Report Overview

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

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Key Market Segments
2. Research Methodology
   1. Qualitative Research
   2. Methodology
   3. Regional Split of Primary & Secondary Research
   4. Secondary Research
   5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
   6. Market Size Estimation
   7. Assumptions for the Study
   8. Market Breakdown & Data Triangulation
3. Executive Summary
4. Industry Insight and Growth Strategy
   1. Value Chain Analysis
   2. DROC Analysis
      1. Market Drivers
         1. Growing Consumer Preference Towards Healthier Bakery Products
         2. Increasing Working Class Population
      2. Market Restraints
         1. Increasing Penetration of Other Processed Food Alternatives
      3. Market Challenges
         1. Monopoly of Certain Number of Brands
      4. Market Opportunity
         1. Emergence of Online Stores
         2. Availability of Wide Range of Bakery Products
   3. Recent Developments
   4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
5. India Bakery Products Market Overview
   1. Market Size & Forecast by Value, 2017-2027
   2. Market Size and Forecast, By Segment
      1. By Product
         1. Biscuits
            1. Cookies
            2. Cream Biscuits
            3. Milk Biscuits
            4. Glucose Biscuits
            5. Salt Cracker Biscuits
            6. Others
         2. Cakes and Pastries
            1. Bread and Rolls
            2. Rusks
            3. Others
         3. Others
      2. By Distribution Channel
         1. Retail Stores
         2. Specialty Retailers
         3. Online Distributors
      3. By Region
         1. North
         2. South
         3. East
         4. West
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Market Share Analysis (2020)
   3. Competitive Benchmarking by Operating Parameters
7. Impact of COVID-19 on India Bakery Products Market
8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
   1. Britannia Industries Limited
   2. Parle Products Private Limited
   3. Monginis Foods Private Limited
   4. Elite Foods Private Limited
   5. Bonn Nutrients Private Limited
   6. Surya Food & Agro Limited
   7. Saj Food Products Private Limited
   8. Anmol Industries Limited
   9. Kitty Industries Private Limited
   10. Dream Bake Private Limited
   11. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Figure 1: India Bakery Products Market Segmentation

Figure 2: India Bakery Products Market Value Chain Analysis,

Figure 3: Company Market Share Analysis, 2020

Figure 4: India Bakery Products Market Size, By Value (USD Billion), 2017-2027

Figure 5: India Bakery Products Market Share (%), By Product, By Value, 2017-2027

Figure 6: India Bakery Products Market Share (%), By Distribution Channel, By Value, 2017-2027

Figure 7: India Bakery Products Market Share (%), By Region, By Value, 2017-2027

List of Tables

Table 1: India Bakery Products Market Size, By Product, By Value, 2017-2027

Table 2: India Bakery Products Market Size, By Distribution Channel, By Value (USD Billion), 2017-2027

Table 3: India Bakery Products Market Size, By Region, By Value (USD Billion), 2017-2027

Table 4: Britannia Industries Limited Financial Analysis

Table 5: Britannia Industries Limited Business Overview

Table 6: Parle Products Private Limited Financial Analysis

Table 7: Parle Products Private LimitedBusiness Overview

Table 8: Monginis Foods Private Limited Corporation Financial Analysis

Table 9: Monginis Foods Private Limited Corporation Business Overview

Table 10: Elite Foods Private LimitedFinancial Analysis

Table 11: Elite Foods Private LimitedBusiness Overview

Table 12: Bonn Nutrients Private LimitedFinancial Analysis

Table 13: Bonn Nutrients Private LimitedBusiness Overview

Table 14: Surya Food & Agro Limited Financial Analysis

Table 15: Surya Food & Agro Limited Business Overview

Table 16: Saj Food Products Private Limited Financial Analysis

Table 17: Saj Food Products Private Limited  Business Overview

Table 18: Anmol Industries Limited Financial Analysis

Table 19: Anmol Industries Limited Business Overview

Table 20: Kitty Industries Private LimitedFinancial Analysis

Table 21: Kitty Industries Private LimitedBusiness Overview

Table 22: Dream Bake Private Limited Financial Analysis

Table 23: Dream Bake Private Limited Business Overview