India Bakery Ingredients Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Indian bakery ingredients market is projected to register a CAGR of 9.11% during the forecast period (2020-2025).

Key Highlights

• The scope of incorporation of health-efficient ingredients in bakery products is leading to new product launches and market expansion activities. Many manufacturers are introducing clean-label ingredients, such as non-GMO and non-gluten products, to allure the customers who are looking for healthy alternatives, along with the taste of baked goods.
• In India, bakery products, due to their significant nutrient value and affordability, are highly consumed. The trend pertaining to baked goods in India has shifted from the traditional bread consumption to the increasing consumption of other bakery goods, such as pancakes, cupcakes, croissants, and rolls.
• Also, the industry is witnessing dramatic changes in the choices of breads, thus, pushing bakers to use innovative ingredients and introduce functional variants, such as brown and multi-grain breads.

Key Market Trends

Increased Domestic Production of Bakery Goods

Bakery, being one of the largest FMCG industries in the country, promises great profitability to the market players, which has resulted in constant business expansions, primarily in the small-scale bakery sector. The industry, in recent years, recorded exponential growth in the number of bakery openings, reflecting the proportional rise in the production of bakery goods. According to the Center for Monitoring Indian Economy, the volume production of breads, buns, and croissants increased from 265 thousand metric ton in 2015 to 275 thousand metric ton in 2018. Similarly, for biscuits and cookies, the production grew by 7% in 2018, as compared to 2015.

The Compound Chocolate Segment is Growing at a Faster Pace

The vegetable fats commonly used in India are often hard or semi-solid fats at room temperature, such as coconut oil and palm kernel oil. Compound chocolate is attractively priced, which makes it an ideal choice for hobbyists and food manufacturers in various segments, such as bakery, confectionery, ice creams, and frozen desserts. It is used as a low-cost alternative to couverture chocolate in the food industry. Moreover, as compared to real chocolates, compound chocolate does not require tempering, which is one of the major reasons why consumers prefer compound chocolate over real chocolate.

Competitive Landscape

The major strategies adopted by the companies operating in the Indian bakery ingredients market are product innovation and expansion. The players are focusing on introducing new products, such as organic, clean label, and low-calorie items, in the market, in order to cater to the interests of the consumers. Moreover, consumers prefer innovation, in terms of flavors, and fortification associated with flours, sweeteners, colors, and other additives. Cargill Incorporated, The Archer Daniels Midland Company, Koninklijke DSM NV, Associated British Foods PLC, General Mills Inc., Puratos NV, and British Bakels Ltd are some of the global players offering bakery ingredients in the country.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support