By Sumit Jha

BakeryBiz, Jan-Feb, 2021

Bakery as a term is widely used in India. There are so many people, groups and organisations that have been promoting baking in India; home bakers, chefs, baking institutions, cafes, hotels, and many more, everyone wanting a piece of the large pie. The pie that India is, and the pie that is made of its diverse population, a pie that apparently is large enough to fill the coffers of all players

Social media platforms are flooded with options for learning how to bake or cook. Search for one recipe and you have thousands of online options available. Bakes with eggs, without eggs, gluten-free bakes, flourless bakes, vegan bakes; with a mind boggling range to select from, with both free and paid options. For the ones that love more attention there are master class options conducted by renowned chefs and bakers that offer culinary tips and tricks from these experts, that go beyond just the recipe, and carve the path to become a food preneur, cook scrumptious and lip-smacking dishes that are clean, healthy and energizing, click Instagram ready photographs, and convert the passion into a lucrative business option. International entities and institutions have also started offering year-long online certifications in bakery, patisserie and confectionery, claiming their share of the pie.

There are local groups, cloud kitchens, home bakers and bespoke bakeries in almost every city of the country that deliver food, cake and baked products through online food delivery platforms. We are not even talking about the number of restaurants and bakeries that exist in these cities. There are control measures being implemented by the regulating authority on the use of quality ingredients, hygiene standards, shelf life, etc., but the implementation of the same could be an uphill task, especially when it comes to home bakers. A few years ago, the government authorities did come down heavily on bakers and chocolatiers for using alcohol without a permit, in their cakes and chocolates, but then regulations still are a long way from being implemented like an umbrella.

Bakers offer cakes catering to a large and diverse audience base. An affordable half-kilo cake is being offered at a price of Rs 150. One can’t help but think that at a time when a simple loaf of bread costs Rs 40, how can one afford to sell a creamy cake for Rs 150? Are the ingredients being used questionable or is it that the price markup by the others is the differentiating factor? Is it the scale that brings the prices down? As most of these ingredients have to be purchased in bulk. Or do overheads and individual aspirations make the big difference? While there definitely is a difference in the ingredients used which defines the pricing, are the low-quality ingredients that are being used, good enough for the customer? Undeniably, all these variants are in demand, and all these variants, however cheap or expensive, do sell. There indeed is a piece for everyone in this diverse pie.

The markets have definitely evolved, and that is evident with the mushrooming of bakeries and home bakers. Options like Kukkr, the online platform for home bakers to cater to the growing demand of themed cakes, is going to change the market dynamics for home bakers and standalone bakeries.

We continuously read about new bakeries opening up and bakeries expanding with multiple outlets. Franchising outlets by bakery owners has been seen all over the country. Bakery chains with multiple outlets seem to be pretty common. In fact, a majority of the bakery owners aspire to franchise their brand name. Business dynamics definitely make it a viable option for the brand owners to franchise their brand name.

While reports suggest that dessert cakes make the largest segment of bakery sales, accounting for over 50 per cent share, the immediate thought that crosses the mind is, would the market have enough for every vendor. Is there a bubble waiting to burst within the bakery segment? Hopefully, the markets would be able to sustain and grow from here. In 2019, Asia Pacific accounted for almost half the global revenue in the baking space and let us hope that India continues to take a fair share of the revenue pie, thereby ensuring that there is business for all.

Interestingly, bakeries in India are still about cakes, biscuits and bread. In the diverse pie called India, the real pie is relatively unknown. Where are the real pies? Apple, cherry, chocolate, rhubarb, pumpkin, strawberry, blueberry…..Bring them on!