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Indian bread industry and its revival post Covid-19
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Wednesday, 12 May, 2021, 15 : 00 PM [IST]
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Laltu Sinha
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Despite the challenges posed by the pandemic, India's bread industry is catching up at a faster pace in the post Covid-19 era. Bread is mostly consumed for breakfast and as a snack in India. Looking at consumption statistics from the last few years, the humble bread has witnessed positive growth across the country. It has progressed from a simple breakfast item to a must-have in the refrigerator. This favorable shift in consumer tastes from traditional breakfast to bread can be attributed to rapid urbanization, rising disposable income, and changing consumer lifestyles.
However, the Indian bread industry, like any other industry, was affected by the outbreak of Covid-19 and the imposition of nationwide lockdown due to the coronavirus-induced pandemic. Although bread manufacturers did their best to meet customer demand during the lockdown, the bread industry was disrupted due to inconsistencies in production caused by a shortage of manpower and supply chains. On the bright side, people in India have become more open to the consumption of bread in the post-covid-19 period, which is expected to boost and expand the overall bread industry.
The bread industry had to undergo a tough phase post Covid-19 outbreak.
On March 24, 2020, the Indian government declared the country's first complete lockdown to prevent the spread of coronavirus. Due to the strict restrictions on movement imposed by the Indian government during the lockdown, the manufacture and transfer of goods were forbidden, except essential goods. This has also created disruptions in the bread industry, as it had weakened supply chains and caused production losses, impacting both manufacturers and consumers throughout the country.
However, in view of the resumption of various economic activities, Indian Government has relaxed the lockdown rules, allowing for the movement of both essential and non-essential commodities. However, the bread manufacturing factories are still fearful due to the unavailability of an adequate workforce. The migration of daily wage workers back to their homes resulted in reduced production output. Even though manufacturing was taking place with 15-20% of the workforce to cater to consumer demand, the products could not be transported to cities in the absence of a supply chain. As a result, supply was restricted to the areas in which the bread manufacturing factories were located.
Indian Bread Industry and the Trend for Healthy Eating. A healthy immune system, according to healthcare professionals, is critical in battling the coronavirus. However, people in India have a preconceived notion that eating bread is bad for their health. Thus, a lot of people usually avoid consuming bread, which in turn hampers the growth of the bread market in the country. We can say that eating anything in excess is harmful but eating something in moderation fulfills our nutritional needs. The same is the case with the bread too.
According to research conducted by experts, people with chronic illnesses such as diabetes, high blood pressure, and obesity are more likely to contract coronavirus infection. Therefore, maintaining good health in the times of Covid-19 is not just a trend but a necessity. With the spread of the coronavirus-induced pandemic, there has been a significant increase in demand for multi-grain, nut, and protein bread.
Thus, Indian bread manufacturers are now focusing on the production of bread with healthy ingredients. They also make certain that their products contain enough fibre, which is critical for weight gain, intestine protection, and metabolism maintenance. Additionally, fibre is also crucial for maintaining cholesterol and blood sugar levels in the body. Thus, people are nowadays becoming more conscious of the benefits of eating healthy bread, which is why the demand for bread in India is increasing by the day and the market is thriving even in the post Covid-19 era.
Strict adherence to hygiene practices and standards. Hygiene is the most important factor in the food production and processing industry. The same can be said for the bread industry. The coronavirus-induced pandemic has compelled people to practice good hygiene at home as well as in their surroundings in order to protect their health. In light of the present situation, a safe and hygienic atmosphere has now become a critical factor in bread manufacturing factories as well. Therefore, in order to maintain a good and clean environment for manufacturing bread, Indian bread factories, as well as bakeries, are adhering to all safety measures.
Availability of Wider Range of Bread
One of the main reasons why bread demand has increased over the last year is the availability of a wider variety of bread on the market. When bakery bread was first introduced in the Indian market, only white bread was popular among the general public in India. White bread is made from processed flour or maida and has no nutritional value or fibre. As a result, despite its significant market share, it does not inspire much excitement among the user demographic.
Bread manufacturers and bakeries are now focused on offering a variety of bread that not only meets the dietary requirements of the consumers but also appeals to their gustatory senses. For example, Bonn Group of Industries, a food company headquartered in Ludhiana, Punjab, has introduced the Bonn Oregano American style burger bun for the health-conscious consumers who prefer healthy breads with interesting flavours. These buns will be sold in stores in Punjab, Haryana, Delhi NCR, and Himachal Pradesh.
Similarly, Mother Dairy—the Indian dairy major confirmed its entry into the bakery and confectionery market in July 2020, while also announcing that it will soon launch multiple bread variants in Delhi-NCR. According to the company, with changing lifestyles increasing preference for convenience foods, the ubiquitous bread has risen to prominence to occupy a permanent position in the pantries of every house in India.
Because of the pandemic, customers are placing a higher emphasis on their wellbeing than anything else.
Moreover, the trend of working from home has taken over people's lives. As a result, the desire for healthy snack options is also growing. Brown bread, whole wheat bread, and multi-grain bread are among the most common types of bread that are preferred by the Indians as a healthy snack option. Moreover, cooking with bread is easy, convenient, and fast. Bread can be easily molded to craft diverse appetisers. What’s more, bread can be a good substitute for popular local delicacies as well.
The online support to the bread industry in the post Covid-19 world
The instability of supply chains and distribution channels was one of the big reasons why the Indian bread industry was in such a bad state during the lockdown phase. Borders were sealed in compliance with lockout protocols, preventing the delivery of raw materials and finished products. Furthermore, retail shops or general stores in a person's neighborhood are the primary distribution networks for bread in India. Following the lockdown, these stores were forced to close down.
To tackle this situation and meet the demand for bread in the country, the companies and the bakery shops resorted to selling their products online via platforms such as Amazon, their own website, or leading retail shops like Easyday, Nature’s Basket, Big Basket, Grofers, etc. They also offer the option of subscribing for shorter periods, such as four or twelve weeks, to ensure that products are delivered consistently. Such platforms enable consumers to have bread delivered to their doorsteps without having to leave their homes, ensuring the consumer's safety as well as the safety of those around them.
The road ahead rising disposable incomes, rapid urbanisation, and changing consumer tastes and habits have all contributed to the success of India's bread industry over the years. Even though the pandemic has caused certain challenges for the Indian bread industry, it is expected to recover quickly and return to its former glory once the pandemic is over.
(The author is research director, BlueWeave Consulting. He can be contacted at laltusinha@blueweaveconsulting.com)
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