All About Bakery Business
Bakery Review|August-September 2020
India’s bakery industry is one of the biggest contributors to the country’s processed food industry. According to the latest report by IMARC Group the Indian bakery industry touched $ 7.9 billion in 2019. The market value is projected to reach a value of $ 13.3 billion by 2025, expanding at a CAGR of 19.1% during 2020-2025. These figures are likely to tempt entrepreneurs to enter the industry, which is also popular with n several female bakers. However, there are several aspects of the business which needs to be examined by industrialists before entering this field. Ashok Malkani examines a few of them like the growing awareness and preference of people for healthy products which are gluten free as well as the lack of skilled labour and other problems. One can also opt for the franchisee route.
Ashok Malkani

According to a recent report, the bakery industry is experiencing a growth of 9%. There are over a million bakeries in the unorganized sector. The market value is projected to reach $ 13.3 billion by 2025, expanding at a CAGR of 9.1% during 2020-2025. The bakery industry, today, is the third highest revenue earner among the processed foods sector in India.

The per capita consumption of bakery products, in India, is quite low as compared to the developed countries. The consumption, here, is about 2kg per annum as compared to 10-15 kg per annum in developed countries.

The Market Research Report states that the global bakery market size was estimated at $203.8 billion in 2018 and is projected to expand at a CAGR of 3.2% from 2019 to 2025.

Bakery industry is supposed to be leading above all ready-to-eat food segments. Looking at all these figures, people are keen to venture into this industry

There can be little doubt that bakery business is considered to be lucrative but it is essential for those desirous of entering this industry to not only do a market survey but also know about the problems affecting the industry.

Essentials of Starting a Bakery

To start a bakery, the first essential is the location. Besides, you must have a business plan. Creation of a business plan will force you to look at the business from every angle. This will help you not only define your business but also set goals, find ways to generate revenue, list expenses, identify your customer base and examine your competition.

To know your start up costs, you’ll need to compile a list of equipment.

The bakery equipment that you would need would be planetary mixers, spiral mixers, oven, gas, stove, cylinders, etc.

Planetary mixers, help the chefs and bakers in mixing the ingredients in the right proportions at regulated speed and time to provide consistent batter for more voluminous softer cakes and pastries and crunchy cookies.

Spiral mixers are used for kneading bread, bun.

Dough proofer is another equipment that you need. It makes dough-rising process simple by optimizing heat and humidity.

As far as ovens are considered, there are several types of ovens – diesel/electric/ gas/and convection. Good oven spring gives not only volume, texture and softness to bakery products but also appetizing golden crust.

Besides, the equipment you also have to get all the licenses. Five licenses are essential. They are: FSSAI license, GST Registration, Local Municipal Corporation Health License, Police Eating House license, and the Fire License.

Problems

Looking at the growth in demand for bakery products one should not be mislead into believing that success in the industry is a cakewalk. One has to realize that there is competition. It is not only competition of big bakeries but also small bakeries which are already established. It is thus necessary for new bakers to know the expectations of the consumers. A new entrepreneur should also study the variety, quality and price of the competition and, accordingly take decisions about his products.

A prudent advise would be: Be original. You cannot survive by being a carbon copy of your competitors. As the stalwarts say: Be the best, be the first!

One has to understand that baking is a science and you require specialized trained staff. It is believed that there is a shortage of training institutes resulting in scarcity of trained bakery workforce. Access to qualified and trained workforce is a major hassle in the industry. The major requirement of the industry is to have trained manpower in order to prepare healthy bakery products which could be marketed easily. Untrained labour is the bane of Indian bakery.

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Wrap it up!

Packaging has become an important factor during the pandemic. People prefer to buy big brand packaged food products as they believe that these are more hygienic with less usage of human hands. They believe that packed under hygienic conditions, untouched by human hands, these packaged bakery products are less likely to spread the dreaded disease. The manufacturers’ objective of packaging food products is to protect it from spoilage or deterioration due to physical or chemical damage. Packaging, thus, not only ensures hygiene, by preventing tampering, but also helps in keeping the food from decaying. Besides this, it also provides product information and makes it look more presentable and appetizing. Ashok Malkani takes a look at the different types of packaging material available for bakery products and how they aid in increasing the products’ shelf life. New technologies have been adopted to enable bakery products maintain their freshness. He also takes a look at the future of bakery packaging to enable those desirous of entering the bakery packaging field, or starting a new bakery, keep abreast of the new emerging trends.

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