Rising Fresh: How In-House Bakeries Are Reshaping India’s Café Culture

In a world where conscious consumption is reshaping every plate, the dessert category is undergoing a quiet but significant revolution. Desserts, once known for decadence and excess are now being reinvented through the clean label movement which focuses on simple, natural and transparent ingredients instead of artificial flavours. From artisanal gelatos and vegan cheesecakes to gluten-free brownies made with unrefined sugars, this trend is changing how people enjoy indulgence.

Understanding the Clean Label Movement
According to reports, the global clean label ingredients market is expected to grow from US $50.2 billion in 2024 to US $69.3 billion by 2029.

Today’s consumer, especially millennials and Gen Z, want indulgence without guilt. Clean label desserts meet this demand with natural, simple ingredients using sweeteners like dates, jaggery, or coconut sugar and flours from oats, almonds, or millets for added nutrition.

“People are more health conscious, and they are reading the labelling and ingredients more closely, they want short and recognizable ingredient lists,” shared Chef Manish Khanna, Founder, Chef and Partner, Noir Dessert, Brownie Point and Noir by Manish Khanna.

Clean label means honest food i.e. products made with simple and recognizable ingredients. It’s not about being sugar-free or fat-free, but about avoiding artificial additives, preservatives, stabilizers, and synthetic colors or flavors. This movement reflects a global shift toward transparency and authenticity, where the quality of ingredients has become a mark of trust.

“Clean-label desserts are rising because today’s consumers want transparency, authenticity, and health without compromising indulgence. People are looking for brands that celebrate simple and recognizable ingredients,” added Eesha Sukhi, Founder, The Bluebop Café.

Transparency Builds Trust
Clean labels aren’t just about ingredients; they are about communication. Consumers today reward honesty. Desserts with clear, understandable ingredient lists resonate far more than those packed with E-numbers and chemicals. This transparency fosters trust and loyalty, giving clean label brands an edge in a market where credibility matters as much as flavor.

“People are reading labels and actively rejecting artificial sweeteners, flavors, and preservatives. At Magnolia Bakery, using only natural ingredients isn't a trend; it's our standard,” pointed Zonu Reddy, Director at Magnolia Bakery.

Premiumization Through Purity
Interestingly, the clean label movement has paved the way for premium desserts. Consumers are willing to pay more for fewer, high-quality ingredients they trust. “Less is more” has become the new luxury.

“Consumers understand that "natural" is healthier and are choosing brands that align with their values. This directly fuels premiumization. Customers view desserts made with high-quality, authentic ingredients as a premium, worthwhile indulgence,” commented Reddy.

Sukhi mentioned that premiumization is driving this space as people are ready to pay more for quality, craftsmanship and desserts that feels both indulgent and responsible.

Overcoming Challenges

There’s also a visible shift toward sustainable and locally sourced produce consumers are valuing traceable supply chains.

While, Khanna added that it’s more expensive to produce as we need to focus on the high marketing costs. “We can overcome the challenges by smart ingredient substitution and smart sourcing to bring down costs.”

Reddy noted that they overcome the challenge by baking everything fresh daily in small batches as it requires a commitment to quality over industrial shortcuts. This ensures a good shelf life and flavor consistency without artificial aids. 

Clean label desserts are more than a passing fad as they represent a fundamental redefinition of indulgence. Consumers no longer view desserts as guilty pleasures, but as moments of mindful joy.

Keish Hospitality, founded by Niketa Sharma and Dilip Rawat in 2021 has quickly become a driving force in Mumbai’s hospitality landscape. Known for its creativity, quality, and vibrant dining experiences, the group is steering Keish Hospitality into its next era - defined by innovation, expansion, and national growth.

With a dynamic portfolio including The Thane Club, Blah BKC & Santacruz, Vivi Italian, South Stories India, Masaledar, and Magna Bar & Kitchen, the brand is now set to unveil an exciting concept ‘Iti’, a bakery brand, focused on hyper-local ingredients. In an exclusive chat with Restaurant India, Niketa Sharma, Managing Director of Keish Hospitality, spills the bean regarding her latest bakery venture ‘Iti’ in Mumbai. Excerpts:

What’s in the Name?
Iti is a common word used in Sanskrit which means ‘wanting more.’ We named as ‘Iti’ because we want people to try more items and want more from our brand. This name will resonate with the audiences.

Why Iti?
Iti is a clean sustainable Indian café, which will be a mix of café and retail gifting concept based on hyper local Indian ingredient-based desserts and savories. Whether it is the French patisseries or bakery or bread or the cookies, we are using modern techniques to redefine the bakery industry. Iti is an Indian farm to fork and clean-eating oriented brand where we are bringing back the Indian flavours in a fusion form.

(Representational images)

What’s on Offer?
We have Gun Powder Podi Masala Bagel with Mirchi & Curry Leaves Cream Cheese in it, Magic Masala Bagel with Thecha Cream Cheese in it, 70% Calibu Dark Chocolate Truffles with Filter Coffee Flavor, Parle G Biscuit Crumble with Masala Chai Flavoured Truffles, Triphala and White Chocolate Truffles. We are doing Ukidiche Modak Bapka, the filling for this will be authentic filling of modak, and if you steam this bapka, it will exactly taste like steamed modak, amongst others. We are not using refined sugar; we are using jaggery in our products.

‘Iti’ a creative shift or a challenge?
We have been working to launch this brand for a year now. I have been studying about flavours and told my chefs about this idea. We brainstormed a lot to come up with various dishes and did a lot of tastings to understand how these fusion tastes, works. Right now, we have done 70% of the trials. The packaging will be extremely sustainable like hyper local wood being used; we are focusing on re-usage of things. 

What will be the Shelf life of your products?
We are trying not to use any preservatives. The shelf life for buns, breads, croissants will be of 3-5 days, while the hamper-based product will have 15-30 days shelf life. 80% of the products will be vegetarian and 20% will have eggs.

Why Bakery as Biz?
Being a passionate home-baker, I wanted to bring uniqueness to the platter and that’s how Iti came to the picture. We have 15-20 items in sweet section. My target audience will be millennial and Gen-Z and even families.

The Investment
We have invested more in R & D, menu and the branding and we will be investing more in QSRS and other format outlets.We are focusing on 3 models currently. In the phase 1, we will be focusing on Retail and hampers, phase 2 will be QSR, and phase 3 will be Café model. The brand is planning to open their first outlet in July.

Trends you Foresee
-    Focus on Seasonal menu
-    Bakers are moving towards ingredient focus baking Eg: essence or vanilla beans being added

Founded by a mother- daughter duo, nutritionist Simran Bapu and head pastry chef Tina Bapu in 2019, Paleoo was born from a simple desire to eliminate the doubt between craving a treat and caring for your health. Paleoo bakes offers refined sugar-free, gluten-free, and maida-free confections. With a ₹1 crore investment secured on Shark Tank India recently, Paleoo Bakes is accelerating its expansion, catering to the growing demand for functional, nutrient-dense alternatives to traditional desserts. In an exclusive interview with Simran Bapu, Co-Founder, Paleoo Bakes talks about their journey, Shark Tank experience, expansion plans and much more. Excerpts:

Why Paleoo
Paleoo is a diet wherein you avoid grains and dairy products. So, this name resonates with the brand, and we have added the nutritionist guide which gives more weight to the brand name. There are bakeries that are doing gluten-free desserts but having a nutritionist to guide rightly is very much needed to run a segment like ours. Paleoo Bakes has 80 SKUS. The best-selling products are Hazelnut Crunch Cake, Banana Walnut Teacake and cookies.

Challenges Faced
The pricing of our products is on higher side compared to the local bakeries. So, the main thing which we faced was educating our consumers about what we do and its significance. It did take time for people to understand but since last few years, healthy eating is a trend, and people are aware about clean eating which helped our brand grow. The brand did a lot of free sampling in gyms and in other places to attract consumers.

Growing trend of clean-label desserts in India
The trend is on higher side as many actors and brands are promoting clean eating in India. Consumers are eager to know about what they consume, the nutritional benefits and much more. Earlier, we never added the calorie count for our products as we were scared that people will not buy low calorie products. But that’s not the case with us now, as consumers are keen on knowing the ingredients and consuming the same. So, we started adding the nutritional information in all the platforms.

Innovations and Pricing
We are working on millet-based desserts, cookies and new flavours; I give the recipes to my mom Tina Bapu, after guiding her about the nutritional aspects. FMCG is a competitive market, so before launching there we need to slash down the cookie prices. We want to make the brand accessible to all the consumers.

Social Media Promotions
Actress Shilpa Shetty has promoted our brand organically in many platforms that really helped us. We are educating people through our reels and posts on instagram. We are doing Google ads, Youtube ads and more. We invest a lot in social media these days. We have a team onboard, and they manage it all.

Quality & Consistency
We have made premixes in-house and have standard SOPS to follow. Even a layman can come and make the cake with the premixes. So, even if a new person joins us, they can bake easily. 

After the Shark Tank episode, 60% of the revenue comes from food delivery platforms, while 40% of the revenue comes through Instagram/Website.

Expansion Plans
The Sharks guide us in expansion and give their feedback. We will be launching in quick commerce platform so people can order from any locations in India. They structure the business, and we run it. The brand started their pan-India shipping after the Shark Tank deal. We will be opening cloud kitchens in Peddar Road, Bandra, BKC and some other places. The major announcement is we are entering in the food market; we will have food space as a cloud kitchen which will focus on healthy food by 2026. For this, we have a chef on board who will curate the recipes, and he will look after all the elements.

The hospitality industry is witnessing a delightful transformation, fueled by the rise of artisan pastry trends. These hand-crafted, meticulously designed treats are not only elevating the culinary experience for customers but are also redefining the role of desserts in hospitality. From boutique bakeries to five-star hotels, artisan pastries are becoming a hallmark of quality and creativity, setting establishments apart in a highly competitive market.

The Allure of Artisan Pastries
Artisan pastries stand out due to their emphasis on craftsmanship, quality ingredients, and innovative design. Unlike mass-produced desserts, these creations often tell a story, blending traditional techniques with modern twists. The rise of foodie culture and social media has amplified their appeal, with customers seeking unique and Instagram-worthy desserts that provide both visual and gastronomic satisfaction.

At the heart of this trend is the desire for authenticity. Consumers are increasingly drawn to desserts that showcase local flavors, seasonal ingredients, and the chef’s personal artistry. This shift towards authenticity aligns perfectly with the broader movement in the hospitality industry to offer personalized and memorable experiences.

Elevating Fine Dining Experiences
In fine dining, desserts are no longer an afterthought. Artisan pastries have become an integral part of the dining experience, offering a perfect conclusion to a meal. Restaurants now employ skilled pastry chefs who bring innovation and flair to their dessert menus, creating dishes that rival main courses in complexity and presentation.

For instance, multi-course tasting menus often feature signature desserts that highlight the chef’s creativity and mastery. Elements like molecular gastronomy, edible art, and interactive plating are becoming commonplace, turning desserts into immersive experiences. This focus on artisan pastries not only enhances the overall dining experience but also allows establishments to charge a premium, boosting revenue and brand prestige.
 

Transforming Hotel Offerings
Hotels, too, are embracing artisan pastry trends to attract and retain guests. High-end properties are investing in in-house patisseries, offering everything from gourmet breakfast pastries to elaborate wedding cakes. By showcasing their pastry programs, hotels create an additional revenue stream and enhance their brand image.

Artisan pastries also play a pivotal role in events and banqueting. Personalized desserts, such as monogrammed macarons or custom-flavored truffles, are becoming popular for weddings, corporate events, and conferences. These bespoke offerings cater to clients’ preferences, making events more memorable and reinforcing the hotel’s reputation for excellence.
 

Artisan Bakeries and Cafés: A Growing Trend
Independent artisan bakeries and cafés are at the forefront of this movement, driving innovation and setting trends. These establishments focus on small-batch production, ensuring that each pastry is crafted with care and precision. Popular items include croissants with unique fillings, multi-layered entremets, and pastries infused with unexpected flavors like yuzu, matcha, or lavender.

This focus on quality and creativity attracts a loyal customer base willing to pay a premium for exceptional products. Additionally, artisan bakeries often become community hubs, fostering a sense of connection and belonging. This aligns with the hospitality industry’s goal of creating welcoming and engaging spaces for guests.
 

Challenges and Opportunities
While the rise of artisan pastries presents numerous opportunities, it also comes with challenges. Skilled pastry chefs are in high demand, and finding talent with the right blend of creativity and technical expertise can be difficult. Moreover, the emphasis on high-quality ingredients and intricate designs often results in higher production costs.

To address these challenges, many establishments are investing in training programs and apprenticeships to nurture new talent. Collaboration with local suppliers and farmers helps reduce costs while promoting sustainability. Additionally, leveraging social media to showcase artisan pastries can attract new customers and create a buzz around the brand.
 

Sustainability and Ethical Practices
The artisan pastry trend aligns with the growing demand for sustainable and ethical dining options. Many pastry chefs are embracing eco-friendly practices, such as using organic ingredients, minimizing food waste, and incorporating plant-based alternatives. These efforts resonate with environmentally conscious consumers and contribute to the establishment’s overall sustainability goals.

For example, some pastry chefs are replacing traditional butter and cream with coconut milk or nut-based substitutes to cater to vegan diets. Others are experimenting with locally sourced honey as a natural sweetener, reducing reliance on refined sugar. These innovations not only appeal to health-conscious diners but also showcase the versatility and adaptability of artisan pastries.

The Future of Artisan Pastries in Hospitality
As the hospitality industry continues to evolve, artisan pastries are set to play an even more significant role. Advances in technology, such as 3D food printing and AI-assisted recipe development, will open up new possibilities for creativity and efficiency. Meanwhile, the focus on storytelling and personalized experiences will ensure that artisan pastries remain a key differentiator for establishments.

Artisan pastry trends are reshaping the hospitality industry by elevating culinary standards, enhancing guest experiences, and fostering innovation. As customers’ expectations continue to rise, the demand for skilled pastry chefs and exceptional desserts will only grow, making artisan pastries an essential ingredient in the recipe for success.

India’s dessert industry is experiencing a sweet revolution, where traditional flavors meet modern trends. Expect the rise of functional desserts, culinary fusion, miniature treats, AI-driven innovations, tangy flavors, and a focus on natural colors and ingredients in the coming years. The market is set to grow at a rapid pace, making 2025 an exciting year for dessert lovers.

Market Boom: The dessert market is on the rise, expected to grow at a compound annual growth rate (CAGR) of 8.1% from 2024 to 2032, reaching INR 587.9 billion. Similarly, the bakery market will see a CAGR of 9.6%, hitting USD 17.44 billion by 2028.

What’s New in 2025? In 2025, desserts will take on new forms, flavors, and presentations to cater to diverse palates. Fusion desserts will dominate the scene, blending traditional flavors like saffron, rose, and cardamom with modern desserts. Expect minimalist cake designs with clean lines, muted tones, and simple yet elegant decorations like edible flowers and gold foil. The textured buttercream trend will also make waves, with decorators experimenting with dynamic spatula patterns and swooshes to create cakes that are both artistic and visually striking.

Health-Conscious Desserts: Consumers are becoming more health-conscious, and dessert trends are evolving to meet these demands. Rahul Bajaj, Founder of Cafe Out of the Blue, Le Sutra, and The Blue Gourmet, shares, “Desserts in 2025 will focus on balance and nostalgia. We’re seeing a shift towards lighter options, moving away from heavy creams and refined sugars. Ingredients like jaggery, bananas, and millet are making their way into desserts, catering to modern lifestyles while staying rooted in tradition.”

He adds, “Savory desserts will also be a hit, with gelatos featuring unique flavors that surprise your taste buds. Minimalism will reign, with black-and-white designs and retro-inspired aesthetics making a comeback. Mini desserts are trending, offering smaller, beautifully crafted portions that satisfy cravings without overwhelming you.”

Flavors and Presentation: Desserts are as much about visual appeal as they are about flavor, and this is where innovation is truly shining. Sid Mathur, Founder of Secret Ingredient, says, “Desserts in 2025 will strike a balance between nostalgia and spectacle, driven by viral trends on platforms like Instagram and TikTok. Reworked classics will continue to be popular, while chocolate-based desserts will remain timeless favorites. Sharing desserts will take center stage as food becomes more of a communal experience. Flashy presentations will steal the spotlight, with interactive desserts like ice creams that spin and transform, blending functionality with fun.”

Challenges: With every trend comes its challenges. Sid highlights that kitchens will face rising demands for consistency and complexity, turning dessert sections into high-pressure environments. The rise of artisan bakers and high-end fusion desserts adds another layer of difficulty, pushing traditional bakers to embrace bold new trends to keep up with evolving consumer tastes.

Fusion of Global Flavors: Expect the fusion of global flavors to continue making waves in 2025. Urvi Nikesh Gala, Founder of Dessert Republic, says, “Ingredients like yuzu and matcha will gain even more popularity. Local flavors are also finding their way into desserts, thanks to increased travel and a growing appetite for global tastes. Plant-based, vegan desserts will rise as health-conscious consumers seek indulgent yet guilt-free options. Desserts with a spirited twist—like pastries and ice creams infused with liquor—will also become more popular. Chocolate whiskey ice cream, a hit at Dessert Republic, is just the beginning.”

Innovations on the Horizon:  Expect to see more creative innovations in the dessert world, from new categories to personalized, bespoke flavors. However, challenges like the rising cost of premium ingredients and the need for consistency in artisan-quality offerings remain hurdles that the industry must overcome.

Artisan Bakers and Their Impact:  Artisan bakers are setting new standards for quality and creativity. They’re creating a niche for handcrafted, visually stunning, and flavor-packed desserts that are reshaping the dessert industry. This shift has sparked a revolution, with consumers increasingly seeking high-end, customized experiences.

Tech in the Dessert World:  Technology is transforming the dessert industry, although it might take a little longer to see 3D food printing become mainstream. Automation is already improving kitchen efficiency, and augmented reality is adding an immersive twist to dining experiences. Online platforms and social media continue to amplify visibility, allowing brands to foster engagement and receive instant feedback.

Himanshu Chawla, Co-founder of Bakingo, shares, “Technological innovations in kitchen equipment and AI-powered tools for inventory management are revolutionizing the industry. These technologies help us streamline operations and meet growing demand, especially for seasonal and limited-edition desserts.”
 

The Future of Desserts:

As the dessert industry evolves, health and wellness trends are shaping consumer choices. Alternative ingredients like millet and jaggery are gaining traction, while local ingredients are becoming more prominent. The focus is shifting toward creating desserts that are not just delicious but meaningful desserts that tell a story and leave a lasting impression.

2025 is shaping up to be an exciting year for the Indian dessert industry, with an endless array of trends to satisfy every sweet tooth. Whether its fusion flavors, health-conscious alternatives, or stunning visual presentations, the dessert world is evolving fast, and we can’t wait to see what’s next.

What has kept you going?

I believe that when the going gets tough, the tough gets going and one should never give up. I think this phase has given me so many learnings and made me stronger, more adaptable and has helped me reinvent the wheel. Almost all our staff has been with us from pre covid. My incredible hard working team and the support from our customers has kept me going. 

What’s your expansion plan?

As of now the only plan is the keep providing a great customer experience and grow our team and business. We haven’t thought of an expansion route to other cities as yet but it looks likely in the future. 

Tell us about your other businesses and brands.

We launched a bakery called BlueBop Bakes that offers a variety of sweets & savouries like brioche donuts, cupcakes, croissants, tarts, gluten free & vegan cakes, danish & seasonal specials. We use the finest ingredients with a rich blend of flavours & textures to create our delicious treats. 

5 tips you would want to share with fellow women restaurant owners.

Retain your team, listen to your customers but maintain a fine balance, customer experience is the most important, focus on quality & consistency, control overall inventory and food costs.

Top Trends that you foresee.

Increased interest around healthier foods, The rise of plant-based diets, more emphasis on Online ordering, The trend towards digital adoption will keep growing, more Sustainable practices, virtual restaurants with delivery only option, safer packaging, higher safety precautions, better food packaging.

Internet has been flooding with pictures of sourdough and recipes around it. From top chefs, restaurant owners and bakery professional making artisanal bread and bakery items to amateurs who are just going by the trend and internet sensation, sourdough bread is baking success in Indian culinary scene.

What’s the hype?

Covid-19 pandemic has given birth to many new and innovative food ventures and one of those is Wheaty by renowned restaurateur Varun Tuli. What started as a lockdown hobby has transitioned into a new venture. Tuli who is also MD at Yum Yum Cha started experimenting with bread during the initial weeks of lockdown.

Once the lockdown was lifted, in September 2020, he started Wheaty - a range of all-natural, slow-fermented, high hydration breads. The brand is an online bakery with an ever-evolving menu. One can always discover something new on their website.

Must Read: How Varun Tuli of Yum Yum Cha is baking success with his new venture

“The name wheaty was chosen because of several reasons. Wheat & more is wheaty. The colour of atta is wheaty. It’s a play on VT,” said Tuli who is delivering across Delhi-NCR with orders shipped 12-48 hours after being placed.

Commenting o the same Aavika Chhawchharia, Co-founder Honey & Dough bakery & coffeehouse whose 20 per cent of the customers are still opting for sourdough bread as they think it's a healthier alternative, shared “The growing interest in baking during the lockdown gave people a reason to opt for healthier choices and most of which resulted in creating sourdough breads. The fact that this bread is healthier than conventional bread is not the only reason it’s getting so popular. This renaissance has much to do with social media, especially Instagram."

Right now, #sourdough throws up 13,38979 posts alone on Instagram and to much surprise most of the posts shared are by home chefs and people who have grown their interest of baking during lockdown.

“It takes seven days to make a sourdough starter, and a lifetime of commitment to nurture it. Four ingredients - flour, water, salt & yeast - and the magic of microorganisms literally out of thin air, sets the premise for bread that is gentle on the gut and an excellent metabolism booster,” pointed Aditi Handa of The Baker’s Dozen who has spearheaded the sourdough bread narrative in India since 2013.

Sourdough bread acts as a prebiotic, which means that the fiber in the bread helps feed the “good” bacteria in your intestines. These bacteria are important for maintaining a stable, healthy digestive system and lower in gluten than other forms of bread.

A humble entry

Found in many parts of the world, the most authentic and famous Sourdough was introduced in France and Germany. In France, it is called pain de campagne or country bread. Whereas, the baguette was made in the bakeries of Paris after the First World War.

“The only difference between Sourdough bread and the normal bread is in their composition or how they are made. While the regular bread is leavened with packaged yeast, the sourdough is leavened with lactobacillus bacteria and wild yeasts hence this mixture is called a sourdough starter. In addition, sourdough has some special properties that allow it to surpass the nutrition profile of most other types of bread,” added Chhawchharia who believed that artisanal breads are creating a niche in the market due to its properties. And we will see every household opting for this as a healthier choice than the other breads in times to come.

“I still get very upset when I see people thinking of sourdough as gourmet or occasional bread. It’s like saying we eat vanilla ice cream daily and have black currant or chocolate only on occasions,” she mentioned by pointing that when she launched her Kemps Corner store in August 2013 and a customer would walk in and buy a multigrain, she would give them a four grain for free and say - aunty, aap try karo, I  know you will love it.” And the results, slowly but surely, showed. The number of units of sourdough sold in the first year – 1000. In five years, 1,00,000. In seven years, 3,00,000!

In 2018, Baker’s Dozen vision expanded into a factory in Kheda, Ahmedabad.

What’s the future?

Most people don’t need much convincing to eat more sourdough bread. The complex flavor, crusty exterior, and airy interior are reason enough. Infact, today’s generation is more conscious about their food intake and at Honey & Dough they received a lot of queries on it which was also one of the reasons they added sourdough to their menu.

“We are ecstatic to launch our eighth standalone restaurant in Gurgaon,” added Chhawchharia who is of the opinion that bakery is still driven by nostalgia and nostalgic bites.

Similarly, Handa, is aiming to build India’s largest D2C bakery brand by expanding to more than 100 own stores & 1000 retail touch points across 25 cities in India (metros, tier-1 and tier-2). “We want to develop a loyal customer clientele preferring our sourdough breads as their daily bread! We are also expecting to generate Rs 20 crore revenue this year, with 10 percent EBITDA,” she concluded.

Also Read: Baking success: This bakery brand wants to be one stop shop for ‘artisanal’ products

Hence, we can say that the pandemic has put the spotlight on sourdough bread with home kitchens abuzz with more activity than ever before. Though, sourdough is best enjoyed the traditional way, there are lots to experiment in this segment.

With digitization, changing consumer behaviour and thrust on rural development, bakery industry is undergoing major changes in the last two decades. Though there is a consumption slowdown, the budget 2020 came across as the silver lining for the baking products. The proposed reduction in personal taxes and special focus on agriculture, irrigation and rural development are fuelling growth. The rural consumption has superseded industry expectation and the size of modern retail estimated to grow 3 times in the next 5 years

Even consumption patterns have evolved rapidly in the last five to ten years. The consumer is trading up to experience the new or what he hasn’t.  The consumer is looking for products which are innovative, quality driven, value for money and various factors. A new report by Booz & Company for the Confederation of Indian Industry (CII), called FMCG Roadmap to 2020: The Game Changers, spells out the key growth drivers for the Indian fast moving consumer goods (FMCG) industry in the past ten years and identifies the big trends and factors that will impact its future. The bakery products market majorly covers the products such as cakes and pastries, biscuits, bread, morning goods and they sell through hypermarkets/ supermarkets, convenience stores, speciality stores, online retailing, other distribution channels.

ALSO READ: 5 Key Trends Refining Pastry Industry

Nonetheless, the changing market dynamics bring with it an array of products for customer loyalty and attention. Here is a look at how the future of bakery market would be:

Evolving Consumer behavior

The bakery products have long been basic food products for human nutrition. The convenience, accessibility and nutrition profile associated with them are the major factors of their sustenance in the modern market. Their significance as a major portion of diet has been prevalent in middle to lower income group countries. Bread has been a staple diet of many local cuisines worldwide and has shown a remarkable growth even during the period of global economic crisis. The rising trend of “Natural nutrition”, “healthy living” and “organic products” has significantly raised the consumers’ demand on whole wheat, light, natural and additive-free products. In recent years, the growth in sales of packaged, whole wheat, whole meal, gluten-free and natural products is an important indication of this new and healthy living sense.

Rural market: The key focus

Increasing smart phone and internet penetration have been helping people in the rural areas to get easy access to online shopping on various e-commerce websites. Availability of easy mobile payment options has led to increase in the number of orders from tier 2 and tier 3 cities which enables people to get timely delivery at their doorstep. If we talk about the future, products such as fruit juices, low-calory cookies and breads which had no demand in the rural markets earlier have suddenly started establishing their presence. While most FMCG players have succeeded in establishing sufficient access to their products in rural areas, the next wave of growth is expected to come from increasing category penetration, development of customised products and up-trading rural consumers towards higher-priced and better products.

Brand Community

Categories are evolving at a brisk pace in the market for the middle and lower-income segments. With their rising economic status, these consumers are shifting from need- to want-based products. The global bakery product market is highly fragmented, particularly with the significant presence of numerous global and regional players. The market share analysis does not account for revenue from artisan bakeries, but the revenue for retail channels. The strategy for expansion and partnership agreement has been the crucial strategy.

Little Miss Muffet a beautiful European Café-cum-bakery recently opened in the MGF Mall, Saket. It is a one-of-its-kind concept of Academy + cafe + Bakery. No matter how much one loves bold and bright decor, Little Miss Muffet has a soft spot for lighter, feminine pastels. The desserts and pastries have set the bar very high and speak for themselves.

The team of Little Miss Muffet believes that "Baking is an art which should be accessible to all with the minimalistic ingredients; one should bake as if one is baking at home. Similarly, we don't believe in the concept of using commercial equipment but the necessary ones like oven, etc. The products are often admired for the detailing, cakes and the articulation of the dressing.”

“It is the one-stop destination for all Kind of Healthy Food and Deserts," says the team of Little Miss Muffet. The team of Little Miss Muffet loves to interact with people who share the same amount of passion and love for baking as much as they do.

Little Miss Muffet decided to commence their journey from a 'shopping mall' because malls, definitely, have more footfall. These malls offer the convenience of parking which is very difficult on the streets. However, impulse buy is higher in a mall and the idea of an individual's safety is lesser at threat.

In the foreseen future, the team of Little Miss Muffet intends to cater their mesmerising cakes to the wedding, birthday parties and other gatherings. Also, they intend to collaborate with nutritionists to bring diabetic and gluten-free food into their customisation. They want to open the doors of Little Miss Muffet to junior chefs and birthday parties where the kids can head to Little Miss Muffet, learn baking rather than wasting their time on video games.  As they expand their boundaries of their Baking Outlet i.e. Little Miss Muffet, they aspire to start a Youtube channel where they intend to reach the masses and cater their knowledge of baking.

When it comes to marketing, the café-cum-bakery-cum-academy believes in Word-of-mouth advertising. “Word-Of-Mouth is immensely powerful. In fact, it's the best marketing tool one can have. We want people to remember us for our hospitality, our taste and how their experience was at the Little Miss Muffet. This form of marketing is extremely old, but it still makes sense. It's shared by customers and triggered by an event the customer experiences. However, we want the experience of our customers to be exceptional and mesmerizing,” says the team.

Driven by a need for a quality bakery brand in the country that would address the requirements of every customer by being a one-stop shop for a range of quality products, Aavika Chhawchharia along with her husband Utsav Chhawchharia opened Honey & Dough. 

The husband-wife duo wanted to capitalize on the gap in the bakery segment in India, that hadn't been able to bridge quality and pricing. An expansive range of offerings competitively priced coupled with exclusive gifting options for all occasions is what makes Honey & Dough stand apart from the competition. Having always been keenly interested in the F&B space, Aavika and Utsav launched the first ever outlet of Honey & Dough in Defence Colony, New Delhi in 2017 and have gone on to open two more outlets in coveted locations in less than two years.

In an interview with Restaurant India, the founders of Honey & Dough Aavika Chhawchharia and Utsav Chhawchharia talk about the bakery segment in the Indian market.

Providing Consumers with High-Quality Products

A focused eye on a good product is the key to everything. While pricing plays an extremely important role in shaping the brand, providing consumers with high-quality products at an affordable price for all is the best scenario. If you are looking to open a bakery, keeping in mind the sub-tropical climate while planning the menu is essential. One may want to include macaroons, tempered chocolate, pralines and choux biscuits but the heat could play a role in lowering its presentation and quality. 

In our early careers, important learning was the impetus that brand visibility lends to a business and that is why we have set up outlets in prominent locations. 

Bakery Segment in the Indian Market

The market is extremely competitive and price sensitive and the bakery segment serves both cultivated and cultured patrons as well as fast movers.  As patrons get more travelled and exposed to quality F&B, constant innovation is essential. The hospitality industry as a whole can benefit from incorporating technology to support all aspects of the business as well as strengthening the internal processes and management.

Key Challenges while Establishing the Bakery Business

Streamlining the hiring process so that you are able to get the best manpower suited to your needs. Organizing a smooth supply chain as well as ensuring a smooth transition from the central kitchen to the outlets and maintaining consistency across all products since all our products are made in-house were the first challenges we faced while setting up Honey & Dough. 

Another key hurdle was a high attrition rate along with complex internal operations and processes typical to the hospitality industry which can be plugged by effective training to staff. 

Challenges that Lie Ahead

Setting up an effective franchise model as the quality is essential to the brand of Honey & Dough. Making sure of consistency in product and service across all outlets, across cities and set up a supply and logistics chain that doesn't compromise on the brand ethos.  
Deciding on appropriate locations for expansion across Delhi NCR and other cities and retaining core staff since the industry is highly competitive and there is a high attrition rate.   

Expansion Plans with Honey and Dough

We are following an aggressive expansion plan, wherein we have been able to open up five outlets in less than two years. By the end of the current financial year, we plan to open 10 outlets pan-India. 

Tips to Open a Bakery Business in Delhi

Is the pricing competitive enough to attract customers along with a focus on quality that strides across premium and popular categories? The range of products should also be wide enough to attract customers of varied taste profiles. 

Started by the brother-sister duo, Daksh Gupta, and Ruhi Gupta, August Café is catering varieties of cuisines and desserts to local people of Mumbai. They are the third generation in the business and their entire idea is towards bringing international taste and cuisines nationally at a local level. Excerpts from the interview:

How did food happen to you?

We are the third generation involved in the business. My father already has 15 running outlets under the name of ‘Surbhi Sweets’. I basically come from a family where everyone is a restaurateur. Ruhi, my sister has been in Europe for almost a decade completing her hospitality course from Switzerland followed by London and Paris for her patisserie course from Le Cordon Bleu. I completed my graduation one and half years back after which I had to decide whether I wanted to pursue my education further or step into the business industry. I decided to step into the business segment trying to understand new trends which are invading the food industry.

How is the role divided while running the café?

Ruhi takes care of the production, while I deal with marketing and customer management. One can say that August Café is Ruhi’s brainchild, and I provide the physical effort required for running the venture. Given my sister’s expertise, I have a lot to learn from her.

Why come up with the name August café?

Our initial plan was to start a chocolate patisserie shop of the name Cacao Etc., but later we switched to the idea of starting our own café.  The name August came to us randomly as the month has played an important role in our lives. Also, it has a very significant meaning which is impressive and prestigious.

What are the various kinds of challenges you see while being in the industry?

First, the finalization of the location plays an important role while setting up your venture. We faced a lot of challenges while deciding it. Another challenge that I see is the staffing segment. I believe that getting the right people on board is very important as they’re the face of a particular venture. Other few challenges are the human resources and various marketing challenges followed by menu designing and various new trends which our food industry faces every now and then.

What is the uniqueness of August café?

We believe in coming to a solution rather than arriving at it. The main uniqueness of our café is that we have an in-house patisserie and bakery serving varieties of mouth-watering delicacies. We make dishes in limited number which are completely made in-house. Thereby serving guaranteed fresh food to customers.

Tell us something about the décor of August café?

We wanted our café to be classic and elegant with a slight European touch. The café’s interiors have white walls with a portion being checked giving it an elegance, while our outdoor area is lush green. Black, gold, white and grey are the four colors which we have at our café.

What are your expansion plans?

As it's our first venture, we are trying to solely concentrate on it. We want to make our brand as popular as we can and then shift the gear towards expanding. In future, we will be expanding it on our own or via franchise.       

Puratos, one of the world’s largest bakery, patisserie and chocolate ingredients producer, has introduced products in an easy-to-use avatar for the preparation of cutting edge desserts for the Indian market.

A 100 per cent subsidiary of Puratos International, Puratos helps customers in delivering nutritious, delicious food, leveraging new technologies and innovations in ingredients across countries.

A recent consumer survey by Puratos revealed an awareness of world consumer trends amongst customers, of experimenting with culinary experiences, a more open palate, while sticking to original world favourites. Capitalizing on these trends, Puratos has launched these easy to use products.

The ‘Deli Cheesecake’ by Puratos is a super easy versatile take on the iconic New York style Cheesecake, the 1^st in India. This ready to use egg free cheesecake mix allows one to effortlessly produce a dessert that is otherwise quite challenging.

Puratos’ survey also found a clear bias to old favourites and hence, introduced the O-tentic Durum - a convenient solution for creating breads with a distinct taste of yesteryear deliciousness in a secure fail-proof easy package. It captures the magic of sourdough and combines it with modern-day technology, for an easy to use tasty bread experience. One can produce world class breads with an old world charm, and magical lip smacking flavour with this.

Lately people are relying on bread and packaged food in India, but people may not be aware of the outcome from its consumption. According to a research by CSE the bread that we consume contain cancer-causing chemicals.

As per the findings, based on samples collected from Delhi, the organisation has prompted the union health minister to seek a report, even as bread manufacturers staunchly denied use of harmful ingredients in their products.

As much as 84 per cent of 38 commonly available brands of pre-packaged breads tested positive for potassium bromate and potassium iodate, according to the Centre for Science and Environment (CSE).

The two ingredients have been banned by many countries, listing them as "hazardous" for public health, stated the report.

There is no ban on these substances in India. The All India Bread Manufacturer's Association (AIBMA) denied widespread usage of potassium bromate. "Majority of Indian bread manufacturers do not use potassium bromate. We are going to present our point of view soon," shared Sudeep Ahuja Treasurer.

According to Ahuja, some companies use potassium bromate to increase the shelf life of breads. This ingredient is used widely in the US in breads, he claimed, suggesting that the substance isn't harmful. The association will meet with its members to discuss further course of action and present its views to the government, he said. CSE claimed that while one of the chemicals is a category 2B carcinogen possibly carcinogenic to humans the other one could trigger thyroid disorders.

Founded in April 2015, by Rajesh Sawhney, Bal DiGhent (of the DiGhent cafe fame in Gurgaon) and Sanjeev Singhal (our CTO), InnerChef is one of the fastest growing food tech companies in India. Rajesh drives vision, strategy and growth at Innerchef. He is also the founder of GSF, India’s leading multi-city Tech-Start up Accelerator for the brightest tech start ups in India. InnerChef is built on two values- sharing food with loved ones and creating lasting happiness in every mouthful. InnerChef food is fresh, delicious and wholesome and also delivered to the doorstep in one hour delivery slots.

As you have recently got funded. Where can we see those investments being used?

Recently we have raised a pre-series A round of Rs 11cr ($1.66mn) from the leading investors from across the globe. InnerChef will use the funds to expand its footprint and launch 10 new kitchens across Delhi, Bengaluru and Mumbai. Additionally, InnerChef will also focus on building Indulge– a Hyper Local Desserts Marketplace that brings the finest desserts from home bakers and neighbourhood bakeries, across six cities within the next three months. The Indulge platform will aggregate 100,000 home bakers across 100 Indian cities within a year.

Why did you launch an online food ordering start-up only when there are many other hot segments as well attracting VC money?

It is a personal passion. Today food is a big category as the size of the market is very attractive; secondly food and mobile go well together and lastly huge possible disruption in the crowd model. In this disruption we can create a massive mega space in the food and that is why I enter in this business.

What is the model exactly in terms of procuring, preparing and delivering process?

We are food-tech Company which is made in our kitchen by professional trained chefs. People can order from our apps. We also have hyper local desserts marketplace which is made by the talented home bakers and neighbourhood bakeries. We are currently serving dessert lovers in South Delhi, Gurgaon and now in Bengaluru. Our vision is to take Indulge to 100 cities within a year with 100,000 home bakers on the platform.

There are similar start-ups in ready to eat food ordering from chefs. Any significant and substantial edge Innerchef has over them?

We are premium food experience company. Our unit value Rs 500 for two which is highest from all food start-ups. Our range from breakfast, salads, Panini, combos, mains, snacks, desserts, cakes and even 15 min meal which you can cook. We are also superior in quality; our desserts are unique in model and serving in Chennai, Bengaluru, Noida, South Delhi, Gurgaon. We also plan to 100 cities within a year with 100,000 home bakers on the platform.

Who are your target customers?

Our 70 per cent customers are women and also 70 per cent people are between the age group of 25-35 years. Also, globally aspiring Indian who gets the high quality food at affordable pricing.

You have launch hyperlocal online dessert marketplace called Indulge. How do you evaluate the pricing?

“Hyper Local Desserts Marketplace” is the finest desserts from home bakers and neighbourhood bakeries. Through Indulge, bakers will have access to technology platform and robust delivery infrastructure to reach millions of customers across India. Indulge features desserts priced between Rs. 120- 300+ taxes that serve 2-3 people. Soon it will have a wider range of desserts priced between Rs. 50–1000. The Indulge dessert line will include Lemon, Chocolate and Carrot cakes, Belgian Chocolate Brownie and two types of Muffins. In addition, Indulge will now feature exquisite range of desserts, both eggless and with eggs, by these talented bakers and bakeries.

What is the number of orders that you get presently?

We get 1000 orders on an average.

Tell us about both the models which Innerchef is offering to the customers?

InnerChef offers meals in two formats i.e. Ready-to-Eat and Ready-to-Cook. Ready-to-Eat is ready to be eaten up and Ready-to-Cook range is more suited for home-cooking where InnerChef does all the legwork right from washing, chopping and prepping all the ingredients, salad dressings, spreads, sauces etc. and one just has to simply follow the recipe.

What is your expansion plans?

As we are fastest growing company, started in Gurgaon and now expanding in different cities-Bengaluru, Chennai, South Delhi, Noida and by 31st March 2016 we will set up seven kitchen in the metros (Bombay, Delhi and Bengaluru). 

What are the different types of expertise served at your bakery?

We are a chain of bakeries serving a very wide variety of bakery and patisserie items. Our main area of expertise is in international bakery and patisserie products.

What new product range you are offering for your customers? Which is the fastest growing product?

We constantly innovate and place new items on the menu, both from the bakery and patisserie sections. The latest product placed on the counter is a new pastry using banoffee base with cheesecake, which has been received very warmly by all customers. The fastest growing product is the relatively new Rainbow and Red Velvet pastries, which are sold out every single day.

What are the special cakes or deserts you would love to treat or recommend your customers?

From our product range, customers repeatedly ask for our special Belgian Chocolate Evasion, Walnut Fudge Brownies, Red Velvet Cake, Figure Friendly Fruit Cake, among a lot of other crowd pullers.

There are many bakery brands today. How much competition do you see with them?

We revel in competition and want more and more bakeries to open. The growth in the segment is of much more importance and the shift of customers from the traditional sweets segment is more valuable. One has to maintain quality and constantly innovate to ensure growth in the market. We have been operating in this area for 13 years now and we have grown as a company every single year.

What is your method of working, at the time when you get numerous online orders?

Our online orders are tracked very carefully, so that we avoid any chance of drop in service. We also do not try to garner too much online business now, as we are in the process of increasing our infrastructure to handle more business in this segment. It is very easy to make a promise online but very difficult to consistently fulfill them, especially keeping the short shelf life and temperature sensitivity of our products in mind.

Which section of market you love to focus?

The knowledgeable customer is our biggest asset. They appreciate our products and force us to continue innovating constantly. The corporate segment is also a focus area.

What is your expansion plan in terms of number of outlets or investment?

We currently have 10 outlets, which we plan to double within the next three years. All our expansion is internally funded.

Puratos, one of the leading global food ingredient companies today launched its Taste Tomorrow 2015 Research results that captures consumer behavior in the food space and provides unique insights into emerging consumer trends in the baked goods industry.

The release of the Puratos Taste Tomorrow 2015 Report at Mumbai today was a high profile industry event where representatives of the confectionary industry turned up to learn about the survey results and understand consumer preferences and discuss future trends.

Taste Tomorrow 2015 is part of a series of events that take place in different parts of the world, each providing unique global and local insights into emerging trends in the baked goods sector that help manufacturers with actionable information to enable them to adapt their product innovation and development to current and future consumer needs.

The results of this global consumer survey demonstrate consumers’ attitudes and perceptions towards bakery, pastry, patisserie and chocolate in various regions and cultures and point out key observations and future trends. The key takeaway of this 2015 survey is that consumer preference for baked goods is based upon 3 key criteria: freshness, health and taste.

The India survey brought out some strong positive signals for the industry with 62% consumers believing that food will be more diverse in India by the year 2025.  The results also indicate that consumers also believed that food will be more innovative and tastier, more convenient and ready-to-eat to mirror lifestyle changes in India by 2025.

The survey also throws up strong indicators of consumer expectations for the future with up to 46% consumers in India expecting food to be of a better quality by 2025. The preferences are clearly veering towards fresh, healthy and organic with a growing number of consumers expecting food to be more natural, more sustainable and fresher by 2025.

Speaking on the launch of the Taste Tomorrow 2015 report, Dhiren Kanwar, Country Head - India, Puratos said, “We are delighted to conduct this survey every year as it gives insight into emerging consumer trends in the baked goods industry. This research establishes that our consumer wants more diversity, innovation, better taste, freshness, healthier options and more convenience in food products. It offers a great peep into the psychology of our consumers and will be of great help to industry to strategize better for new product development and to win consumer confidence.”

At the same time, consumers have become very serious about food quality and health aspects. The survey points out that 46% of consumers in India expect food to be healthier by 2025, which incidentally is a negative trend when compared to 3 years ago. In a sharp indication of the growing consciousness of health and nutrition concerns, the survey indicates that 74% of consumers in India tend towards reading labels in detail. Along the same lines are indicators that some food materials are being now being considered ‘power’ ingredients because they offer the perfect balance of taste and health. 86% Indian consumers find whole-grains and whole-meal to be healthy and 75% feel it adds something to taste also.

The report also points to the growing craving among consumers for confectionary but with health, freshness and taste as essential parameters. The report indicates that 76% of consumers would appreciate a live bakery where they can see freshly baked items on the spot. Additionally, and perhaps not so surprisingly, 80% of consumers in India feel chocolate adds taste to patisserie products.

The survey concludes that consumers have become more empowered and articulate over the last few years. They want to have a say in the products they consume and have more means than ever before to do so, particularly with the growing trend of social media.

Priscillia Ooi, Marketing Director, Asia Pacific, Puratos, said “We conduct this survey across 25 countries including India with a sample size of 11000 respondents from a mixed socio economic strata. We have had a great run so far, and some of our learning and understanding of consumer behaviour here makes for a stronger pitch for customers in emerging markets. We will continue to launch more comprehensive surveys to make Puratos’ Taste Tomorrow Reports the first choice for baked goods industry”.

The Puratos Taste Tomorrow 2015 India launch for the northern region will be held on 21st August at New Delhi.

Over the last few years we have seen that bakery industry in India is rising at a CAGR of 12-15 per cent. With this growth, the segment has created an opportunity not only for men but also for women. And to get a closer picture of what’s trending in the bakery segment, Restaurant India presents a broader picture, have a look!

Current Scenario

The bakery industry is one such industry in India, which is growing as never before. With market size of Rs 1500 billion in 2014-2015, the industry is growing at CAGR of around 12-15 per cent. Bakery industry is widely dominated by unorganised players which accounts for  90 percent of the total share.

Being backed by the local as well as the global players in the market, states like Andhra Pradesh, Maharashtra, West Bengal, Karnataka, Tamil Nadu, Kerala and parts of Chandigarh and Delhi-NCR dominates the bakery segment in India.

Not only individual players, hotels and restaurants are organising regular festivals and include bakery items in their menu, where they have the best of desserts and savouries lined up. Unorganised segment which comprises of the small bakery units are catering to the demands of individuals. These units are usually cottage and household type manufacturing, mostly owned by women entrepreneurs.

Where was India in 2010?

The bakery India in India was valued at Rs 69 billion in 2010 that too when the industry dominated by unorganised segment. Earlier, only a few players including Monginis and Britannia used to hold a small percentage in the market. Despite of the fact that India ranked third in global bakery industry and second in biscuits, the industry could not do much progress as people were not interested in experimenting with the western culture. But as time passed by, with transformation taking place at present, the industry has seen a wide number of organised as well as unorganised players entering into the market.

Bakery Market has seen a fairly sophisticated growth in last few years. Earlier there were only few players in the segment but with people becoming aware of the global market, today the quality of the bakery product is same in India as it used to be in US,” says Chetan Khurana, Owner, Lucky’s Bakery.

Women in the biz

Bakery industry has given an edge to the entrepreneurial skills of the women in India. In last two years places like Gurgaon, Chandigarh and Coimbatore have seen a growing number of women entrepreneurs entering into the Bakery industry.

According to a media report, Divya Gopinathan, who has worked with IBM for nine years in England and Holland when came back to Gurgaon office as a SAP Payroll consultant. But her love for bakery was persistent.

"I wanted to get out of the rat race and do something on my own to make use of my creative abilities. That's when I decided to go for it," says Divya, who launched De Cakery in 2011.

Meanwhile, for skills development among women in the bakery industry, The National Skill Development Corporation (NSDC) has signed a MoU with Assocom India Pvt Ltd (one of India’s premier food consulting and skill education companies) to create employment opportunities for women. They provide quality training in baking, milling and food technology sectors.

The training programme focuses on fresh students, unskilled workers, to-be entrepreneurs and entrepreneurs without formal training.  They also provide on-site training to working professionals in the targeted sector.

Industry mix

The baking industry is majorly dominated by bread, biscuits and Cakes & Pastry. The volume of organised bread industry is estimated Rs 50 billion and is growing at the rate of 15 per cent annually.

Cakes and Pastry has Rs 500-600 billion market and this segment growing at 20 per cent annually.  Meanwhile, Biscuit which is dominated by players like Britannia and Parle has a ticket size of Rs 100 billion which is only 60 per cent of organised biscuit units and rest of the market covered by unorganised units.

“We serve handmade, preservative free and natural products. We started our business two years back and starting selling our product on social made platform. Getting huge responses from the customers, we opened our first outlet in October 2013,” says, Apeksha Jain, Chief Confiturier, The Gourmet Jar.

Way Ahead

With people becoming more open to eating out and more women taking up entrepreneurial journey, bakery industry is growing at CAGR 12-15 per cent. And it will constitute a considerable size in the F&B segment in the years to come.

As the segment offers great opportunities for budding entrepreneurs, it is becoming an ideal place for doing something that involves creativity and Franchise India at its biggest retail and franchising show has brought some promosing brand like The Chocolate Room, Bombay Brasserie and more who are ready to expand their portfolio.