FNB News - Bakery 3rd highest revenue earner among processed foods

You can get e-magazine links on WhatsApp. Click here

F&B SPECIALS

Bakery 3rd highest revenue earner among processed foods

Sunday, 16 November, 2014, 08 : 00 AM [IST]

Raj Kapoor

The bakery industry is a sunrise sector in India and has a huge potential for growth, income and employment generation.

It is the largest segment in the food processing sector, and bakery products are the cheapest processed foods.

With the rapid growth and the changing eating habits of people, bakery products have gained popularity among masses.

Its potential and significance in terms of creation of jobs, household-oriented business opportunities (griha udyog) and providing a wide range of bakery products at relatively cheaper prices and a high nutritional value to India’s population is undeniable.

It is also a gender-sensitive sector, as there are segments with high women’s participation in the workforce as well as in entrepreneurship.

Some segments require small capital, so women-based household enterprises can flourish. But for this sector to realise its maximum potential, it needs support from the government in terms of infrastructure, markets, credit and a suitable policy environment.

Information about India’s bakery sector
There are over 2,000 organised and semi-organised bakeries and 1,00,000 unorganised bakeries in India. A host of bakery products is available to the Indian populace through these establishments.

A majority of Indians consume traditional wheat-based bakery products (such as chapatis, naans, puris and paranthas), and a variety of bakery products (such as biscuits, cookies, croissants, buns, breads, cakes and muffins).

Bread and biscuits are the most popular bakery products in India, and constitute about 80 per cent of the total market.

The country is the second-largest producer of biscuits (after the United States).

The key biscuit-producing states are Maharashtra, West Bengal, Andhra Pradesh, Bihar, Karnataka and Uttar Pradesh.

The per capita consumption is highest in such states as Maharashtra, Gujarat, Kerala and West Bengal.

The Indian bakery industry is the third-highest revenue earner in the processed food sector.

The market size for the industry was pegged at $4.7 billion in 2010, and is expected to reach $7.6 billion by 2015.

Trends
The consumer demand for healthier, less-processed bakery products continues to increase, along with growing demands for allergen-free, organic, artisan, and vegan baked goods.

As trends in baking continue to grow and evolve, the baking industry must meet the challenge of providing appealing products, while also keeping up with the growing popularity of certain types of products.

Trends in baking continue toward lighter, healthier products, and those containing allergen-free, organic, and whole-grain ingredients.

Interest in inclusions and fortifications continues to increase among consumers of baked goods.

Some inclusions are used primarily to improve the products’ health-supporting qualities. They include fibre, antioxidants, omega-3 oils, and vitamin and mineral fortifications.

Other inclusions provide both health benefits and added taste to products such as fruit, nuts, certain spices, and cocoa.

The addition of inclusions to baked products requires modifications to the original product formula, thus creating a new product from an existing one.

Such modifications can be challenging to bakers, as changes in the formulation may result in the need for changes to equipment, processes, scheduling, and ingredient costs.

While organic foods are typically more expensive than non-organics, shoppers continue to show enthusiasm for products made from ingredients that contain no pesticides, chemical fertilisers or antibiotics, and that are not genetically modified.

Organic bakeries produce products ranging from par-baked to finished goods, as well as breakfast and other varies items.

Organic ingredient producers offer good ranging from flours and oils to packaged mixes, many of which are sold not only at specialty grocers, but also in the natural and organic sections of most large and chain grocery providers.

Specialty natural and organic grocers purchase many of their baked goods from wholesale organic bakers, and also from smaller, independent, organic and artisan bakeries.

Vegetarian and vegan bakery products are also growing in popularity. While breads that do not contain meat or lards are acceptable to many vegetarians, vegan breads require the use of egg substitutes and vegetable-based oils.

Some vegetarian and vegan breads are served less as an accompaniment to a meal and more as an entrée or featured side dish.

Such breads many contain a variety of grains, whole grains, fruits, nuts, vegetables, herbs, spices, and vegetarian or vegan cheeses.

The use of whole and alternative grains and grain products continues to drive new product development.

In response to the demand for products free of gluten and other allergens, baked goods using flours made from buckwheat, quinoa, millet, amaranth, flax, corn, rice, sorghum, wild rice and other non-wheat grains remain a popular trend in baking.

These flours offer tastes and textures that are uniquely different from wheat flours, which also serves the trend toward more types of artisan, handcrafted breads and other products.

Commercial bakeries that produce gluten-free products must maintain strict standards of sanitation to avoid contamination if products containing gluten are also produced in the bakery.

Whole grains continue to increase in popularity, both because of their health benefits and for their unique tastes and textures.

Whole grains may be cracked, rolled or crushed, but they must contain 100 per cent of the original grain to be considered true whole grains.

Whole grain wheat flour is popular in breads and related baked goods, as are many gluten-free grains.

The fibre, protein, vitamin and nutrient content of whole grains tend to be higher than that of processed grains.

Hearth breads, artisan and handcrafted breads and wood-fired oven baking continue to rise in popularity.

As consumers seek to avoid artificial ingredients and preservatives, the demand for artisan breads increases.

Artisan breads are made by hand, in small batches, typically using only flour, water, yeast, and salt, and, in some cases, eggs and sugar.

They may also contain special ingredients such as cheese, dried tomatoes or other dried vegetables or fruit, onions, spices, and herbs.

Driven by consumers, trends in baking continue to include health-conscious, gluten-free, and artisanal bakery products.

While meeting the demand for these trending products can place constraints on time, equipment, sanitation, and finances for commercial bakers, it is critical that the industry continue to strive to continue to stay abreast of consumer demands.

Challenges and issues
Operational efficiencies and value addition are major issues to maintain industry profitability and the growth.

The industry is facing a number of issues; including improvements in technology and the availability of skilled manpower.

The lack of technology, upgradation in manufacturing and packaging are factors affecting the growth of the industry.

The continuous availability of skilled manpower at all levels is an issue with bakery industries.

Most of Indian bakeries are either manual or semi-automatic. Currently we are deploying, on an average, 11.25 man days per tonne, while in developed countries the average is 1.28 man days per tonne. The bakery industry has large employment potential.

Increased competition and changing customer choices have made the bakery business operators to look for sophisticated baking equipment and technology to sustain growth and improve standards.

Bakery skills are in high demand in the bakery and hospitality industries. Additionally, the growing number of high-end bakery shops have created a fast-growing segment catering to modern discerning consumer demanding best in class patisserie goods and varied products from across the world.

There has always been a great need for setting up more training institutes on bakery and patisserie craft, baking technology for generating competent manpower with knowledge of the country’s food laws, good manufacturing practices (GMP) and good hygiene practices (GHP).

(The author is managing director, Assocom Institute of Bakery Technology and Management [AIBTM], Delhi National Capital Region [NCR]. He can be contacted at rajkapoor@aibtm.in)