Indian bakery sector domestic & exports profile
The Indian bakery sector is witnessing impressive growth, fuelled by changing lifestyles, rising disposable incomes, and a growing appetite for convenience foods. This sector, which includes a diverse range of products like biscuits, breads, cakes, pastries, and confectionery items, offers significant opportunities for innovation, employment generation, and catering to evolving consumer preferences.
On the global front:
🌍 The global bakery product market was valued at $480.95 billion in 2022 and is projected to reach $602.6 billion by 2026, growing at a CAGR of 6.7%.
🌍 Major exporters include Germany ($4.64 billion), Canada ($3.78 billion), Italy ($3.42 billion), France ($2.77 billion), and Belgium ($2.35 billion), while the USA ($7.47 billion) is the largest importer.
India market:
🇮🇳 India is the second-largest producer of biscuits after the USA.
🇮🇳 The Indian bakery market size reached $11.3 billion in 2022 and is expected to grow at a CAGR of 10.8% until 2028 to reach $21.2 billion.
🇮🇳 Biscuits/cookies form the largest segment (49.9% market share), followed by breads (21.4%), rolls, savoury items, cakes, and pastries.
🇮🇳 Key domestic players: Britannia (32% market share), Parle Products (7%), ITC (13%) and some smaller & artisanal producers.
🇮🇳 India accounts for 6.1% of the Asia-Pacific market value, while China being the largest producer with a 52.9% share in this region.
Exports from India:
🚢 India ranks 11th in the Asia Pacific region in terms of exports share.
🚢 Exports accounted for 3.7% of the total production output in 2021.
🚢 Major export destinations include Indonesia, Tanzania, Nigeria, UAE, Nepal, and the USA.
The Indian bakery sector presents substantial growth prospects by leveraging the country's resources, catering to changing consumer preferences, and capitalising on the rising demand for healthy alternatives. With a supportive regulatory framework, various government initiatives, and a robust R&D ecosystem, this sector holds great potential for exporters, investors and manufacturers.