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Frost & Sullivan - Consumer Preference for Healthy Bakery
Date:2/11/2009

MUMBAI, India, February 11 /PRNewswire/ --

- Products Drive Growth in the Indian Bakery Industries

Since 2004, the Indian bakery industry has been making huge strides forward, undergoing a virtual metamorphosis thanks to increasing consumer gravitation toward convenience products and health food products. The market is expected to grow at a steady rate of 8.0 percent from 2010 onwards.

New analysis from Frost & Sullivan (http://www.food.frost.com) , The Trend Analysis of Ingredients Applications in Indian Bakery Industry, finds that the market earned revenues of over $161.4 million in 2007 and estimates this to reach $278.1 million in 2014.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Indian and the Middle East natural colors market, then send an e-mail to Remi Chaterjee Nimisha Iyer, Corporate Communications, at remi.chaterjee@frost.com/ niyer@frost.com with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

"The food industry is riding on a health wave; an increase in consumer awareness about health concerns has led to most of the bakery products being augmented with health benefits from fiber and whole grains," says Frost & Sullivan Senior Consulting Analyst Maheshwari B.

However, the addition of whole wheat and fibers disrupts the gluten network, which could lead to processing difficulties, changing organoleptic properties and causing quality problems. Using enzymes offers a way out. Enzymes interact with the gluten network, strengthening and stabilizing the dough during processing, baking, and proofing. The escalating demand for whole grain and high-fiber bakery products will thus positively impact market progression in the bakery enzyme sector as well.

Although local manufacturers have an advantage in many ingredient markets, the threat from imports looms large. The Indian market is devoid of entry barriers for imports, and specialty ingredients manufactured abroad are multifunctional and are higher in quality compared with domestic products. Further, soaring inflation rates in India and rising manufacturing costs are eating into profits.

"On one hand, severe competition in this space prevents manufacturers from hiking prices," explains Maheshwari "Norms set by the government for products such as bread have increased the bargaining power of end users, reining in revenues in the bakery ingredients market."

Nonetheless, manufacturers can opt for energy-saving projects to keep manufacturing costs in check. Innovation offers another route to higher margins for ingredient manufacturers.

As the continuous development of new products to synchronize with the prevalent trend of healthy eating and lifestyle changes is a prominent characteristic of this market, the production of novel, high-quality products offers the edge over competition. The thriving Indian bakery industry is still in the developing stage, offering huge opportunities for the bakery ingredients market to grow alongside. Manufacturers of bakery ingredients such as enzymes, flavors, fats, shortenings, leavening agents, and improvers have to ratchet up levels of innovation to enable more productive business outcomes.

The Trend Analysis of Ingredients Applications in Indian Bakery Industry is part of the Food and Beverage Ingredients Growth Partnership Service program, which also includes research in the following markets: Indian functional foods and beverages market, Indian health snacks market, and Indian and Middle East natural colors market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

    The Trend Analysis of Ingredients Applications in Indian Bakery Industry
    P1B9

    Contact:
    Remi Chatterjee
    Corporate Communications - South Asia
    P: +91-44-4001-3419
    F: +91-22-2832-4713
    E: remi.chaterjee@frost.com

    Tanu Chopra
    Corporate Communications - Middle East
    P: +91-22-4001-3437
    F: +91-22-2832-4713
    E: tanuc@frost.com

    Nimisha Iyer
    Corporate Communications - South Asia & Middle East
    P: +91-44-4001-3404
    F: +91-22-2832-4713
    E: niyer@frost.com

   http://www.frost.com



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SOURCE Frost & Sullivan (India) Pvt. Ltd.
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