. Such unique launches are expected to drive the India bakery products market growth during the forecast period.

The Increasing Working-Class Population

The growing working-class population, especially in metropolitan cities, is one of the primary growth factors for the bakery products market in India. According to the Census of India, there are around 402 million workers in India. Additionally, 356Million young people live in the country, making it the most significant percentage of young people. As a result, the demand for processed and packaged food items such as biscuits, rusks, bread, etc., for instant consumption is very prominent in India and rapidly growing.

Restraints

Increasing Penetration of Other Processed Food Alternatives

Bakery products, such as biscuits, bread, rusks, etc., are usually consumed as snacks. However, with the growing potential of the Indian market in processed food, the launch of other packaged and ready-to-eat foods such as oats, dry fruits, granola bars, frozen fruits, etc., is expected to hamper the India bakery products market.Furthermore, the rising shift towards healthier snacking options and increasing availability of such products in retail stores is also a significant challenge for the India bakery products market.

Impact of COVID-19 on India Bakery Products Market

One of the markets that experienced tremendous growth during COVID-19 was the India bakery products market. The demand for processed and packaged foods increased several folds during the nationwide lockdown in India. Although several products vanished from the shelves during the hoarding and panic buying, the strong supply chain for some bakery products like biscuits allowed the Indian market to meet the increasing demand for bakery products. In the initial phase of the lockdown, certain brands like Parle-G saw a spike in sales.

India Bakery Products Market - By Products

Based on products, the India bakery products market is segmented into biscuits, cakes and pastries, and others. Among these, the biscuits segment holds the largest market share and is also projected to witness the highest CAGR during the forecast period. The availability of a wide range of biscuits for catering to the demand of various flavors, tastes, health needs, etc., plays a crucial factor in this segment’s growth. Furthermore, the manufacturers offer innovative packaging to attract customers and contribute to market growth.

India Bakery Products Market - By Distribution Channel

The India bakery products market is categorized into retail stores, specialty retailers, and online distributors based on distribution channels. The retail store segment accounts for the largest market share. This segment holds high growth potential in the Indian bakery products market due to the presence of many retail stores in the local market, which makes the bakery products more accessible to the general public compared to other segments. Further, the new wave of expansion through compact store formats is projected to influence the India bakery products market positively.

India Bakery Products Market - Regional Insights

Geographically, the India bakery products market is segmented into North, South, East, West. The Southern region of the bakery market accounted for the maximum market share in 2020 and is projected to dominate the Indian market over the forecast period. The changing consumer taste for baked goods and the growing working population in big cities who prefer on-the-go foods such as pies, snacks, and cakes will drive the market forward. Additionally, the shifting consumption pattern from raw food to processed food is expected to drive the growth of the India bakery products market.

Competitive Landscape

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.

While the market is fragmented with several industry participants, it is still dominated by a few major players, such as Parle, Britannia, etc. The market players focus on offering a wide range of products to cater to various tastes and health needs. Furthermore, the adoption of competitive strategies like mergers, acquisitions, partnerships, etc., is also very prominent among the industry players.

Recent Developments

• In August 2021, Orion, a South Korean confectionery maker, announced the launch of two new products O’Rice and Custus CupCake, from its global portfolio in India, to expand its product portfolio as well as its distribution in the country.
• In July 2021,Britannia Industries Limited announced an investment of USD 12.8 million to expand its manufacturing facility in Odisha to meet the growing demand for its products.

Scope of the Report

By Product

• Biscuits
• Cookies
• Cream Biscuits
• Milk Biscuits
• Glucose Biscuits
• Salt Cracker Biscuits
• Others

Cakes and Pastries

Bread and Rolls

• Rusks
• Others

By Distribution Channel

• Retail Stores
• Specialty Retailers
• Online Distributors

By Region

• North India
• South India
• East India
• West India