STATUS OF

BAKERY
INDUSTRY
 Food industries contribute to decide the economical status of country.
Ref:
http://mofpi.nic.in/H_Dwld.aspx?KYEwmOL+HGqTrhLeUJv1qtnM1Ayq/Q4Omz
DNdfKzvW4D2rHvYa8L+w==

With rapid growth and changing eating habits of people, bakery products have
gained popularity among masses.

Multiple micronutrient deficiencies can be addressed.

The challenge is to create evidence for the public health impact of fortification of
bakery products.

Amongst all the food industries in India , bakery industry is the 3rd most largest
sector of food industries
 Bakery Products
The market for bakery industry is valued at Rs. 69
billion. The two major bakery products, i.e. breads and
biscuits hold for about 82 % of the market share.

Product coverage

Bread
Biscuits
Pastries
Buns
 A bakery is an establishment which produces or/and sells bread,
pastries, cakes, biscuits, cookies, etc.

Baking is the technique of prolonged cooking of food by dry heat

acting by convections, and not by radiation, normally in an oven, but
also in hot ashes, or on hot stones.

It is primarily used for the preparation of bread, cakes, pastries and

pies, cookies etc. Such items are sometimes referred to as "baked
goods," and are sold at a bakery.

A person who prepares baked goods as a profession is called a

Baker. 4
 INDIAN BAKERY INDUSTRY

The Indian bakery industry is the 3rd largest among the processed
food industries. The current estimated market is about Rs 3,295
Crore and crossed Rs 4,308 Crore by 2012.

Cakes, pastries and unpackaged biscuits market value Rs136 Crore

and Rs 1088 Crore, respectively

The bread & biscuit industry accounts for 82% of the total bakery
products in the country. Of which 40% is produced in the
organised sector and the remaining is manufactured in the
unorganised sector.

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 Annual production of bakery products is estimated at 4.7
million tonnes
Growing at a rate of 4-5% per year

The annual production of bakery products which include

bread, biscuits, pastries, cakes, buns and rusk, both in the
organised and unorganised sectors is estimated to be in
excess of 3 million tonnes.

Broadly, the bakery market is divided into the rural market

and the urban market. The market share is about 22.5%
(rural) and 77.5% (urban) in the country.
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 55% of biscuit is consumed by rural area.

37% of consumption of bakery item is by people with

monthly income of Rs.750 and below.

At present 70% of total bakery products is prepared by small

and family scale units.

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The consumption pattern in four zones is

Northern States: 27%

Southern States: 32%
Western States: 23%
Eastern States: 18 %
 STRUCTURE OF INDIAN BAKERY INDUSTRY
ORGANISED SECTOR
40% of total production
15 units in the organized sector
around 1800 small scale bread
manufactures around the country,
besides 25 medium scale
manufacturers and 2 large
scale industries
Hindustan Unilever Ltd. (HUL) and
Britannia Industries Ltd. (BIL) - 90%
of the branded bread market
UNORGANISED SECTOR
Mainly in neighboring areas
60% of total production
There are around two million
unorganized bakeries operational
across the country, comprising small
bakery units, cottage and household
type manufacturing, characterized by
low levels of packing and distribution
GLOBAL PRODUCTION OF BAKERY PRODUCTS
IN 2005 IN 2011
 SCOPE OF BAKERY
INDUSTRY
In hotel business
Biscuit industry
Bread
Retailing of bakery
Healthier bakery
Sugar free bakery
Confectionary

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 HISTORY- Bread

In ancient history, the first evidence of baking occurred when

humans took wild grass grains, soaked them in water, and mixed
everything together, mashing it into a kind of broth-like paste. The
paste was cooked by pouring it onto a flat, hot rock, resulting in a
bread-like substance.

Later, this paste was roasted on hot embers, which made bread-
making easier, as it could now be made anytime fire was created.

Around 2500 B.C., records show that the Egyptians had bread,
and may have learned the process from the Babylonians.

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 The Greek Aristophanes, around 400 B.C., also recorded
information that showed that tortes with patterns and honey flans
existed in Greek cuisine.

During middle ages most of the Landlords were having their own
bakery

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 Bread
The bread market has a business volume of 1.5 million tonnes. The bread industry has a
production of approximately 27 lakh tonnes.
This segment is characterized by high level of fragmentation, and high margin.
The major factors for growth in this segment are:
Brand loyalty
Volumes
Strong distribution networks
The major challenge faced by the organized bread sector at present is low margins of
profit.
Hike in the prices of major raw materials like sugar, vegetable oil, milk, and wheat flour
has been accounted for the industry's low margins of profit.

Major Players
The major players in the bread industry that holds about 90% of the market share are:
Britannia
Modern Industries Ltd.
Bread :-

Bread is the most popularly consumed bakery product. it is a staple food

prepared by baking a dough of flour and water
Cheap
Basic instant food available
Highly perishable max 72hrs
Buns cakes muffins comes under the category of bread type products.
Various forms of breads as mentioned above are used for direct consumption
or can be coupled with other food materials.
Breads are prepared from maida , but now a days people prefer brown bread
as it is made up from whole wheat flour and has more nutritional value than
regular bread.
Now a days bakery industries are preparing breads from mix grain floors to
increase the commercial and nutritional value of the product.
 The per capita consumption of bread in India is only around 1.5
kg to 1.75 kg in various zones by far the lowest compared to Sri
Lanka, which is 8 kgs and Europe's 80 kgs.

The bread industry, consist of organised and unorganised

sectors, contributing around 45 per cent and 55 per cent of the
total bread production respectively.
Health consciousness ---- Innovations

Increasing health awareness is giving a push to consumption of

brown bread, multi-grain bread, whole wheat bread,
multivitamin bread etc.

Fortified/functional products are also gaining in market share in

the urban areas. Moreover, there are an increasing number of
bakednotfried snacks being launched which aim to take share
away from the traditional potato chips.
 SCOPE
Changing trend.

New challenges, like healthy nutritious, tasty and fresh

products.

Diversified products like,

1. High protein products.
2. Vitaminised & Mineralized product.
3. Anti diabetic products.
4. High fiber content product.
5. Low salt product.
6. Low fat product.

Export of bakery product

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HISTORY OF BISCUIT

A biscuit is a small baked product; the exact meaning

varies markedly in different parts of the world.

The origin of the word Biscuit is from Latin and

means "cooked twice", hence Biscotti in Italian.

A biscuit is a hard baked sweet or savoury product like

a small, flat cake, which in North America may be called
a cookie or cracker .

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 IMPORTANCE
Biscuit market is growing at rate of 14% per annum.

Provide employment opportunity to both men and women.

The emergence of nuclear families will see a boom in products,

which have convenience and nutrition attached to them.

India is witnessing a revolution in healthy foods and people are

conscious.

India is the 3rd largest producer

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PRESENT STATUS OF BISCUIT
INDUSTRY

The present biscuits-bakery sector in India looks like a

battlefront.

There are two entrenched players in the biscuits

market - Parle and Britannia have 70-80% of the market
share.

Britannia is undoubtedly- leader with brands like Tiger,

Little Hearts, Milk Bikis.

Britannia's Tiger brand is selling largely in the rural

areas which actually constitute 56% of the biscuit
market. But in the Glucose segment Parle G is the
market leader.
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 According to market research, Britannia brand has over 30-
40% market share in this fiercely competitive market i.e. far
above all, & Parle enjoys a share of 40-50 per cent the total
biscuit market

The rural penetration of the branded biscuits segment is also

significant.

Towns with populations of less than a lakh contribute

significantly to the industry's turnover, with some estimates
placing it at 40%.

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 Biscuits
The biscuit market has a total production volume of 1.1 million tonnes.
The growth drivers for the biscuit industry are focused advertising, urban market,
and new launches.
Major Players
The major players in the biscuit segment are:
Britannia
Parle
Bakeman
ITC Foods Ltd.
Surya Food and Agro Pvt. Ltd.
HLL
Priya Gold
Cremica
Dukes
Anupam
Horlicks
Britannia industries Ltd

Market share : 38%.

Key products : Tiger, Good day, Bourbon, 50 -50, Marie
gold, Nutri choice, Time pass, Little hearts.

Parle products Pvt. Ltd

Market share : 40%.

Key products: Parle G, Hide & sick, Krack jack, Monaco,
Nimkin, Golden arcs, Chox, Digestive marie.
Surya food & Agro Ltd

Brand : Priya gold.

Market share: 15%
Key products: Classic cream, Butter bite, Magic gold, Cheese
cracker, Coconut crunch, Magic gold, CNC, Don, Snacks zig zag.

ITC Ltd

Market share: ~ 10%.

Key products: Sun feast milky magic, Sun feast dark fantasy, Sun
feast snacky, Sun feast sweet & salt, Sun feast special.
 Anmol Biscuits
Ltd
Manufacture venue: West Bengal, U.P.
Key products: Fun fill Choco vanilla, Fun fill Rich Chocolate, Golmol,
Jadoo, Marie time, Snackles, Milk made, Dil Khush
Classification - based on
production Market share product
wise
Classification Based on Classification based on
choice of biscuits frequency to eat biscuits
Market Share
India - Annual biscuit Market share Region
production wise
CURRENT SCENARIO OF BISCUIT INDUSTRY

Annual growth: 14 15%.

Total turnover per annum 8000 crores.

III largest biscuit manufacturer after USA & china.

Largest consumers: Maharashtra, West Bengal.

Export: 15% of annual growth.

 Growth of production
Biscuit bread
Year Thousand MT Year Rs bn.
2000-01 1110 2000-01 11.90
2001-02 1188 2001-02 12.85
2002-03 1307 2002-03 13.85
2003-04 1444 2003-04 14.80
2004-05 1523 2004-05 15.85
2005-06 1607 2005-06 16.90
2006-07 1696 2006-07 17.90
2007-08 1804 2007-08 18.95
2008-09 1920 2008-09 20.00
2009-10 2043 2009-10 21.10
2014-15 2758 2014-15 26.90
Status of Confectionery
industries
in India
 Introduction

Indians like to celebrate with sweets and they start

relishing it at a pretty young age. The Indian kids start
off by indulging in all sorts of sugar boiled candies. No
wonder, the confectionery industry is ectors in the
country.

The confectionery industryone of the largest and well

developed among the food processing s in India

mostly divided into chocolates, hard boiled candies,

clairs & toffees, chewing & bubble gums, lollipops and
mints.
 The Indian confectionery market which is
ranked 25th globally in value terms in 2009
is expected to grow at a rapid pace and jump
up to 14th position in 2014
 Reason
30% of the Indian population is in the 014
age group, which is the primary target
segment
Add to this the rapidly growing domestic
market.
Higher disposable income and the resultant
higher purchasing power will be instrumental
in the rising value and volume growth of the
confectionery market in India.
 Market Overview
Indias confectionery market is expected to grow by almost
three-quarters in four years as the burgeoning middle-class
consumes more gums and jellies, and chocolate still
dominates.
The confectionery market in India was estimated to be worth
$1.3bn in 2013, and expected to grow by 71% to a value of
$2.2bn by 2018.
http://www.foodnavigator-asia.com/Markets/Analysts-
predict-lightning-growth-for-Indian-confectionery-market

strong double-digit annual CAGR.

 Increasing health consciousness, a fast evolving
indulgence seeking attitude of the Indian
consumers along with snacking/eating on-the-go
are a few of the key trends shaping the Indian
confectionery market.

In 2010, new product launches were dominated by

sugar confectionery and chocolate category which
together accounted for around 80% of the launches.
 Manufacturers and key players
The organized confectionery segment in India segment is dominated by
the multinational companies; however, domestic players are increasingly
finding a prominent position in the market. The key players in the
confectionery sector in India today are:
Cadbury India Ltd is the largest manufacturer of chocolate, confectionery
and malted food products.
Nestle India Ltd is a manufacturer and marketer of coffee, tea, malted
beverages, instant baby cereals & foods, milk products, chocolates and
confectionery, instant foods and culinary products.
Lotte India Corporation Ltd is primarily a manufacturer and marketer of
sugar boiled confectionery, cocoa and milk based toffees, candies and
mints.
Nutrine Confectionery Co Pvt Ltd is a manufacture and marketer of sugar
boiled confectionery, cocoa & milk based toffees, candies, clairs and fruit
bars.
 Manufacturers and key players
Candico India Ltd is a manufacturer and marketer of sugar boiled
confectionery, candies, gums, mints and toffees. They are also the largest
contract manufacturer for various Indian and overseas confectionery
companies.
Perfetti Van Melle India Ltd is a manufacturer and marketer of sugar
based confectionery and is a leader in the candy and gum segments of the
confectionery market.
Parle Products Pvt Ltd is a manufacturer and marketer of cookies, sugar
boiled confectionery, and cocoa and milk based toffees.
Wrigley India Pvt Ltd is a manufacturer and marketer of chewing gum
(Wrigley brands) and sugar based confectionery, bubble gum, chewing
gum and candy (Joyco brands).
Gujarat Cooperative Milk Marketing Federation is India's largest food
products marketing organization and manufacturer of milk and milk
products, ice creams, chocolate and confectionery, and ready to eat
products.
 Manufacturers and key players
ITC Foods, a division of ITC Ltd made a foray in the confectionery market in
year 2002.
Hindustan Lever Ltd, Indias leading FMGC company, has a presence in the
confectionery market since 2001.
The CAMPCO Ltd is a leading processor of cocoa and cocoa based
industrial products and has a small presence in the branded chocolate
sector.
Lotus Chocolates Co. Ltd is another processor of cocoa and cocoa based
industrial products with a small presence in the branded chocolate sector.
 Top five manufacturers accounting for a major
share.

Cadbury (Kraft) and Nestl, with a higher focus on

chocolate products, are performing relatively better
than other confectionery manufacturers
 Health consciousness is one trend that has certainly
caught the attention of the manufacturers. As a
result, cereal bars are currently the fastest growing
category in the Indian confectionery market.

Gifting chocolates during traditional Indian festivals

like Diwali and occasions like Raksha Bandhan also
continue to gain popularity
 Market Specifics
Market Segmentation
Segment Share (%)
Organized 35

Product Variation Informal 65

North 28
Type Share (%)
East 17

Plain candies 43 West 32

Toffees 39 South 23
Adult Candies 9 By age groups
Gums 3 2 to 8 years 15
clairs 6 8 to 25 years 55
25 to 64 years 25
Over 64 years 5
obstacles that will inhibit growth in
the market
High food inflation in India

spending on comfort food items diminishes

price of both sugar and cocoa beans (the main

ingredients in chocolate) is on the rise,
 Advertising in Confectionery Industry
The only way to create brand salience is through
innovative advertising.

Large confectioners spend 12 to 13 per cent of

their sale revenue on advertising and brand
promotion.

Advertisements need to appeal to all consumers

across age brackets and socio-economic groups.
 Perfetti also used humour (Mentos and Center
Fresh), emotion (Alpenliebe), bizarreness
(Happydent and Chlor-Mint) and fun in liberal
measures in all its commercials and shifted the
communication from pure ecstasy of chocolate to a
theme.

Perfetti has been able to stick to various themes

over the years. Alpenliebe, for instance, has played
on the irresistible factor in all its campaigns,
Mentos has played around with fresh ideas that can
get you out of a fix
 Innovation
Young consumers looking for newer formats and flavours in
confectionery
New product launch
Dabur - Hajmola- digestive in tablet and candy format,
Chuzkara- a semi-liquid sweet and sour candy

Perfetti Van Melle - Alpenliebe Spicey 1 (spicy chilli and

sweet mango in one tangy candy)

http://www.indiaretailing.com/FoodGrocer/7/42/44/12054
/Indias-confectionery-market-seeing-innovative-products-
and-new-brands
 Conclusion
The share of imported confectionery will continue to increase over
the next several years, although overall sales will remain modest.
Indians taste will continue to become more westernized and more
quality conscious.

The popularity of chocolate products, particularly boxed

assortments for gifts, will continue to increase.

The sugar confectionery will remain the largest confectionery

segment. We expect to see growth of new and novelty products,
such as mint and gum.

Health consciousness is one trend that has certainly caught the

attention of the manufacturers. As a result, cereal bars are currently
the fastest growing category in the Indian confectionery market.
Thank You