Nov 21, 2020
Bakery items consumption enhanced during this pandemic and this situation has made many big food companies foray into the “sweet and convenient” sub-category of packaged cake segment. For now, the revenue generation from this category is estimated at over Rs. 2,500 crore per annum.
Big food segment players such as Mondelēz-owned Cadbury, ITC Sunfeast, and others have entered into this niche category. And food safety, in-house consumption, and differentiated product offerings as the prime factors for the over 20 percent annum revenue growth of the sub-segment.
The current pandemic has led to some profound shifts in buying patterns and consumer preferences and cakes also produced a higher price realization per unit of raw material consumed. Therefore, it is not surprising that packaged food brands are looking at doubling down on this product category.
A big example of this is ITC Sunfeast that had forayed into the cake segment in 2018 and within two years occupied a 22 percent market share, Sunfeast decided to expand its cakes portfolio and consolidate it under a new sub-brand ‘Sunfeast Caker’, which has been recently launched.
The outlook for the Indian bakery industry seems quite optimistic, with the projected market value likely to surpass $12 billion by 2024, growing at a CAGR of 9.3 percent between 2019 and 2024.