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The one thing that doesn’t seem to slow down at all, is the bakery industry of urban India. Be it a small bakery unit, a mom and pop shop or a simple bakery cottage, the spread of this particular industry is far and wide. Most of the bakery empire lies in the unorganized side of things. Almost 2 million bakeries of India come under the unorganized sector, which accounts for almost 60 percent of the confectionery production.

The goodness of baked goods is counted in the processed foods category. All your guilty pleasures such as the cakes, pastries, the yummy breakfast cereals, biscuits, and bread, all fall under this category.

Apart from being filled with the rich flavors, bread and other bakery products also boast convenience. Especially among the Britons and full-time working folks, these items act as a quick and convenient meal choice. Instead of having to cook up a dish, you can simply mix some cereal and have a nutritious and tasty breakfast. Bread, for instance, can be extremely multipurpose. Be it sandwiches, toasts or a simple bite to be eaten with cheese or milk, bread can serve all your hunger pangs, without stomping on your already tight schedule.

The per capita consumption of baked goods and the trends of food items in this area are going up by the minute. This is a clear indication of how fruitful this industry is, and any person wanting to set up a business in this field will have ample of untapped opportunities to explore Novelty, as known by everyone, is the best weapon in a budding businessman’s arsenal.

Let’s take the example of India. As gradually, things are becoming more and more westernized, the need for packed goods is also increasing. People need food that can be consumed with the least amount of effort, in a short amount of time. Hence, the market potential is huge. A person wanting to earn big bucks in the baked goods industry can easily capitalize on the population’s need to have quick and convenient meal options.

The hard boiled candies, various toffees and other sugar based products are a huge part of the Indian Confectionery market. Up until now, only 17 percent of the Indian households have been tapped. Products including chocolate, sugar goods and gum are the most popular items in almost all the Indian age groups. If an entrepreneur chooses to capitalize on these items, or instead chooses to diversify, either way, there is a lot of money making that can be done in this area. Hence, the potential for growth is huge. There are still many mouths in our country, which haven’t been fed with the sugary goodness of baked goods. The only thing to be taken care of, is that the packaging needs to be absolutely perfect, so the baked goods don’t lose their goodness before reaching the end consumer.

The Indian confectionery industry is still in the growth stage and is constantly evolving. The potential is humongous. A sound business plan and the right strategies are sure to do the trick.

Current Research on the Retail Bakeries Industry

Like many industries, retail bakeries see rising costs in fuel, health care, and other expenditures cut into their bottom line and increase the cost of doing business. However, there has been an uptick in demand, including trends such as cupcake stores and gluten-free baked goods.

Despite economic worries, the industry is expanding its customer base while other food service sectors continue to suffer. Consumers are now willing to spend moderately and demand high quality for their dollar; an equation for which retail bakeries are a solution. The most promising sector for the retail baking is cakes. Wedding cakes in particular are gaining ground as the economy rebounds.


Trends have manifested themselves in the various new launches/introductions that we have seen in the past few years by leading players be it Britannia’s Nutrichoice range, smaller packs of Good Day, ITC dark fantasy, Parle’s Happy Happy and Parle-G Gold.

Factors for Growth

Recently, a lot of bakers have gotten into three dimensional cakes and theme cakes. Cutting off from the regularity, bakers are now looking at experimenting with many more ingredients like rice treats, and inculcating them into cake designs. Some bakers even make use of wooden planks for support. There is also something as sugar crystal sculptures, where they try and use them as per the theme of the cake.

The biscuit category is expected to continue its growth trajectory of 15 per cent going ahead. Growth in bread would be relatively slower.

Global Bakery & Pastry Industry

The global baked goods market has shown rapid recovery following the economic recession, recording strong growth over recent years. Factors fuelling market expansion include convenience, affordability and health benefits of baked goods products. Demand for healthier fortified baked products has also driven sales.

The baked goods industry, encompassing products such as bread, cereals, cakes, biscuits, pastries and scones, is well established in industrialized regions such as Western Europe and North America. Product innovation and healthier products and ingredients are fuelling market growth in these regions. Emerging markets such as Latin America, Middle/East Africa and Asia represent good market potential as western lifestyles and eating habits continue to be adopted in these regions.

confectionery ingredient market

Europe to Continue Leading Global Confectionery Ingredient Market

On the basis of the geography, the global market for confectionery ingredients has been categorized into North America, the Middle East and Africa, Europe, Asia Pacific, and Latin America. North America and Europe have emerged as the leading regional markets for confectionery ingredients. They collectively accounted for a share of more than 60% in the overall market in 2016. Europe is the dominant region in this market and is reported to have shown a higher consumption of confectionery products such as chocolates and gums.

The confectionery ingredients market in Europe is majorly driven by the growing demand of sweetened items, bread and ice cream in domestic regions, such as the U.K., Germany, France and the Rest of Europe. However, the demand for confectionery ingredients in this region is expected to exhibit a moderate growth rate over the forthcoming years, owing to its maturation.

Asia Pacific, on the other hand, is anticipated to register a higher growth rate as compared to the other regions between 2017 and 2025, especially in countries such as India, Japan, and China.

Asia Pacific, on the other hand, is anticipated to register a higher growth rate as compared to the other regions between 2017 and 2025, especially in countries such as India, Japan, and China. The continual research on the consumption of chocolate and procurement of good quality confectionery ingredients from reliable sources are expected to complement the rise of the market for confectionery ingredients in this region in the near future.

global confectionery market

Chocolate and Bakery Expected to Exhibit Fair Growth

Confectionery ingredients are widely utilized in chocolates, sugar confectionery, and bakery products. With a high consumption rate, the usage of these ingredients is significantly high in chocolates. Over the coming years, this trend is likely to remain so on the grounds of the growing awareness among consumers regarding the health benefits of dark chocolates. Bakery products and sugar confectionery are also projected to witness a considerable rise in the usage of confectionery ingredients in the near future due to the western influence in emerging economies and the changing palate of consumers across the world.