Bakery Review - August-September 2020
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In this issue
These unprecedented times has brought about significant changes the way we live our lives today. It has impacted the buying behaviours and the market dynamics. The pandemic has resulted into mass shutdowns and supply chain disruptions. The disruption in logistics created more issues in the market as consumers were not getting products as per their requirement which ultimately affected the market. The COVID-19 pandemic has significantly impacted the bakery industry. During the lockdown the supply of bakery products, though remained reasonable in the major categories like Breads & Biscuits, the essential components for breakfast and snacks, still many bakeries have to shut operations due to shortage of labour. Another factor that has created an impact on the market is the lack of raw material availability. These problems actually had worse affect on small unorganised bakers, who work with limited resources.. A surge in home baking has been one of the stand-out positive trends from this situation. Also in order to survive, bakeries had to switch up their business models. This led many to explore home delivery business module. The convenience factor for consumers and the widened reach for bakeries mean online deliveries is here for the long-term. With the reopening of retail establishments, the demand for the bakery products will further increase in house hold sector. In the food services sector there is decline in bakery products demand but with hotels now opening pan-India it will regain market in the near future. In order to regain the confidence of consumers, food establishments must provide assurance to them that food has been prepared in a hygienic environment.
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