Bakery Products Export and Market Evolution in India

India’s bakery industry is flourishing, fueled by urbanization, rising disposable incomes, and a growing demand for health-focused food products. From artisanal breads to gluten-free cookies and traditional Indian treats, the appetite for high-quality bakery goods in the U.S. presents an exciting opportunity for exporters like you.

In 2023, the Indian bakery market was valued at US$ 12.6 billion, with projections to reach US$ 29.4 billion by 2032. This significant growth reflects shifting consumer preferences toward convenience and quality. To capitalize on this expanding market, you need to understand industry trends, optimize your supply chain, and effectively leverage FCL (Full Container Load) ocean shipping for efficient delivery.

This article is your guide to navigating the bakery export market, covering the essentials of exporting, market dynamics, and key drivers of bakery products export from India for success in the USA.

Product Segmentation and Consumer Preferences

Understanding the nuances of product segmentation and consumer preferences is essential for capturing the U.S. market’s attention. This market thrives on innovation and serves a diverse audience with a wide range of dietary preferences and requirements. Let’s break down the key opportunities and strategies for rising demand for bakery products export from India.

Specialty Items: High-Growth Niche Markets

The U.S. market has seen a steady rise in demand for specialty bakery products, particularly gluten-free, organic, and vegan options. This shift is fueled by increasing health awareness, dietary restrictions, and ethical consumerism.

• Gluten-Free Products: With 1% of Americans diagnosed with celiac disease and many others choosing gluten-free diets for perceived health benefits, gluten-free bread, cookies, and cakes are in high demand. Products made with alternative flours like almond, coconut, and millet can appeal to this segment.
• Organic and Vegan Offerings: Organic certification is a key selling point, especially for breads and pastries. Combining organic with vegan options can capture the growing market of eco-conscious consumers. USDA organic certification can significantly enhance credibility and market acceptance in the U.S.

Conventional Products: Bread and Rolls Lead the Way

Despite the rise of specialty items, bread and rolls dominate the U.S. bakery segment, accounting for a significant portion of sales. Their popularity is driven by convenience, affordability, and versatility in meals.

• White Bread vs. Artisan Breads: While white bread remains a staple, there’s growing interest in artisan and sourdough breads due to their perceived freshness and natural ingredients.
• Rolls for On-the-Go Meals: Mini rolls and sandwich bread are popular with busy consumers seeking quick meal solutions. Focusing on uniform sizes and packaging suitable for grab-and-go consumption can set your exports apart.

Packaging and Preservation: Winning the Freshness Game

In exports, packaging isn’t just about aesthetics—it’s critical for preserving freshness during long transits and adhering to U.S. food safety standards. Advanced technologies can be your competitive edge.

• Modified Atmosphere Packaging (MAP): Extends shelf life by replacing oxygen with nitrogen or carbon dioxide in sealed packages, ideal for bread and pastries.
• Vacuum Sealing: Keeps baked goods fresh by removing air from the packaging. This method is effective for gluten-free and organic products.
• Eco-Friendly Solutions: U.S. consumers value sustainability. Using recyclable or biodegradable materials can differentiate your brand while appealing to eco-conscious buyers.

By focusing on these advanced product segmentation strategies and leveraging cutting-edge preservation technologies, you can effectively position your bakery exports as a preferred choice in the competitive U.S. market.

Export Your Bakery Products Hassel- Free from India to the USA

Take the stress out of logistics with Intoglo, your trusted door-to-door logistics partner for seamless transport and hassle-free customs clearance. Whether you’re a first-time exporter or a seasoned business, Intoglo offers end-to-end shipping solutions tailored to your needs.

Why Choose Intoglo?

• Seamless Customs Clearance: Expertise in navigating both Indian and U.S. regulations.
• No Middlemen: Intolgo directly works with shipping lines, truckers, and custom brokers to avoid delays. 
• End-to-End Logistics: Comprehensive transport solutions from India to the USA.
• AI-Powered HTS Code Scanner: Easily identify accurate HS Codes by simply taking a photo.
• Diverse Product Expertise: Experience with food, automotive parts, beauty & wellness items, and more.
• U.S. Time Zone Communication: Dedicated support team for real-time assistance with U.S.-based consignees.
• Client-Centric Approach: Serving over 200 clients, including MSMEs, D2C brands, and large enterprises.

Visit Intoglo’s resources to access free templates for commercial invoices and packing lists. Start your export journey today with Intoglo—your one-stop solution for hassle-free shipping!

Export Trends in Bakery Products

India’s bakery industry has made significant strides in the global market, with biscuits emerging as one of its most prominent and lucrative segments. Let’s explore the role of biscuits in shaping India’s bakery industry.

India’s Biscuit Industry: A Global Powerhouse

• India is the second-largest producer of biscuits globally, following the United States.
• The Indian biscuit segment contributes a significant ₹8,000 crores to the Fast-Moving Consumer Goods (FMCG) market annually.
• Total biscuit production in India stands at an estimated 30 lakh metric tons per year, with the organized sector accounting for 65% and the unorganized sector for 35%.

Global Bakery Market Growth

• The global bakery products market was valued at USD 457.40 billion in 2023 and is projected to grow to USD 731.69 billion by 2032, at a CAGR of 5.40%.
• According to Fortune Business Insights, the market size in 2024 is expected to be approximately USD 480.23 billion, continuing its growth trend.
• Projections for 2023–2028 indicate a higher growth rate, with the global bakery market estimated to expand at a CAGR of 6.7%, reaching USD 600–700 billion.

Main Export Destinations for Indian Bakery Products

Understanding the preferences of international markets is key to succeeding in exports. Among the wide range of Indian bakery products, sweet biscuits lead the way in global popularity and demand.

Sweet Biscuits Dominate Exports

• Sweet biscuits make up approximately 60% of total Indian bakery exports, with breads, wafers, and rusks also contributing significantly.

United States (USA)

• The USA is the largest importer of baked goods, with imports totaling USD 9.29 billion in 2022.

United Arab Emirates (UAE)

• The UAE is a major importer of Indian bakery products, accounting for 79.90% of India’s total bakery exports in this category.
• In 2023, Indian exports to the UAE totaled USD 188,685, with an average export price of USD 3.80 per unit.

United Kingdom (UK)

• The UK imported bakery products worth approximately USD 4.34 billion in 2023, showing a 19.83% year-on-year increase.
• Indian exports to the UK included bread, pastries, cakes, and biscuits, accounting for 9.06% of the UK’s total bakery imports.

Canada

• In 2023, India’s bakery exports to Canada under HS code 1905 (including bread, pastries, cakes, biscuits, etc.) reached approximately USD 540 million, marking a 12.5% growth compared to the previous year.

By understanding these trends and key destinations, exporters can strategize to maximize market penetration and meet global demand effectively.

Key Drivers of Market Growth

The bakery industry in India is experiencing rapid growth, driven by several interlinked factors that reflect shifts in demographics, lifestyles, and economic dynamics. Let’s delve into the major factors driving the growth of this market.

1. Population Growth and Changing Consumer Demographics

India’s population dynamics are creating vast opportunities for the bakery market. With a net addition of 91 million people in urban areas over the last decade, urban dwellers now account for 31.6% of the total population. This urban influx has brought a shift in consumer behavior, with people increasingly seeking convenient, ready-to-eat food options like baked goods.

• A younger demographic with exposure to global cuisines is fueling demand for innovative and premium bakery products.
• Increasing health awareness is also encouraging a preference for products like multigrain breads, gluten-free options, and low-calorie snacks.

2. Impact of Urbanization on Consumption Habits

Urbanization has profoundly influenced food consumption habits in India, making bakery products a staple in many households.

• Time-Pressed Lifestyles: In urban areas, the fast-paced lifestyle has increased the demand for quick, convenient meals, making items like bread, rolls, and cookies everyday essentials.
• Café Culture: Urban consumers’ growing affinity for cafes and casual dining has boosted sales of pastries, muffins, and croissants.
• Premiumization: Urban customers are now willing to pay more for high-quality, artisanal baked goods, pushing the market toward premium segments.

3. E-Commerce Growth, Especially in Tier-2 and Tier-3 Cities

The rise of e-commerce platforms has made bakery products more accessible, particularly in tier-2 and tier-3 cities where traditional retail reach was limited.

• Convenience and Accessibility: Online platforms like BigBasket, Amazon, and Flipkart offer consumers a wide variety of bakery items, from mass-market to niche products, delivered to their doorstep.
• Increased Awareness: Online channels have helped introduce international bakery trends to smaller cities, driving demand for specialty products like gluten-free and vegan options.
• Subscription Models: Monthly or weekly subscription options for baked goods have gained popularity, especially in non-metro cities.

4. Rising Disposable Incomes

India’s economic growth has directly influenced consumer spending power. The per capita disposable income reached ₹2.14 lakh (US$ 2557) in 2023-24, marking an 8% growth in FY24 and a staggering 13.3% in the previous year.

• Increased Spending on Food: With higher incomes, consumers are now spending more on indulgent and premium food items, including bakery products.
• Demand for Premium Offerings: Rising incomes have led to greater demand for luxury baked goods, such as European-style pastries and organic breads.
• Health and Quality Focus: Consumers with higher purchasing power are prioritizing health-oriented bakery products that promise better ingredients and nutritional benefits.

Future Outlook

The future of India’s bakery industry appears promising, with a notable shift towards health-conscious consumption. As consumers become more health-aware, there’s a growing demand for organic and sugar-free bakery products. This trend presents a major opportunity for exporters to diversify their product lines, catering to niche markets that prioritize natural and low-sugar options. By focusing on these segments, businesses can tap into a lucrative and expanding market, both domestically and internationally.

Government initiatives are playing a pivotal role in bolstering the food processing sector, including bakery products. The Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) aims to develop modern infrastructure with efficient supply chain management from farm gate to retail outlet, enhancing value addition in the food processing sector. Similarly, the PM Formalization of Micro Food Processing Enterprises (PMFME) Scheme provides financial, technical, and business support for the upgradation of existing micro food processing enterprises. 

These schemes are designed to enhance competitiveness, promote formalization, and support the growth of the food processing industry in India.

Conclusion

India’s bakery industry is thriving, offering immense opportunities for exporters targeting the lucrative U.S. market. With growing demand for diverse products like organic bread, sugar-free treats, and artisanal pastries, coupled with evolving consumer preferences, the market potential is vast. Success in this sector varies on understanding market dynamics, leveraging e-commerce, and ensuring seamless logistics.

Make your bakery export journey hassle-free with Intoglo, the trusted partner for end-to-end logistics, seamless customs clearance, and expert support. From AI-powered HTS code scanning to U.S. time zone communication, Intoglo ensures your products reach global markets effortlessly. 

Contact us today.