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Bakery products to grow at 12-15% over 5 years

Bakery products to grow at 12-15% over 5 years

Assocom Institute of Bakery Technology and Management (AIBTM) is a one-of-its-kind comprehensive teaching, training and research centre specifically for baking technology and allied disciplines. It yearns to bring in the best of global skills, knowledge, training methods and culture in the fields of science and technology related to wheat-based and cereal-based products. All its programmes have been drawn up with industry guidance. In an e-mail interaction with Anurag More, Raj Kapoor, the institute’s managing director, shares details on current scenario of bakery market and more. Excerpts:

What is the current scenario of the bakery market in India?
The bakery market is now leading above all ready-to-eat food segments. The major categories - breads and biscuits have been growing at 12-15%. It is estimated to be US$19,500 crore market, covering around 65% of the Indian bakery market. The cakes and pastries has seen significant growth over the years. It is estimated to be worth Rs 2,000 crore, majorly about 65% is accounted for by the unorganised sector.

At the same time, health and nutrition segment of bakeries and patisseries products has emerged significantly. The demand for gluten-free, sugar-free, low sodium and protein bakery products has increased three folds in last five years.

What are the major brands in India?

Bread: Modern Bakers, Harvest Gold, Britannia, Popular, Kitty, Bonn, English Oven by Cremica, Perfect, Wibs

Cakes and Sweet Goods: Monginis, Britannia, ITC, Switz Foods

Modern Bakery Chains: McDonald’s, Burger King, KFC, Carls Jr, Jony Rockets, Wat-a-Burger, Burger Point, Burger Singh, Pizza Hut, Pizza Corner, Dominos, Papa John’s, US Pizza, Chicago Pizza, Crispy Kreane,  Dunkin, Mad Over Donuts, Cinnablon

Indian Traditional Bakery Chains:  Monginis, K R Bakes, McRennet, Mr Brown Bakers.

Where do you see the Indian bakery market in the next five years?
Bakery products have been catching up with the popularity trend as lifestyle of Indians is rapidly changing. It will continue to grow at 12-15% over the next five years.

What are the technological developments taking place in the bakery market?
Over the years, there has been significant improvements in baking equipment. These are most visible technologies in bakeries in India. Like the addition of automatic timers in mixers. These mixers allows bakers to do automatic mixing and resting of dough without supervision. Modern ovens use rotating racks, probes and microprocessor controls to provide even baking and precise control of both temperature and humidity levels while products are baking. This gives bakers unprecedented control over crust, browning and texture. Moreover, new technology has resulted in safe and economic bakery products.

How will the increasingly volatile wheat commodity prices impact the retail prices and sales performance?
It will definitely be impacting bakers and consumers. The burden of increased price is always transferred to the end-consumers.

What are the innovations and current trends in the Indian bakery market?
Automation for efficiency, safety and economics will continue to grow.

What are the future trends in the market?
Frozen dough and frozen bakery products are expected to grow by 10% in the next five years.  Healthy bakery products market is expected to grow significantly over the years.  

FSSAI has proposed to limit the maximum amount of trans fat content in vegetable oils, vegetable fat and hydrogenated vegetable oil to 2 per cent by weight as part of its goal to make India trans fat-free by 2022. It will further lead to healthy bakery products.

Are consumers in India moving from unpackaged/artisanal to packaged/industrial offerings?
The trend for fresh and artisan bakery products is expected to grow faster than industrial offering in coming years as many of retails chains have reported growth in sales.

What steps are being taken by bodies like yours to overcome the same?
We along with Indian Bakers’ Federation and other allied associations are working with bakers and government to find amicable resolutions to promote bakery products and sales.

What are the opportunities in the market?
Retail bakery business especially for artisan products like croissant, cakes, pastries, doughnuts and fresh ready-to-eat bakery products has vast potential with change of lifestyle and changing eating habits.

What are the key growth drivers in the market?
1. Availability of quality ingredients including specialized flour for sustainable and consistent growth of healthy bakery products.

2. Availability of skilled human resources is important for production of quality of bakery products and meeting increasing demand for bakery products.

Source: F&B News (

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