India Cake Market Trends

Emerging economies of Asia-Pacific represent larger, untapped potential for organized development of bakery products, owing to the rising disposable incomes, urbanization, and the demand for a western-style diet. Bakery in India is a traditional activity, and bakery manufacturers in India can be differentiated into three broad segments bread, biscuits, and cakes. The growth in baked goods in the last few years is supported by the value growth in bread, whereas cakes and pastries have experienced comparatively lower sales growth. Muffins, puffs, and other savory products are also gaining popularity as younger populations often visit independent bakeries to relish snacks. Monginis offers a variety of packaged cakes in the market, like different flavors of cupcakes, dessert cakes, and many more. Increasing health awareness among consumers and demand for clean-labeled packaged food is driving the market.

The consumption of bakery items has increased over the last few years as consumers increasingly value their affordability and convenience. Packaged cake segment is growing in the Indian market as the working population is increasing in metropolitan cities like Mumbai, Banglore, Delhi, Hyderabad, and others. Growth in fast-food chains further stimulates the demand for bakery items. Increased online food stores have also increased the demand for packaged food, as fast delivery services and discounts on products are beneficial. The convenience offered by bakery products has boosted demand for such products.

Moreover, the introduction of value-added bakery products is giving an impetus to market growth. The local and global market players are providing more outlets all over India to strengthen their portfolio and increase consumer demand. For instance, in October 2022, Theobroma, Mumbai's popular Patisserie, opened its first outlet in Chennai. Theobroma has 100 more outlets all over India.