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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