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    Market Potential For Bakery Ovens in India

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    Nikhil Kedia
    This document analyzes the market potential for bakery ovens in India. It finds that the bakery industry in India consists of bread, cakes, and pastries produced by large, medium, and small manufacturers as well as single-store bakers. Total annual production of bread, cakes, and pastries in India is estimated to be over 4 million metric tons based on data from industry associations. Higher incomes, increasing urbanization, and favorable demographics are driving higher bakery product consumption in India. The population is projected to have a higher percentage of working-age people who typically consume more bakery products per capita.

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    Market Potential For Bakery Ovens in India

    Uploaded by

    Nikhil Kedia
    148 views7 pages
    This document analyzes the market potential for bakery ovens in India. It finds that the bakery industry in India consists of bread, cakes, and pastries produced by large, medium, and small manufacturers as well as single-store bakers. Total annual production of bread, cakes, and pastries in India is estimated to be over 4 million metric tons based on data from industry associations. Higher incomes, increasing urbanization, and favorable demographics are driving higher bakery product consumption in India. The population is projected to have a higher percentage of working-age people who typically consume more bakery products per capita.

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    Market Potential for Bakery Ovens in India

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    This document analyzes the market potential for bakery ovens in India. It finds that the bakery industry in India consists of bread, cakes, and pastries produced by large, medium, and small manufacturers as well as single-store bakers. Total annual production of bread, cakes, and pastries in India is estimated to be over 4 million metric tons based on data from industry associations. Higher incomes, increasing urbanization, and favorable demographics are driving higher bakery product consumption in India. The population is projected to have a higher percentage of working-age people who typically consume more bakery products per capita.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    148 views7 pages

    Market Potential For Bakery Ovens in India

    Uploaded by

    Nikhil Kedia
    This document analyzes the market potential for bakery ovens in India. It finds that the bakery industry in India consists of bread, cakes, and pastries produced by large, medium, and small manufacturers as well as single-store bakers. Total annual production of bread, cakes, and pastries in India is estimated to be over 4 million metric tons based on data from industry associations. Higher incomes, increasing urbanization, and favorable demographics are driving higher bakery product consumption in India. The population is projected to have a higher percentage of working-age people who typically consume more bakery products per capita.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 7

    OMEGA ANALYTICS

    Market Potential for Bakery Ovens in India

    OMEGA ANALYTICS

    TABLE OF CONTENTS

    SCOPE OF STUDY ...................................................................................................................................... 3


    DESCRIPTION OF THE BAKERY INDUSTRY ..................................................................................... 3
    METHODOLOGY ....................................................................................................................................... 3
    FINDINGS..................................................................................................................................................... 5
    INDUSTRY STRUCTURE ................................................................................................................................ 5
    INDUSTRY / MARKET TRENDS ...................................................................................................................... 6
    ANALYSIS .................................................................................................................................................. 14
    DEMAND DRIVERS..................................................................................................................................... 14
    BAKERY PRODUCTION............................................................................................................................... 17
    INDUSTRY STRUCTURE .............................................................................................................................. 21
    ESTIMATION OF DEMAND FOR BAKERY OVENS ........................................................................................ 26
    RECOMMENDATIONS............................................................................................................................ 29
    ANNEXURE................................................................................................................................................ 32

    OMEGA ANALYTICS

    Scope of study
    1. Identify trends in consumption of bakery products and planned
    investments by large producers in India.
    2. Define the market based on identification of product line, customer
    group, geography, sales channel.
    3. Competitor analysis - assess strengths/ weaknesses of the
    competition, including imports.
    4. Derive high level estimates of market size, current and potential, for
    bakery products. This will include the major segments of the market
    industrial, wholesale and retail producers of bakery products. Data
    will be gathered from bakery associations SIB, NABI
    5. Obtain estimates of market potential for bakery equipment in Middle
    East and Asia Pacific from secondary sources.
    6. Recommend suitable market research plan, if more refined estimates
    of market size are required.

    Description of the bakery industry


    The bakery industry consists of three broad product lines
    i) Bread and rolls
    ii) Cakes and pastries
    iii) Biscuits and cookies
    This study deals with trends and potential for bread, cakes and pastries
    target market for bakery equipment.

    Methodology
    The following information sources were tapped to understand trends in
    the bakery industry.
    a) Survey of about 100 bakery counters in central Bangalore,
    discussions with about 35 larger bakery counters (200 kgs sales per
    day and above)
    b) Industry associations
    
    
    
    

    All India Bread Manufacturers Association


    Society of Indian Bakers
    Federation of Indian Chambers of Commerce and Industry
    Karnataka Roller Flour Mills Association

    OMEGA ANALYTICS

    c) Government sources
    
    
    
    

    Department of Industries and Commerce Karnataka & Kerala


    Commercial Taxes Department Karnataka
    Central Statistical Organization, Kolkata
    Director General of Commercial Intelligence & Statistics

    d) Industry experts from


    
    
    
    
    
    

    Nilgiris
    Sweet Chariot
    Institute of Baking & Cake Art
    McRennet
    Bunge
    SAF Yeast

    e) Business newspapers Economic Times and Business Line

    OMEGA ANALYTICS

    FINDINGS
    Industry structure
    The bakery industry in India has not been well studied and hence
    reliable information on the industry and market structure is hard to
    come by. Major industry associations do provide some estimates on the
    current size of the market and its growth rate. These are summarized
    below
    i) Source: All India Bread Manufacturers Association (AIBMA)
    Large scale manufacturers
    Medium scale manufacturers
    Small scale manufacturers
    Unorganized single store bakers
    Organized sector production bread
    Organized sector production cakes and
    pastries
    Total organized sector production
    Estimated unorganized sector production
    Total production of bread, cakes and
    pastries
    Per capita consumption of bread
    Growth rate in production

    2
    25
    1,800
    75,000
    1,500,000 MT
    424,000 MT
    1,924,000 MT
    2,352,000 MT
    4,276,000 MT
    2.3 kg / year
    3 % p.a.

    ii) Source: Central Statistical Organization (CSO)


    No of factories
    Productive Capital
    Employees
    Gross output
    Net value add

    970
    Rs 871 cr
    41530
    Rs 4343 cr
    Rs 597 cr

    CSO data corresponds to the NIC industry code 1541 which includes
    bread, biscuits and other bakery product manufacturing units registered
    under the Factories Act, 1948.

    OMEGA ANALYTICS

    ANALYSIS
    Demand drivers
    Higher income levels, increasing urbanization and favourable
    demographics are the key drivers of higher bakery product consumption
    in India.
    A trend towards higher urbanization is clearly visible. The percentage of
    urban population has increased from 23.3% in 1981 to 27.8% in 2001.
    At the 1991 census, there were 23 urban agglomerations with a
    population of a million. This figure has risen to 35 in the 2001 census.
    Stagnant growth in the agricultural economy and considerably better
    employment prospects in the urban centric manufacturing and service
    economies is driving increasing migration to urban areas. Sales of bakery
    products which are considered convenience foods is expected to benefit
    considerably from this trend.
    Census of India projections shown in Figs 2 and 3 indicate that the
    population profile will shift towards a higher working age group (15-60)
    which is also the segment with the highest per capita consumption of
    bakery products.

    OMEGA ANALYTICS

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