Baked Goods in India

PROSPECTS

Bread benefits from introduction of healthier variants

Bread, both flat and leavened, is benefiting from the introduction of functionally fortified and organic and better for you variants. Manufacturers have recognised the marked shift of customers towards products with a healthy image and to cater to this demand, many companies are revamping their product portfolio.

Rise in consumer spending on cakes linked to small pack sizes and snacking

Cakes continues to witness double-digit current value growth. This can be attributed to the changing perception of packaged cakes as a source of instant nutrition and also an option for on-the-go consumption.

Widening range drives sales for dessert mixes

Dessert mixes continues to evolve from conventional and traditional Indian desserts such as gulab jamoon and kheer towards more international dessert options. An expanding range is thus encouraging many consumers to enjoy dessert mixes more frequently and to buy a widening range.

COMPETITIVE LANDSCAPE

Artisanal players retain strong lead but face growing competition from packaged options

Baked goods remains highly fragmented, with many artisanal players catering to local demand across the country with unpackaged products. Artisanal players can be categorised in two main categories.

Britannia remains clear branded leader with wide and frequently-updated range

Britannia Industries remained the clear branded leader in overall baked goods in 2019, being the only player to have a double-digit value share. The company benefits from its strength in packaged leavened bread and packaged cakes, where it offers a large and diverse portfolio that caters to a wide range of consumer groups.

ID Fresh Food benefits from extensive range including organic packaged flat bread

While ID Fresh Food is a small player in overall baked goods and indeed in overall bread, this player dominates the niche of packaged flat bread and is seeing strong sales growth. The company is benefiting from offering a wide and diverse portfolio and also from catering to the expanding consumer base seeking the convenience of packaged options.

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