2. Bread Market in India
• The India Bread market has been assessed at a value of USD2.1 billion in
2023, and it is expected to exhibit robust growth throughout the forecast
period, registering a Compound Annual Growth Rate (CAGR) of 10.5% until
2029. The expansion and transformation of the India bread market are
primarily underpinned by a range of pivotal factors. A significant driving force is
the evolving consumer landscape, wherein changing lifestyles and
preferences are leading to an increased demand for convenient and adaptable
food options such as bread.
• Health and wellness trends are also playing a pivotal role in shaping the
market's trajectory, as consumers are actively seeking healthier alternatives,
thereby fueling the demand for bread varieties that are enriched with whole
grains, multigrain, and fortifications. The ascent of modern retail channels has
further propelled the market's growth trajectory by offering a platform for
enhanced product visibility, branding opportunities, and greater consumer
accessibility.
3.
4. Size of the Indian bread Industry
Bread industry is 4.00 million tonnes industry growing at the rate of 6 percent and is expected to
grow at the same rate in the medium term. However, the organized sector is growing at the rate of
8 percent. In 2006-07, the total production of the organised sector has been estimated at 18lakh
tonnes.
The bread industry, consist of organised and unorganised sectors, contributing around 45 per cent
and 55 per cent of the total bread production, respectively. The organised sector consists of
around 1800 small scale bread manufactures around the country, besides 25 medium scale
manufacturers and 2 large scale industries which were permitted to continue on the basis of their
installed capacity in 1976 when the Government of India reserved bread industry for the small
sector.
The unorganised sector of bread units/neighbourhood bakeries etc. consist of an estimated
75,000 bread bakers mostly located in residential areas of cities and towns. 35 percent of the total
production comes from the small-scale sector with about 1500-1800 units in operation. As bread
industry is a low margin business, cost control is crucial in sustaining profitability in the long run.
5. We have conducted a survey on the supply and
demand of the bread in the Indian Market,
through Google forms; the survey was conducted
in the city of Mumbai, with the primary responder
were between 25-35 age, people from diverse
background were part of the survey
49.1% of people were of 25-30 Age, 28.3% of
people were of 18-24 age group, 7.5% were of
30-35 age group, 5.7% people belong 35-40 age,
3.8% people were of 45-50 age and 5.7% belong
to 50+ age group.
0
5
10
15
20
25
30
18-24 25-30 30-35 35-40 40-45 50+
Response
6. • Worth noting that people of 25-30 age group were working
professional and working in MNC’s living in the city of
Mumbai, Female responders were 22 (41.5%) while 31
(58.5%) Male responders were part of the survey.
Response
Male Female
7. • The data analysis reveals a clear preference among surveyed individuals for purchasing bread from local shops,
with 71% favouring this option. Supermarkets follow with a preference rate of 17%, while 11.3% of respondents
opt for the convenience of online grocery apps. This insight emphasizes the continued importance of local
shopping for bread, potentially influenced by factors like freshness, community support, or personal connections
8. • The detailed analysis reveals that a significant majority, 79.2%, perceives that bread prices have not impacted
their household budget. However, 11.3% express concern about potential effects, indicating a cautious outlook.
On the other hand, 9.4% report that bread prices have indeed affected their household budget, suggesting a
tangible impact on their financial considerations. This nuanced data highlights varying degrees of sensitivity to
bread prices within the surveyed population, with the majority currently unaffected but a notable minority
experiencing financial implications
9. • A detailed analysis of the data reveals that the majority, 56.6%, favours flat bread, suggesting a significant
preference for this style. Additionally, 22.6% opt for the traditional bread loaf, reflecting a substantial but smaller
preference. Meanwhile, 9.4% show a preference for premium gourmet bread, and an equal percentage prefers
other varieties of bread. The 1% with no specific preference indicates a minor segment without a distinct
inclination. This diversity in bread preferences emphasizes the importance of offering a range of options to cater to
varied consumer tastes.
10. • A detailed analysis reveals that a significant portion, 39.6%,
prefers purchasing Wibs Bread, making it the most favoured
brand among the surveyed individuals. Britannia Bread follows
closely with a preference rate of 30.2%, indicating a
substantial but slightly smaller consumer base. Local brand
bread holds a notable share at 15.1%, reflecting a preference
for regional or neighbourhood choices. Amul Bread captures
13.2% of the preferences, showcasing a considerable
presence in the market. The 1% preference for Haldiram
Bread suggests a niche segment favouring this specific brand.
This detailed breakdown underscores the diverse landscape
of bread brand preferences among consumers.
11. • The analysis of bread-buying habits from the provided data suggests a
diverse range of consumer behaviours. A significant portion, 62%, prefers
purchasing bread on-demand, indicating a spontaneous buying habit.
Meanwhile, 30% adopt a more structured approach, buying bread once a
week, showcasing planned shopping habits. The 8% who prefer buying bread
daily highlight a group valuing the freshness associated with daily purchases,
indicating a habit of frequent and regular buying. This overall picture
underscores the varied and nuanced nature of consumer habits when it
comes to purchasing bread.
• Consumer behaviour describes how consumer make purchase decisions and
how they use and dispose of the purchased goods and services. Consumer
behaviour defined as the behaviour consumer display in searching for,
purchasing, using, evaluating and disposing of products and services that
they expect will satisfy their needs. In today’s competitive business scenario,
understanding consumer behaviour will the key to business success.
Marketers understands factors influencing on consumer buying behaviour and
create marketing stimuli to influence the consumer by their product.
Daily
8%
Once a
Week
30%
Whenever I
need
62%
How often you buy Bread
13. • The data analysis suggests that 45.5% of shop owners consider ₹30 bread as the usual high-selling price, indicating a
common price point that resonates with a significant portion of the market. On the other side, 18.2% mention that ₹45 is
the selling price for bread, while ₹25 is also mentioned as a common selling price at their shops. This variation in
perceived high-selling prices may reflect different market segments or regional differences in pricing strategies. Overall,
understanding these price dynamics is crucial for both suppliers and shop owners in catering to diverse consumer
preferences and economic considerations.
14. • The detailed analysis of shop owners' responses reveals that 36.4% have faced situations where the demand for bread exceeded supply, primarily due to issues with their
suppliers. This indicates a critical link between the shop owners and their suppliers, emphasizing the importance of a reliable and efficient supply chain.
Additionally, 27.3% mentioned transportation and production issues of the bread brand as a factor leading to supply shortages. This underscores the significance of
smooth logistics and production processes in meeting market demand.
Furthermore, 9.1% attributed supply challenges to the impact of COVID, highlighting the pandemic's disruptive influence on the bread supply chain. This emphasizes the
need for resilience and adaptability in the face of external shocks.
In summary, the analysis indicates that factors such as supplier-related issues, transportation, production challenges, and the impact of external events like COVID
contribute to situations where demand for bread outstrips its supply in the market. Understanding and addressing these factors are crucial for maintaining a stable and
responsive bread supply chain.
15. • The detailed analysis of shop owners' responses indicates that 55%
believe consumers are willing to pay more for bread during supply
issues, suggesting a recognition of increased demand and potential
willingness to pay a premium to secure the product. This attitude
reflects a practical understanding of market dynamics and
consumer behaviour during scarcity.
On the other hand, 45% of shop owners disagree, indicating a
belief that consumers may not be willing to pay more even when
faced with supply issues. This perspective might stem from
considerations of consumer sensitivity to price changes or concerns
about market competitiveness.
This divided opinion highlights the complexity of consumer
behaviour and the need for nuanced strategies in pricing during
supply challenges. It also suggests that different shop owners may
adopt varying approaches based on their assessments of consumer
reactions to price adjustments during periods of limited bread
supply.
Yes
55%
No
45%
Are Consumers Willing to pay more for Bread when
there are supply issues from Company.
Yes No
16. White Bread (63.6%):
Majority Preference: With 63.6% of respondents indicating a preference
for White Bread, it is evident that this type of bread is the most popular
among the surveyed group. Market Dominance: The high percentage
suggests that White Bread has a significant market share, and it might be
the go-to choose for most consumers. Brown Bread and Multigrain Bread
(18.2%):
Combined Preference: The data indicates that 18.2% of respondents believe
that Brown Bread and Multigrain Bread sell the most. It's important to note
that these two categories are combined, and the individual preferences for
each are not provided.
Niche Appeal: While the percentage is lower compared to White Bread, the
preference for Brown Bread and Multigrain Bread signifies a market for
healthier or more diverse bread options.
Health Consciousness: The preference for Brown Bread and Multigrain Bread
aligns with a growing trend of health-conscious consumers, as these types of
bread are often perceived as healthier options due to their whole grain
content.
Traditional Appeal: White Bread's popularity could be attributed to its
traditional and familiar taste, convenience, and versatility in various culinary
applications.
17. The data indicating that 90.9% of bread suppliers do not receive any incentives to supply their bread instead of a competitor's
brand, while only 9.1% receive incentives, provides insights into the competitive dynamics within the bread supplier market.
Lack of Incentives:
• Competitive Landscape: The high percentage of suppliers not receiving incentives suggests a potentially competitive
market where suppliers may not have additional incentives to exclusively choose one brand over another.
• Price Sensitivity: Suppliers might prioritize factors like pricing, product quality, and reliability in their decision-making
process rather than incentives, indicating a price-sensitive market.
Incentivized Suppliers (9.1%):
• Strategic Partnerships: The 9.1% of suppliers receiving incentives could be strategically aligned with specific brands.
Incentives may include discounts, promotional support, or other perks, indicating a level of collaboration between these
suppliers and the brands they choose to supply.
• Brand Loyalty: Suppliers receiving incentives may be more loyal to a particular brand, and this loyalty could be influenced
by factors beyond just the product itself, such as the relationship with the brand and the benefits they receive.
18. Potential Implications:
Market Dynamics: The absence of incentives for most suppliers might indicate that the bread market is highly competitive, and suppliers may be more
responsive to factors such as product quality, pricing, and customer demand.
Opportunities for Brands: Brands looking to gain a competitive edge may explore introducing incentive programs to encourage supplier loyalty. This could
involve offering better payment terms, volume-based discounts, or promotional support to create stronger partnerships.
Supplier-Buyer Relationships :
Transactional Nature: A lack of incentives may suggest that many supplier-brand relationships are transactional, based on fulfilling orders rather than building
long-term partnerships.
Communication Channels: Brands may need to explore better communication channels with suppliers to understand their needs and challenges, potentially
identifying areas where incentives could be mutually beneficial.
Market Trends:
Evolving Landscape: The data prompts exploration into how the market is evolving. If incentives become more prevalent in the future, it could signal a shift in
supplier-brand dynamics, with brands recognizing the importance of incentivizing suppliers to secure their loyalty.