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By RJ Whitehead

- Last updated on GMT

South Asia radius

Related tags: Fast food, Food

Bread market expecting to see double-digit growth

India’s bread industry has seen 9% growth over the last three years to a market worth Rs33bn (US$510,000)—a long way removed from the ‘Nineties, when bread was perceived by consumers as no more than a basic breakfast item. 

Over the years, increasing disposable incomes, urbanisation and changing consumer preferences and lifestyles have given a boost to the bread industry, ValueNotes Research believes. For some customers, bread is even seen as confectionary. 

The growth is expected to continue, with a compound rate of 10% bringing receipts worth Rs53bn (US$820,000) by 2020.

While demand for brown and nutritional breads is expected to grow, this segment currently accounts for a mere 20% of the total share, says ValueNotes.

The industry is dominated by unorganised players, which account for around 55% of the overall market

In the organised segment, Britannia Industries and Modern Foods Industries are market leaders, with nearly 45% share of the market

Organised players will drive spike in fast food fortunes

Research and Markets, another analyst, predicts the fast-food market will see lightning growth between now and 2020, with consumers gaining a taste for quick-service restaurants across changing demographics.

By 2020, the market will be worth US$27.6bn, with both vegetarian fast food, whose share is 45%, and non-vegetarian options rising at the same pace.

Around 10% of the market is organised, and it is here where the lion’s share of growth will be seen, with national and international chains increasing their revenues by 27% by 2020.

Meanwhile, the Ethnic fast food market in India is projected to grow at 31.95% by 2020.

Coffee exports to fall due to reduced international demand

Weak demand from leading buyers in Europe will lead to a decline in exports of Indian coffee, the US Department of Agriculture has predicted. 

The expected 5.6% decline will reduce exports to 4.7m bags by September, compared to almost 5m 60kg bags last year.

The report said that average Arabica coffee prices fell 15% between January and March, though Robusta prices remained firm. 

Domestic prices are largely driven by international prices and trade sources indicate that global supplies of Robusta are keeping prices at lower levels. 

"Robusta prices are expected now to remain firm until the onset of the next harvest as strong foreign foreign demand pressures Indian supplies​," the USDA report said.

Related topics: Markets, Industry growth, South East Asia

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