Brands Sugar

Forecast for India's Bakery Industry


The bakery industry is one of the largest segments in the food processing sector in India. It stood at a value of nearly USD 7.60 billion in the year 2020. The Indian bakery industry has challenges and opportunities at every level. The industry is basically divided into the three segments of biscuits, breads and cakes & pastries.

The cookies and biscuits industry accounts for nearly 72% of the sales in the Indian bakery market. India is an international key player as it is the second largest producer of biscuits after the USA. The growth of the industry is supported by the abundant supply of primary ingredients and entrepreneurial spirit. Currently, India is the world's largest biscuit consuming nation with the highest consumption in the Eastern and Northern parts of the country.

There is a greater demand globally for healthier alternatives, and baked products serve as an answer. Changing consumer lifestyle is the key factor in shaping the Indian bakery industry. Consumers are increasingly seeking cholesterol and gluten free products at affordable prices. Along with health, millennials in particular, are also seeking for innovative and new flavors. Products made with ingredients such as multigrain and whole wheat are the new trends in the food market.

Home baking has always been a popular pursuit. Cakes dusted with Icing Sugar by Trust makes it a perfect homemade delicacy. With technological innovations, individuals have been able to monetize their efforts too. Organized bakeries utilize social media as a cost effective means to target potential customers.

The Indian bakery industry however, also faces some challenges:

  • It is a price sensitive market and gets affected by the rising price of major ingredients.
  • Due to lack of adequate technology and skilled workers, operational inefficiency is a major issue.
  • Local bakeries have issues of hygiene standards and practices.

Despite these challenges, the forecast for the Indian bakery industry is positive. The industry is expected to witness further growth in 2021-2026, growing at a CAGR of 8.5%. The industry is expected to reach USD 12.39 billion by the year 2026. A higher demand for FMCG (fast moving consumer goods) products in this fast moving world is key to the growth.