India is one of the largest producers of biscuits in the world, with huge potential for export. The organised biscuit market in India is estimated at Rs 37,000 crore.
Due to increase in at-home consumption during the pandemic, the Indian biscuit market saw a record rise. India became the world’s third-largest biscuit maker after 2005.
The states of Maharashtra and West Bengal have the highest consumption rates.The biscuit market alone accounts for roughly 72% of the bakery industry’s revenue.
India's overall biscuit market is estimated at $5-5.5 billion. While cookies account for 35-40% of that amount, plain biscuits, such as marie and milk biscuits, account for 25%. Cream biscuits and crackers each account for 15% of the market.
While well-known brands control the organised biscuit market’s share, the unorganised market includes small bakery units and cottage or household style manufacturing units. The organisedbiscuit market accounts for more than 70% of value share in the overall Indian biscuit market. By 2023, the sector is expected to surpass the figure of Rs 400 billion.
Growth forecast and scope of biscuit industry in India
According to BlueWeave Consulting, the biscuits market in India is growing at a CAGR of 12.4% and touched $5151.2 million in the year 2020. The market is expected to reach $11,792.3 million by 2027.
The Indian biscuits market is estimated to grow significantly by 2023. The growth will be driven by a host of factors including change in consumer taste and preferences, rising demand for convenience food, and increasing health-consciousness among consumers.
Embracing innovation to overcome challenges
From packaging to adopting e-commerce for maintaining sales numbers during the pandemic, big bakery brands have left no stone unturned. Apart from that, manufacturers are incorporating innovations into their products like air cushions within flexible packages to retain the shelf appeal of the biscuits.
The market for biscuits and cookies has come a long way and is growing significantly due to changes in customer taste and preferences.
The growth of biscuit market in India is likely to continue as people continue to work from home in 2021, giving way to the continued consumption of packaged food items including bakery products like biscuits and cookies.
Amrinder Singh, Director, Bonn Group of Industries, Ludhiana