According to a recent report, the Indian Bakery Market was worth USD 7.60 Billion (Approx.) in 2020 and is further expected to grow at a CAGR of 8.5% between 2021 and 2026 and reach a value of 12.39 billion USD by 2026. Considering this huge market opportunity, D2C brands are foraying into this category to meet customer expectations.
Today, customers are changing their food preferences and looking for baked goods that are inherently gluten-free and made with natural ingredients. Along with healthier options, millennials are also looking for new flavors and experiences, and making flavor innovation a key aspect of the baking industry is a direction brands are trying to take.
To learn more about this market, we spoke to Sneh Jain, co-founder, The Baker’s Dozen
The Baker’s Dozen started in 2013 on a small scale. They started the business with 4 bakers and almost after 8 years they are shaping over 10,000 loaves of bread every day and currently the brand is present in over 20 pan-India cities.
In this highly competitive market, brands need to come up with something innovative. The brand can only last if it can deliver a value-based product to its customers. Talking about how the brand broke into the Indian market, Jain told us, “One of the things we broke into the Indian market through is shelf life and packaging, we were the only bakery in India to use this innovative special fresh lock packaging. We basically wrap our bread in an inert environment that prevents it from becoming contaminated. Even though we deliver our products from Ahmedabad to Kolkata, they are able to withstand this temperature without using any preservatives. Packaging innovation is one of the keys that has also helped us scale our operations. »
He also told us about the plans the brand is ready to expand internationally and added, “We are expanding our presence in two phases, the first phase will include products that have a longer shelf life like sponge cakes, cookies, crackers or the range of premixes. . Through this, we will begin to establish a brand with market presence by introducing these products in the country. In the second phase, we could link up with partners to strengthen our presence in the market. »
Technology becomes the backbone for the growth of D2C brands, as it is one of the factors that can take a digital business to another level. Asked about how they introduce new technology to innovate their offering and customer approaches, Jain pointed out, “Historically, big people think bakeries can’t introduce technology or even become a tech-driven industry. As traditionally, it was only associated with small bakeries. But I think a brand can only evolve if it introduces technology to it. »
He also added the 4 new innovations they introduced:
- Packaging innovation
- Presentation of the products of the fit range
- Using Data Science for Supply Chain Management
- Presentation of new marketing innovations
He signed off saying that consumer behavior is changing and added, “Customer shift has shifted to e-commerce platforms due to new aggregator platforms such as Swiggy, Big basketball, etc. Previously, it was a 70-30 ratio, in which the offline space was heavily contributed, but now the share has been equal due to the adoption of the online approach by customers. »