Bakery Biz, September-October, 2021
The Indian bakery market is fast catching up with the happenings in the international markets. While the general trends expected in the year 2022 are more or less specific to the overall markets, to get an insight into the Indian market, Bakery Biz spoke to some of the industry leaders operating in India.
The onset of COVID-19 and the impending lockdown in March 2020, followed by months of business and normal life disruption, leading to the new normal, has been nothing short of a roller coaster ride. Focus on nutrition and immune-boosting food has resulted in people depicting preference change and indulging in comfort food and trying new food fusion. In light of the new normal, there has been an increased concern shown by the customers about health and what they eat and how it benefits them and adds to their immunity. This newfound, but worthy focus on knowing what is consumed and benefits thereof is expected to prevail for years to come. Health and wellness is going to remain an area of priority for consumers. Given that consumers are continuing to be looking for ingredients that provide nutritional benefits in the daily diet, bakery owners and food suppliers will need to keep their focus on using the right mix of ingredients and showcase the benefits of the same to their customers.
What are the new trends expected to be seen in the Indian bakery market?
According to Varsha Vishnu Prasad, Managing Director, Crust ‘n’ Crumb Food Ingredients Pvt. Ltd, “We have been seeing the growth of the home bakers’ sector for some time, but the last two
years have showed a drastically fast increase in the numbers of home bakers. During the lockdowns which confined people to their homes, baking appeared as a trendy approach to conquer uncertainty and stress, yet now it is a source of income and empowerment for many women across India. As home baker trend grows further, we would also witness the elevation of Indian bakery market to global standards, as the development of new segments are pushing the existing system also to upgrade itself to stand out in the race.”
Crust ‘n’ Crumb Food Ingredients Pvt. Ltd. is a global player in the Baking & Confectionary industry with a drive to develop ingredients and technical solutions that help bakers to succeed in today’s marketplace.
“This is a very exciting time for the baking industry in India. Whereas the pandemic saw people trying out their baking skills during the lockdown, we have seen some amazing individual talent and chefs experimenting with baking. From our perspective, the industry too, is incorporating the evolving palette of the Indian consumer, with regards to baking. MONIN India is also gearing up to be a part of this fascinating journey,” added Germain Araud, Managing Director, Monin India.
MONIN has been in the country since the last two decades and enjoys a very niche positioning in the Indian market. The company currently engages with close to 100 distribution partners in India and is looking to expand this distribution network to 150, next year.
According to Damini Narsaria, Sales & Marketing Head for Bakers Fantasy Venture, “The Indian bakery market has seen a new sector emerge in the unorganised segment – the home bakers segment. We have noticed multiple home bakers mushrooming in every area – be it the metros or interiors of the country. This segment is the first to innovate with new designs and experiment with healthy and unique ingredients. They cater to the specific make to order needs of today’s customers by customising their offerings as per the requirement. As a cherry on top, these home baked items add to empowering women entrepreneurship.”
Bakers Fantasy focus on fashionable ingredients which help the artisan in displaying their craft along with maintaining health benefits.
“It is the time to appreciate the food delivery apps, which had geared and played a crucial role in maintaining the growth of the industry. Also, bakeries in India are utilising social media to provide targeted and costeffective marketing. The small local bakery cafes are eschewing traditional marketing to rely on word-of-mouth recommendations and social media engagement. Tapping into the artisanal market, smaller bakeries can concentrate on quality over quantity, while larger Indian chains rely on creating larger quantities but with strong branding and associated trust,” added Damini Narsaria.
Taking a different view, Shikha Garg, Director, Sugar Shine India and Magic Colours India said, “bakery industry in India is one of the most robust industries. Major contributors to this growth are the growing youth segment and working women population, besides rising incomes and purchasing power. Driven by consumer preferences and patisseries’ relentless desire to experiment, the bakery industry is continuously evolving. Speculating the next trend is just next to impossible. Industry veterans are at a NO-ST OP when it comes to exploring and experimenting because consumers expect to be treated to novel treats regularly. Demand for innovation and newness makes this industry the most competitive one.”
Motek Sugarcraft that started 7 years back, today homes two international brands Magic Colours India and Sugar Shine India. The journey of Magic Colours that started with importing to partnering has finally led to setting up an additional production unit in India that caters to the entire Asian market.
Reformed consumer habits are expected to increase the demand for natural, clean label and plant-based products in 2022. Some of the top trends highlighted by the experts of Embassy Ingredients, a flavours and ingredients manufacturing company, would help in arriving at a focused, well-directed approach for the new year.
A snapshot of what these trends bring for the bakers and food manufacturers.
Plant-based power
Plant-based food has taken the market by storm. With every passing year there is growth in the percentage of people moving towards Veganism. Research shows, the increase in demand for sustainable products will result in a substantial rise in the plant-based food market by 2030. To keep up with the trend and growing demand, food and beverage companies across the globe have started to broaden their portfolio of plant- based options to serve the consumers better. In the future, plant-based foods will be an integral part of all restaurants and grocery stores. Care for sustainability, animal welfare, and environmental impact have been the key factor for this change.
Clean-label natural colour
It is often said that we eat with our eyes first. The act of food consumption is a multi-sensory experience and how food looks is as important as how it is prepared. In an increasingly health-conscious world, the terms organic and natural are becoming more and more significant. And when it comes to colour additives, the solution comes from nature itself. Clean label trend indicates that the food is prepared with natural colour and flavour. Natural food products offer various health benefits to consumers, leading to a shift from the use of synthetic products. Experts sees a tremendous growth in the natural space and predicts that the natural colour market is estimated to double in next ten years.
To go with the trend, Embassy Ingredients have come up with a new product line of clean label NECOL colours which offer a variety of vibrant natural colours derived from plant pigments for a wide range of applications.
According to the experts, with the growing craze for social media, consumers have been looking for products that not only taste good but also look Instagrammable.
Baking will come up with a spicy & ethnic twist.
With these emerging trends, the focus to deliver new and exciting flavours hasn’t gone down. Last year was all about comfort and indulgence, but 2022 is going to be spicy. Flavours like Nashville Mac & Cheese, Buffalo, Mango Habanero, Chili Raspberry, Mexican Hot Chocolate, Cardamom, Allspice will bring a new twist to pies, cookies, pastries, and more.
With spicy getting hotter in the new year, fusion flavours will not lose its charm either. A great way to innovate is to combine a familiar flavour with an all-new one, and that’s how the bakers will bring ethnic flavours in their applications. Ethnic trends will come up in a food truck format offering exciting new flavours: BBQ, Olive- Pesto, Onion & Cheese, Chili-Garlic will be some of the top
picks.
In the coming years, we will see clean-label and plantbased products with some exciting flavours and vibrant natural colours in all segments of the market.
(With inputs from www.snackandbakery.com)
Bakers Fantasy Venture
Bakers Fantasy focus on fashionable ingredients which help the artisan in displaying their craft along with maintaining health benefits. Bakers Fantasy, co–owned by Thomos Belle of Verbau Group Belgium, has tied knots in India with Inmax Foods Pvt Ltd. Damini Narsaria, a dedicated and experienced member of the group is looking after the Indian operations. With their tagline, Simply Clever Food’, they focus on fashionable ingredients which help the artisan display their craft along with maintaining health benefits.
The last two years have changed the way business has been conducted. What do you foresee the future has in store for the segment?
During COVID-19, the world is full of budding bakers. Consumers following stay-home measures are flocking to Instagram to find #quarantinebaking and #stressbaking inspiration, trying new recipes while also spending time with family in the kitchen.
Unlike most industries, the bakery industry seems to have gained from the Covid-19 pandemic. The pandemic led to a rise in demand of ‘natural nutrition’, ‘healthy living’ and organic products like those which consist of multigrain, nuts and other healthy ingredients. Consumers are purchasing a variety of bakery products that are high on the health quotient. At the other end, the pandemic has paved the way for a clean and hygienic environment inside the factories, too. Proper maintenance of the machines and hygiene control are new trend. Live kitchens are fascinating the customers.
The cake/dessert market is forecasted to reach new heights growing at an annual compound rate of 12.5 per cent during 2019 to 2024. As the consumption of cakes is gaining market traction, owing to consumers’ changing perceptions, as well as their convenience and health attributes, the demand for on-the-go cake products, which are baked off or made at the convenience of the consumer is rising sharply.
What are the plans for 2022 with regards to your product range and distribution?
We are offering complete range of innovative products, raw materials and application expertise to the bakery, patisserie, decorative and chocolate sectors. We aim to be reliable partners in innovation, helping our customers around the world to deliver nutritious and tasty dessert. We have launched more than 200 SK Us ranging from Premium Food Additives, Oil-based Flavours, Water-based Flavours, Sprinkles, Confetti, Shimmer Dust, Luster Dust, Sugar Paste, Nuts and Dried Berries, Gel Colours, Chocolates Colours – liquid and powder, Food Emulsion, Liquid Food Colors, Eggless Premixes, Cake Drips, Edible Sugar Sheet etc. We are on the verge of appointing area wise distributors, so that we are easily accessible. Also, we are focusing to sell our product range on online platforms and through social media too. We welcome all the trade enquiries.
Retail showroom is also one of our endeavours. A flagship retail store had been opened in Delhi a couple of months back with overwhelming response. We target to open at-least 25 franchised stores in different part of India in forthcoming year.
Bakery industry is now a fashionable business. To explain, we decorate ourselves with jewellery and fashionable accessories to look awesome. In the same way, nowadays different ingredients are used as ornaments to create high end glamorous stuff by the bakers.
Any new products planned for the bakery segment?
In our business, which is driven by passion for everything sweet, we thrive to reinvent ingredients every day. Flexibility, creativity and custommade products are our greatest asset. At Bakers Fantasy, we are close to customers. We turn technologies and experiences from food cultures around the world into new opportunities to help customers be more successful with their business. We had launched lots of decorative ingredients as mentioned above.
As per our growth plans our technical teams are working on specialised product as Bread Mixes, Multigrain Mixes, Macroon Mixes, Topping Sauces, Crushes, Fruit Fillings, etc. Apart from ingredients, within a month we are launching a wide range of Bakery Tools and Moulds and also a wide variety of edible and non-edible decoration products.
With the industry bouncing back, do you believe that the growth of the bakery segment will continue at a rate above the industry average. What aspects do you feel would fuel the growth of the segment?
I am an optimistic entrepreneur. I definitely believe that the bakery segment has miles to go ahead. Increasing demand of nutritional and healthy products along with products that are crafted and highly decorated, with exotic taste, will fuel the segment.
How do you feel can the industry bodies and government agencies support the growth of the bakery industry? Any specific areas in which you would like to see intervention from the regulators?
The growth of an industry also brings in its own challenges and the most important of them is to expand production capacity to meet the new age demands. For example, to meet the demand for healthier food, bakery store or shop need to invest in making the facilities more hygienic and also hiring new people with knowledge of such products. Innovating new products is another big challenge for industry in view of increasing competition in the market. There is also a need to increase awareness about the digital technologies and convenience of social media platforms that can help bakeries reach a wider market.
Bakery seems to have been a mushrooming segment with many outlets being opened over the last few years across the country. Do you feel that there could be a bubble burst?
Numerous chefs working for star hotels, who saw immense scope in the segment, had quit their jobs and started their own company and now are the proud boss offering high end desserts and products that were earlier available only at star hotels.
Rise in population and the changing eating habits of people has resulted in the bakery industry in India gaining immense popularity. Bakery products – an item of huge consumption, are also famous nowadays due to their high nutrient value and affordability.
Your message for the new entrants and your industry partners.
Bakery industry is a next generation business. Means, coming seven generations shall have the opportunity to play intensively in the market.
Crust ‘n’ Crumb Food Ingredients Pvt. Ltd
Crust ‘n’ Crumb Food Ingredients Pvt. Ltd. is a global player in the Baking and Confectionary industry. A company driven to develop ingredients and technical solutions that help bakers to succeed in today’s marketplace.
The Industrial and Institutional products division (B2B) offers value added baking solutions to industrial, commercial and craft bakers, food service companies, confectionary manufactures, quick service restaurants and flour millers around the world. Products span through traditional baking ingredients, convenient Premixes, Concentrates, Bread improvers, Marination & Breading Mixes, Decorative Toppings, Flavored Fillings, Colors, and Flavors. A range of products which can be baked, fried, cooked, or prepared conveniently in the home kitchen are marketed through the company’s Retail products division (B2C). Mixes for preparing cakes, muffins, ice cream, fried chicken, jam, natural drinks, and a variety of products that a family can enjoy and indulge, has made
Crust n Crumb a brand known for its innovation in a short span of time.
The last two years have changed the way business has been conducted. What do you foresee the future has in store for the segment?
The best takeaway from the last two years, is the renewed commitment to resiliency, where we have embraced new skills and developed new behaviors to adapt to the changing situations. However, COVID 19 has had a substantial effect on bakery market. We witnessed the decline of many bakers who were forced to shut their businesses due to inadequate sales or unavailability of workers. Furthermore, the lockdown affected supply chain, causing disruptions in logistic facilities. Small bakers within the unorganised sector were the most impacted by the constraints of the lockdown, particularly, the bakeries located in IT hubs were massively hit by the pandemic. Food Ingredients manufacturers have faced issues with the increasing costs associated with raw materials, transportation, material shortage, etc. In short, all of us have been affected by the pandemic in one way or the other.
Filling the gaps created due to the unprecedented and sudden challenges may take time. But our willpower to sustain and flexibility to adapt, will ensure that we rise above the obstacles and drive ahead to the future. Industry has learnt a lot from first and second lockdown and has set off by discovering innovative approaches and resources to run the show.
India, with deep rooted variety in tastes, tradition, access to distinctive and unusual flavour combination, places itself in a novel position, as unique taste palate continues to grow in importance on a global scale. This advantage will allow India to offer one-off products and excel in the market.
What are the plans for 2022 with regards to your product range and distribution?
In 2022, we plan to introduce a range of products that bring benefit to the consumer. There will be continuation of innovative solutions that are customer friendly, along with launch of products that are not readily available in India. We would also focus more on bringing healthy product range offerings, keeping in mind the significance of wellbeing in long term for our changing society.
Studying the evolving consumer taste, preferences, and lifestyle habits, along with global influence will help us plan for the years ahead. We are witnessing an increasing demand for healthy, fiber-oriented, gluten-free and sugar-free product, and, nowadays, people are becoming more health conscious, even when considering and going out to eat bakery products. Presently, the options for premix solutions are very few in gluten-free and sugarfree products. Within the next 2-3 years, the Indian market will have an easier access to these products. Thus, in the upcoming year, we are envisioning towards venturing into remorse free – low calorie, low sugar, low carb, high protein, and gluten-free products range, with prominence on healthier substitute ingredients.
With the industry bouncing back, do you believe that the growth of the bakery segment will continue at a rate above the industry average. What aspects do you feel would fuel the growth of the segment?
Pandemic has significantly pushed technological embracement at a faster rate than expected, especially among the older population and rural India. With broader internet access across the country, and the strong foothold of online shopping, amongst a larger population in India; now people can get anything they desire, at their fingertips. With Indian consumers focus on convenience, along with easy online access in the recovering economy, we will see an increase in the demand of bakery products.
How do you feel the industry bodies and government agencies support the growth of the bakery industry? Any specific areas in which you would like to see intervention from the regulators for augmenting business?
Industry bodies and government agencies are aiding bakery industry up to a sizable level. However, the support to unorganised sector is not sufficient and there needs to be more focused efforts to bring them into the fold, for getting the right assistance to them, in a timely manner. More work is essential to reducing this gap and in achieving a cohesive working environment.
Bakery seems to have been a mushrooming segment with many outlets being opened over the last few years across the country. Do you feel that there could be a bubble burst?
Any development that has a viable plan, which works at a steady pace will sustain the business in the long run. If the new outlets are planned in an organised and centralised form, it will strengthen those brands. However, an unorganised growth, will pose challenges to continue.
Your message for the new entrants and your industry partners.
Indian bakeries have evolved in the last decade, and lot of it can be attributed to the rising social media influence. With changing tastes of the end customers and embracing global trends, the bakeries are demanding new and unique range of products. Younger generation of enthusiastic entrepreneurs are entering the bakery field, and this brings fresh energy and fast growth potential to the sector. Indian bakery market has immense potential, the pandemic might have created slight roadblocks, but the journey ahead is going to be exciting when there is a strong desire to succeed.
MONIN INDIA
MONIN India has been in the country since the last two decades and enjoys a very niche positioning in the Indian market. The company currently engages with close to 100 distribution partners in India and is looking to expand this distribution network to 150, next year.
The last two years have changed the way business has been conducted. What do you foresee the future has in store for the segment?
MONIN has been in the country since the last two decades and enjoys a very niche positioning in the Indian market. MONIN’s product offerings include premium syrups, fruit mixes and gourmet sauces. Even though the last two years have been very difficult for many global businesses, with multiple lockdowns due to Covid-19 pandemic, MONIN India has endured these tough times. Utilising this time to re-strategise and revamp its business model, for instance, by going direct and getting ready to set up its first manufacturing facility in Telangana – Hyderabad. MONIN India is very bullish of its expansion plans in India for the year 2022-23 as their sales figures of this year have already almost reached the sales figures of 2019 (pre-pandemic time). MONIN India acknowledges this upward sales trend as markets finally show signs of recovery after almost two years.
What are the plans for 2022 with regards to your product range and distribution?
One of the reasons to set up the manufacturing unit in India was to come closer to one of MONIN’s most important growth markets and cater to our key customer demands more efficiently. MONIN currently engages with close to 100 distribution partners in India and is looking to expand this distribution network to 150, next year.
Any new products planned for the bakery segment?
We cannot share much at this point since we are planning some great launches next year. Let this be a surprise. All we can say is that we are very excited to expand our overall portfolio and to introduce some iconic as well as brand new flavours and applications to India. Let the good things wait!
With the industry bouncing back, do you believe that the growth of the bakery segment will continue at a rate above the industry average. What aspects do you feel would fuel the growth of the segment?
With a wealth of more than 100 years of experience, MONIN has become the brand of reference for bar and catering professionals, offering more than 150 flavours available in 150 countries. The company has the widest range of Premium Syrups, Fruit Mixes, and Gourmet Sauces. Versatile, and with an unrivalled strength of flavour, MONIN products can respond tothe demands of all professionals: delivering quality, multiple flavours, and originality in all applications. MONIN currently offers over 60 flavours in India. The MONIN studio will work endlessly with its R&D Centre to create and craft new flavour offerings and applications for the Indian Market in years to come.
Bakery seems to have been a mushrooming segment with many outlets being opened over the last few years across the country. Do you feel that there could be a bubble burst?
Not at all, this bubble is quite robust. The lockdown might have kick-started this trend and we may see the curve flatten a bit, but baking is not going anywhere. From homegrown bakers, individuals have invested in fully grown businesses. The market is getting competitive consistently and this just goes to show that the interest for such niche practices has only increased despite coming out of the lockdown.
Your message for the new entrants and your industry partners.
MONIN India is here to partner with the industry. This is proven by the very fact that we have now opened our first Experience centre in New Delhi, India- a one-of-a-kind flagship studio, that will serve as an innovation hub for HORE CA professionals and educational institutes. The studio will showcase experimentation with flavours and applications and would be a hub for setting new trends. We plan to conduct masterclasses and new educational modules at the Studio and infuse fresh ideas into the industry. We look forward to welcoming our partners at the studio.
MAGIC COLOURS INDIA
Motek Sugarcraft that started 7 years back, today homes two international brands Magic Colours India and Sugar Shine India. An indelible journey of Magic Colours that started with importing to partnering has finally led to setting up an additional production unit in India that caters to the entire Asian market. Quality and taste are very much synonym when you think of Magic Colour India. The recent trend and inclination of our Indian market towards make in India products has led the to the emerge of Sugar Shine India. By further expanding its horizons, Sugar Shine India is pioneer in India to deal with an extensive range of cake decoration products. The company supplies premium quality products to thousands of corporates and bake houses through its distribution and retail channels.
The last two years have changed the way business has been conducted. What do you foresee the future has in store for the segment?
As one of the largest segments in the food processing sector in India, the bakery industry offers huge opportunities for growth, innovation, and job generation. Though the recent changes are phenomenal they still point towards a drastic progress. With everything going on web, the forecast for this segment looks very positive. With digitisation and changing consumer behaviour, bakery industry has undergone major changes in the last two years. Though there was a consumption slowdown, the budget 2020 came across as the silver lining for the baking products and the industry, flashing a new future.
What are the plans for 2022 with regards to your product range and distribution?
Our distribution channel has always been our strongest point. Simply selling from your storefront is no longer an effective way to run a successful business. Strategic partnerships can greatly increase brand awareness and help put products in front of a larger audience; and this has been taken care of by our distribution channel. A due credit goes to our distribution network that helps us channelise our new products easily, complimenting our mission of bring something new for our bakers all the time. With our recent successful launch of new choco colours, and drips under the title of Magic Colours and coloured wafer paper and a huge range of Sprinkle with Sugar Shine India; we look forward to having few more in our kitty by 2022.
Any new products planned for the bakery segment?
Both our companies are based on a mission to follow the trend and provide something new, innovative and of proven quality to our client base. Our recent additions are still waving up, nevertheless there are few more in the kitty for 2022.
With the industry bouncing back, do you believe that the growth of the bakery segment will continue at a rate above the industry average?
Bakery industry has always been an exception. Though 2020 witnessed a slowdown, it has evolved rapidly. I am always positive about its growth considering the change in consumption pattern these days. The consumer is always looking for products which are innovative, quality driven, value for money, the biggest driving force for growth.
How do you feel can the industry bodies and government agencies support the growth of the bakery industry?
Our government has always been very supportive of the bakery industry. The aids from the government to promote the food and bakery industry have been enormous and of great help in taking it to the next level at par with the international standards. However, stricter measure need to be implemented when it comes to quality and safety, including hygiene, to make this industry more conformable with the global standards. The stringent norms that have been laid down by FSS AI and other agencies need to be implemented on record.
Bakery seems to have been a mushrooming segment. Do you feel that there could be a bubble burst?
As one of the largest segments in the food processing sector in India, the bakery industry is all geared up for huge opportunities for growth, innovation, and job generation. Despite certain turmoil in 2020, the Indian bakery industry continues to grow. Alongside these predictions, India occupies a unique position in the market as innovation continues to grow in importance on a global scale.
