Brown bread gaining popularity in region

Vijay C Roy

Tribune News Service

Chandigarh, July 15

Call it rapid urbanisation or awareness about health and wellness, consumers in North India like their counterparts in metros are switching to healthier versions of bread such as brown bread, wheat bread and multigrain bread. According to manufacturers, share of brown bread has increased to 15-20% in North from around 5% a few years ago.

The total bread industry in India is pegged at Rs 4,500 crore and the industry is witnessing a growth of 10% year-on-year. Out of this, northern markets such as J&K, Haryana, Punjab, Chandigarh, Himachal, Uttarakhand, UP, Rajasthan and Delhi contribute 25-30% of the total sales.

The share of organised sector is around Rs 3,500 crore whereas the remaining market is served by unorganised sector such as small-scale and artisanal units, including food service units that bake and sell their own food. 

“A few years ago, the health category bread, also known as wheat bread, used to contribute 5% to the total bread market. With rapid urbanisation and rising awareness, consumers, especially in the urban areas, are shifting their preference to brown bread,” said Amrinder Singh, director, Bonn Group of Industries, Ludhiana.

“As a result, the white bread segment is witnessing a slow growth of 10-12% whereas the brown bread is growing anywhere between 25-30% annually,” he said.

According to the manufacturers, growing interest in healthy eating can also be observed through the changing choices of bread such as multigrain and wholegrain breads. The shifting preference has compelled the manufacturers to improvise their products.

“In the markets of Punjab, Chandigarh, Haryana and Delhi, the share of brown bread is at par with metropolitan cities at around 20%. To cater to the demand, major manufacturers have already introduced brown bread in their portfolio,” said Ramesh Mago, director, Kitty Industries Ltd.

The best-selling breads are promoting credentials like “whole grain” and “natural” and are priced higher than white bread.

Though the sale of brown bread is picking up fast, the market is still dominated by white bread with 80% share.

Manufacturers are of the view that with a population of 1.3 billion and a rapidly rising younger population, a clear trend towards healthy eating habits is perceptible. The increasing disposable income along with changing lifestyle and awareness about consumption of a balanced and healthy diet are some of the other factors that will propel the demand for bread over the next five years.

Bread industry

• Market size:  Rs 4,500 cr
• North’s share: 25-30%
• Major brands in region: Bonn, Kitty, Cremica, Modern, Britannia