India is the second-largest producer of food products next to China and is having the potential of being the biggest with its food and agricultural sector. The bakery industry in India is one of the biggest contributors to the country’s processed food industry. Bakery products which include bread and biscuits account for over 82 percent of the total bakery products produced in the country.
The bakery segment in India can be classified as three broad segments of bread, biscuits and cakes. Organised bakery sector in India produces about 1.3 million tonnes of products and the rest is produced by the unorganised sector and small scale local manufacturers. Even if there are many automatic and semi-automatic bread and biscuit manufacturing units available in India, most of us prefer fresh bread and other products from the local bakery.
But with the advent of MNCs selling pizzas and burgers, people are changing their tastes too. Many homegrown and international players have taken the market and the competition has increased.
The rising trend of “Natural nutrition”, “healthy living” and “organic products” has significantly raised the consumers’ demand on whole wheat, light, natural and additive-free products. In recent years, the growth in sales of packaged, whole wheat, wholemeal, gluten-free and natural products is an important indication of this new and healthy living sense.
Backed by the local and global players in the market, states like Andhra Pradesh, Maharashtra, West Bengal, Karnataka, Tamil Nadu, Kerala and parts of Chandigarh and Delhi-NCR dominates the bakery segment in India. Hotels and restaurants in India organise regular festivals and include bakery items in their menu, where they have the best of desserts and savouries lined up. The unorganised sector which includes the small bakery units is catering to the demands of the individuals and small functions. These small scale units are most usually cottage or household type manufacturing, mostly owned by woman entrepreneurs.
Woman Entrepreneurs in Bakery Sector
The bakery industry has given an edge to the entrepreneurial skills of the women in India. Women from places like Gurgaon, Chandigarh and south Indian states are entering into the Bakery industry and the number is seen rising from last year. There are also government initiatives to cater to the woman entrepreneurship and create employment opportunities for them. Agencies like The National Skill Development Corporation (NSDC) are providing quality training for women in baking, milling and food technology sectors. They are targeting fresh students, unskilled workers, aspiring entrepreneurs and entrepreneurs without formal training to give detailed training.
Future
India Cake market is forecasted to reach US$ 882.24 million by 2024 growing at a CAGR of 12.5% during the forecast period from 2019 to 2024. As the consumption of cakes is gaining market traction, owing to consumers’ changing perceptions, as well as their convenience and health attribute, leading to a rise in popularity of on-the-go cake products, which are baked off or made at the convenience of the consumer.
As a result of urbanization and increase of the working population, the preferences for out-of-home consumption and demand for instant and nutritious products have increased, which is expected to propel the market growth.
BizEncyclopedia
