Baking breads and cakes wasn’t really a part of the Indian culture and the notion became popular only with the changing perceptions and evolving lifestyles of Indian population. And since then Indian bakery industry has not turned back. Bakery products today are items of mass consumption due to their affordability and nutrition content.
Indian bakery industry has evolved to be one of the biggest sections in the processed food industry of the nation. The rising foreign influence, emergence of female working population and changing consumption patterns have attributed strongly in the growth trajectory of the industry.
Figure 1 Indian Bakery Industry- Structure
Source: Industry Data
Indian bakery industry is dominated by unorganized sector with ~ 60 % of the market share. The chart above demonstrates the same.
1.1 Classification of the Industry
1.1.1 Biscuit Industry
India is the second largest manufacturer of biscuits in the world, first being USA. Indian biscuit industry is one of the fastest growing segments in the nations’ food industry. Biscuits have gone through an image transformation in the last few years which today has made them an item of mass consumption. Initially biscuit consumption in India was mainly in the rural segment but gradually the demand started pouring in from the urban sector also which lead to the rapid expansion of the biscuit sector. The segment has not only grown vertically in size and revenue but also horizontally in number of varieties on offer.
Figure 3 Indian Biscuit Industry- Structure
Source: Indian Biscuit Manufacturer’s Association (IBMA)
30% of the Indian biscuits production takes place in the unorganized sector whereas the remaining 70% takes place in the organized sector. Organized biscuit segment is dominated by three major players- Parle, Britannia and ITC. The sector is also segmented on the basis of price range.
1.1.2 Bread Industry
Bread industry in India has come a long way since 1990’s. In that time bread was not used extensively in Indian households except as a breakfast item. The bread situation in India has changed dramatically and today it is being used relentlessly as a meal, snacks and anytime munching item. Although not being a part of Indian eating culture, bread has grown rapidly in the past decade and has affirmed its place in the Indian bakery segment.
However, like its peers bread segment is also dominated by the unorganized sector. The chart below explains the same.
Figure 4 Indian Breads Industry- Structure
Source: All India Bread Manufacturer’s Association
The industry once dominated by white bread category has seen massive shift towards brown bread and other healthy categories. White bread has lost its share to brown bread which has grown contribute ~12% in the bread industry.
1.2 Product Details
1.2.1 Product Definition
Biscuit is a term used for a variety of baked, commonly flour-based food products. Biscuits today can be savory or sweet and mostly are small in size at around 5 cm (2.0 in) in diameter, and flat. The term biscuit also applies to sandwich-type biscuits, wherein a layer of "cream" or icing is sandwiched between two biscuits, such as the custard cream, or a layer of jam.
Cookies generally refer to a baked product containing a percentage of sugar and fat relative to the flour and a small quantity of water. The type of cookies is defined not only by their composition but also by their method of production.
Bread is a staple food prepared by baking dough of flour and water. It is popular around the world and is one of the world's oldest foods. Combinations of different flours, differing proportions of ingredients and varying preparations have resulted in a wide variety of bread types, shapes, sizes, and textures. It may be leavened (aerated) by a number of different processes ranging from the use of naturally occurring microbes to high-pressure artificial aeration during preparation and/or baking.