EXECUTIVE SUMMARY
The Indian food industry has grown from strength to strength in the past few years with recent upswing in the packaged and processed food industry. Indian bakery industry is one of the biggest sections in the processed food industry of the nation. The rising foreign influence, emergence of female working population and changing consumption patterns have attributed strongly in the growth trajectory of the bakery industry.
Indian bakery industry has undergone a massive change majorly on account of changing perception of bakery products and evolving consumer tastes. Bakery products are items of mass consumption due to their affordability and nutrition content.
Trends in the Industry
· E-retailing of bakery products
· Expanding foothold
· Improved Packaging
· Innovation in ingredients
Rising urbanization and growth in the disposable incomes of the Indian population has proven to be a magnet for international bakery chains. India has seen an influx of foreign bakery companies foraying into India which in turn has helped in improving the quality of Indian bakery products. Today there is a constant effort by the bakery players to innovate their product line to match up to Indian palate. Driven by evolving perception of bakery products in India and changing consumer preferences, Indian bakery industry will touch levels of INR 483 billion in the next five years.
1. OVERVIEW
The Indian food industry has grown from strength to strength in the past few years with recent upswing in the packaged and processed food industry. Indian bakery industry is one of the biggest sections in the processed food industry of the nation. The rising foreign influence, emergence of female working population and changing consumption patterns have attributed strongly in the growth trajectory of the bakery industry.
Let’s have a look at the status of global bakery industry.
1.1 The Global Scenario
Global bakery industry grew at an annual rate of ~6.5 % y-o-y during 2007-13 and leading research associations project the global industry to grow at a CAGR of ~7% in the next few years. The global Bakery Products market is forecasted to reach US$447 billion by the year 2017, driven by new consumer preferences for conveniently portioned and easy-to-consume bakery goods.
Figure 1 Global Bakery Products Industry- Market Size
Source: Industry Data
Europe is the leading producer and consumer of bread and bakery products as these products are deeply embedded in their national and religious diets.
In the global bakery products market, wafers, waffles, and sweet biscuits account for 33.4% of the demand while the remaining market share is divided between toasted bread, rusks, and other toasted products at 2.0%, crispbread 1.1%, gingerbread 0.8%, and other type of bakery products 62.7%.
The bakery products market in developed regions such as North America, and Western Europe is comparatively matured, and future growth is will be derived primarily from the emerging markets of Asia-Pacific, Latin America, Eastern Europe, and the Middle East. India, as projected, will be a high growth market for bakery products in the coming years.
1.2 The Indian Scenario
Baking in India is a traditional activity and has gained ground in the last few decades. Baking breads and cakes wasn’t really a part of the Indian culture and the notion became popular only with the changing perceptions and evolving lifestyles of Indian population. Today bakery products hold a major place in the Indian food processing industry. Indian bakery industry is dominated by unorganized sector with ~ 60 % of the market share.
Figure 2 Indian Bakery Industry- Structure
Source: Industry Data
1.2.1 Classification of the Industry