Bakery franchise industry has managed to become one of the largest industry around the globe. Bakery products being highly nutritional and at the same time affordable, have slowly and gradually become an item of huge consumption. Due to foreign influence on Indian culture and fluctuating eating habits of people, bakery franchise industry has gained popularity. The bakery is a traditional activity and holds an important place in food processing industry. A number of healthy products have been introduced to this segment of the business and are being appreciated by people at an alarming rate. The mounting presence of bakery chains and the franchise outlets has triggered its growth. The total market size of the bakery products is expected to reach USD 530 billion by 2023, at a 2.6% CAGR during the forecast period of 2018-2023.
INDIAN BAKERY FRANCHISE SCENARIO
Today India is one of the leading countries with a strong base in food processing industry. Bakery products, which include bread and biscuits, forms the major part of baked products and accounts for about 82% of the total bakery produced in the country.
The bakery segment of India can be classified into 3 main segments of bread, biscuits and cakes. Despite there being many heavy automatic and semi-automatic machinery, multinational brands have penetrated the retail market. However, people still prefer bakery products from local shops or bakery franchise outlets like Fruit Culture, Ammas pastries, Just Bake or Iyengars. Since MNCs have entered the Indian market, people are now not only confined to bread, biscuits or cakes but to other dry snack products also. Also read about Business Suvidha Kendra. Register your trademark or any other Intellectual property.
Other than this, the Indian market is observing opening up of bakery café chains like Fruit Culture Bakery, Ammas Pastries, Just Bake, Chef Bakers and the likes. Which indeed is a quite profitable business proposition. With an investment ranging from ₹5 Lakhs to ₹20 Lakhs, a decently sized outlet can be franchised with any of the said brands, that can earn a Return On Investment around 32%.
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As aforementioned, Baked products are expected to grow by a constant value at a compound annual growth rate (CAGR) of 2.6% over the forecast period 2018-2023. The bakery industry has witnessed a streamlined growth in franchise models and domestic-grown brands of about 15% YoY during the past 13 years.
Despite having competition, bakery franchises are yet most sought-after business models, given higher operating margins and increasing demand. Small bakery franchise shops and brands are also facing a steady growth. With low cost of production and high profitability these cafes are also leading in the race. AMMAS Bakery and Pastries, a bakery chain from Bangalore and Fruit Culture from NCR are also widening their scope because of the triggering behaviour of bakery industry. They accountably offer you a wide variety of delicious food products and an inexpensive experience. Being one of the bakeries providing you with honest pricing, their pastries and cakes make the celebration, a moment to cherish.
There has been an immense growth in such domestic grown bakery franchise brands. 35% of the total production comes from the small-scale sector and shops in residential areas of Tier 1-3 cities and towns.
TRENDS AND GROWTH
Undeterred by the slowdown in Indian economy, bakeries continued to shine over a period of 5 Years. Baked goods registered for about double-digit value growth of 10% in 2013 and continued since then with a gradual rise.
The growth of baked products has risen due to the modern retail outlets across the country. The food choices have changed and moving from traditional Sugar and milk based sweets to cream based bakery desserts.
Despite the challenges faced by bakery franchise cafes, the concept has a strong foothold in the market today and is surely going to ascend in the near future, adding multiple brands with it during this journey.
Bakery industry is likely to experience innovative ideas and is expected to shoot up with growing awareness and flourishing economic environment. The addition of Thickshakes, smoothies and frozen desserts along with cakes and pastries, has brought a dynamic change in the market.
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The bakery shops already established in residential areas across the nation, experiencing a rapid growth. With the sudden rise in bakery product demands, will have high chances of them increasing their profitability by enjoying the limelight of their industry. What are you waiting for?. Talk to one of our experts and gain insights on the most profitable bakery franchise available for you to apply.
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