India Bakery Market Outlook

According to the report by Expert Market Research (EMR), the India bakery market attained a value of USD 11.07 billion in 2024. Aided by changing consumer lifestyles, increasing demand for convenient and ready-to-eat food products, and the rising influence of western dietary patterns, the market is projected to grow at a CAGR of 9.50% between 2025 and 2034 to reach a value of USD 27.43 billion by 2034.

The bakery industry is one of the oldest segments of the food processing sector in India and continues to play a crucial role in shaping the country's evolving food consumption patterns. Bakery products such as bread, biscuits, cakes, pastries, and cookies are increasingly becoming essential components of daily diets across urban and rural areas alike. The convenience, affordability, and long shelf life of bakery products, coupled with their adaptability to both traditional and modern tastes, have made them a popular choice among Indian consumers.

The market’s expansion is also being supported by the increasing penetration of organised retail, the emergence of online food delivery platforms, and the growing preference for packaged and hygienically prepared food products. In addition, the continuous innovation in product flavours, health-focused offerings, and premium bakery categories is significantly driving the growth of the bakery industry in India.

India Bakery Market Size and Share

In 2024, the India bakery market reached USD 11.07 billion, with biscuits and bread segments dominating the market due to their widespread consumption across all income groups. The biscuit segment, accounting for a major portion of total market revenue, benefits from its affordability, convenience, and popularity as an on-the-go snack. Meanwhile, the bread segment has witnessed steady growth, driven by rising urbanisation and the growing demand for easy-to-prepare breakfast items.

The cakes and pastries segment is witnessing rapid expansion, primarily among urban consumers, due to the increasing influence of western food culture and the growing popularity of premium and artisanal bakery products. Cookies, muffins, and croissants have also gained momentum, especially in tier-1 and tier-2 cities where young consumers are exploring new tastes and experiences.

Major players such as Britannia Industries, ITC Limited, Parle Products, and Mondelez India hold significant market shares, while a growing number of regional and artisanal bakery brands are contributing to market diversification. By 2034, with increasing disposable incomes, rising health consciousness, and technological advancements in food processing, India’s bakery market is expected to expand substantially, offering opportunities for both large manufacturers and emerging entrepreneurs.

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India Bakery Market Trends

Several notable trends are influencing the evolution of the India bakery market:

  • Health and Wellness Focus: With growing awareness about nutrition and fitness, there is a rising demand for bakery products made from whole grains, multigrains, oats, and millets. Consumers are increasingly opting for products that are low in sugar, gluten-free, high in fibre, or fortified with proteins and vitamins.

  • Premiumisation and Artisanal Offerings: The emergence of premium bakery chains and artisanal bakeries in metropolitan areas has given rise to a new segment of consumers seeking high-quality, fresh, and innovative products. Gourmet cakes, European-style breads, and customised desserts are gaining traction among affluent urban consumers.

  • Expansion of Online and Modern Retail Channels: The rapid growth of e-commerce and food delivery platforms such as Swiggy, Zomato, and BigBasket has transformed the distribution landscape, enabling bakery manufacturers to reach a wider consumer base and enhance convenience.

  • Product Innovation and Flavour Diversification: Manufacturers are continuously experimenting with new flavours, ingredients, and product formats to cater to India’s diverse palate. Fusion products that blend traditional Indian tastes with western bakery concepts, such as masala buns, cardamom cookies, and saffron cakes, are increasingly popular.

  • Sustainability and Clean Label Movement: Consumers are showing a growing preference for clean-label bakery products that are free from artificial preservatives, colours, and additives. Sustainable packaging and environmentally conscious production processes are also emerging as key differentiators for modern bakery brands.

Drivers of Growth

The India bakery market is being propelled by a combination of demographic, economic, and lifestyle factors:

  • Urbanisation and Changing Lifestyles: Rapid urbanisation has led to busier lifestyles, increasing the reliance on convenient and ready-to-eat food products like bread, biscuits, and packaged cakes.

  • Rising Disposable Income: The steady increase in disposable income, particularly among the middle class, has expanded the demand for premium and indulgent bakery products such as pastries, desserts, and cookies.

  • Young Population and Changing Dietary Habits: India’s youthful demographic, with growing exposure to international food culture through travel, media, and global restaurant chains, is contributing to the rising demand for diverse and innovative bakery items.

  • Expanding Retail Infrastructure: The proliferation of supermarkets, hypermarkets, and convenience stores has made bakery products more accessible. Furthermore, improved packaging technologies ensure longer shelf life and higher product safety, enhancing consumer trust.

  • Growth of the Foodservice Sector: Cafés, quick-service restaurants (QSRs), and bakery cafés such as Café Coffee Day, Barista, and international chains like Starbucks have boosted the popularity of baked goods as snacks and accompaniments, further driving market growth.

India Bakery Market Segmentation

The market can be divided based on type, distribution channel and region.

Market Breakup by Type

  • Biscuit
  • Bread 
  • Cakes and Pastries
  • Rusk
  • Others

Market Breakup by Distribution Channel

  • Supermarkets and Hypermarkets
  • Convenience Stores
  • Independent Retailers
  • Artisanal Bakers 
  • Online

Market Breakup by Region

  • North India
  • East and Central India
  • South India
  • West India

Competitive Landscape

Some of the major Key players explored in the report by Expert Market Research are as follows:

  • Britannia Industries Ltd.
  • Parle Products Pvt. Ltd.
  • Surya Food & Agro Ltd.
  • ITC Limited
  • Anmol Industries Ltd.
  • Jubilant FoodWorks Limited
  • Ravi Foods Pvt. Ltd.
  • Mondelez International, Inc
  • Mrs Bectors Food Specialities Ltd.
  • Patanjali Ayurved Limited,
  • Others

Challenges and Opportunities

The India bakery market faces several challenges that may restrain its growth potential. Rising input costs, particularly for wheat and sugar, can increase production expenses and affect profitability. Supply chain inefficiencies, especially for perishable bakery items, pose logistical challenges for small and mid-sized producers. Moreover, the unorganised nature of the industry in several regions leads to inconsistency in product quality and standards.

However, these challenges also open up significant opportunities for innovation and expansion. The growing consumer inclination towards health-oriented bakery products offers manufacturers opportunities to diversify their portfolios with nutrient-enriched, gluten-free, and vegan options. Additionally, the increasing digitisation of the food retail sector and the expansion of cloud kitchens and bakery delivery platforms are enabling even small bakeries to reach a larger customer base.

Furthermore, India’s vast agricultural resources provide an opportunity for the local sourcing of key ingredients, which can enhance sustainability and cost efficiency. Collaborations between bakeries and e-commerce platforms, coupled with investments in cold chain and logistics infrastructure, are expected to enhance distribution capabilities and product accessibility.

India Bakery Market Forecast

The India bakery market is poised for robust growth over the coming decade. Between 2025 and 2034, the market is projected to grow at a CAGR of 9.50%, reaching a value of USD 27.43 billion by 2034. The steady expansion of the organised retail sector, coupled with rising consumer sophistication and demand for premium and healthier bakery options, is expected to drive sustained growth.

In the short term, innovation in flavours, formats, and packaging will be key differentiators, while in the long term, the market’s growth will be shaped by increased automation, digital transformation, and enhanced food safety standards. Additionally, the introduction of clean-label and plant-based bakery alternatives will align the industry with global health and sustainability trends, ensuring continued consumer engagement.

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