Sweets have been integral to Indian culture, symbolising celebration, prosperity, and togetherness. Whether it's enjoying desserts after every meal, gifting during celebrations, indulging in casual snacks, or elevating fine dining experiences, sweets hold a special place in the hearts of every Indian household.
While traditional sweets remain culturally significant, modern desserts' convenience, variety, and aesthetic appeal are boosting their popularity. Nowadays, a large section of consumers are choosing chocolates and cakes over traditional sweets, highlighting their aspirational tendencies and evolving tastes.
Market overview
Within the broader food industry, the bakery and confectionery market in India is growing rapidly, reflecting the evolving tastes of Indian consumers.
Valued at USD 12.6 billion in 2023, the bakery & confectionary market is expected to expand at an attractive 9.6% compound annual growth rate (CAGR) from 2024 to 2032 (IMARC Group).
Factors such as a rising working-class population, post-pandemic lifestyle shifts, increased disposable income, and a demand for convenient, ready-to-eat products are significantly driving this surge.
This growth has also introduced challenges, as consumer preferences are constantly evolving, necessitating innovation and differentiation to maintain consumer interest. Indian consumers emphasise value for money, expecting substantial returns even when paying higher prices.
They seek a balance of quality, convenience, and value in bakery and confectionery products, driven by health movements, global influences, and evolving tastes.
Key factors shaping consumer preferences
In India, modern desserts are increasingly replacing traditional sweets due to global exposure, rapid urbanisation, and shifting consumer preferences, especially among younger generations. Student exchange programs and study abroad initiatives have led to growing exposure to international desserts. A growing health consciousness post-pandemic, and the appeal of lighter, less sugary options also contribute to this trend. Additionally, social media has played an influential role in shaping consumer demands.
Let’s look at these factors in detail:
Working population surge & post-pandemic lifestyle shifts
COVID-19 has played a significant role in shifting consumer behaviour and market dynamics, thereby influencing growth. Pre-pandemic growth was driven by urbanisation and rising consumer spending. Post-pandemic, there is a notable shift towards health-oriented products, such as gluten-free, low-sugar, and organic options, with increased demand for safety and hygiene that has driven a surge in the creation of boutique and home-based setups.
According to a study by BlueWeave Consulting, the significant driving factor in the market’s expansion has been the growing working-class population, majorly young. Consumers are willing to spend more due to increased disposable income & busy urban lifestyle has created a demand for convenient, ready-to-eat products, being met by bakery and confectionery items.
Cross-cultural influences
The Indian diaspora and frequent international travel have expanded taste profiles, while students studying abroad influence their peers with exposure to diverse dessert options. This cross-cultural exchange has led to a heightened appetite for innovative and global dessert offerings. There is an increased consumer interest & curiosity in new bakery items & standards introduced by International bakery and confectionery brands as well.
For instance, Krispy Kreme, the American doughnut giant, entered the Indian market with a focus on offering its signature doughnuts and coffee & The Cheesecake Factory entered India with a focus on offering American-style desserts with local fusion, like mango cheesecakes & saffron infused cheesecakes.
Delicate entremets, Madeleines, and Boba-inspired desserts, Chocolate babka, are a few examples that have become part of Indian consumption today, reflecting a growing appetite for global sweet treats among Indian consumers.
Social media influence
Social media has amplified the word-of-mouth impact, helping brands reach diverse demographics. Platforms like Instagram & YouTube feature visually appealing content, engaging reviews, and influencer endorsements, significantly shaping consumer preferences.
Additionally, Millennials and Gen Z are driving the 'snackification' trend influenced by the opinion of their peers & social media coverage, replacing traditional items with ready-to-eat snacks. Today, along with savoury items, desserts like croissants and cupcakes are also available in packets offering quick sweet bites.
Rise of aspirational quotient in consumer purchases
The rise in behaviour towards aspiration buying is driving the surge of desserts in India as consumers increasingly seek indulgent, premium experiences. The young consumer base is largely influenced by the desire to project in a certain way among their social circles.
According to a report by Invest India, premium and exclusive products see higher demand due to their association with elevated social stature. This trend is especially prominent for the gifting segment during festive seasons and special occasions. Corporate gifting is also boosting the growth of the premium confectionery items category.
According to a study by FNB News, today buying cakes & premium chocolates for celebratory occasions is tagged as an aspirational activity among the middle-class group due to its modern appeal reflecting a desire for luxury & sophistication. Moreover, they come in diverse flavours and styles, catering to evolving tastes.
Accessibility
The ease of availability of bakery and confectionery products through various channels, including retail stores and online platforms, continues to boost their popularity. Modern retail formats like supermarkets and hypermarkets, along with e-commerce and food delivery apps, have significantly grown the industry in India.
Internet exposure has enhanced access to global movements, while door-to-door deliveries and mobile apps provide convenience and user-friendly ordering. These channels offer wider reach and accessibility, making it easier for consumers to purchase a variety of products, from traditional sweets and savoury snacks to contemporary baked goods and premium confectioneries.
Notable trends
According to a study by ET Hospitality World, personalisation has become important as consumers seek individualised & bespoke products, enhancing their connection with the brand and a shift towards experiential dining where consumers value not only the quality of the food but also the ambience and unique experience offered.
People are becoming more discerning about quality and authenticity, thereby giving rise to various trends to meet their expectations. There are a few interesting concepts to take note of:
Artisanal & speciality bakeries
Artisanal bakeries such as L’Opera, Sassy Teaspoon, Le15 Patisserie, etc. have gained prominence across urban centres in India offering handcrafted bread, pastries, and desserts with an emphasis on quality ingredients, authentic baking methods, and unique flavours. Chef Kazem Samandari, Chairman of L’opera, emphasises the importance of quality over discounts. Consumers are increasingly seeking out these artisanal products for their authenticity and superior taste.
Moreover, these bakeries serve personalised & customisable products to enhance consumer engagement and differentiate themselves in a competitive market.
Local bakeries in India enjoy strong consumer loyalty, but the artisanal bakery market, though small, is gaining traction. The global artisanal bakery market is projected to reach $6.8 billion by 2027, and its presence in India is prominent and widely loved. Artisanal bakeries focus on quality, customer education, and authenticity, using social media to build trust and differentiate from traditional competitors.
Shriya and Varun Shetty founded BuCo in Mangaluru in 2017, emphasising customer education to differentiate the artisanal bakery from traditional competitors. Similarly, Dina Weber established SAPA Bakery in Mysuru, focusing on creating an artisanal experience with fresh ingredients and personal storytelling, positioning her bakery as a unique destination in the market. Other examples include artisanal bakeries like Monèr by Chef Freny Fernandes, and Kardamom, which emphasise quality, authenticity, and innovation.
Growth of home bakeries
During the COVID lockdowns, baking became a popular hobby, leading to a massive surge of home bakeries. Due to internet exposure, home bakers scaled up their operations, eventually turning into small businesses. This exposure made consumers more aware of various cuisines like pancakes, mug cakes, pies, rolls, cheesecakes, etc., with people experimenting and creating new trends. As a result, home bakers became trendsetters, enriching the segment with diverse and trendy baked goods.
According to a report by Future Market Insights, the home baking ingredients market is projected to grow from $15.6 billion in 2023 to $28.2 billion by 2033, driven by increasing demand in the Asia Pacific region such as India, particularly among millennials seeking convenient, healthy options.
Socialising & experiential dining
Increased socialising and dining out have boosted the consumption of bakery and confectionery products. Socialising and experiential dining are gaining traction as people look for distinctive and memorable food experiences.
For instance, some Indian bakeries are adopting themed concepts, like retro cafes or Bollywood-inspired decor, where the ambience complements the menu and bakeries like "The Baker's Lounge" in Mumbai offer interactive baking classes where customers can learn to make pastries, cakes, and bread. This trend highlights a growing appetite for meaningful social connections and unique culinary adventures, enriching both the dining and social experience.
Fusion & customised offerings
The continuous introduction of new flavours and product varieties has kept the market dynamic and appealing. Bakers are experimenting with fusion desserts that blend traditional Indian flavours with global influences. Examples include gulab jamun cheesecake, paan-flavored chocolates, etc. Such innovations not only cater to diverse palates but also create a unique culinary experience for consumers.
Rise in demand for plant-based & vegan desserts
The rise of plant-based desserts reflects growing health consciousness and ethical considerations. These desserts cater to consumers seeking healthier and environmentally friendly options. This trend underscores the increasing demand for sustainable and cruelty-free dessert options.
At the moment, this market is dominated by conventional desserts such as pancakes, cheesecakes, waffles & doughnuts. However, global culinary influences and a growing appetite for novelty have spurred the adoption of various new treats.
Conclusion
Overall, the above-discussed patterns, reflect a shift toward the balance of indulgent, experiential, and mindful eating, driven by evolving consumer preferences. Looking ahead, trends like fusion desserts - creative combinations of different desserts, such as cruffins (croissant-muffin) and brookies (brownie-cookie); portion-controlled treats catering to mindful eating are expected to gain momentum.
Poised for substantial growth fueled by increasing consumer demand, it would be interesting to see how brands continuously innovate and differentiate to stay ahead in this highly competitive market.
Businesses need to develop effective brand strategies in terms of brand positioning, packaging, and communication to establish a strong & recognisable brand identity. Ensuring a steady supply of quality raw materials, keeping up with regulatory standards, meeting technological requirements & evolving consumer needs would be certain challenges to be tackled.
As the market grows, businesses need to prioritise building strong brand loyalty.
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