The bakery industry is very popular in urban part of India. Around 60% of production takes place in the unorganized sector. There are around 2 mn unorganized bakeries in the country, comprising small bakery units, cottage and household type manufacturing.

Bakery products are part of the processed food category. They include cake, pastries, biscuits, bread, breakfast cereals, and other products.Bread and bakery products, more broadly, remain a popular and convenient mealtime solution for many Britons, driven by their cheap, highly efficient and multipurpose nature. The growing per-capita consumption trends of bakery products indicates the untapped growth potential in the global bakery products industry. The market potential is huge in the emerging markets; wherein, consumer demand is increasing for packaged products, as a result of the influence of Western culture and also for its convenience.  The total market size of the bakery products is expected to reach USD 530 billion by 2021, at a 4.5% CAGR during the forecast period.

The Indian confectionery market includes sugar-boiled confectionery, hard-boiled candies, toffees and other sugar-based candies. Sugar boiled confectionery has penetrated an estimated 17% of the households only, suggesting a large potential for growth. Considering the 25% penetration in the urban market, the confectionery industry could hope to be in for more promising future. Confectionery products can be classified into three segments: Chocolate, Sugar Confectionery, and Gum. These items are popular among all age groups. In addition, the sale of confectionery products is independent of seasons or occasions. Packaging is an essential part of confectionery goods to preserve their quality, texture, and taste before they reach the end-customers.

The Indian confectioner market in comparison to other developed markets, was in the initial phase of growth, and will continue to evolve. It is expected to touch Rs 55,720.0 million in 2015 and Rs 60,188.6 million in 2016. It is believed that the sugar confectionery is likely to see a constant value CAGR of 8 percent over the next few years.

India’s chocolate industry is valued at INR 58bn in FY2014, and is expected to grow at a CAGR of 16% to reach INR 122bn by 2019.During the festive season, the confectionery segment generates about 50-70 percent sales revenue.

Sugar confectioneries are consumed by most income groups in Asia Pacific and their market is expanding owing to the growing demand for sweet snacks and confectionery foods. A surge in the demand for toffees, boiled sweets, fondant, premium chocolates, and marshmallows is driving the sugar confectionery market in these two regions.

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