Indian Bakery Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

Indian Bakery Market Outlook

• India is one of the largest biscuit manufacturers, and cookies and biscuits account for a major share of baked goods sales.

• The growing health concerns are boosting the demand for bakery products that are gluten-free, free from chemicals and additives, and sugar-free, thereby aiding the Indian bakery market.

• Factors like rapid urbanisation, evolving customer preferences, and rising disposable incomes are aiding the Indian market for baked goods.

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Indian Bakery Market Growth

Baking refers to the process of cooking food by using dry heat in an oven, hot ashes, or hot stones. Baked goods or bakery products include items such as bread, cookies, biscuits, rolls, cakes, cupcakes, pies, tarts, sweet rolls, coffee cakes, doughnuts, and refrigerated bakery products, among others. Baked goods, such as bread, provide many nutrients that are vital for health. Bread and biscuits are some of the popular products, among other baked goods.

The bakery demand is being aided by rising population levels, globalised culinary habits, an emerging middle-class population, and a rising appetite for biscuits, cakes, and bread. The affordability and high nutrient value of baked goods like bread and rusks are also boosting their demand. In addition, the growing availability of healthy bakery products to cater to the health-conscious population, coupled with the expansion of bakery chains, is increasing the Indian bakery market value.

Industry Outlook

According to the Ministry of Food Processing Industries, Government of India, the states actively involved in bakery production are Uttar Pradesh, West Bengal, Gujarat, Maharashtra, Karnataka, Kerala, Tamil Nadu, Telangana, and Andhra Pradesh. Breads and biscuits are experiencing significant growth in India as they become a staple in the diets of rural regions across the country. As fast-moving consumer goods (FMCG), both breads and biscuits are consumed daily, driving up sales in the country. Furthermore, the expansion of fast-food chains boosts the demand for breads used in sandwiches, burgers, soups, snacks, and more. Additionally, busy lifestyles, changing eating habits and Western influence contribute to the bakery industry growth in India.

Biscuits are a widely consumed mass product, typically enjoyed as a snack between meals. Despite their popularity in both urban and rural areas, the per capita consumption in the country remains at 2-2.5 kg per year. The rising urbanisation and the increasing variety of biscuits and cookies is significantly driving up the demand for biscuits.

The increasing consumer spending on confectionary and bakery goods by the population of the country is further contributing to bakery industry in India. As per industry reports, in India, the PFCE, a key indicator of consumer spending, grew at a Compound Annual Growth Rate (CAGR) of 6% over fiscal years 2012 to 2023, reaching approximately INR 93.4 trillion by the end of fiscal 2023. In fiscal 2021, there was a decline in PFCE by 5.2%, attributed to strict lockdowns, limited discretionary spending, and disruptions in demand-supply dynamics due to the COVID-19 pandemic. The PFCE figures showed a consistent upward trend from INR 49 trillion in FY12 to INR 83 trillion in FY20, followed by a sharp drop to INR 78 trillion in FY21. However, the PFCE rebounded significantly to INR 87 trillion in FY22, with a notable Year-over-Year (YoY) growth of 11.3% and continued to rise to INR 93 trillion in FY23 with a 7% YoY growth.

Bakery Industry Statistics in India

As per the India bakery industry analysis, India is a major exporter of bakery goods, standing between 15 and 30 positions, globally. The major states exporting sweet biscuits in India are Telangana, Gujarat, Maharashtra, and Karnataka, while the major states exporting rusks toasted bread and similar toasted products include Gujarat, Maharashtra, Delhi, and Karnataka.

As per India Brand Equity Foundation, the e-retail market in India is projected to exceed US$ 160 billion by 2028. The Indian online grocery market is expected to grow from US$ 3.95 billion in FY21 to US$ 26.93 billion by 2027, expanding at a CAGR of 33%. India's consumer digital economy is anticipated to become a US$ 1 trillion market by 2030, up from US$ 537.5 billion in 2020, driven by the strong adoption of online services such as e-commerce and edtech.

Indian Bakery Market: Key Trends and Recent Developments

Growing demand for packaged baked goods; rising trend of veganism; growing preference for organic and natural bakery products; and flavour innovations are the major trends impacting the market growth

Sep 28th 2023

Puratos India launched Easy Curry Masala Bread Mix, its versatile product for use in the preparation of crusty bread, rusks, bread loaves, hot dog buns, pizza bases, and paninis, targeted at artisans and bakers.

Sep 7th 2023

General Mills India announced the opening of its new plant in Nashik, Maharashtra, by August 2024 to manufacture Pillsbury Baking Mixes amid the growing Indian bakery market expansion.

Jan 24th 2023

Mondelez India launched bite-sized Cadbury Chocobakes Choco Chip Cookies, a combination of cookies and chocolate cookies, to enhance its position in the premium cookies segment.

Growing demand for packaged bakery products

As per the Indian bakery market report, the expansion of distribution channels such as supermarkets and online stores is driving the demand for packaged bakery products as indulgent snacking options.

Rising trend of veganism and health and wellness

The growing trend of health and wellness and the rising vegan population are driving the demand for baked goods with better-for-you ingredients, vegan and natural alternatives, and whole grain options, thus increasing the market size of bakery industry in India.

Growing Demand for organic and natural baked goods

With rising environmental and health consciousness and the increasing trend of healthy living and natural nutrition, the demand for natural, organic, additive-free, and whole-grain bakery products is significantly rising.

Innovations in flavours of baked goods

There is a rising incorporation of ethnic ingredients such as turmeric, coconut, saffron, elaichi, and hibiscus, among others, in baked goods in India to provide a multi-sensory experience and bold flavours.

Indian Bakery Market Trends

As the growing disposable incomes and urbanisation are leading to the expansion of fast-food chains and quick-service restaurants in the country, the demand for baked goods such as bread for use in snacks, sandwiches, and burgers is rising considerably. For instance, in May 2023, Westlife Foodworld, the McDonald’s India franchisee, announced its plans to open 580-630 more restaurants by 2027 in India. Apart from this, key players are targeting the rising rural and semi-rural population by offering innovative bakery products in affordable and smaller offerings.

Some of the key trends in Indian bakery market are growing health concerns, innovations in bakery products, and the development of sugar-free, gluten-free, and fortified baked goods. Key players are also capitalising on the trend of health and wellness by developing baked goods with functional ingredients such as omega-3, fruits, superfoods, seeds, nuts, antioxidants, and vitamins, among others.

What Factors Drive the Success of the Indian Bakery Market?

• Strong demand for bakery products such as biscuits and bread in both urban and rural areas.

• Wide variety of products catering to different consumer preferences.

• Efficient distribution channels ensure product availability across the country, thus propelling the bakery demand growth.

• Increased consumption of bakery products like bread in fast-food items (e.g., sandwiches, burgers).

What Challenges Impact the Indian Bakery Market?

• Inconsistent product quality, especially from unorganized sector players.

• Issues in maintaining the freshness and shelf life of products, particularly in remote areas impact the bakery market dynamics and trends.

What are the Key Trends Shaping the Indian Bakery Market?

• Increasing adoption of bakery products in rural diets presents growth opportunities.

• Rising demand for healthier bakery options such as whole grain and gluten-free products is influencing the forecast for Indian bakery industry.

• Changing lifestyles and Western influence driving higher consumption of diverse bakery items.

• Expanding online sales channels can boost market reach and consumer convenience. 

What are the Threats Faced by Players in the Indian Bakery Market?

• High competition among established and emerging players in both organized and unorganized sectors.

• Consumer price sensitivity can affect profitability, particularly in the lower-income segments.

• Potential changes in food safety regulations and standards may increase operational costs, which will likely impact the bakery demand forecast.

• Economic downturns can impact consumer spending on non-essential food items like bakery products.

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Indian Bakery Market Segmentation

The EMR’s report titled “Indian Bakery Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Biscuit

• Bread 

• Cakes and Pastries

• Rusk

• Others

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets

• Convenience Stores

• Independent Retailers

• Artisanal Bakers 

• Online 

Market Breakup by Region

• North India

• East and Central India

• South India

• West India

Indian Bakery Market Share

Biscuits are witnessing a high demand in India, attributed to their popularity as delicious and affordable snacks

As per the Indian bakery market analysis, biscuits, available in different textures, flavours, and concepts, enjoy high popularity and demand in both urban and rural regions in India. The popularity of biscuits can be attributed to their consumption as a snack with excellent taste, affordable prices, and high shelf stability. The manufacturing of biscuits in the country is also substantially increasing due to the abundance of raw materials and the availability of cheap labour.

Moreover, with the growing health-consciousness, the demand for nutritious, multi-grain, and sugar-free or low-sugar biscuits that can support weight management and optimal cholesterol levels is substantially rising. Key players are also incorporating exotic fruits and nuts such as figs, prunes, hazelnuts, and pears, among others, in cookies and crackers to enhance their nutritional profile, thus increasing the bakery market share In India.

The demand for bread to grow at a robust pace in the coming years, enhancing the overall Indian bakery market value

As per several statistics, biscuits and breads represent about 80% of baked goods produced in India. The increasing variety of different types of breads in diverse distribution channels, changing customer preferences, and globalisation and rising Western influences are driving the growth of the bakery market. Besides, key players are launching healthy breads to capitalise on the growing health consciousness in the country. For instance, in April 2023, Britannia launched Millet Bread infused with the goodness of ragi, bajra, jowar, and oats, in India to provide customers with a convenient way to incorporate millet into their meals.

Meanwhile, the India cakes and pastries market is growing due to the rising baking culture in the country, the growing availability of packaged cakes, and the increasing consumption of cakes and pastries in social settings and celebrations like birthday parties.

Bakery Market Regional Analysis

South India accounts for a significant portion of the Indian bakery market share. States like Tamil Nadu and Kerala boast an organised bakery sector and companies in the region are actively launching new products. For instance, In August 2023, Kerala-based Craze Biscuits launched a chocolate sandwich biscuit, Bourbon, and chocolate cookie, Choco Rocky, in Kochi amid the rising demand for local and indigenous products.

Rising demand for convenience and the increasing preference for baked goods as snacks are also increasing the Indian bakery industry revenue. According to a survey, 31% of Bangalore’s population consume bakery products like biscuits and cakes every day.

Meanwhile, states like Maharashtra, Uttar Pradesh, Tamil Nadu, Uttarakhand, and West Bengal are some of the largest consumers of low-price high nutrition (LPHN) biscuits, as per the Biscuits Manufacturers Welfare Association (BMWA). This can be attributed to their affordability and excellent flavour profile, boosting their consumption among low-income families.

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Competitive Landscape

The players in bakery industry In India are focused on offering products in new flavours and variants, including multi grain, gluten-free, and vegan baked goods, to meet evolving customer demands.

Britannia Industries Ltd.

Britannia Industries Ltd., established in 1892 in Kolkata, India, is a leading food product company in India. Its key business segments include dairy, bakery, and adjacent snacks spanning more than 80 countries in the world.

Surya Food & Agro Ltd.

Surya Food & Agro Ltd., headquartered in Uttar Pradesh, India, is a company that manufactures and sells biscuits under the Priyagold brand. The company boasts strong manufacturing capabilities and extensively invests in developing products for customer preference.

Parle Products Pvt. Ltd.

Parle Products Pvt. Ltd., founded in 1929, is a leading manufacturer of biscuits and confectionery products in India. Its flagship product, Parle-G, is one of the most popular biscuits in India and is synonymous with nutrition, quality, and superior taste.

The key players are increasingly offering diverse products on e-commerce channels amid the rising customer demands for accessibility, competitive pricing, and convenience. Companies are also tapping into the direct-to-consumer segment and offering home delivery services to reach a wide range of customers, which is boosting the growth of bakery market. In July 2021, the Academy of Pastry & Culinary Arts (APCA), based in Delhi, launched the launch of Enchanté, its online bakery outlet, amid the growing demand for baked goods among customers.

Factors Influencing the Competitive Landscape of the Indian Bakery Market

• Ensuring high quality and consistent taste across different batches is crucial for building brand loyalty.

• Competitive pricing is essential to attract and retain customers, especially in price-sensitive segments.

• Efficient and widespread distribution channels ensure product availability across urban and rural areas providing several bakery market opportunities in India.

• Strong brand identity and trust can significantly influence consumer preference and loyalty.

• Continuous innovation in product offerings, including new flavours, healthier options, and packaging, to meet evolving consumer demands.

• Effective marketing strategies, including digital marketing, social media engagement, and traditional advertising helps in reaching a broader audience, positively impacting the Indian bakery market.

• Providing excellent customer service and maintaining good relationships with retailers and distributors.

• Adherence to food safety standards and regulations to ensure consumer safety and avoid legal issues.

• Maintaining an efficient supply chain to manage costs, reduce wastage, and ensure timely delivery of fresh products.

• Understanding and responding to consumer preferences and trends through market research and feedback mechanisms impacts the demand of Indian bakery market.

• Leveraging technology for production efficiency, quality control, and improved shelf life of products.

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