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The India cake market size is projected to increase by USD 212.66 million, at a CAGR of 6.14% between 2023 and 2028
Dessert cakes are essential in the market, offering a plethora of flavors and textures like Britannia's Gobbles portfolio. Increased disposable incomes and changing lifestyles drive demand, especially for customized cakes for occasions like birthdays and weddings. Social media influence prompts consumers to seek visually appealing cakes. Challenges include price sensitivity and seasonal fluctuations. Yet, the demand for healthier ingredients and fusion flavors will shape the dessert cake segment, fueling market growth.
The market shows an Accelerated CAGR during the forecast period.
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Growing preference for premium and customized cakes is the key factor driving market growth. As disposable incomes rise and lifestyles become more urbanized, there is an increasing inclination toward indulgent and personalized experiences, including celebrations and special occasions. This trend is further fueled by the influence of social media platforms, where consumers seek visually stunning and unique cake designs to showcase at events and gatherings.
Moreover, the major cake market in India player capitalizing on this trend is Monginis, a renowned bakery chain in India. With its extensive network of outlets across the country and online ordering platform, Monginis caters to the growing demand for high-quality and personalized cakes, providing customers with a seamless and memorable experience. Therefore, the growing preference for premium and customized cakes boosts market growth during the forecast period.
Increasing demand for sugar-free and vegan cakes is one of the primary market trends sharing growth. In the market, there is a discernible trend toward the increasing demand for sugar-free and vegan cakes, reflective of evolving consumer preferences for healthier and more sustainable food options. As people become more mindful of their dietary choices, there is a growing segment of consumers seeking alternatives to traditional cakes that are free from refined sugars and animal-derived ingredients.
Similarly, vegan cakes appeal to those following a plant-based diet or those concerned about the ethical implications of animal agriculture. Further, the demand for sugar-free and vegan cakes is prompting bakeries and confectionery manufacturers across India to innovate and expand their product offerings. From small, independent bakeries to large-scale chains, businesses are responding to this trend by introducing a variety of sugar-free and vegan cake options. Hence, increasing demand for sugar-free and vegan cakes will boost the growth of the market during the forecast period.
The limited shelf life of cakes is a challenge that affects market growth. Cakes, being perishable products, have a relatively short shelf life compared with other food items, especially when they contain fresh ingredients such as cream or fruit fillings. This presents challenges for producers in terms of inventory management, as they must carefully balance production volumes with demand to minimize wastage. Additionally, the limited shelf life of cakes can lead to concerns about product freshness and quality among consumers.
Furthermore, consumers may hesitate to purchase cakes if they perceive them as not being freshly baked or if they are unsure about their shelf life. Moreover, the challenge of limited shelf life extends to distribution and logistics, as cakes must be transported quickly and efficiently to ensure they reach consumers in optimal condition. Therefore, such factors may impede market growth during the forecast period.
The offline channels include hypermarkets, supermarkets, specialty stores, in-store bakeries, and more. Traditional bakery outlets and cake shops stand as stalwarts in this segment, offering a diverse assortment of cakes, including specialty and customized options tailored to local tastes. Moreover, specialty cake shops and patisseries, are often nestled in urban centers and malls. Also, the ease of convenience while choosing customized cakes and the fresh nature of cakes available at in-store bakeries have fueled the demand for cakes from offline channels. Additionally, the high spending of consumers on purchasing aesthetic cakes and high preference for cakes for any special occasion such as success events, corporate parties, and more are fueling the growth of the offline channel segment, which, in turn, will fuel market growth during the forecast period.
The market share growth by the dessert cakes segment will be significant during the forecast period. Dessert cakes encompass a wide array of ingredients, such as flavored syrups, fruit preserves, nuts, spices, and decorative toppings, all aimed at enhancing the flavor, texture, and visual appeal of cakes. India cake market players offer a variety of dessert cake products with various flavors and textures. Additionally, increasing disposable incomes and changing lifestyles lead to a growing inclination toward premium and indulgent desserts.
The dessert cakes segment was valued at USD 278.58 million in 2018.
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Moreover, the rising trend of occasions such as birthdays and weddings boosts the demand for customized, visually appealing dessert cakes adorned with innovative decorations. Additionally, the influence of social media encourages consumers to seek Instagram-worthy cakes, driving the need for creative and aesthetically pleasing by-products. However, dessert cakes also face challenges, including price sensitivity among certain consumer segments and seasonal fluctuations in demand. However, the demand for healthier ingredients and the fusion of traditional flavors with international influences will continue to shape the dessert cake segment. Therefore, the dessert cakes segment will boost the growth of the cake market in India during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 10 market companies, including:
Bake wish Pvt. Ltd., Bindu Recipes Pvt. Ltd., Cafe Hops, Cakezone Food Tech Pvt. Ltd., Dream Bake Pvt. Ltd., Elite Group, Ferns N Petals Pvt. Ltd., French Bakery Pvt. Ltd., German Bakery, Glens Bakehouse, Merwans Confectioners Pvt. Ltd., Modern Food Enterprises Pvt. Ltd., Monginis Foods Pvt. Ltd., Parle Products Pvt. Ltd., Starbucks Corp., Frontier Biscuit Pvt. Ltd., Kouzina Food Tech Pvt. Ltd., and Theobroma Foods Pvt. Ltd.
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Market Analyst Overview
In India, the cake market experiences significant growth propelled by shifting lifestyles and preferences. Accessibility and nutrition profiles are paramount as consumers seek healthier options amidst busy schedules. The market gains traction with the rising demand for on-the-go cake products, particularly in metropolitan cities like Mumbai, Bangalore, Delhi, Hyderabad, and others, where urbanization and a burgeoning working population drive out-of-home consumption. Perceptions around health attributes fuel the demand for instant and nutritious products, including Gluten-free products options, aligning with the growing health awareness among consumers. Despite concerns regarding product safety and hygiene issues in traditional bakery products and shops, packaged cakes emerge as a preferred choice, offering convenience and assurance.
The market witnesses a surge in packaged cake segments, favored by the adoption of clean-labeled packaged food and the proliferation of online food stores. Western-style diet influences consumption patterns, expanding beyond traditional items like bread, biscuits, muffins, and puffs to include a variety of savory products.
The market research and growth report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Cake Market in India Scope |
|
Report Coverage |
Details |
Page number |
138 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.14% |
Market Growth 2024-2028 |
USD 212.66 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.37 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anmol Industries Ltd., Bake wish Pvt. Ltd., Bindu Recipes Pvt. Ltd., Britannia Industries Ltd., Cafe Hops, Cakezone Food Tech Pvt. Ltd., Dream Bake Pvt. Ltd., Elite Group, Ferns N Petals Pvt. Ltd., French Bakery Pvt. Ltd., German Bakery, Glens Bakehouse, Merwans Confectioners Pvt. Ltd., Modern Food Enterprises Pvt. Ltd., Monginis Foods Pvt. Ltd., Parle Products Pvt. Ltd., Starbucks Corp., Frontier Biscuit Pvt. Ltd., Kouzina Food Tech Pvt. Ltd., and Theobroma Foods Pvt. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Market Segmentation by Flavor
9 Customer Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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