Feasibility Study to Start a Bakery Business in India

The Indian bakery segment is poised for robust growth and is undergoing substantial expansion and thus getting Feasibility study for bakery business in India becomes quite significant. The surge is driven by shifting preferences towards packaged foods, rising disposable income, and growing influence of social media. Growth of the e-commerce industry including cloud kitchens, D2C platforms, and food delivery portals has further accelerated the industry. The overall bakery industry market in India was valued at USD 12.6 billion in 2023. The market is expected to reach USD 29.4 billion by 2032, growing at a CAGR of 9.9%.

As per Statista, the market is projected to reach 268.10 billion kg in volume by 2029. Average per capita consumption is anticipated to be 161.8 kg in 2025.

The India Bakery Segment Growth Drivers:

The increased demographic shift along with rising demand for bakery products like breads and biscuits boosted the growth of Indian bakery Industry. Also, FMCG retail created a substantial market for bakery products across the country.
Rising demand for western bakery items like cakes and donuts played a crucial role in shaping Indian dietary habits. Also, a business plan for bakery business in India is essential to grow in this highly competitive market. The events like celebrating birthdays, anniversaries, New Year's Eve, etc further stimulated the demand for bakery products.
The widespread growth of the F&B industry, particularly the expansion of QSRs, cafes, pizzerias, and fast-food chains, contributes significantly to the bakery market. They utilize bakery items to prepare food like sandwiches, burgers, snacks, etc. Besides, many cafes offer bakery items such as muffins, cakes, cookies, biscuits, etc.
With increasing corporate culture and hectic lifestyle consumers often seek ready-to-eat (RTE) options. This shift towards convenience food options creates a lucrative market for bakery businesses as these are readily available and require minimum preparation.
The Indian bakery industry has introduced alternatives like low trans-fat, multi-grain, and whole wheat bakery products. This initiative has been attracting the health-conscious segment of consumers expanding the market base and driving growth.
The expansion of modern retail channels, including hypermarkets, supermarkets, convenience stores, gourmet shops, etc. provides easy accessibility to bakery products for consumers. Additionally, the thriving e-commerce industry, with its doorstep delivery services, and attractive offers, enhanced the overall shopping experience.

Import & Export Trends in the Indian Bakery Market:

India’s bakery imports have witnessed exponential growth, hiking from USD 42.9 million in 2019 to USD 85.5 million in 2024 growing at a CAGR of 14.8%. The growth is driven by growing per capita income, urbanization, and evolving consumer preferences seeking diverse food options. The imports are mostly limited to the premium & gourmet segments.

On the export front, India’s bakery exports amounted USD 557 million in 2024 growing at a CAGR of 10%. USA, Canada, UAE, and Yemen were the key export destinations. Biscuits and cookies accounted for 60% of the exports. Breads, Wafers, and rusk also had noticeable contributions.

Competitive Landscape:

The Indian bakery industry is highly competitive, with several organized and unorganized players. There are more than 2,000 organized and over 1,00,000 semi-organized bakeries in India. The unorganized sector produces 80% of the country’s bakery products.

Britannia with its wide range of products is the market leader with annual revenue of USD 2.20 billion. Surya Food & Agro Ltd. is another major player known for its Priyagold biscuit brand. The brand recorded a market revenue of USD 197 million in 2023 as showed by the market insights on bread & bakery business.

The Indian bakery industry’s cake and pastries vertical has also witnessed significant growth with various veteran and emerging players in the segment. Monginis, with over 1,000 locations across India, has been a major player.

7th Heaven is an emerging bakery chain, has also carved a niche for itself with a network of over 200 outlets. The brand is known for its ability to customize cakes within minutes. Bakingo is yet another rising player known for its high-quality cakes and jar cakes. The brand has a strong online presence. Market research for biscuit industry in India reveals the names of the top players such as Dunkin Donuts, Krispy Kreme, and Cookie Man marking their presence in the industry.

Future Outlook:

The Indian bakery industry is well set for a promising future and thus there arises the importance of consumer research for bakery business. The market will be driven by consumer preferences for healthier, organic, and sugar-free products. E-commerce and online food ordering will make the space more accessible for customers.

Government initiatives like Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) have been supporting infrastructure development. The project had a budget of USD 88.3 million. As a result, 28 bakery processing projects covering 17 states were delivered in 2023. The plan also intends to focus on supply chain management. The PM Formalization of Micro Food Processing Enterprises (PMFME) scheme has assisted more than 2,000 bakery units with USD 2.2 million as of 2023.

With changing consumer preferences bakeries are likely to combine traditional flavours and global trends to attract a wide range of customers. Innovations like handcrafted pastries and artisanal breads will further interest the Gen Z crowd. Busy lifestyles will fuel demand for grab-and-go bakery products, advanced & quick packing technologies, and automated technology. Overall, the Indian bakery industry is poised for deeper global penetration and expansion of local as well as international players in the Indian market.

Feasibility Study to Start a Bakery Business in India

Steps to conduct feasibility for bakery business in India can be easily done with the help of an agency called India Watch. Indian bread, bakery, and biscuit industry, which is growing at a significant pace, is a lucrative playground for new businesses to thrive. Numerous international and local business owners are scouting opportunities to enter the market. Nevertheless, the Indian bakery industry is also highly competitive. The unorganized nature of the industry with close to ~ 100,000 local bakeries further aggravate the challenge to start and scale-up business.

To succeed in the Indian bakery market, one requires access to valuable market research for bakery business in India, competitive intelligence, and consumer research. This is where consulting companies such as The India Watch come in picture, as they can help with custom-made market studies, feasibility studies, project reports, etc. Our range of studies can include but is not limited to

Market & Industry sizing
Market share break-up
Consumer assessment and demand
Competitive intelligence
Business plan and presentation
Location assessment
Go-to market strategy
Regulatory & policy insights
Financial projections and plan
Future growth strategy

For any further information on Feasibility report for bakery and confectionary business, pls feel free to drop a mail at info@theindiawatch.com

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