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India’s retail bakery industry reaching new heights
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Wednesday, 14 April, 2021, 13 : 00 PM [IST]
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Rochelle Kapoor
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The retail bakery industry in India today is reaching new heights. Had anyone ever wondered it could go so far when it all began in 1880 in a district in Kerala! The first-ever bakery in India was set up by Mampally Bapu in Thalassery, Kerala. He studied the taste of cakes closely from the bakers of England and created biscuits and sweet products to attract foreign customers.
Bread had come to India during the time of the Portuguese since they experimented in preparing various types. A little while later, we could see Irani cafes offering a selection of Bread, Naans, Kadak Pav, and Kharis. Today, over a century later, the bakery industry in India is booming with all sorts and varieties of goodies. One can only imagine the array of options when buying bakery products. Right from an assortment of freshly baked biscuits, naans, pavs, pastries, and cakes, one can get it all anywhere anytime.
The Indian bakery market was valued at $7.60 billion in 2020 and is expected to grow at an annual rate of 8.5 per cent and reach a value of $12.39 billion by 2026. This is a fair share among the global bakery industry which was valued at $507.38 billion in 2020 and is expected to grow at an annual rate of 2.5 per cent and reach a value of $574.05 billion by 2026.
Consumer behavior towards bakery products in India
Up to 72 per cent of the bakery industry in India accounts for Cookies and Biscuits than any other baked item making it the largest consumer of Biscuits across the globe. This is because biscuits were among the first-ever bakery products introduced in India and have since stayed with people. Besides, Cookies and Biscuits are also popularly known for their high nutrient value and affordable price. In addition to this, traditional Kharis and Rusks also have a high consumption rate in the country. Nonetheless, one can find a range of bakery items like a variety of Biscuits, Bread, Rusks, Cakes, and Pastries in India today. Packaged cakes and cupcakes are also among the fastest-selling products since people are looking for more options for bakery items to grab on the go.
Evolution in Baking Methods
With the advancement in the variety of bakery products, the methods of preparing the same have also evolved. In the earlier days, wood-burning stoves were the most common form of baking bread and other items. It was done with the help of immense manpower. With time, this advanced to microwave ovens, OTG's and more. Today, technology has progressed to the extent that only one person can single-handedly operate a machine that prepares your bakery goodies from scratch. It is safe to say that methods today are more robotic than traditional.
Evolving Consumer Behaviour
Consumer behaviour can never be the same for consecutive years. People from India have traveled to nations far and wide to study food and to explore, they have tried an array of cuisines and bakery products in several countries. This has resulted in the advent of new-age bakery items that were earlier only found internationally.
Today, consumers are willing to explore modern products and items, basically, it has become part of the modernistic society today, to try and explore new things. The bakeries across India have excelled at offering what their clients love. From new age Pastries, Cheesecakes, Macaroons to the Mediterranean Baklavas and everything of that sort, one can find it in bakery stores across India.
The evolving consumer also demands innovations in patisserie items. For instance, what earlier was a simple ‘Gajar Ka Halwa’ is today an innovated ‘Carrot Cake’ that people love. This is how innovation works. Giving something new to the consumers is always going to be a big hit. Take the Cheesecakes and Macaroons for an example!
Nonetheless, what will not change in India is the consumer's demand for traditional bakery goodies like Kharis, Kadak Pav, and Bun Maska to name a few. It is safe to say that there is quite a balance between traditional bakery products and the new age bakery products.
Impact of Covid-19 on the retail bakery industry
The retail bakery industry in India had a growth curve of about 12 per cent in 2020; however, due to the pandemic scenario, growth became stationary. According to reports, about 1.3 million tons of baked products are sold every year, but this number dropped low due to lockdown and other Covid-19 restrictions. The prime reason behind the downfall in the bakery industry is the slow supply chain. Due to the lockdown, the movement of vehicles is restricted leading to an impact on the supply chain. Moreover, people are not allowed to travel or go to work; this has reduced manpower, leading to lesser availability of raw materials to prepare bakery items. Another huge reason is the decrease in purchasing power of the consumers. Covid-19 has affected everyone, people have lost employment, and in such conditions, purchasing power has declined immensely.
The conditions of the industry were believed to become stable and people were ready to get back in action in 2021 since the pandemic had slowed down, but yet again, another wave of the virus has struck the world and industries are again at a loss.
Future of retail bakery industry
As for the future of this huge industry, we can say that a lot more growth and evolution are yet to come. What one must remember is that a single standalone bakeshop will not do the job. With consumer demands increasing, it is imperative to opt for cloud kitchens, and offer an array of different cuisines. Consumers are asking for more and more varieties, innovations, and unique desserts and baked items. On the other hand, bakers have come up with out-of-the-box bakes, international recipes, and a lot more, so the retail bakery industry is surely up for big progress in the coming years.
Sustainability and variety should be the main agenda of any bakery shop, and it will surely see itself thriving in this enormous industry.
(The author is owner of Chunky's Cake Shop)
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