Market Trends of India Cake Industry
This section covers the major market trends shaping the India Cake Market according to our research experts:
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 a western-style diet. Bakery in India is a traditional activity, and bakery manufacturers in India can be differentiated into three broad segments 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. Muffins, puffs, and other savory products are also gaining popularity as younger populations often visit independent bakeries to relish snacks. Monginis offers a variety of packaged cakes in the market, like different flavors of cupcakes, dessert cakes, and many more. Increasing health awareness among consumers and demand for clean-labeled packaged food is driving the market.
The consumption of bakery items has increased over the last few years as consumers increasingly value their affordability and convenience. Packaged cake segment is growing in the Indian market as the working population is increasing in metropolitan cities like Mumbai, Banglore, Delhi, Hyderabad, and others. Growth in fast-food chains further stimulates the demand for bakery items. Increased online food stores have also increased the demand for packaged food, as fast delivery services and discounts on products are beneficial. The convenience offered by bakery products has boosted demand for such products.
Moreover, the introduction of value-added bakery products is giving an impetus to market growth. The local and global market players are providing more outlets all over India to strengthen their portfolio and increase consumer demand. For instance, in October 2022, Theobroma, Mumbai's popular Patisserie, opened its first outlet in Chennai. Theobroma has 100 more outlets all over India.
Packaged Cake is Emerging as the Fastest-growing Market
The packaged cake is the fastest-growing category due to the development of vegan packaged cakes. India is a diverse country, with approximately 40% of its population being vegetarian. The introduction of vegan cakes is expected to contribute to market growth. Frontier Biscuit Factory Pvt. Ltd is one of the popular companies in northern 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.
Rural and semi-urban populations dominate the major market in areas where convenience stores and supermarkets/hypermarkets gain high tractions. Online channels are gaining popularity in urban areas, especially in Tier-1 and Tier-2 cities, due to the high market penetration of grocery delivery services like BigBasket and Amazon groceries. Some online flower shops have also opened bakery stores and provide packaged cakes which are also driving the market. For instance, in March 2022, My Flowerapp.com, the leading online gift delivery platform in India, launched a new range of cakes.
