Starting a Bakery During the Pandemic

Last two years have been challenging in many ways. COVID-19 pandemic, which has forced several lockdowns and restrictions on people, have affected almost all businesses. It has also encouraged consumers to put their health higher on the priority list making them realize the necessity for healthy food and eating habits. According to a research by Mintel almost three out of four Indians have put healthy eating at a higher priority than before the outbreak. The ongoing pandemic has led to a rising demand for bakery products not only due their health quotient but also due to their variety and functionality. This has driven more enterprising entrepreneurs to enter bakery industry. Ashok Malkani takes a look at the various branches of the industry, the requirements for starting a bakery and steps that the entrepreneurs need to examine before entering the industry.

- Ashok Malkani

The ongoing Coronavirus pandemic, which has been prevailing for about 2 years, has also affected the Indian bakery market which has experienced a slowdown. Statistic estimates that the India Bakery Products Market total worldwide revenue stood at approximately $ 3.94 trillion in 2019. In 2014, the India Bakery Products Market generated revenues of $ 5.4 trillion at a record high.

However, due to the pandemic, since 2019, there has been a shift in the preference of bakery products by the health-conscious consumers. This has led to a rise in demand for healthy and functional bakery items like those which consist of multigrains, nuts and other healthy ingredients. According to a research by Mintel, almost three out of four Indians have cited healthy eating as a higher priority, compared to before the outbreak.

Bakery products’ demand has also increased due to the rising influence of western culture. The increasing penetration of international bakery cafe chains in India like Barista, Cafe Coffee Day, and Monginis, etc has led to an increase of bakery products in the country. Add to this the trend of indigenization and home bakers and one can gauge the reasons for the rapid rise in demand for bakery products. One could also say that the shift forwards consumption of bakery products could also be attributed to the rising hectic working schedules and the present widespread work-from-home trend.