Bread Industry An overview

Bread Industry Size

Bakery is a traditional activity and occupies an important place in food
processing industry.
The bakery manufacturers in India can be differenciated into the three broad
segments of bread, biscuits and cake.
About 1.3 millions tonnes of the bakery products industry in India is in the
organized sector out of 3millions tonnes, while the balance comprises of
unorganized, small-scale local manufacturers.

Bread Industry Size

The bread industry in India, valued at INR 33bn (~USD 0.53 bn) in FY
2015(E),
which grew at a CAGR of ~9% over the last three years.
Estimates are that the industry will be worth approximately INR 53bn (~USD
0.86bn) by FY 2020, growing at a CAGR of ~10%

Bread Industry Opportunities

Growing disposable incomes, changing lifestyles and preferences of

consumers supported by an increase in the youth population, female work
participation as well as a widening scope of the Indian retail market will drive
the industry growth
Latest trends witnessed in the industry reveal that companies manufacturing
bread products are likely to increase their manufacturing capacities to expand
their foothold in different regions. With a change in eating habits and
preferences of consumers, the bread industry is coming up with innovative
products and flavours, and a variety of breads.
Demand for brown and fruit breads is estimated to increase further due to an
increasing urban consumer base and a rise in health awareness about
nutritional food

Bread Industry Segment share

Bread Industry Industry leader, Bonn

Mr. Manjit Singh, holds 67 per cent market share in the North India region,
producing nearly
600,000 loaves daily.
Apart from a range of breads, Bonn Nutrients makes an assortment of buns,
cakes, cookies, rusk, and biscuits in its bakeries at Ludhiana and Kapurthala
in Punjab, as well as at its franchise and contract manufacturing units in
several other states in the north.
From just Rs 65 crore in 2004/05, its turnover has shot up to Rs 400 crore
today.

Bread Industry Industry facts

The Indian bakery sector consists of some of the large food categories like
breads, biscuits, cakes etc. The branded packaged segment in this sector had a
size of Rs. 17,000 crore in last financial year and is expected to grow at
phenomenal rate of 13-15 per cent in the next 3-4 years.
Within biscuits, 3-4 large-sized players viz. Britannia, Parle, ITC, Cadburys
comprise about 75 per cent of the market. The breads and cakes market is
much more fragmented with multiple regional and local players.
International players like United Biscuits, Unibic have gained prominence in the
last few years in their specific product segments.
Going ahead, the sector is expected to see some more of the international
brands entering the Indian market.

Bread Industry Per Capita Consumption

The per capita consumption of bakery products in India is very low which is about one to
two kg per annum, which is comparatively much lower than the developed countries
where consumption is between 10 and 50 kg per annum. The growth rate of bakery
products has been tremendous in both urban and rural areas.