The Food and Beverages
sector has always had and will continue to have the sparkling
glitterati irrespective of the country or the sub-segments. Bakery is
one similar sub-category which is considered to be the most
essentially growing niche. Especially in India-gone are the days when
the bakery business was limited to the regular breads, cookies and
cakes (cakes on occasions only). Today the Indian roots of bakery
have penetrated to much deeper levels and it has grown to a status
which is looked up by most of the developed countries. According to
the business numbers from the bakery industry, India is at par with
the US or any of the European nations which once enjoyed the premium
position of producing world-class bakery products.
At par with the
International standards
In fact, experts from the
profession believe that India has taken off to a flyer and is en
route to achieve further developments. The widespread ranges of
products and the varieties within each of them is the result of the
growing market, technology and awareness among consumers of the
bakery delicacies. For instance, pastries in the forms of animal and
cartoon character faces are unique in the India market. This is due
to some important reasons; first the advance expertise of bakery
professionals which has come of ages, the premium quality of
chocolate and other required raw-materials and most importantly the
willingness of consumers to pay for such an expensive dish.
What the market looks
like?
The Indian bakery sector
is still believed to be an unorganized one as 90% of the market share
roots from the non-branded players. This is true because in a country
of more than a 100 billion people there are only a handful names that
qualify as established bakery brands. The sector is in right terms
undergoing the massive expansion phase as it is recording a constant
CAGR of around 12-15% on a yearly basis. The growth rate is
undoubtedly a tremendous one as such constant double-digit growth
never happened in the past.
The total market size for
bakery products in India is calculated to be around 1500 billion for
the year 2014-15. As mentioned, the unorganized segment such as
small- scale bakery units, cottage industries and household
manufacturing units play an important role in the enhancement of the
sector.
However, the organized
(branded) companies though bring in a mere 10% business; they are
surely creating a revolution in the industry especially in the urban
regions. Thanks to the support from the global players-brands like
Monginis, Front Street Bakers, Ribbons and Balloons and others are
trying to make an edge in the cake and pastry making business.
Talking of the biscuit
market, there are 3 major brands which have been maintaining their
dominance; they are Parle Agro, Britannia and the youngest of them
ITC Foods. The youngest player has surely flipped the biscuit
industry in into a pleasantly unexpected side. The costs in the cream
biscuit category came slugging down after its entry. It is also the
company that introduced the “sandwich biscuit” which is a brand
new product line in the Indian market.
Bakery sector in India in
the future is most likely to have all sorts of products ranging to
multiple rate cards. Most of the international brands have already
started catering or will cater the Indian consumers and further blow
up the sector.
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