The rise of the bakery industry in India at all levels

The bakery industry is one of the largest segments in the food processing sector in India, offering huge opportunities for growth, innovation, and job generation. Separated into three categories, bread, biscuits, and cakes & pastries, India is a key player in the bakery sector internationally after the USA.

The changing consumer habits and lifestyles are shaping the bakery industry in India; there is greater demand for healthier products and alternatives, particularly when it comes to bakery goods which are now more commonly consumed daily as opposed to being as a treat.  

With high consumption rates, customers want baked goods that are ‘gluten-free’ and are increasingly seeking gluten-free bakery products made with alternative ingredients such as multigrain and whole-wheat alongside seeking new flavors, making flavor innovation key.

With the recent influx of international cafes and bakery chains, on-the-go bakery products have become increasingly popular. With hectic lifestyles, Indian consumers prioritize convenience, and bread and biscuits are fast-moving consumer goods (FMCG); bakeries are also a go-to option.

While there is demand and appetite for bakery products, the Indian bakery industry faces certain challenges. The industry is generally divided into organized and unorganized, with more than 2,000 organized or semi-organized bakeries and 1,000,000 unorganized bakeries. Operational efficiency is a significant issue in the industry, as is the lack of technology and skilled workers.

Organized bakeries in India also utilize social media to provide targeted and cost-effective marketing. Lacking the large budgets of international chains, local bakery cafes are eschewing traditional marketing to rely on word-of-mouth recommendations and social media engagement.

Despite certain difficulties, the forecast for the Indian bakery industry is positive, with a projected market value likely to exceed USD 12 billion by 2024, expanding at a CARG of 9.3% from 2019 to 2024. Alongside these predictions, India occupies a unique position in the bakery market and continues to grow.

The Society of Indian Bakers (SIB) is the national body representing the small & shop Bakers in the country, mainly under the MSME sector since 1971 is happy to be associated with ANUFOOD India 2023 being organized by Koelnmesse - ANUTEC during September 2023.