According to recent findings by Mintel, a new study reveals that Indian customers are craving a more elevated and exciting flavor experience when it comes to sweet bakery items. A staggering 70% of consumers surveyed expressed their dissatisfaction with the mundane and repetitive options available in this category.
In contrast to well-established sweet bakery markets, the realm of flavor innovation in India is still relatively restricted. Mintel’s Global New Products Database reveals that from December 2019 to November 2022, the UK witnessed over five times the number of distinct flavors introduced in sweet bakery product launches compared to India during the same period. The Indian market predominantly revolves around traditional favorites such as chocolate and vanilla, with limited diversification. Notably, chocolate holds the lion’s share, representing 32% of total launches, while vanilla accounts for 14% between January 2022 and December 2022.
In the broader context of the Asia-Pacific region, the flavor of pistachio has experienced a remarkable surge in popularity within the sweet bakery segment. Astonishingly, over the past three years leading up to December 2022, pistachio has witnessed an exponential growth of 1200%. This significant increase showcases the increasing demand and preference for pistachio-flavored sweet bakery products among consumers in the region.
Moreover, an overwhelming majority of 79% of Indian consumers affirm that the introduction of new and unique flavors serves as a strong motivating factor for their consumption of sweet bakery products. Interestingly, approximately one-third of the surveyed individuals have explicitly expressed their desire for more innovative offerings in the sweet bakery category. This includes a keen interest in products featuring seasonal flavors (32%) and intriguing flavor combinations (30%). These findings highlight the growing demand for fresh and exciting taste experiences among Indian consumers in the sweet bakery segment.
Seasonal flavours: A growing interest
India is notably falling behind when it comes to introducing seasonal innovations in the sweet bakery product segment. Surprisingly, only 4% of all new sweet bakery product launches in India between September 2021 and 2022 featured seasonal flavors. In comparison, the global market saw a higher percentage of 16% for seasonal launches during the same period. Notably, among the age group of Younger Millennials aged 26-32, seasonal flavors have emerged as a top interest in the sweet bakery category. An impressive 38% of Younger Millennials express a strong desire for more flavorful seasonal innovations, surpassing the overall average of 32% among all consumers. This signifies the growing importance of introducing seasonal variety to cater to the preferences of this specific consumer segment.
Anamika Banerji PhD, Food and Drink Analyst, Mintel Reports India, said, “Introducing product innovation that features seasonal flavours can be a good route to spark new interest and attract more consumers. The vast variety of seasonal fruits (eg jamun, mango) and sweet goods (eg carrot halwa) prepared during different seasons and festivals throughout the year can serve as flavour inspirations for packaged sweet bakery products.”
Ready-to-bake products attract young Indians
Among the younger demographic in India, aged 18-34, there has been a notable surge in the popularity of ready-to-bake mixes. These mixes not only provide a sense of consumer involvement and flexibility but also simplify the baking process. Specifically, among students and metropolitan residents, this trend is particularly prevalent, with 31% of students and 32% of metropolitan dwellers expressing a strong desire for this convenient baking format. The appeal of ready-to-bake mixes lies in their ability to cater to the busy lifestyles of these individuals while still allowing them to enjoy the experience of baking.
Consumers who are drawn to the concept of “ready-to-bake at home” sweet bakery products place a high value on freshness. An impressive 79% of these consumers agree that they are willing to pay a premium for packaged sweet bakery products that guarantee freshness. According to Banerji, this emphasis on freshness might be the driving force behind their preference for the ready-to-bake format. This format not only provides convenience but also allows them to experience the pleasure of consuming freshly baked treats.
Furthermore, an overwhelming majority of nearly four in five (78%) consumers who are interested in ready-to-bake products express inconvenience in sourcing all the required ingredients for a recipe. Mintel’s research reveals that this group finds the premix/DIY kit format to be a fitting solution as it provides both convenience and ensures freshness. By opting for premixes or DIY kits, these consumers can enjoy the ease of preparing baked goods without the hassle of gathering individual ingredients, all while being assured of the freshness of the final product.
Better-for-you sweet bakery: An emerging opportunity
Sweet bakery products are widely regarded as indulgent treats that have the power to uplift one’s mood, as confirmed by 77% of Indian consumers. However, there is a growing demand for healthier alternatives within this category. When choosing a healthy sweet bakery product, consumers prioritize factors such as the use of whole wheat flour (33%), all-natural ingredients (32%), and the inclusion of nuts (31%). This indicates a shift towards healthier ingredients and options in the market.
Notably, consumers in metropolitan and Tier 1 cities exhibit a particularly strong inclination towards healthier sweet bakery products, with 24% and 27% respectively expressing a desire for such alternatives. This highlights the increasing awareness and preference for healthier options among urban dwellers.
“Better-for-you versions that reduce or take away the guilt while maintaining the taste and fun element will offer permissibility. This presents a promising opportunity for the sweet bakery sector in India to innovate and cater to evolving consumer needs,” Banerji concluded.
