New Delhi: Pandemic-induced acceleration in consumption of bakery items has attracted food majors to venture into the sweet and convenient sub-category of packaged cake segment.
At present, the industry estimates the sub-segmentās revenue generation capacity of over Rs 2,500 crore per annum.
Major food segment players such as Mondelez-owned Cadbury, ITC Sunfeast, and others have entered into this niche category. Accordingly, market observers cited food safety, in-house consumption and differentiated product offerings as the prime factors for the over 20 per cent annum revenue growth of the sub-segment.
The current pandemic has led to some profound shifts in buying patterns and consumer preferences, said Madhur Singhal, Practice Leader – Consumer and Retail, Praxis Global Alliance.
“Cakes also produce a higher price realisation per unit of raw material consumed. Therefore, it is not surprising that packaged food brands are looking at doubling down on this product category,” he added.
Within two years after leading category growth in the layered cakes segment, with a 22 per cent market share, Sunfeast decided to expand its cakes portfolio and consolidate it under a new sub-brand āSunfeast Cakerā, which we have just launched, said Ali Harris Shere, COO, Biscuits & Cakes Cluster, Foods Division, ITC.
“The cake category in India has been growing at a promising pace. Given that it is a large category, and with our experienced play in the biscuits segment, we believe it is the right time to expand our foothold in the segment.”