Cakes, cookies, brownies, bagels, pies, tortes, cupcakes, crusty bread, baguettes, sour bread, doughnuts, tortillas, pita breads… There’s no end to the delicious tastes and textures of baked goods throughout the culinary world. But with so many options already out there, what room is there for innovation? Surely one must ask oneself: has everything already been thought of and done?
The bakery industry: evolution, competition, and innovation Baking, as an industry, is constantly evolving. New tastes, new combinations, new shapes and sizes, new customer demands, and new technology are just a few of the ways that today’s bakery differs from yesterday’s and will differ from tomorrows.
Bakeries have been around for thousands of years. In fact, the first bakers’ guild was established in 168 BC in Rome. Imagine the innovations they had to look forward to, from honey-comb blancmange, which was developed in the Middle Ages, to the reduced-sugar treats (and other health-conscious trends) of the 21st century.
For starters, innovation in the bakery industry is no different from innovation in any other industry.
Business is competitive. So, you need to offer better classic products and more unique products than your competitors. If you do, you succeed. If you don’t, the world moves on, forgets about you, and you close your doors. You must constantly look for new ways to innovate because you can’t solve modern baking challenges with old solutions.
Innovation and creativity, both essential in the bakery industry, are often used synonymously. Yet, they are different but complementary. Creativity fosters unique ideas. Innovation makes those ideas useful. Together, they are unbeatable.
Innovation can be divided into two types: sustaining and disruptive. Sustaining innovation enhances a bakery’s processes (for instance, by using the latest technologies) to stay atop the market and retain the existing customer base.
You have to go further than this, though. In today’s market, you have to be disruptive too. This is frequently the domain of smaller, more agile bakeries, where they create a new market, such as personalised healthy snacks.
Now, the most successful companies embrace both forms of innovation. They maintain their existing position in the market while still fostering a workplace that rewards fresh ideas and creativity.
Let’s take a look at how the theory of innovation applies to the baking industry of today. Here are a few examples of where it worked: Reduced sugar trends: People are increasingly aware of the importance of a health-conscious diet. One of the ways they choose to do this is to reduce their sugar intake. Bakeries everywhere have answered this demand and tapped into this growing global health and wellness trend. Longer shelf life and frozen bakery products: Thanks to the COVID pandemic, customers have been less keen to venture into public spaces. Now, to a large degree, that’s back to normal, yet people are still stocking up on supplies that are easily accessible at home.
Vegan diets: Consumption has moved towards placing more emphasis on vegan ingredients. People have become more aware of the impact traditional ingredients place on the planet and realise that plant-based foods can be equally tasty. For the bakery industry, this means not using eggs, butter, and cream and instead seeing an increase in plant-based cakes, biscuits, pastries, and fillings such as chocolate.
Enhanced nutrition: Another trend that supports the massive health awareness movement is healthier bread and cake options that include high fibre, high protein, and high fruit content. Hybrid baked products: If you’re in the baking world, you’ve heard of the Cronut, that delicious treat that blends the buttery flakiness of the croissant with the decadent taste of a donut. But don’t stop there. Imagine your own hybrids. Ever wondered what would happen if a croissant and a pretzel ran away and had a baby? Well, meet the Cretzel! Other mixed baked babies include the Macaringue (macaroon and meringue) and the Croffle (croissant and waffle).
So, you need to stay ahead of these trends while still providing the classics that never go out of style. Ask yourself what we will be writing about on The World of Baking in the coming years.
You can bet anything that it will include sustainable and efficient food innovations. Ingredients and production methods are under ever-increasing scrutiny. Clean label credentials are essential.
People are getting busier every day, regardless of what the designers of AI would have us believe. That means more demand for baked goods that can be frozen or consumed on the go while at the same time maintaining the fresh taste of something just out of the oven.
Health, Health, Health. This is here to stay. Now, while there will always be an insatiable desire for that triple-layered and drizzled chocolate chip cookie, people will be seeking increasingly healthier options. Focus on satisfying that demand. Another phenomenon to embrace is that of individual portions, whatever the type of baked good, from cheesecake to tarts to quiche. Today’s Gen Z’ers are after less waste and more convenience, yet they still demand the same quality as their full-sized cousins.
And don’t forget visual appeal. Customers today want treats that look as good as they taste. One of the best ways to achieve this balance is through the use of colour. Think bright icing, white chocolate, and yoghurt toppings. Many new product ideas and innovations become revolutions, and some products remain revolutions longer than others. So, what bakery product will become a revolution tomorrow?
The right price is also the key. People are more aware of the amount of money they have and the perceived value of a baked good. And they’re prepared to pay more for this. For instance, freshly-made artisanal baked goods using local ingredients have high appeal and an upmarket feel, which therefore justify a premium price.
So, at the end of the day, innovation in the bakery industry is like innovation in any sector. You need to innovate to survive and, even better, to thrive. So put your creative apron on and think outside the box, or wrapper, or bag.
Market size of the bakery industry in India. India’s organized bakery sector produces about 1.3 million tons of bakery products (out of three million tons). Biscuits, bread, cakes, pastries, and Indian rusks are some of the most common bakery products in India. Convenience stores, supermarkets, hypermarkets, and online platforms are the places to sell these products. The bakery industry has a larger scope in every region of India, as it is mostly preferred for breakfasts and evening snacks.
In 2022, the Indian bakery market will be worth $11.3 billion USD. IMARC Group predicts that the market will reach US$ 21.2 billion by 2028, with a compound annual growth rate (CAGR) of 10.8% from 2023 to 2028.With the rapid advancements in technology, tremendous innovation, and increase in population, the bakery industry has always shown a positive market trend. Some changes are made to the products to ensure that they are nutritious for health-conscious consumers. Recent Trends and Innovations in the Bakery Industry Gluten-Free Bakery Products: Gluten-free bakery products are creating a massive sensation in the bakery industry due to an increase in health awareness among consumers. Wheat flour, which is undoubtedly the main ingredient in most bakery products such as bread, biscuits, and cakes, contains gluten network forming proteins, which are responsible for the dough’s elasticity. The chemical structure of gluten is very complex, and it triggers allergies in people. The global gluten-free bakery products market is expected to reach $5,900 million by 2026. Gluten-free doughnuts, biscuits, brownies, and gluten-free pasta have gained massive popularity recently and have found a place on the shelves of supermarkets already. Millets in baking: The millet revolution is only getting stronger in India, with nutrient-rich grains (aka millets) going mainstream in Indian kitchens. Increasing health consciousness among people and a demand for food diversity have seen these “tiny grains” soar in popularity.
More nutritious than modern wheat, millets are loaded with health benefits. “Millets are good sources of fibre that provide satiety and thus, control the intake of calories, which results in weight reduction and a lowering of BMI (body mass index).
Millets can be incorporated in a variety of ways and in different forms. They are especially prized by those adhering to a gluten-free diet. Once considered a poor man’s food, millets are slowly finding their way into baking, too. Thanks to their nutritional value, home cooks and bakers are replacing refined flour with millets to make breads, cookies, cakes, and other delicacies. Sometimes these versatile grains are used in healthy crackers as well.
Chemical Free Preservatives: Consumers are showing reluctance towards artificial additives and preservatives. Hence, natural preservatives are gaining momentum. Some of the most popular natural preservatives are:• Vinegar• Vitamin C• Plant extracts such as thyme, rosemary, cinnamon, and lemongrass• Cultured starches• Spices Essential oils are used extensively by the bakery industry due to their ability to delay microbiological spoilage. Rosemary extracts prevent oils and fats from going rancid.
Non-PHO Shortenings: The baking industry has been constantly trying to reformulate their bakery items without making use of any PHOs (partially hydrogenated oils). It means that 2023 will be a crucial year for the changeover to non-PHO shortenings. Replacing PHO’s has been an intensive process. They have broad plasticity and temperature tolerances. Bakers had a lot of room for error when working with them, whereas most alternatives do not boast such flexible ranges.
Whole Grain or Multigrain Bakery Products: Realizing the adverse effect of refined products, consumers now prefer whole grain bakery products. As whole grains contain all parts of the grain kernel—the bran, germ, and endosperm—they are highly nutritious and hence preferred by people. Consumption of whole grains reduces the risk of diabetes, heart disease, and high blood pressure.
Indian Ethnic Flavours: India is a land of rich food heritage. Indian flavours change according to demography. Infusing western cuisine with traditional ethnic flavours will offer a multi-sensory and flavourful experience. Kesar (saffron), elaichi, turmeric, and coconut go well with most of the bakery products. The addition of bhringraj to chocolate increases the functionality of the brain. The use of lemon, hibiscus, curry leaf, and honey in bakery products boosts immunity. Personalized & eco-friendly packaging—Last but not least, personalize and eco-friendly packaging is the newest trend and innovation in the bakery business. There was a time when people were fond of simple boxes and containers. People now prefer to have their bakery items delivered in beautifully designed custom boxes.
To impress onlookers, a cake or box of cookies, baked breads, or pizzas must be wrapped in personalized, eco-friendly boxes. In addition, consumers are now worried about the environment, so they need to get packaging that is human-friendly. Harmful and chemically treated packaging is not liked by consumers. In the event that you do not want to lose your consumers, it is better to get packaging that is both personalized and eco-friendly.
How is the baking industry in India changing in terms of innovation and reach? How is the baking industry evolving in terms of innovation and reach? With regard to bakery products, consumers are now demanding newer options, and therefore the industry has been experiencing the fortification of bakery products to satisfy the burgeoning appetite of the health-conscious Indian consumer. Bakery is one of the biggest segments in the food processing sector in India. It holds a very important place within the food processing industry and could be a traditional activity. The industry offers huge opportunities for growth, innovation, and job generation.
With regard to bakery products, consumers are now demanding newer options, and therefore the industry has been experiencing the fortification of bakery products to satisfy the burgeoning appetite of the health-conscious Indian consumer.
As a part of a worldwide trend, there’s greater demand for healthier products and alternatives, particularly when it comes to bakery goods, which are now more commonly consumed daily and no longer a treat. The major baked foods in the bakery products are produced within the country. The bakery segment in India is classified into three broad segments: bread, biscuits, and cakes.
There are many automatic and semi-automatic bread and biscuit manufacturing units in India, but many consumers still prefer fresh bread and other products from the local bakery. Since the arrival of multinational companies (MNCs) selling pizza and burgers, people are adopting new patterns to suit their taste buds. Today, they’re not restricted to just bread, cakes, and biscuits, but other bakery products as well.
Bakery products made in India are in great demand in developing countries. While there is a strong demand for bakery products, the industry faces some challenges. The industry is usually divided into organized and unorganized or semi-organized bakeries. Operational efficiency may be a major issue within the industry due to the lack of technology and skilled workers.
Although there are obstacles that are causing losses, there has been a boom in entrepreneurial endeavours within the bakery industry in India. Home baking has always been a well-liked pursuit, but with new technological innovations, individuals can monetize their efforts.
At every level within the bakery industry in India, there are challenges and opportunities. While the increase of local home bakers is encouraging, there are problems with hygiene practises and standards, and organized bakeries are incurring losses because of a lack of operational efficiency and skilled workers.
With the advanced aspiration for increased socialization, consumers are demanding more hangout options. The segment’s innovation has fuelled the rise of newer café formats such as bakery cafés, which flip the café concept by extending existing bakeries and chocolate retailers to supply complementary beverage items. The addition of a food component not only helped the cafés realize additional revenues but also offered their customers another eatery to frequent at mealtimes. Constant product innovation may be a major challenge for a bakery café.
As long as many of the food products offered at bakery cafés are best enjoyed fresh, efficient production and inventory management may be a must-tackle challenge. Despite the challenges faced by bakery cafés, the concept has a strong footing within the market today and appears set to grow in several cities, adding multiple brands to its fold.
The bakery industry would enjoy more innovative ideas and is predicted to grow with growing awareness and a flourishing economic environment. However, there has been an uptick in demand. The Indian bakery industry would reach new heights as a result of the changing perception of bakery products in India and changing consumer preferences.
Editors’ viewBakery products have always been a staple for breakfast and snacking occasions, but the COVID-19 pandemic has boosted the sector’s growth significantly in the past two years, primarily driven by home baking, flavour innovation, and healthier eating trends.
Experts have predicted that the global bakery products market will grow by about 2.5% from US$507.38 billion in 2020 to US$574.05 billion by 2026. Western regions such as Europe and the United States are still expected to dominate the global market, given the fact that bakery is even more of a staple across all dining occasions there as opposed to Asia, where rice is still the main staple. That said, according to firms in India, the growth in the local bakery sector has been significant throughout the COVID-19 pandemic, and current trends are expected to boost this even further.
Actually, home baking, innovative flavours, eco-friendly packaging, and healthy consumption are some of the major trends in India that are driving the bakery sector upward in a climate of challenges and competition.
Also, planned innovations are aimed at resolving this tension by providing solutions that cater to morning convenience, taste, and nutrition needs, and flavour innovation is an important driver in attracting and retaining consumers in India. Innovation in bakery products does not always mean creating something completely new that no one has ever seen before; it can also mean making minor changes or improvements to existing products, drawing on existing strengths to provide consumers with new experiences.As a matter of fact, modern human beings are both adventurous and conservative; consumers will only feel safe being adventurous if they have some go-to flavours to fall back on, which is why there is a need to make sure to take care of the basic flavours of products whilst experimenting with more esoteric flavours.
Packaging innovation was also highlighted as an area requiring much focus, as the needs in this area are rapidly evolving and firms need to react quickly to keep up. For packaging innovation, it is important to strike a balance between consumers looking for on-the-go convenient options in the long run and the current situation where, especially in India, larger packs are becoming more popular as consumers want to minimise running to stores, which is another form of convenient packaging.
We also need to think about the sustainability aspect for us in terms of manufacturing and down the supply chain, as well as how this impacts our plans. Most bakery companies strive to be clean and green companies as well.
Also, the health and wellness trend has penetrated basically every food and beverage category possible, and the bakery industry is no different, with many consumers looking for healthier options, particularly in the form of products that are gluten-free or contain fewer carbohydrates. Bakery firms now need to specialize in gluten-free and organic baked goods, including breads, cookies, cakes, and granola, as the health and wellness trend has come into its own over the past few years.
The health and wellness trend has really gained momentum since at least five years ago. In the first two to three years, the shift was more focused on consumer preference to eliminate unnatural ingredients, such as preservatives and colourings, and to choose non-GMO products whenever possible; the emphasis was on companies that could deliver a product using “real” ingredients and work in small batches rather than mass produce. Today, it seems that convenience, as well as buying something healthy that will last for weeks at a time, has become increasingly popular. Along these lines, the bakery industry has seen a significant rise in demand for their gluten-free products.
Consumers are becoming more aware that gluten intolerance and allergies are the reason behind some of the health issues that they face, which is driving this demand. Medical testing pertaining to this has become more available, so they are now able to pinpoint the severity of their condition and what needs to be done to remedy it.
Apart from this, with the rise in awareness amongst many consumers to cut down on carbs and replace them with healthy proteins as part of a good diet, we have also noticed that many consumers are choosing to purchase a mix of both gluten and non-gluten products. The carbohydrate-reduction trend is apparent in India. Consumers are becoming more conscious about what they eat and portion sizes.
Consumers are increasingly looking for foods that are healthier, more functional (high in protein and fiber), keto, naturally sweetened, low in sugar, convenient, and flavorful—all while remaining indulgent and affordable.Indian firm Lo! Foods also sells a number of low-carb, keto-friendly bakery products with a focus on using seed or nut flour as opposed to traditional grains and millets to lower carbohydrate content.
The plan is to reduce the incidence of obesity, diabetes, and cardiac risks by limiting carbohydrates and offering health benefits, particularly weight loss and reducing blood sugar levels, blood pressure, and triglycerides.
For the category as a whole, if we were to look at retail and premium retail, I believe that in the baked goods category, sugar-free, lower-carbohydrate alternatives have started to come in a big way.
Even big-name major baked goods companies now have no-sugar, no-refined wheat flour products. It is clearly the consumer’s intent to have a healthier option compared to what they already have. They want to still have the cookies and snacks that they are used to, but in a healthier form.
I believe there is a lot of truth in how eating delicious foods that make consumers happy can provide a positive outlook, and what we are definitely working on developing is a balance of foods that are healthy in the traditional sense of what health foods are but are also tasty enough for consumers to latch on to.
COVID-19 and the economic downturn in general have harmed many industries, but they have also revealed some intriguing trends in the region. The pandemic caused various operational challenges in the past year or so.
This seems to have stemmed from the current economic situation and is good for the baking industry, as it has pushed firms to keep being innovative and always think of putting new spins on products. Inflation has had a significant impact on how consumers across the region consider, buy, and prepare their food.
It is important to see that premiumization is another big new trend in India.
With limited spending on travel and other discretionary items, we have seen consumers pay greater attention to the quality of the food they choose to eat and a shift in consumer preference in favour of premium brands. E-commerce is, of course, the other one, where consumers across many markets are opting for the convenience of shopping for food online.