The sliced bread is not the staple food in India, where still rotis, parathas, puris, and rice comprise a major portion of the food basket. However, the market for sliced bread is increasing steadily in the country. As per the business research by The India Watch, the Indian bread market is sized at USD 9.7 billion in 2022, growing at a CAGR of 6.1% over the past 5 years. The total consumption of bread has amounted to 9.56 million tons, jumping from 7.14 million tons in 2017.
The growth in the sliced bread category is rooted in numerous factors. Firstly, as the population is growing marked by a jump in disposable income, the demand for ready-made food items such as bread is naturally jumping ahead. Sliced bread is a convenient food that is widely used in Indian households either with butter or jam or in the forms of sandwiches, pakoras, etc.
The increased number of migrant workforces and labor classes in the urban metros is also driving demand for bread as it is convenient as well as affordable. Close to 85% of the consumption of bread in India is done in Lower middle-income and EWS households.
India is abundant in raw materials used in bread production such as flour, wheat, edible oils, sugar, etc. Another factor that is pushing ahead the consumption of sliced bread in India is the wide availability of bread across multiple formats such as grocery shops, local kirana stores, hypermarkets, supermarkets, milk booths, local carts, fruit stores, etc.
In addition to the B2C which consists of individual consumers, the B2B customer base is also flourishing. The demand for sliced bread is rising in local hotels, restaurants, canteens, etc.
Bread manufacturing in India can be split into three parts. Firstly, there are large manufacturers in the country such as Modern, Golden Harvest, Bonn, Amul, Mother Dairy, Britannia, Kanha, etc. Then there are SMBs and local manufacturers. Lastly, there are neighborhood bakers, who run and manage their own businesses.
Bread production in the country is a large-volume but low-margin business. There is limited scope for marketing as it is mostly run with the help of retail and wholesale distribution. The more aggressively a company can invest in retail distribution, the higher the chances of running a profitable bread business. Meanwhile, many bakers and manufacturers are also pivoting to the online grocery channels to boost their sales.
80% of sliced bread consumption mostly comprises white bread. However, due to growing health awareness and calorie-conscious customers, brown bread, whole wheat bread, multi-grain bread, and other variants are also witnessing a spike in demand. There are also growing markets for other variants such as protein bread, Oats bread, etc.
The current market of sliced bread is around USD 9.7 billion in India and is set to grow steadily in the times to come. In addition to sliced white bread and healthier alternatives, there is also growing demand for other variants such as tortillas, buns, pavs, fruit bread, etc.
However, to start a successful food business in India, it is also imperative for investors to learn and know the market diligently. India is a diverse and multifaceted market, and any food business will require access to plenty of data, insights, and research to succeed in the country. To succeed in the Indian food market also includes the bread business requires a wide range of services such as
Using such data can enable an enterprise to understand the market better, learn about the competition, formulate an effective strategy, and gain a larger market share. For any such business query, feel free to connect with us at email@example.com