Bakery Sector in India

Posted By Team MCG On

 

Bakery is the third leading income generating sector in the Indian processed food industry. Rising urbanization and disposable income are key factors driving the demand for the bakery products. Organised retailing has given a major fillip to the bakery sector. Bakeries, café chains and cake shops are now a constant feature across malls, food courts as well as high-street retail markets.The Indian bakery sector is fragmented with large, regional and local players.  There are over 85,000 bakery units in the country with small units (local bread baking units and neighbouring bakeries) accounting for around 65% of the total units.

The Indian bakery sector, comprising breads, biscuits, cakes and pastries, was valued at INR 263 billion in 2013-14

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The per capita consumption of bakery products in India is estimated around 1-2 kgs per annum. Among the segments, bread market in India was valued at around INR 16 billion in 2013-14. The multigrain bread, a recent entrant, is gaining importance among the urban areas, owing to its

The biscuits segment in India is witnessing the entry of many new variants and categories of biscuits such as premium, health, cookies and cream variety. Growing health concerns as well as the rising disposable incomes of consumers have given rise to the demand for newer variants of biscuits.The major types of biscuits in India are glucose, Marie, milk, cream, crackers, cookies and health biscuits. Marie is the fast growing category within the biscuit segment, growing at 15-18% annually. Innovative packaging, advertisements and attractive gifts are some of the key factors that have positively created an impact on the consumer’s purchasing behavior in the biscuit segment.

Several home based bakeries that cater to a niche clientele have come up offering a range of premium cakes, cupcakes and pastries; customization of cakes for occasions is a new trend in the cakes category.

Britannia and Modern Industries Ltd, are the two large players in the bread market. Apart from the leading players, there are a few large regional players such as ‘Spencer’s’ in South India, ‘Kitty and Bonn’ in Punjab and ‘Harvest Gold’ and ‘Perfect bread’ in Delhi and NCR. Recently, Britannia Industries Ltd. announced the launch of its first manufacturing unit for bakery products in Gujarat at the Jhagadia industrial estate in December 2013. The unit has been set up with an investment of around INR100 Croresand has a total capacity of producing 45,000 tonnes of products per annum.