5 Key Trends Redefining the Bakery Industry - AIBTM

Published By Aibtm India, 16 Dec 2017



5 Key Trends Redefining the Bakery Industry - AIBTM
Nowadays Bakery holds an important place in food processing industry and has become a traditional activity. There are various healthy products have been launched in the bakery segment, and have become more popular at a high rate. The mounting presence of bakery chains has further triggered the growth in the sector.


Though, there are sufficient programmed and semi-automatic breads as well as cookie manufacturing units in India but you may still find number of men and women prefer fresh bread and other products from the local bakery. Bakery products are an item of mass consumption in view of its low price and with rapid development and changing eating routine of people; bakery products have gained popularity among people.


Choose better technology, know-how and novel ideas, these international companies have made fast inroads into the profitable market in a very short span of time. Though with consideration to bakery products in India has always recently been on the rise, there is evidently a shortage of awareness and the need to break new ground, which includes helped global players to achieve brownie factors while going through the market in India.


The unorganized sector accounts for about 50 % of the total biscuit development estimated at 1.5 million tones. It also makes up about 85% of the entire bread development and around 90 every cent of the other bakery products estimated at 0.6 million tones. The final includes pastries, bread, buns, rusks and others.




Just like many industries, retail bakeries see rising costs in fuel, health care, and other expenditures cut into their important thing and improve the cost of conducting business. On the other hand, there has been an uptick in demand, including trends such as cupcake stores and gluten-free cooked goods.


Despite economical problems the industry is growing its customer base while other food service industries continue to suffer. Buyers are now willing to spend moderately and demand high quality for his or her money; an equation that selling bakeries are a simple solution. The most promising sector for the retail baking is cakes. Wedding cakes in particular are gaining ground as our economy springs back.


Factors for Growth


Recently, a lot of bakers have gotten into 3 dimensional cakes and theme cakes. Cutting off from the regularity, bakers are now looking at trying out many more ingredients likes grain treats, and inculcating them into cake designs. A lot of bakers even use wood planks for support. Additionally there is something as sugar amazingly sculptures, where they make an effort to use them as every the theme of the cake.


The biscuit category is expected to continue its growth trajectory of 15 per cent heading ahead. Growth in breads would be relatively reduced.


Challenges, Possibilities


The issues would be category-specific. The biscuits category has seen rapid growth in the last few years. Rendering of packaging standardization best practice rules definitely seems to be the big concern. Volatility in input costs is likely to remain and this would increase the issues. In bread, profitability has remained the focal point for a long time. Players have recently been seeking to increase share of value-added products while concentrating on operational efficiencies connected to daily distribution. The challenge for cakes should be to expand the consumption of packaged cakes. In reality, this challenge is also a significant opportunity for this type of segment.


Regulatory Feature


A reliable rise in cost of raw materials, quality variations at source, lack of knowledge about the new developments especially between the unorganized sector, stringent government legal guidelines and legal complexities are a handful of the many hurdles that cripples the bakery industry in India today. And unless of course, the head honchos of the industry find a way to circumnavigate these problems, if not get over it completely, there is certainly little hope of the food handling business industry in India to sustain or to be successful.


Apart from the characteristics of the industry, which gravitates to the market segments and caters to the area tastes, the industry is widely dispersed also because of the reservation policies (relating to the small scale industries) of the government.