India Cake market is projected to grow with a CAGR of 12.5% during the forecast period, 2020 - 2025.
- Bakery products have long been basic food products for human nutrition. The convenience, accessibility, and nutrition profile associated with them are the major factors of their sustenance in the modern market.
- As the consumption of cakes is gaining market traction, owing to consumers’ changing perceptions, as well as their convenience and health attribute, leading to a rise in popularity of on-the-go cake products, which are baked off or made at the convenience of the consumer.
- As a result of urbanization and increase of working population, the preferences for out-of-home consumption and demand for instant and nutritious products have increased, which is expected to propel the market growth during the forecast period.
Key Market Trends
Growing Demand for Bakery Products in India
Emerging economies of Asia-Pacific represent larger, untapped potential for organized development of bakery products, owing to the rising disposable incomes, urbanization, and the demand for western-style diet. Bakery in India is a traditional activity. Bakery manufacturers in India can be differentiated into the three broad segments of bread, biscuits, and cakes. The growth in baked goods in the last few years is supported by the value growth in bread, whereas cakes and pastries have experienced comparatively lower sales growth. There is a rising popularity of premium bread amongst the rapidly aging population. Muffins, puffs and other savory products are also gaining popularity as younger populations often visit independent bakeries to relish snacks.
Packaged Cake is Emerging as the Fastest Growing Market
The packaged cake segment has been holding a very low market share since 2015 in the India packaged bakery market. However, it is the fastest growing category, due to the development of vegan packaged cakes. India being a very diverse country, with approximately 40% of its population being vegetarian, the introduction of vegan cakes is expected to contribute a major chunk to the market growth. Frontier Biscuit Factory Pvt Ltd Is one of the popular companies in the northern part of India, with a rich product portfolio in the vegan packaged cake market.
Both online and offline sales channels make equal contributions to the market growth in India. The major market is dominated by rural and semi-urban population in areas, where convenience stores and supermarket/hypermarkets gain high tractions. Online channels are gaining popularity in the urban areas, especially in the tier-1 and 2 cities, due to the high market penetration of grocery delivery services, like Bigbasket and Amazon groceries.
India cake market is highly fragmented, particularly with the significant presence of numerous local and regional players. Monginis, Elite Group of Companies, Frontier Biscuit Factory Pvt. Ltd, Winkies etc. are the major players operating in the market. Whereas, Monginis is one of the prominent players in the market , due to its diversified product portfolio. The major strategies adopted by the companies in the global bakery product market are new product launches, agreements/partnerships, expansions, and acquisitions.
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