1

PROJECT SYNOPSIS

Topic of the project: ECONOMIC AND LEGAL ANALYSIS OF CAKES.

INTRODUCTION: Bakery products are the readymade food items made of various ingredients
available anytime when demanded. The main bakery products are bread, biscuits, cakes, pastries
and other milk and dairy products. People due to shortage of time prefer these bakery products.
The present day consumer looks for new bakery products, better appeal, taste and convenience
from bakery foods. With a population of 1 billion plus, India has the largest middle-income
consumers, who demand varieties in food, clothing, transport and improved living standards, also
wish to eat out. Opportunities, in abundance, exist in Bakery Cafes and Restaurants, those who
cater fast-foods. Bakery products are gaining popularity day by day. Young generation mostly
prefer the bakery products.

Type of review: Here the method followed is secondary review as all sorts of information have
been collected from secondary sources.

Literature review: The Primary Literature that has been reviewed while doing the research in
books and web sources.

AIM/OBJECT/PURPOSE OF THE PROJECT: The main objectives of the present research

study is to enlighten the need,scope and importance of the study, to study the concept of bakery
industry and to evaluate the importance of bakery products (mainly cakes), to classify the
different types of bakery products, to know about the production costs and expenses incurred at
different levels of marketing.

SIGNIFICANCE/IMPORTANCE OF THE PROJECT: Bakery Industry is an important part of

economic and social structure of society. As the population is growing, its food habits are
changing and the consumers are driving towards low calorie fiber diets. Bakery industry is also
growing in the country. Bakery Industry is having many products in itself such as- Biscuits,
cakes, bread, pastries, pizza, sandwiches etc. These are such items, which are liked by young
generation very much. But there are many problems and challenges before Bakery Industry in
our country. Firstly, it is found that the methods which are being used for the preparation of such
items are very much traditional because of which their costs remain high and the quality inferior.
Secondly, this industry is not organized in nature because of which also the tastes differ from
bakery to bakery. Not only this, also the marketing practices are found defective which results in
the increase of their marketing costs to a large extent. This research will help us to understand
both the importance or role of bakery industry and bakery products and also gives an idea about
the various challenges faced by it.
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SCOPE OF THE PROJECT: The scope of this research is to understand about the role of cakes
and bakery industry and to analyse it in such a way that economic and legal concept is present. It
also tells about the development of bakery industry and products of bakery during 19th, 20th and
21st century in India

RESEARCH PROBLEM: The research problem in this particular research is that whether there
is any kind of contribution to the economy of our country from industries mainly such bakeries
and other manufacturing companies of cakes.

RESEARCH QUESTIONS:

1. To analyse the role of bakery industry in the economy and to know about the reasons behind
it.

2. To evaluate the problems and issues in the society related to industries in general.

3. To understand the activities performed by individuals in an industry mainly bakery industry.

RESEARCH METHODOLOGY: In this research the researcher uses descriptive and analytical
method of research. Books, magazines and other online resources are also used for the research.

DATA AND DATABASES: Secondary method of data collection is done in this research.
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PROJECT ABSTRACT

A bakery is an establishment that produces and sells flour-based food baked in an oven such as
bread, cookies, cakes, pastries, and pies. Among the products sold to customers, bread and rolls
surpassed cakes, pies and other retail bakery products combined.

Cake is a new bakery product compared to the other bakery products. It was earlier famous in the
Western countries but now becoming popular in other parts of the world too. In the olden times it
was considered the rich men’s items and mostly famous among Christians. But with
modernization, it is gaining popularity among all the communities. It is a perishable product
made of wheat flour, cream, gel, sugar and milk. It is of two types egg cakes and fruit cakes. Egg
is mostly used in this to make it fluffy. Egg cakes are more perishable than fruit cakes. Cakes are
used in all parties and on all happy occasions. Mostly the young generation has developed the
taste of this item. But the use of cakes is mostly confined to urban areas. These are not very
popular in rural areas due to its low accessibility. It is not available everywhere except big
bakeries. Plant and machinery used in preparing cakes is expensive and needs good investment.
Its scope is increasing in India also.

In this research the researcher is going to focus mainly on the bakery industry and about the
bakery product cakes. The bakery industry has shown signs of recovery from the recession with
an emphasis on products with natural and organic ingredients, as well as smaller portion sizes.
Cakes as a bakery item has a great role and it act as an attraction to the customers. Now a days
cake making has become a way of earning and it increase the interest of people towards such an
industry.

In the olden days people were stuck to the simple food like chapatis, rice etc. and there was no
advancement in the food habits as there was no awareness about the advance methods of cooking
food. But with the passing of time man started thinking of some new items of food to change the
taste with the same ingredients used in the traditional food. Food ingredients have commanded
the food industry around the globe making people savor the food they eat. Food is no more about
filling the hungry stomach but it is actually driving people into an obsession with the tastes it
leaves behind. Ingredients are the issue of research and experimentation because it has an
immense importance in developing the taste and appearance of food cooked using them.

Growing popularity of the bakery products has led to the growth of market in India. The market
has grown faster in the last five years as competition and new products have an impact on
awareness and consumption of the masses. Growing market has led to the standardization of the
society. The living standard of the people has increased in our society.

In this research along with the basic facts drawbacks are also discussed. It gives an idea about the
role of cakes in the bakery industry and the economic and legal analysis on it.
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CONTENTS

1. INTRODUCTION………………………………………………………….6
2. IMPORTANCE OF BAKERY INDUSTRY IN THE SOCIETY………...7
3. CLASSIFICATION OF BAKERY PRODUCTS…………………………10
4. ECONOMIC ANALYSIS OF BAKERY INDUSTRY…………………..12
5. CAKE TRENDS OF 2017 AND MARKETING………………………….15
6. RECOMMENDATIONS…………………………………………………..20
7. CONCLUSION…………………………………………………………….21
8. REFERENCES……………………………………………………………..22
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INTRODUCTION

In the olden days people were stuck to the simple food like chapatis, rice, pulses, corn, bajara etc.
and there was no advancement in the food habits as there was no awareness about the advance
methods of cooking food. But with the passing of time man started thinking of some new items
of food to change the taste with the same ingredients used in the traditional food. Food
ingredients have commanded the food industry around the globe making people savor the food
they eat. Food is no more about filling the hungry stomach but it is actually driving people into
an obsession with the tastes it leaves behind. Ingredients are the issue of research and
experimentation because it has an immense importance in developing the taste and appearance of
food cooked using them.

Bakery products are the readymade food items made of various ingredients available anytime
when demanded. The main bakery products are bread, biscuits, cakes, pastries and other milk
and dairy products. People due to shortage of time prefer these bakery products. The present day
consumer looks for new bakery products, better appeal, taste and convenience from bakery
foods. With a population of 1 billion plus, India has the largest middle-income consumers, who
demand varieties in food, clothing, transport and improved living standards, also wish to eat out.
Opportunities, in abundance, exist in Bakery Cafes and Restaurants, those who cater fast-foods.
Bakery products are gaining popularity day by day. Young generation mostly prefer the bakery
products.

Most of the bakery products are made up of wheat, the major food crop of India produced
abundantly in India. Wheat is the major cereal crop of the world and is consumed mainly in the
form of bakery products in most parts of the world. In India, wheat is consumed mainly in the
form of chapatian unleavened baked product. In India, bakery products have become popular
among different cross sections of population in recent years due to increased demand for
convenient foods. Among bakery products, bread and biscuits are the most popular processed
ready-to-eat food items in the country. Bread and biscuits accounting for 84% of the total bakery
products produced in the country. India’s bakery products can be divided into three main
products viz., bread, biscuits and cakes. Bakery products are mostly popular in urban areas. Due
to unawareness and illiteracy, rural people are not familiar with the various kinds of bakery
products. Rural areas supply raw material for the bakery products. Many bakery products are
nutritive and have become important part of diet of the people.

Bread and biscuits have become most popular breakfast of most of the families not only in India
but all over the world. India has a large market for the bakery products. It has become an
important industry in India and is growing rapidly. In the present era growing demand for the
bakery products has become one of the most important necessities in the life of the people.
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IMPORTANCE OF BAKERY INDUSTRY IN THE SOCIETY

Bakery industry is the rapidly growing industry in our country. This industry in India is the
largest of the food industries with an annual turnover of about Rs. 3,000 crore. India is the
second largest producer of biscuits in the world. The bakery industry is divided into two main
types: Individual bakers in tiny sector catering to the requirements of their local markets and the
Industrial bakers of theFast Moving Consumer Goods (FMCG) in the category of major
industrial units having market operations in many parts of the country.

Bakery products once considered as sick man’s diet have now become a common essential food
items. From the later part of 20th century, the bakery industry is growing due to demand for ready
to eat products which is influenced by increased urbanization, increased per capita income and
increased population etc. Growing popularity of the bakery products have led to the growth of
market in India. “The market has grown faster in the last five years as competition and new
products have an impact on awareness and consumption of the masses. A hospitality student is in
much demand after his completion of education and having specialized training in the bakery
field. Multinational Companies like raw material manufacturers, equipment developers, food
courts inmalls, franchise fast-food chains and bakery brands growing in different cities, are all
offering challenging positions and strong salaries.”1 Growing market has led to the
standardization of the society. The living standard of the people has increased in our society. The
bakery industry today offers immense opportunities for bakers, decorators, trainers, process
managers, distributors and many more related professions.

Increased demand for the bakery productshas increased the jobs for the people. It provides vast
employment opportunities for the youth also. Trained professionals are getting high salaried jobs
in India as well as abroad. India’s export of the bakery products have also raised which is helping
in the growth of the economy of the country. Bakery products have also given some relief to the
women. In the early days females had to prepare food all the time with no time to yet relief. But
now-a-days as women are also getting professionals, they have less time to give at home and
family.

The growth of the bakery products has reduced the responsibilities of kitchen. They can now
easily prepare food with the readymade food items which need less labour and time. Increased
awareness of the bakery products has reduced the burden of the females in the society. People
going out of home can easily satisfy their food needs. Thus the bakery products have solved
many problems of the people. Bakery products also solve the problem of preservation. These
products can be stored for few days and do not easily get spoiled. As other food items loose their
taste when stored for some time but the bakery products do not loose their taste. People living
away from home can easily store these food items.

The bakery products have reduced the dependence on females for satisfying their food
requirements. Increased demand for the bakery products has helped the primary sector of the
 7

country i.e. agriculture. Almost all the bakery products are made from the wheat and dairy
products. There is a great demand of these agricultural items all over the world.

Farming has become now more commercial. Farmers grow the crop and sell atcompetitive prices
in the national as well as international market. These bakery products have brought prosperity to
the farmers all over the country. Likewise, the demand for the dairy products has also
experienced a hike all over the world. The cattle owners get attractive prices for their products.
Milk and milk products are in great demand from the last few decades. Increased earning has
improved the standard of living of the people of rural areas which helped in the overall
development of the country as more than half of the population of our country is living in rural
areas. The agricultural and dairy products have raised the quantity of exports of the country and
thus contributed in balancing the trade of the country.

Bakery products have globalized the market facilitating the producers to sell their products
profitably. Bakery products in India are in common use and are very important for our society. In
modern days bakery products are becoming one of the most essential food items in human diet
due to readymade availability and high nutritive value. These are the most consumable wheat
based products. Wheat and other shortening agents are required as raw materials to manufacture
these products easily available in India. The plant and machinery and the technology required to
manufacturing these products are completely available in India. Since the consumption of bakery
products is increasing rapidly day by day, the demand also is increasing enormously. So, though
there are a lot of organized as well as private sectors existing, but the demand will not meet
totally by them in near future. So, for new entrepreneurs, it may become very good sector for
investment. Thus the bakery products have great importance for our society from all of these
views.

The baking industry in the United States is those companies that focus on and manufacture baked
goods. Mainly these baked goods consist of some type of bread but it can also included items
such as cakes, cookies, crackers and pastries just to name a few. Baking is the act of making food
such as cakes and breads “by preparing a dough, batter, etc., and cooking it in an oven using dry
heat” (Merriam-Webster Dictionary.) Other foods may be baked like meats, vegetables and some
pasta dishes, but for the purposes of this analysis we will be focusing on the “baked goods” that
include breads, cakes etc.

Background

Baking goes as far back as at least 2600 B.C. It is the Egyptians that are credited with using the
baking technique first. They are also credited with the first use of leavening, or the use of yeast
to make the dough rise, in bread. It was the Egyptians that also came up with the first ovens to
bake these breads in. From Egypt, baking spread to ancient Greece and then into the Roman
Empire where it flourished around the 3rd century B.C. and pastries became all the rage.
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CLASSIFICATION OF BAKERY PRODUCTS

Bakery products are the easy, readymade food items which are easily available on demand.
These are available from long time but now the liking of these items is increasing rapidly. In the
present era there is large number of bakery products available in the market. The popular bakery
products are being classified as under:

1. BREAD: In modern days bread is becoming one of the most essential food items in human
diet due to its readymade availability and high nutritive value. It is the most consumable wheat
based bakery products. It is the most popular breakfast item in almost every family. It is also
easy to manufacture and also cheap as compared to other bakery products. Mainly wheat flour is
used to prepare it. Bread is a very old bakery product. The history of bread starts with Neolithic
age and marches through time according to ingredient availability, advances in technology,
economic conditions, sociocultural influences, legal rights and evolving tastes. The earliest
breads were unleavened. Variations in grain, thickness, shape and texture varied from culture to
culture. Bread is also a raw material of many other Bakery products. Wheat flour, yeast, sugar,
salt, water and shortening agent are required as raw materials to manufacture bread. The plant
and machinery and the technology required to manufacture the bread, are completely available in
India. Since the consumption of Bread is increasing rapidly day by day, the demand also is
increasing enormously. The production of bread is estimated at 11.5 lac tones per annum. In this
sector 25-30% of the production is from organized sector units. There is a lot of scope for
introducing anti-diabetic bread or breads of high/low calories and so on. The major players in the
bread industry that hold about 80% of the market share are Britania and Modern Industries Ltd.

2. BISCUITS: Biscuits are the important items of Bakery industry. It has now become a common
item of consumption among all classes of the community. With tea or Coffee, a biscuit makes a
tasty nutritious snack. This highly nutritious and easy to digest product can be preserved for a
long time. It is with in the reach of even lower class people. It is available on small shops at all
places. It is the most common snack used by all the people. Biscuit is made of simple wheat
flour, sugar etc. By varying the ingredients and flavors it is possible to produce a variety of
biscuits. About 50 percent of the total biscuit production in our country is of glucose. It is highly
demandable product. It is liked by the people of all aged-groups. It is available in all rates, Cheap
as well as costly. Its demand is continuously growing. These are easily digestible item. The plant
and machinery used in making biscuits is not heavy and expensive. Biscuits are found in both
sweet and salty tastes. Biscuits also have very old history but these are not as old as bread.
Biscuits are found in all shapes such as square, circled, rectangle etc. Due to their increasing
demand, there is a bright scope for new entrants as well as for existing manufacturers. The major
brands of biscuits are Britania, Parle, Bakemen, Priya Gold, Elite, Cremica, Dukes, Anupam,
Horlicks etc. In addition of these brands also a large production of this item is manufactured by
the units having no brand in the area of the study.
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3. CAKE: Cake is a new bakery product compared to the other bakery products. It was earlier
famous in the Western countries but now becoming popular in other parts of the world too. In the
olden times it was considered the rich men’s items and mostly famous among Christians. But
with modernization, it is gaining popularity among all the communities. It is a perishable product
made of wheat flour, cream, gel, sugar and milk. It is of two types viz egg cakes and fruit cakes.
Egg is mostly used in this to make it fluffy. Egg cakes are more perishable than fruit cakes.
Cakes are used in all parties and on all happy occasions. Mostly the young generation has
developed the taste of this item. But the use of cakes is mostly confined to urban areas. These are
not very popular in rural areas due to its low accessibility. It is not available everywhere except
big bakeries. Plant and machinery used in preparing cakes is expensive and needs good
investment. Its scope is increasing in India also.

4. PATTIES: Patties are the bakery product made of wheat flour and other vegetables. It is the
most common bakery product these days which can easily satisfy the hunger of a person as it is
easily available every where on bakers and confectionaries. It is salty in taste and is found in
many types such as simple potato patty, vegetable patty, cheese patty, mushroom patty, non-veg.
patty etc. Egg is added to its flour to make it crispier. It is baked in ovens. It is a perishable food
product and losses its taste another day. It is triangular as well as square in shape. It is widely
popular item and is liked by the people of all ages especially by the young generation. They use
to take it in their meals as well as in refreshment. There is large market of this bakery product
because it is reasonable in price and can be afforded by every middle class people. It is mostly
available in urban areas and rural people hardly get it to use. This factor limits its market which
can expand more and bakers can give good profits if they make this product available in rural
areas also as the markets of Meerut Region has a good scope of this item.

5. PASTRIES: This bakery product is sweet in taste and is a highly perishable food product. Its
taste is very much similar to the cream cakes and is found in small pieces. It is made with wheat
flour, cream, sugar, fruit flavors, chocolates etc. It is very sensitive bakery product and needs
cool place to preserve. It is made in fruits flavors and chocolate flavors and is made similar to
cakes. Its taste remains good only for one or two days after it is manufactured. In winters it can
be preserved for two- three days but in summer season it starts loosing its taste the next day as
cream, a milk product is used in preparing it. Pastries are mostly found in rectangle and triangle
shape. Being a bakery product of the western countries it is now becoming popular in our
country also. Children, youths and even the adults have developed the taste for the pastries. It is
available at reasonable price. But the main drawback is that it is not easily available in rural areas
due to its early perishable nature. In Meerut Region pastries have a good demand especially in
urban areas. It is manufactured locally and is consumed on large scale here. Pastries
manufacturing and distribution provides employment to large number of people in the Region.
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ECONOMIC ANALYSIS OF BAKERY INDUSTRY

Industry scenario

The Indian bakery sector consists of some of the large food categories like breads, biscuits, cakes
etc. The branded packaged segment in this sector had a size of Rs. 17,000 crore in last financial
year and is expected to grow at phenomenal rate of 13-15 per cent in the next 3-4 years. Within
biscuits, 3-4 large-sized players viz. Britannia, Parle, ITC, Cadburys comprise about 75 per cent
of the market. The breads and cakes market is much more fragmented with multiple regional and
local players. International players like United Biscuits, Unibic have gained prominence in the
last few years in their specific product segments. Going ahead, the sector is expected to see some
more of the international brands entering the Indian market.

If we believe on the reports, the bakery industry has achieved third position in generating
revenue among the processed food sector. The market size for the industry is pegged at US$ 4.7
billion in 2010 and is expected reach US$7.6 billion by 2015. It also mentions that the shining
star of the sector remains the biscuits industry, which is expected to outperform the growth of the
sector overall. While the figures are indeed encouraging, there is a flip side to this story. As the
business and the industry thrives, the challenges accruing out of it are also growing at a fast pace.
Admittedly, the Indian bakery industry is not really geared up to face the daunting task that lies
ahead, which is of striking a balance.

The per capita consumption of bakery products in India is very low which is about one to two kg
per annum, which is comparatively much lower than the developed countries where consumption
is between 10 and 50 kg per annum. The growth rate of bakery products has been tremendous in
both urban and rural areas.

Bakery segment has increased matured to a great extent, recently. This tremendous growth has
happened due to two reasons. Firstly, due to the availability of better ingredients from chocolate,
toppings, fillings, flavours etc. 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 is increasing slowly. More and more people are starting to take this up as a
profession from the house, after doing short/long courses.

Current Research on the Retail Bakeries Industry

Like many industries, retail bakeries see rising costs in fuel, health care, and other expenditures
cut into their bottom line and increase the cost of doing business. However, there has been an
uptick in demand, including trends such as cupcake stores and gluten-free baked goods.

Despite economic worries, the industry is expanding its customer base while other food service
sectors continue to suffer. Consumers are now willing to spend moderately and demand high
quality for their dollar; an equation for which retail bakeries are a solution. The most promising
 11

sector for the retail baking is cakes. Wedding cakes in particular are gaining ground as the
economy rebounds.

Trends

Trends have manifested themselves in the various new launches/introductions that we have seen
in the past few years by leading players be it Britannia's Nutrichoice range, smaller packs of
Good Day, ITC dark fantasy, Parle's Happy Happy and Parle-G Gold.

Factors for Growth

Recently, a lot of bakers have gotten into three dimensional cakes and theme cakes. Cutting off
from the regularity, bakers are now looking at experimenting with many more ingredients like
rice treats, and inculcating them into cake designs. Some bakers even make use of wooden
planks for support. There is also something as sugar crystal sculptures, where they try and use
them as per the theme of the cake. The biscuit category is expected to continue its growth
trajectory of 15 per cent going ahead. Growth in bread would be relatively slower.

Challenges, Opportunities

The challenges would be category-specific. The biscuits category has seen rapid growth in the
last few years. Implementation of packaging standardisation norms appears to be the big
challenge. Volatility in input costs is expected to remain and this would add to the woes. In
bread, profitability has remained the focal point for some time. Players have been looking to
increase share of value-added products while focussing on operational efficiencies linked to daily
distribution. The challenge for cakes would be to expand the consumption of packaged cakes. In
fact, this challenge is also a significant opportunity for this particular segment.

Regulatory Aspect

A steady rise in cost of raw materials, quality variations at source, ignorance about the new
trends especially amongst the unorganized sector, stringent government regulations and legal
complexities are a few of the many hurdles that cripples the bakery industry in India today. And
unless, the head honchos of the industry find a way to circumnavigate these problems, if not
overcome it completely, there is little hope of the bakery industry in India to sustain or to
succeed. Apart from the nature of the industry, which gravitates to the markets and caters to the
local tastes, the industry is widely dispersed also due to the reservation policies (relating to the
small scale industries) of the government.

Global Bakery & Pastry Industry

The global baked goods market has shown rapid recovery following the economic recession,
recording strong growth over recent years. Factors fuelling market expansion include
 12

convenience, affordability and health benefits of baked goods products. Demand for healthier
fortified baked products has also driven sales.

The baked goods industry, encompassing products such as bread, cereals, cakes, biscuits, pastries
and scones, is well established in industrialized regions such as Western Europe and North
America. Product innovation and healthier products and ingredients are fuelling market growth
in these regions. Emerging markets such as Latin America, Middle/East Africa and Asia
represent good market potential as western lifestyles and eating habits continue to be adopted in
these regions.

The graph above tells about the producer price index by industry and the manufacturing of
bakery industry and bakery products.
 13

CAKE TRENDS OF 2017

On the cake decorating front, Heather Sisson, vice-president of customer relations at Lucks Food
Decorating Co., said the New Year will usher in a wide range of color trends that cake decorators
need to be keenly aware of. One example is chalky pastels with unfinished edges and imperfect
textures that become part of a worn, shabby but familiar style. Colors are muted yet
contemporary. “You’ll start seeing more chalky pastels in 2017,” Ms. Sisson said. The “Fresh
Traditions” trend story, according to Lucks, is driven by the rising cost of city living for young
creatives, who are moving to the edge of urban areas to create subcultures of urban influence.
Cake decorators are moving between city and suburbs in their cake designs, and this brings a
combination of grit and beauty into the design process. Painting on cakes also falls into this
trend. Other notable cake trends for 2017 include the use of emojis, candies and cereals, Ms.
Sisson said. The popularity of drip drizzle cakes is expected to grow, as well as youthful,
succinct messaging like “HBD” on cakes, rather than “Happy Birthday.”

Packaging innovations

Branding your bakery translates into packaging, as well, because you want to make sure
shoppers walk out the door with your name on every package. This ensures their family and
friends will see the name of your bakery and help spread the word to gain more notoriety for
your place of business. At Bake-In-Cup, retail shops can brand their creations with customized
solutions that identify your brand right on the bakeable cups that come in attractive colors and
patterns.

For other ideas, Novacart’s new OP PLUMK Paper Baking Loaf Mold attracts much deserved
attention with an elegant gold scroll on easy release white paper. Like all Novacart paper baking
molds, the new loaf mold is easy to use. Just pour your batter into the mold, bake, and serve.
There is no need to re-package.

And appealing to the rising numbers of self-serve shoppers, RoundWare is the latest offering in
Inline Plastics’ breakthrough Safe-T-Fresh line of patented, tamper evident, products. The single
piece, 4” diameter, clamshell design, coupled with Safe-T-Fresh tamper evident, tamper resistant
technology, promises to revolutionize this market segment, according to the company.

“We partnered with our customers during the development of this product line in order to create
the highest quality product, and ensure that it performed in real world applications.” said Carrie
Cline, senior product manager. “We found that the eye-catching RoundWare clarity and user
friendly design encouraged impulse purchases, as well as stimulating repeat sales.”

Bakery Innovation as a service

Bakery Academy is an expert in bakery product development, by working hard to stay bakery
experts on ingredients, their functionalities, interactions and their related processes. The
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complexity of applying knowledge in the development of new bakery products is our daily job.
Whether it is transferring a successful product from abroad to your local bakery and ingredients,
creating something completely new and unheard of or finetuning the last bit of your
development. Our bakery experts will help facilitate your next innovation to stay on top of your
market. Considering that there are several thousand varieties of breads, cakes, biscuits and
pastries it is near to impossible to master them all by heart. However by approaching each
product from the bakery process involved combining with a formulation coming from our bakery
knowledge database we have a great starting point. Our product development consultant will
transfer this to your local ingredients to develop specifically to your requirements: local taste,
ingredients, desired shelf life and the installed production line.

Pastry

Although pastry is also used as a collective for several bakery products we intend here the puff
pastry, filo types together with the pies (shortcrust, pound/inlay and crumble). Some products,
considered to be sweet crusts, can be ranged under cookies or cakes (e.g. mooncakes) as well,
but are often placed into the pastry category. The principle of the pastry product is that the
filling(s) will make that the product becomes savoury or sweet, the dough itself is quite neutral
tasting.

Especially processing, techniques and control are a central key into creating good products and
the feeling and passion for this are often only transferred by applying the master-apprentice
principle. Our bakery research here focusses on controlling moisture migration by changing
minor ingredients and process development for taste and texture control.

Cake

Cakes are next to breads one of the most broad categories with several thousand different type of
cake products. Traditionally a lot of cakes use eggs, but considering local habits more and more
cakes are nowadays produced vegan (no eggs and milk). We distinguish seven categories within
cakes:

–Foam cakes, e.g. angel, chiffon, macaron

–Aerated, e.g. layer cakes, swiss roll, ladyfingers

–Pound cakes

–High ratio cakes, e.g. brownies

–Small cakes & hybrids, e.g. cupcakes, muffins, frangipanes

–Pancakes

–Waffles, e.g. Belgian types

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We have developed our own models in order to control single or multi-layered cakes and their
intended shelf life. Together we can adapt that intelligence to your local taste and texture, and
even exchanging ingredients for either allergenic or nutritional goals are within range.

Bakery Confectionary

Depending on the availability or supply some industrial bakeries need to develop their own
fillings, coatings, toppings, etc. Our bakery consultants have worked and adapted several: based
on fat, water or fruit. Processing is here often as important as the choice of the raw materials and
can when in own hand be perfectly designed for taste and shelf for the final product where it is
applied in or on.

Research Challenges

Within the team or our bakery consultants we strive to try several ingredients and techniques in a
continuously manner within our research. Sometimes this leads to new concepts such as instant
clean label custard or tasteful glutenfree breads. In other occasions we can take apart improver
systems for breads or cakes and reassemble with other ingredients with similar or improved
properties against sometimes lower costs.

Recently we’re focussing more on the possibilities proteins and fibres can do to create different
textures and nutritional profiles. On the change of nutritional profiles we have done quite a lot in
the field of reformulating several bread, cakes and biscuits (and their fillings) with less to no
sodium and/ or fat and/ or sugar.

Nutritional Significance

The main ingredients in baked goods are flours from cereals such as wheat, maize, and sorghum.
In general, all flours contain valuable amounts of energy, protein, iron and vitamins, but the
degree of milling will influence the final nutritional content.

Traditional milling produces a flour which contains all of the crushed grain. Although these
flours often have a coarse texture and an off-white colour, they contain many B vitamins,
minerals, and also fibre. The desire for white flour however, has led to a milling process which
removes the bran and, as a result, many nutrients are lost.

Many baked products incorporate high levels of fat, sugar, and sometimes fruit or nuts, and this
will increase the energy content of the products.
 16

Production

Baking is a process which uses heated air to alter the eating quality of foods. A secondary
purpose is preservation, by destroying microorganisms and reducing the moisture content at the
surface of the food.

In this chapter, 'baked goods' refers to breads and flour confectionery, but it is also possible to
apply the process to meat, fruits, and vegetables. The process in these cases is often referred to as
'roasting'.

Baked goods are produced from either doughs or batters, which are a mixture of flour and water
made by mixing, beating, kneading, or folding. The process will depend on the product being
made and the ingredients used.

Suitability for small scale production

Baked goods provide plenty of scope for the producer to use locally available ingredients to
create a variety of value-added products. In general, it is more profitable to produce buns,
biscuits, and cakes than bread. However, it is very difficult to predict the profitability for such
goods in specific areas, as prices for wheat flour vary from country to country and are heavily
affected by price and import subsidies. Packaging requirements are often minimal as many of the
products are for immediate consumption. This therefore reduces some of the problems for
producers in terms of availability and access to packaging materials.

Market Insights

Bakery products are part of the processed food category. They include cake, pastries, biscuits,
bread, breakfast cereals, and other products. The growing per-capita consumption trends of
bakery products indicates the untapped growth potential in the global bakery products industry.
The market potential is huge in the emerging markets; wherein, consumer demand is increasing
for packaged products, as a result of the influence of Western culture and also for its
convenience. The total market size of the bakery products is expected to reach USD 530 billion
by 2023, at a 2.6% CAGR during the forecast period. Allied Bakeries has launched a chia seed
bread in the UK though its Burgen business as it looks to capitalize on the nutritional benefits
from the seeds and a consumer trend for healthy breads.

Market Dynamics

The bakery products segment is part of a demand-driven market for convenience food. The
major market drivers include the convenience of ready-to-eat products, changing lifestyles and
food preferences, and large varieties of flavored foods. Even though the market growth of such
products is good, a few constraints such as health consciousness of consumers and restraining
food laws in certain countries, are slowing down the pace. Innovative product development of
low trans-fat, low fat, multigrain, whole grain, and organic baked products, are expected to
 17

provide an impetus to the whole industry. Penetration into the packaged and premium segments
of bakery products is expected to provide further opportunity to the growth of the market.

Market Segmentation

The bakery products market can be broadly segmented into three major segments, such as
product type, distribution channel type, and geography. Regarding product type, the bakery
products market can be classified into bread and rolls, cakes, biscuits, morning goods,
doughnuts, pastries, and others. Bread and rolls have the largest market share accounting for
around 45% of the demand. Morning goods, comprising of breakfast cereals, are projected to
exhibit the fastest growth during the forecast period. By distribution channel type, the market can
be segmented into hyper markets, super markets, convenience stores, departmental stores,
specialty stores and online purchase.

Regional Analysis

With a market share of around 40%, the European region is the largest market regarding bakery
products consumption. In North America, demand for bakery products with soluble dietary fiber
helps in maintaining the market demand. The developing regions such as South America and
Asia- Pacific are currently the growing markets. India, China, Brazil, Argentina and South Africa
are the most attractive entry markets. They are supported by the large population, high demand
for ready-to-eat foods, and improving lifestyles which are reflected in their food consumption
preferences. Currently, other regions are growing at a slow pace due to the low demand for
bakery products.

Competitive Environment

The competition in the global bakery products market is reported to be huge, mostly in the
developed nations, such as North America and Europe, where a large number of small and big
enterprises are operating in a limited market. The growth opportunities can still be seen in the
developing regions such as China, Brazil, Argentina, South Africa, and India due to the huge
population driven demand for bakery products in these countries. This is the reason for most big
players to expand their businesses in such a huge growing market. The booming bakery industry
and multiple market distribution channels and the popularity of various flavored baked foods are
expected to help the market grow at a good pace. Product launches and mergers and acquisitions
with smaller level players have been strong business strategies in these regions.

The key players of the global bakery products market includes - Britannia Industries Ltd., BAB,
Inc., Bruegger's Enterprises, Bimbo Bakeries USA, Canada Bread Company, Flowers Foods,
Inc., Frank Roberts & Sons Ltd., Hostess Brands, LLC, Mondelez International, Inc., Kellogg’s
Company, The Great Canadian Bagel Ltd. and Warburtons, Ltd. amongst others.
 18

RECOMMENDATIONS

In this present society most of the people are addicted to various kinds of food items and drinks.
Consumption is healthy to a certain extend but beyond a particular limit it may create further
problems. In the state where bakery industry is concerned, nowadays the demand for the goods
and bakery products is increasing. As the demand is increasing many new products are added
onto the bakery industry. Cakes being a main and inevitable product of bakery industry, it should
be made available in all varieties depending on the various interest. Interest of people varies from
person to person and the products should be made available in such a way that all are able to buy
the product and thus the supply and profit can be increased.

Cost of raw materials used and production should also be taken care of because, if there is no
correct fixing of prices on the products then people will be reluctant to buy the specific product.
So profit has a greater role in any production sector as it is the basis of the maintenance of the
industry. There should be perfect number of factories and industries so that the desired product
can be made in such a way. But we should also make sure about the quality of the goods as
quality is the only thing that matters and not the quantity.
 19

CONCLUSION

Baking has been an important part of human life for centuries and it is almost certain it will
continue to be that way. The population in general here in the United States loves their baked
goods and that is a big win for the baking industry. As we have seen there are very few barriers
that would stop entry into the industry. Some of the big barriers that keep companies from
gaining or maintaining success is the lack of capital, brand recognition and high cost of materials
and labor. Those companies that are able to function and survive despite these barriers can enjoy
a lot of success as there is relatively few competitors. As stated there are six key factors that can
help to determine whether a baking company will be successful of not. They are 1) the ability to
pass on cost increases, 2) Supply contracts in place for key inputs, 3) Proximity to key markets,
4) Use of the most efficient work practices, 5) Product differentiation, and 6) Establishment of
brand names. If new entrants in the baking industry or if existing companies within the industry
are able to utilize these factors as well as avoid some of the costly barriers in the industry, they
will be able to bring joy to many homes for many years to come and the industry itself will enjoy
many years of growth and success.
Baked goods provide plenty of scope for the producer to use locally available ingredients to
create a variety of value-added products. The bakery products market can be broadly segmented
into three major segments, such as product type, distribution channel type, and geography.
Regarding product type, the bakery products market can be classified into bread and rolls, cakes,
biscuits, morning goods, doughnuts, pastries, and others. Bakery segment has increased matured
to a great extent, recently. This tremendous growth has happened due to two reasons. Firstly, due
to the availability of better ingredients from chocolate, toppings, fillings, flavours etc. 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 is increasing slowly. More
and more people are starting to take this up as a profession from the house, after doing short/long
courses. Increased demand for the bakery productshas increased the jobs for the people. It
provides vast employment opportunities for the youth also. Trained professionals are getting
high salaried jobs in India as well as abroad. India’s export of the bakery products have also
raised which is helping in the growth of the economy of the country. Bakery products have also
given some relief to the women. In the early days females had to prepare food all the time with
no time to yet relief. But now-a-days as women are also getting professionals, they have less
time to give at home and family.
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REFERENCES

BIBLIOGRAPHY

 shodhganga.inflibnet.ac.in/bitstream/10603/46792/5/05_chapter%201
 www.csus.edu/indiv/h/hattonl/documents/bakeryindustry.
 https://www.agriculturejournals.cz/publicFiles/01819.
 https://www.usitc.gov/publications/332/pub3635.

BOOKS

 Bakery Products Science and Technology, Weibiao ZhouY. H. HuiI. De LeynM. A.

PaganiC. M. RosellJ. D. SelmanN. Therdthai,9 June 2014,John Wiley & Sons, Ltd.
 Trend and innovations in bakery industry, M. Rosell, 8 May 2015, Robin & Harry Ltd.

ARTICLES

 Journal on marketing techniques of bakery industry by John rosellt, 2016 july 4.

 Article on the cost of production and profit relation by Daniel Gregarious, 2017 June 6.