Baked Goods in India

PROSPECTS

Baked goods prices revised downwards due to new GST

Leavened bread, both packaged and unpackaged, was exempt from the new goods and sales tax (GST) introduced by the Indian government, thus minimising any price increases in the area. Flat bread, on the other hand, falls within the 5% tax bracket, which is lower than the earlier tax levied by different states.

Packaged flat bread sales rise due to convenience and affordability

Chapattis, naans, roti, paratha, kulcha and many other different packaged flat breads became an instant hit after being launched in India in 2015. The introduction of new varieties, easy availability through all retail channels, affordable prices, as well as the availability of single and multi-serve pack sizes, have all boosted sales of flat breads.

More product options for consumers in dessert mixes promote sales

Dessert mixes has evolved from conventional traditional Indian dessert mixes like gulab jamoon and kheer to a more global dessert mixes recipe. Cakes, pastries, ice creams, biscuits and many other dessert mixes have become popular in India.

COMPETITIVE LANDSCAPE

Artisanal companies still hold maximum sales share in baked goods

Baked goods in India is still highly fragmented, with many artisanal players catering to demand across the entire country via unpackaged formats. Artisanal players can be classified into two groups.

International and traditional product launches boost sales

Despite the strong sales share of artisanal players, there has been a slow shift towards packaged versions of baked goods in India. The shift from bigger packs of baked goods to single-serve formats and family packs continues in India.

Shift towards packaged food continues

Croissants, filled muffins, cookie cakes, sweet puffs and many other baked goods that were previously only sold fresh and unpackaged are now available in packaged formats. Traditional baked goods like anarkali, a kind of pastry in a packaged format, have also been launched by artisanal players in India, proving popular among consumers of all ages.

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