Bake Big Business profits through Baking Industry

They say, “When you celebrate, there is sure to be cake." We say “When you celebrate, there is sure to be cake and there is sure to be business."

The bakery industry is delivering joy to many businesses and offering them lots of business avenues. In India, the bakery industry is riding on a high wave and has taken a good position in the business charts of the country. 

According to a recent report, the bakery industry has achieved third position in generating revenue among the processed food sector. The confectioners and bakery industry is certainly providing lucrative business opportunities to those who are interested in making money through this sector.

Industry's Scenario

The bakery sector consists of food categories like biscuits, breads, cakes etc. The branded packaged segment in this sector earned Rs. 17,000 Crore in 2012 and is expectable to grow at phenomenal rate of 13-15 % in the next 3-4 years.

The cakes and bread market is much more fragmented with multiple local and regional players. International players like Unibic, United Biscuits have gained importance in their specific product segments in the last few years. The sector is foreseen to welcome some more of the international brands in the Indian market.

Key Players

Most of the renowned bakery players such as:

Market Size

The market size for the industry was pegged at US $4.7 billion in 2010 and is out-looked to reach US $7.6 billion by 2015. The growth percentage of bakery products has been enormous in both urban and rural areas.

This tremendous growth has happened due to two reasons:

• Availability of better Ingredients : Firstly, due to the availability of better ingredients from chocolate, toppings, fillings, flavours etc.

• Knowledge of International Standard Product : Secondly, education abroad has brought in many new players striving to produce products of international standard rather than products of mediocre quality.

Number of players are increasing slowly. People started taking it up as a profession from the house, after doing short/long courses.

Factors for Growth: 

• Widespread popularity

• High nutrient value and low price

• Demand for healthier fortified baked products

• Rapid growth in population and changing eating habits

• Variety of flavors and interesting choices

Global Bakery Industry and Business Opportunities

Baked goods market has shown fast recovery following the economical recession, strong growth over recent years globally. Factors fueling market expansion includes affordability, convenience and healthy advantages of baked goods. Apart from starting a bakery business, there are other routes to opt too.

THREE DOORS TO ENTER INTO BAKERY BUSINESS

Franchise Route: When taking a bakery’s franchise, a prospective franchisee usually has lots of confusion regarding the choice of formats. Location plays a vital role in the bakery business success. So the ideal model is always based on a combination of factors like location, space available, target consumer profile etc.

Requisites:

If you have decided to take up a bakery franchise, then you need to have the following basic requisites that include:

• Finance: An aspiring entrepreneur must have enough capital to maintain a good quality office. The bakery franchising requires an initial investment of Rs 5- 10 lakh (that may vary from company to company).
• Location: It is one of the most flexible sectors that can be located anywhere from a small town to a big city. It works efficiently and profitably almost everywhere, though the developing areas offer more lucrative opportunity.
• Skills: As an entrepreneur, you are expected to have a sound knowledge of the geographical area and an ability to provide professional services. Besides, you must possess integrity and offers a complete transparency (in transactions) to your clients.

Distribution Route: Distributorship of bakery products offers remunerative opportunity for those who are interested in the concept of distribution. Becoming a distributor has its own requisites. They need to have developed network with the and have a strong knowledge about the industry.

Requisites:

• Storage Space: It is a must-have for distribution. You can choose a warehouse or garage or some rented place.

• Transportation: To distribute bakery goods, distributors need a reliable method for transporting goods.

• Licenses and Permits: Depending on the laws of county, you may have to buy licenses and permits like operational, health department license to run your bakery legally.

• Strong Network with Manufacturers: Its a plus point if the distributor know manufacturers dealing in his products.

Sales Representative Route: A bakery sales representative is responsible for providing a maintained and well-stocked department and providing superior customer service. This position is responsible for preparing, packaging, and merchandising fresh product on everyday basis while maintaining all department and food safety standards.

Roles and Responsibilities:

• Assist in technical areas as needed (e.g. baking, frying, and decorating)

• Takes cake orders from customers by telephone or in person

• Slices, packages, labels, and rotates bakery products

• Makes announcements to inform customers of freshly baked products

Associate with the bakery industry and bake big business ideas.