Bakery Ingredients A Growing Business

Changing lifestyles and the growing demand for convenience food is giving a boost to bakery products.

- Ashok Malkani

There has been a steady growth of bakery industry due to increased disposable incomes and a shift in consumer preference towards healthier bakery products like whole grain bread, low calorie pastries and gluten-free products. Metropolitan cities like Mumbai, Delhi and Bengaluru, home to rising middle-class population, which is witnessing a rise in incomes, keen to have healthy bakery products are resulting in the rise in demand for bakery products. However, success and growth of the bakery industry, depends largely on the raw material, which provides an opportunity for enterprising entrepreneurs to venture in the healthy bakery ingredients market. Ashok Malkani takes a look at the trends in the bakery industry and the ingredients which are commonly used by the bakery industry and likeliness of their escalation in demand in the near future.

With the growing popularity and demand for bakery products - ranging from a wide variety of breads to doughnuts, cakes, cookies, biscuits, muffins et.al. - there is an increasing exigency for bakery ingredients. Additionally, the rise of q-commerce in India is making online ordering of cakes and baked goods more popular, particularly in urban areas, making the demand for bakery ingredients to catapult.

The Indian bakery market is on an upward trajectory, projected to grow from approximately $ 12.6 billion in 2023 to $ 29.4 billion by 2032, reflecting a CAGR of 9.8%. According to IMARC the Indian bakery market size reached $ 12.6 Billion in 2024. Looking forward, IMARC Group expects the market to reach $ 29.4 Billion by 2033, exhibiting a growth rate (CAGR) of 9.6% during 2025-2033. The rising consumption of bread, biscuits, and fast-moving consumer goods (FMCG) is contributing to market growth. Apart from this, the increasing influence of western food trends is catalyzing the demand for bakery products in the country.