Bakery industry in India has been a star performer for some years now and is expected to continue its growth journey over the next five years.
BakeryBiz, Jan-Feb, 2020: Bakery industry in India has been a star performer for some years now and is expected to continue its growth journey over the next five years. Majority of reports which are forecasting rapid growth of the segment, have pegged it to the factors of market feasibility and changing food habits of customer, who are in an age bracket where convenience food, backed with the healthy tag, is the perfect recipe. Increased number of people today prefer to pick a sandwich or a low fat bakery product as their mid-day meal. Also, the pressures of social media have driven a large segment of people to rush to their local bakery and bring out the most innovative cake to showcase on their timeline.
With all the positive circumstances rotating around a bakery business, the consumption side of the bakery business seems to be perfectly perched for a great future.
On the other hand, ranking high up on the chart of food products popularity, this segment has seen increased traction from small scale investors who are happy to dabble in the comparatively small amounts which is required for setting up a small bakery outlet. The risk involved is minimal and the return, if things work out in their favour as planned, is multi-fold.
One prime reason for this move has been the ncreased risk involved with other business segments – primarily due to the overall market slowdown and people not being entirely sure about investments in other business ventures. The other and more obvious reason of course is the prospective growth in sight and examples of seeing bakery emerge and quickly multiplying into a growing chain.
Large players have solidified their positions and are on expansion route, typically using the franchise model – which involves less expenditure from out of pocket and increases the group valuation multi-fold in small time frame.
Financial experts believe that if the bakery module is well thought of and planned with using industry expertise, there can be growth of the business within 18 months from 1 store to multiple stores across multiple cities. The key is to have the back end streamlined with proper functionality and utilisation of the central kitchen.
With growing controls and awareness about quality and stringent rules put in place by FSSAI , the guidelines are pretty much in place to be followed. This in turn has also increased consumer reliability on outlets which are evidently seen to be following the norms.
To add to that, the increase in number of home bakers has been adding more flavour to the rampant growth of this sector in the unorganised category. Today, a specially crafted artisan cake, creatively presented with the most authentic ingredients and at a price which is pretty much affordable, is just a phone call away and is available either within your housing complex or a neighbouring.
The segment has not just become a sought after business venture, also, the craftsmen who excel in the art of baking and artisan pastry artists are very much in demand. The growth of the segment can also be seen by tracking the mushrooming number of bakery institutes being set up in different cities across the country.
****************************************************************************************************
Some of the prime aspects which have been instrumental in the sectors growth are:
- Positive future outlook
- Opportunity to innovate and express your creativity
- Manageable investment requirement as it is not very high
- Easy availability of ingredients
- Easy availability of information and methodology for creating best bakery products
- Compact and effective machinery available making the operational aspect easier
- Emergence of bakery products as convenience and healthy food
****************************************************************************************************
