Rising dough: India's evolving bakery market: Fresh Newsletter, September 23-27, 2024

Welcome to the 7th edition of the Fresh Newsletter powered by Indusfood, Asia's premier F&B trade show. In this edition, we cover;

• India's bakery market is set for rapid growth, driven by rising demand for diverse, healthier options, and urbanisation.
• Nilon's Enterprises expresses how Indusfood has expanded business and networking opportunities in the F&B sector.
• India’s total food grain production for 2023-24 is estimated to have reached a record 3,322.98 lakh metric tonne (LMT) which is higher by 26.11 LMT than the last financial year.
• BigBasket launches an initiative to make organic food as affordable as conventional options.
• The Organic World introduces over 70 millet-based products to tap into the growing market for sustainable eating.
• Priniti Foods ventures into the sweets and cookies segment, launching traditional and gourmet offerings.
• TPCI hosts a webinar providing market entry strategies for Indian F&B exporters targeting the US market.

Happy reading!!!

Rising dough: India's evolving bakery market

Imagine walking into your favorite bakery, the air filled with the scent of fresh bread and pastries, only to discover an entirely new world of options—from sugar-free brownies to gluten-free muffins. This shift isn’t just about indulgence anymore; it’s about how India’s bakery industry is undergoing a transformation.

The country's bakery market is rising to new heights, driven by the perfect blend of consumer demand for diverse, healthier options and the evolving food landscape. With a projected growth from US$ 12.6 billion in 2023 to a staggering US$ 29.4 billion by 2032, India is well poised to become a global powerhouse in the bakery industry.

What makes this growth truly exciting is the role that innovation and technology are playing in shaping the future of India’s bakery market. From q-commerce enabling instant access to freshly baked treats, to healthier alternatives such as sugar-free and organic offerings flooding urban markets, the industry is rapidly evolving to meet the changing tastes and demands of modern consumers.

On the import front too, India's bakery market is emerging and experiencing impressive growth. The increase from US$ 42.9 million in FY19 to US$ 85.5 million in FY24 reflects a strong CAGR of 14.8%, highlighting a growing appetite for varied bakery products.

This trend could be attributed to changing consumer preferences, urbanisation, and an expanding middle class seeking diverse food options. As the market evolves, there's significant potential for both local and international players to tap into this burgeoning sector.

India is a key international player because of its large production capabilities. In the biscuit segment, India is the second-largest producer globally after the US. Bread production is also experiencing significant growth, particularly in rural areas where bread is becoming a staple in local diets. Both biscuits and bread are classified as fast-moving consumer goods (FMCG), leading to daily consumption that boosts their sales across the country.

According to data from Ministry of Commerce & Industry, India’s bakery exports have increased from US$ 346.7 million in FY19 to US$ 557.6 million in FY24, at a CAGR of 9.9%. The primary export destinations include the US, UAE, UK, Canada, and Yemen.

Sweet biscuits account for about 60% of total exports, while other popular items include breads, wafers, and rusks. This positive trend reflects the global demand for Indian bakery products, further solidifying the country’s position in the international bakery landscape.

The organic bakery sector is seeing significant growth, especially in urban areas, as consumers increasingly prefer healthier options like organic ingredients and sugar-free alternatives. This trend is driven by a growing awareness of health and wellness, with bakers offering nutritious options such as whole grains and gluten-free products.

Additionally, the rise of q-commerce in India is making online ordering of cakes and baked goods more popular, with bakeries using digital platforms to reach a broader audience, especially in cities. This shift is also helping smaller, unorganised players expand through food aggregators.

As the market adapts to evolving consumer preferences and embraces new technologies, both local and international players have a significant opportunity to tap into India's expanding bakery landscape.

To read the full story, click here

INDUSFOOD RECAP

Dipak Sanghavi, Managing Director of Nilon's Enterprises, reflects on his valuable experiences with Indusfood over the years and shares his excitement for Indusfood Manufacturing 2025 in this exclusive video.

F&B INDUSTRY UPDATES

Agri ministry estimates record grain output

India’s total food grain production for 2023-24 is estimated to have reached a record 3,322.98 lakh metric tonne (LMT) which is higher by 26.11 LMT than the last financial year. The overall rise in food grain production is attributed to the increased output of rice, wheat, and millets. Rice production reached an all-time high of 1,378.25 LMT, while wheat output also set a record at 1,132.92 LMT.

To know more, click here.

BigBasket launches initiative to make organic food affordable

BigBasket, a Tata Enterprise, has introduced an initiative aimed at making organic food more accessible and affordable by pricing organically grown fruits, vegetables, and staples on par with conventional options. This effort supports over 30,000 farmers and collaborates with more than 2,000 organic growers and 28,000 agri-commodity producers through Farmer Producer Organisations (FPOs).

For more information, click here

The Organic World introduces new millets product line

The Organic World, a leading retailer of organic and natural products in India, has announced a significant expansion of its millet product range. Moving beyond its initial offerings of whole grains and flowers, the company will now feature 11 categories and over 70 SKUs. This strategic initiative aims to make millet more accessible to consumers, tapping into a growing market for millet-based snacks projected to reach US$ 3.84 billion by 2031.

To read more, click here

Priniti Foods expands into sweets and cookies

Priniti Foods Pvt. Ltd. is expanding into the sweets and cookies segment, introducing traditional Indian sweets like Rasgulla and gourmet cookies like Badam & Kaju Cookies. These products will be available across India through general and modern trade channels and in international markets.

To know more, click here

TPCI organises webinar on US market entry strategies for Indian F&B exporters

Trade Promotion Council of India (TPCI) hosted an exclusive webinar on September 17, focusing on market entry strategies for Indian F&B exporters targeting the US. With over 150 key stakeholders in attendance, the session offered critical insights into US trade regulations, market opportunities, and strategic approaches for effectively entering the US market. Participants gained actionable guidance on how to navigate the complexities of market penetration and achieve sustainable, long-term growth.

To know more, click here

Industry updates are presented by India Business & Trade (indiabusinesstrade.in), the thought leadership platform of the Trade Promotion Council of India, known for its comprehensive news, analysis, and insights on the business & trade ecosystem.

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