Growth in Baking Industry from Last 2 Years

The scope and interest for baking and bakery products has risen over the past two years. With people seeking out for nutritious and ready to eat food, the baking industry has significantly grown and is still rising. It also going through an important transformation, right from product demands to market trends.

This traditional art has now become an integral part of the food industry. The growing demand for new products and variety in options has reinforced the growth of the baking business. Health becoming a major issue of concern among consumers has brought about a large range of healthy bakery products that are rapidly gaining popularity.

Indian Market

India, being one of the highest populated countries, has a massive and booming food industry. Baked and processed foods have gained immense popularity over the past two years. India is the third largest biscuit manufacturing country. Since the raw materials for baking is all easily available well within the country, it automatically has an advantage over other countries.

The value of the baking industry in India alone is close to 3,294 crores, which is self-explanatory regarding the demand for the products. Although bigger companies like Britannia, Parle and other MNCs have a strong foothold in this business, the emerging demand for fresh and local products have paved way for local businesses to flourish too.

A change in lifestyle and urbanization has led to a rise in demand for packaged and processed food. More exposure to foreign cuisines and food habits has brought about diversification in baked products too.

Indian baking industry is no more only about breads and biscuits. Consumer demands have expanded to pastries, buns, cakes and a wide range of other baked foods. Today, bakeries are producing higher quality and a wide range in baked foods to meet the requirements of the diversified and internationalized food habits of the consumers.

Potential for the Baking Industry

Indians spend a massive chunk of their income towards eating outside. Urbanization has brought about the need and desire to socialize. This has in turn brought about a revolution in the food industry. The demand for cafes and other eating or hangoutjoints has risen considerably over the past two years. The major demand in such places is for baked products.  The yearly growth of this industry is more than 15 percent.

Local bread bakers and home-based businesses are doing extremely well in the residential areas of big cities. There is a constant demand for a variety in freshly baked breads like wheat bread, multi-grain bread,ciabattaand baguettes. These market trends promise a great future for the baking industry. The baking industry stands third in generating profits in the processed food sector.


Various new products have launched and new trends are making their place in the baking industry.Moving past the regular cakes and breads, bakers are now making three-dimensional cakes, theme cakes, sugar sculptures, personalized cupcakes and wedding cakes. Bakers are now adopting new techniques to improve the range of products they have to offer.

Sales of healthy baked foods have raised considerably thus more and more bakers are exploring this sector too. Consumers who are health conscious or are on a diet now have more options even in baked goods.


Urbanization has led to the baking industry growing at a great speed of 12-15 percent. With more and more people eating outside and the inclination towards baked food;researchers expect the bakery industry only to grow rapidly in the future.

This industry will comprise of a huge sector in the food segment in the years to come. The rate of growth predicts the baking industry to hold a market value of Rs 483 billion in the next few years.


Considering all the above factors and figures, it is safe to say that this sector holds excellent opportunities for anticipating entrepreneurs. For people who want to do something creative and promising, the baking industry is the right place to be.

Whether you want to start a home-based business or a small-scale enterprise, producing baked goods can be the way to do so. The demand for baked products is only going to increase in the days to come.

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