Bakery industry is growing at a steady rate in India. In 2023, the Indian bakery market was valued at US$ 12.6 billion. The market is expected to develop at a compound annual growth rate (CAGR) of 9.6% from 2024 to 2032, reaching US$ 29.4 billion. The demand for and expansion of the Indian bakery market are being pushed by the country's booming retail and e-commerce sectors, western culinary trends, rising consumption of cakes and RTE meals, and a growing population with shifting preferences.

With a predicted value of $15.5 billion in 2023 and a compound annual growth rate (CAGR) of 6.3% from 2024 to 2035, the global market for baking ingredients is expected to reach $32.1 billion by that time. The market for bakery ingredients is growing due to the influence of culture and the wider world, as well as the rise of environmentally friendly and sustainable baking methods.  Bakery ingredients" help preserve baked goods' softness, taste, and freshness while also extending their shelf life and adding protein.

Trends

In the last 6 months or more some definitive trends fuelled by customer demand have emerged. Sacrilegious though it may seem to the bakery gourmand the vegan choice is driving customers towards egg free products. Noticeably then the consumption of eggless cakes, cookies , cheesecakes and other desserts is steadily rising as compared to earlier times.

“Health concerns too have propped up the sales of Sour Dough Bread, Ragi Bread, Multigrain, Gluten free, Sugar Free and their ilk.Classic comebacks and favourites are trending once again which include Opera, Mille Feuille, Tiramisu in the Cakes and Pastry section, coupled with plenty of interest in the Cheesecake genre, hence one would find Japanese Cheesecakes, New York Cheese Cake, Burnt Basque on most bakeshop menus, commented Noel D'souza, General Manager, Gaylord Restaurant & Bakeshop, Mumbai.

New York Rolls essentially confections fashioned around pinwheel croissants also add flavour and eyecandy to patisserie displays.
Sourdough, Ciabatta Slices with an array of savoury topping, and open sandwiches are also taking off. These are exciting times for the bakery & confectionery customers as they have an array of sinful and also guilt free products to choose from.

Innovative Trends and Future Outlook in Bakery and Hospitality Sectors

Eesha Sukhi, Founder, The Bluebop Cafe said, “As consumer preferences evolve, the bakery and hospitality sectors are embracing innovative trends and new ingredients. Here’s a snapshot of the current landscape and future outlook.”

Bakery Innovations
1.    Plant-Based and Vegan Options: Growing demand for vegan pastries, cakes, and bread, utilizing substitutes like aquafaba and flaxseed. At BlueBop Cafe, we offer vegan desserts and pizzas.
2.    Health-Conscious Baking: Incorporation of whole grains, ancient grains, and alternative flours for low-sugar, gluten-free, and high-protein products. BlueBop Cafe features gluten-free, refined sugar-free items.
3.    Functional Ingredients: Use of superfoods, adaptogens, and probiotics to add health benefits.
4.    Artisanal Baking: Appreciation for traditional fermentation and small-batch production.
5.    Sustainability: Locally sourced, organic ingredients, and eco-friendly packaging.
6.    Hybrid Desserts: Creative combinations like cronuts and brookies.
7.    Exotic Flavors: Introduction of global flavors like yuzu and matcha.
8.    Technology: 3D printing and automated baking systems for improved efficiency.

Hospitality Trends:
1.    Personalization: AI-driven personalized dining experiences.
2.    Sustainability: Zero-waste kitchens and sustainable sourcing.
3.    Health and Wellness: Menus with organic, balanced options.
4.    Digital Transformation: Online ordering and contactless payments.
5.    Experiential Dining: Themed restaurants and interactive environments.
6.    Ghost Kitchens: Delivery-only concepts.
7.    Culinary Tourism: Food tours and farm-to-table experiences.
8.    AI and Robotics: Increased automation for efficiency.

Shift in Consumer preferences:

We have observed a significant shift in consumer preferences towards fusion flavours, which blend the best of Western desserts with the richness of Indian ingredients. This trend reflects a broader movement in the bakery industry where innovation is driven by the desire to offer unique experiences to customers.

“By incorporating ingredients like saffron, pistachio and eggless alternatives into traditional Western recipes, we're creating desserts that align with Indian palates while maintaining an international appeal. Additionally, the integration of technology in inventory management and demand forecasting has been crucial. By leveraging the data, we're able to predict customer preferences and manage inventory efficiently, ensuring that we meet demand without compromising on quality,” commented Mr. Himanshu Chawla, Co-Founder, Bakingo who further added that the bakery industry is set to evolve with technological advancements and innovative ingredients. These developments will redefine how we create and enjoy baked goods, blending traditional methods with modern innovations for a delightful experience.

Future of the industry

Health, sustainability, and technology will define the future of these sectors. Businesses that adapt to these trends will likely lead the way into a promising future. New whole wheat, multigrain, low trans fat, and healthful bakery products have been introduced as a result of rising consumer health consciousness. This is anticipated to fuel the Indian market's expansion in the next years. In addition, it is said that the growing availability of products along with the expansion of supermarkets, department stores, convenience stores, and hypermarkets will propel the regional industry going forward.