India Cake Market - Segmented by Type (Packaged Cakes and Unpackaged/Artisanal Cakes), Distribution Channel (Hypermarket/Supermarket, Convenience Store, Specialist Retailer, Online Channel, and Other Distribution Channels), and Growth, Trends and Forecasts (2018 - 2023)
India Cake Market Insight
The India cake market is projected to grow at the rate of 12.5% during the forecast period 2018 to 2023. The market is expected to witness a strong growth during the forecast period owing to the growth in rise in innovation in product offerings, increasing per capita household income, rising urbanization, surge in consumer spending, and growth in online retailing. However, high presence of unorganized players and increasing health concerns are some of the factors restraining the growth of the India cake market.
High Demand for Artisanal/Unpackaged Cake in India
From past few years, there’s a high demand for Artisanal/Unpackaged Cake. Factors such as product innovations, in terms of launch of new flavored cakes in different varieties, rise in consumer disposable income and changing consumer preference for bakery products in India are the key factors driving the segment. Specialist retail stores account for the major proportion of the share in the artisanal cake market, as the players have their own stores, kiosks, and bakeries. In addition, fondant cakes have gained popularity, compared to the simpler, round, cream cakes of the days past. Currently, there are two types of fondant available in Indian market: poured and rolled. Poured fondant is a sweet paste usually used as an icing or filling for cakes. On the other hand, rolled fondant is more like sweet dough. However, packaged cakes is gaining popularity and expected to be the fastest growing category, due to the development of vegan packaged cakes. India being a very diverse country, with approximately 40% of its population being vegetarian, the introduction of vegan cakes is expected to contribute a major chunk to the market growth.
Rise in Consumer Spending in India Cake Market
The middle-class population in India is set to become a prominent consumer force. It is not only due to its large size but also due to the high-income growth prospects. The cake market in India is expected to witness notable growth during the forecast period, owing to change in spending patterns of consumers, as they are inclined toward more premium cake brands available in India. Moreover, consumers are shifting their preferences from unpackaged/artisanal cakes to packaged cakes. Rising disposable income and urbanization have resulted in greater purchasing power. Furthermore, the working population in big cities prefer on-the-go foods, such as cakes, snacks, and sweet pies, which is likely to propel the market. Moreover, there has been a gradual shift observed in consuming bakery products in India, such as cakes during these festive seasons, along with traditional foods, especially in urban areas, resulting in increase in consumer spending during festival occasions. Thus, with rising disposable income, increasing acceptance of modernized packaged food products, and rising availability of innovative product options and flavors, the packaged cake market in India is expected to grow with a significant rate during the forecast period.
High Penetration of Organized Retail in India Cake Market
The evolving retail industry, especially in especially in India, is marked by the emergence of many stores in the specialist retailers, hypermarket, supermarket, and convenience stores. Large organized retail stores stock many brands and a variety of cakes under one roof, providing more options to consumers.
With the increase in preference for branded products among consumers, the importance of organized retailers carrying branded cakes has also increased. The India bakery product market is highly dominated by the specialist stores, with the presence of numerous players trying to gain competitive advantages over others. The specialist stores include, local bakeries (artisanal, as well as home-based bakeries), cafes, and kiosks. Home bakers hold a huge influence in the Indian specialist store segment. Thus, the penetration of organized retail will enable consumers to seek information about various brands, compare prices, and quality, which results in better purchase decision.
In the past years, online spending by consumers have rose significantly. The growth opportunity for the sales of cakes through online channel has forced online retailers to improve their purchase processes in terms of security and reliability, which, in turn, has propelled the demand for these products. Some of the policies that encourage consumers to purchase online includes secured transactions, cash on delivery options, convenient return policies, integrated and centralized customer service. Moreover, the explosion of smartphones and rapidly improving 4G LTE connectivity, coupled with falling prices, are fuelling the growth of e-commerce, assisting online orders for cake products. Many retail cake brands in India are entering the online sales portal or are partnering with companies to make their products available online. Monginis and Karachi Bakery are two well-known brands that have launched their websites where consumers can place their order for both packaged and artisanal cakes in India.
Key Developments in the India Cake Market
July 2017, Britannia acquired 26% stake in Sunandaram Foods Private Limited, a cake manufacturing unit in Assam.
February 2017, Monginis expanded its presence in South India, by setting up a manufacturing plant in Hyderabad.
India Cake Market Competitive Landscape
The India cake market is highly fragmented, particularly with the significant presence of numerous local and regional players. Major Key Players are Britannia Industries, Winkies, Karachi Bakery, Monginis, Modern Food Enterprises Private Limited, Bonn, Bisk Farm, Elite Group of Companies, and Anmol Industries Ltd.
Reasons to Purchase the India Cake Market Reprt
Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
Market dynamics, which essentially consider the factors, which are impelling the present market scenario, along with growth opportunities of the market in the years to come
Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
Country level analysis integrating the demand and supply forces that are influencing the growth of the market
Competitive landscape involving the market share of major players, along with the key strategies adopted for development in the past five years
Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
3-month analyst supports, along with the Market Estimates sheet in excel
Customization of India Cake Market Research Report
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