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Modern retail transformed how bread is consumed
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Tuesday, 29 October, 2024, 12 : 00 PM [IST]
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Venkatesh Ganapathy
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In 2024, the global bread market is projected to generate revenue of $58.36 billion, with an annual growth rate of 7.87% expected through 2029. China leads in revenue generation at $80 billion. Per capita revenue is estimated at $40.48, with total market volume anticipated to reach 57.54 billion kg by 2029, reflecting a 5.0% growth in 2025. In India, the sliced bread market, while not a staple, is growing at a CAGR of 6.1%. The Indian bread market was valued at $9.7 billion in 2022, with consumption rising from 7.14 million tonne in 2017 to 9.56 million tonne.
The bread market in India is characterised as a low-margin, high-volume business. Despite not being a staple food, the demand for bread is growing steadily. The southern region of India accounts for the highest bread consumption, constituting 32% of the total. Currently, 80% of sliced bread consumption consists of white bread. However, rising health- consciousness is driving demand for alternatives like brown bread, whole wheat, and multigrain varieties, along with newer options such as protein and oats bread. The Indian sliced bread market is expected to grow steadily, with increasing interest in diverse products like tortillas, buns, pavs, and fruit bread.
A rising population and increasing disposable incomes are boosting demand for convenient food items like sliced bread, which is commonly enjoyed with butter, jam, or in sandwiches. The influx of migrant workers in urban areas further fuels this demand, as bread is both convenient and affordable. Approximately, 85% of bread consumption comes from lower middle-income and economically weaker section households. The growth of the Indian bread market has been significantly influenced by changing consumer lifestyles and preferences. Urbanisation and fast-paced living have increased the demand for convenient, ready-to-eat food options, as traditional breakfast items often require time-consuming preparation. Bread’s versatility—used for sandwiches, toasts, and quick meals—aligns well with modern consumers’ need for convenience and variety.
Health and wellness trends are also reshaping the market. Consumers are increasingly seeking healthier options, resulting in a surge in demand for whole grain, multigrain, and fortified bread varieties that offer enhanced nutritional value. In response, manufacturers are developing products with reduced sugar, added fibre, and lower sodium, alongside gluten-free and organic options to cater to specific dietary preferences.
The rise of modern retail channels has transformed how bread is marketed and consumed in India. Supermarkets, hypermarkets, and online grocery platforms have reshaped traditional retail, offering a diverse range of bread options and enhancing consumer exposure to various products. This shift facilitates impulse purchases through effective branding, organised displays, and promotions, making bread more accessible. The convenience of one-stop shopping further encourages bread consumption, with online platforms amplifying this ease by allowing consumers to order from home.
Innovation and product diversification have also driven engagement in the Indian bread market. Manufacturers are continually introducing new flavours, shapes, and ingredients to capture consumer interest. Speciality breads like garlic bread and fruit-infused varieties cater to diverse tastes, while value-added products such as pre-sliced and frozen bread enhance convenience and shelf life. This wave of innovation positions the bread market for sustained growth as it adapts to evolving consumer demands.
India's diverse culture and regional preferences pose challenges for the bread market. While bread consumption is increasing, traditional breakfast options remain culturally significant, and varying taste preferences across states hinder bread's adoption as a staple. Manufacturers face the challenge of adapting products to meet diverse tastes while preserving nutritional value.
Additionally, inadequate infrastructure and supply chain inefficiencies affect growth, as the perishable nature of bread demands efficient distribution and cold storage, particularly in rural areas. However, rising consumer interest in artisanal and premium bread, like sourdough and ciabatta, is driving innovation and creating opportunities for differentiation and branding.
The global trend toward plant-based diets and sustainability is significantly impacting the Indian bread market. Consumers are increasingly aware of the environmental consequences of their food choices, driving demand for plant-based and eco-friendly bread options. Manufacturers are incorporating seeds, nuts, and ancient grains to improve nutritional profiles while ensuring sustainable sourcing. Additionally, brands are adopting environmentally friendly packaging to appeal to socially conscious consumers. Rapid urbanisation and evolving lifestyles have heightened the need for convenient food options, leading to innovations like pre-sliced and packaged bread, frozen dough, and par-baked varieties. Furthermore, manufacturers are introducing novel formats such as stuffed bread, wraps, and bread-based snacks, enhancing the versatility of bread and positioning it as a convenient choice for quick meals across various occasions.
White bread is increasingly popular in the Indian bread market, despite a rising interest in healthier options. Its convenience, soft texture, and affordability make it a staple for many consumers. The extended shelf life and versatility for sandwiches and toasts further enhance its appeal. In North India, urbanisation and changing lifestyles have boosted demand for packaged bread, prompting manufacturers to create options that align with regional tastes. This adaptability signifies the market's resilience, blending traditional preferences with modern convenience, while specialised bread variants cater to the diverse culinary heritage of North Indian consumers.
Manufacturers are introducing variants of bread free from added white flour. These loaves of bread are enriched with Ragi, Jowar, Bajra, and Oats and offer a fibre-rich option for consumers. Besides millet bread, brown bread, sandwich bread and milk bread are now being offered to consumers. Simultaneously, there’s a growing emphasis on health and wellness, prompting demand for speciality breads, such as whole grain, multigrain, and high-fibre varieties, perceived as healthier alternatives to traditional white bread. The market is also seeing gluten-free and low-carb options, with manufacturers focusing on added health benefits like reduced sugar and natural ingredients.
(The author is a faculty member at ICFAI Business School, Bengaluru)
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