Market Trends of India Bakery Ingredients Industry
The Sweeteners Segment is Growing at a Faster Pace
Consumption of bakery products in India is increasing owing to a rise in disposable income, a more working population, and the adoption of Western culture. sweet bakery products, like cakes, pastries, and other products, are consumed in more quantity. India is also importing bakery products due to an increase in demand for bakery products. Since the demand is increasing, the use of sweeteners is also increasing as they do not add any value to the product and are healthy for consumption. Among sweeteners, stevia, monk fruit, and other natural sweeteners are in demand due to their nutritional and functional properties. Indian farmers are opting for growing stevia plants due to higher input costs and the absence of standard crop cultivation practices. Additionally, there needs to be traditional know-how for stevia plantations in the country. To help these farmers, the National Medicinal Plants Board (NMPB) announced a 30% subsidy on the cost of production in 2021. To help these farmers, the National Medicinal Plants Board (NMPB) announced a 30% subsidy on the cost of production in 2021.
Surging demand for Functional Bakery Products
The growing prevalence of healthy living among Indians has indeed diversified the consumer space with subthemes, ranging from fitness to food ingredients owing to an increase in lifestyle-related diseases like diabetes. According to forecasts from the International Diabetes Federation, 98 million Indians may have diabetes by 2030. Consumers have stepped up to upgrade their lifestyles with every possible convenience available in the market, resulting in the surging demand for value-added fortified bakery products, including bread and cookies. Amid the emerging economy and growing sense of awareness, consumers are readily differentiating the products placed on market shelves, based on the ingredients used during formulation. This has resulted in consumers revamping their preferences from conventional foods, such as white bread and cream biscuits, to a better and more health-effective choices, like brown bread and digestive biscuits.
Anticipating the burgeoning functional bakery market, bakery manufacturers are coming up with health-oriented food products. For instance, home-grown brand Parle Products offers NutriCrunch, directly challenging the country's leading Britannia NutriChoice range, to capture a 15% market share of functional foods in India. The growing competition among food companies is further benefiting the market for functional bakery ingredients. Moreover, food manufacturers are equally addressing the parallel concerns and consumers' constraints associated with bakery products, highlighting the limitation of cereal allergies. Food companies are heavily investing in rollingl out products encountering such restraints with claims, such as Gluten-free, non-GMO, etc. Ingredient manufacturers are constantly working to expand their portfolio of functional ingredients, to capture the emerging market.
