The Indian bakery market is expected to grow at a CAGR of 9.5% during the forecast period (2019-2024). The growing population and changing lifestyles are the major drivers for the growth of the bakery market in India.
Bakery products are becoming popular among the urban population, owing to the changing lifestyle and food habits. The working population is increasingly opting for ready-to-eat and on-the-go products, which is fuelling the demand for bakery products. In addition, the increasing number of women in the workforce is also driving the growth of the bakery market in India.
The organized sector is expected to grow at a faster pace, due to the increasing preference for branded and premium products. The unorganized sector still dominates the Indian bakery market; however, it is expected to lose its share during the forecast period, owing to the growing preference for branded and hygienic products.
The bread segment is expected to grow at a faster pace during the forecast period. The growing health consciousness among consumers and rising disposable incomes are some of the key factors driving the growth of this segment. In addition, bread has a wide range of applications in breakfast as well as snacks, which is further boosting its demand.
The cakes & pastries segment is also expected to witness significant growth during 2019-2024. The increasing demand for designer cakes and premium products from young consumers is one of the key factors fuelling the growth of this segment.
Bakery Market Segmentation by Type
The bakery market in India is segmented by type into bread, cakes & pastries, biscuits, and others.
Bread: Bread is a staple food in India and is consumed by all socioeconomic classes. The demand for bread is driven by the growing population, urbanization, and changing lifestyles. The bread market in India is further segmented into white bread, brown bread, multi-grain bread, and others.
Cakes & pastries: The demand for cakes and pastries is driven by occasions such as birthdays, weddings, anniversaries, etc. Cakes and pastries are also gaining popularity as gifts. The cake & pastry market in India is segmented into cream cakes, fruitcakes, chocolate cakes, and others.
Biscuits: Biscuits are a popular snack food in India and are consumed by all age groups. The demand for biscuits is driven by the growing population, changing lifestyles, and the increasing number of working women. The biscuit market in India is further segmented into plain biscuits, cream biscuits, cookies, and crackers.
Others: Other types of bakery products include donuts, muffins, pies, rolls, tarts, etc. These products are gaining popularity due to their convenience and variety.
Leading Players in the Indian Bakery Market
The Indian bakery market is led by a number of players, including Britannia Industries, ITC Limited, Parle Products Pvt. Ltd., and Hindustan Unilever Limited. These companies hold a significant share in the market owing to their strong brand presence and wide product portfolio.
Britannia Industries is one of the leading players in the Indian bakery market with a significant share. The company offers a wide range of products under its brands such as Good Day, Tiger, Marie, and Milk Bikis. It has an extensive distribution network across the country with more than 3 million outlets selling its products.
ITC Limited is another leading player in the Indian bakery market with a wide product portfolio comprising breads, cakes & pastries, biscuits, rusks & snacks, and other baked goods. The company has a strong distribution network consisting of around 6 million retail outlets across the country. Its products are available under various brands such as Aashirvaad Atta, Sunfeast Dark Fantasy, Kitchens of India Ready Meals, and Yippee! Noodles.
Parle Products Pvt. Ltd., another leading player in the Indian bakery market, offers an extensive range of products including biscuits, breads, cakes & pastries, cookies & rusks, and other baked goods. The company has more than 2 million retail outlets selling its products across the country under popular brands such as Parle-G, Monaco Biscuits