Pastry market in India

Earlier Report Observations

The pastry market in India expanded from 225.6 thousand tons in 2018 to 255.6 thousand tons in 2019, supported by government initiatives such as the Operation Greens scheme, which enhanced raw material supply for bakery ingredients, and the launch of Mega Food Parks that provided infrastructure for large-scale production. Additionally, the allowance of 100% foreign direct investment via the automatic route for food-processing attracted capital for capacity expansion.

In 2020, COVID-19 lockdowns disrupted supply chains for flour, oil, and eggs, leading to a temporary stabilization of market volume. By 2021, a reduction in the GST rate on cakes and pastries lowered the tax burden on standalone bakeries, boosting consumption, while increasing demand for health-focused pastries like gluten-free and multigrain varieties tapped into new consumer preferences.

Further growth to 281.2 thousand tons in 2023 was fueled by the Production-Linked Incentive Scheme for food processing, which subsidized new pastry production lines, and the q-commerce boom that accelerated online pastry sales. The launch of several new boutique pastry brands in tier-2 and tier-3 cities, aided by easier FDI and state-level food-processing clusters, also increased market offerings and diversity.

Production pastry in India

In kind, 2017-2020, K t

Globally, India ranked as the 14th largest producer of pastry from 2017 to 2020.

Top producers of pastry, 2017-2020

World map of production of pastry, 2017-2020

In 2020, India produced 310.8 K t of pastry, showing no significant change from the previous year. Between 2017 and 2020, production increased by 3.3%, which translates to an annualized growth rate of 1.1%. The lowest production level was recorded in 2018 at 291.2 K t, while the highest was in 2019 at 312.0 K t. The largest decline occurred in 2018 with a 3.2% drop, and the largest increase was in 2019 with a 7.1% rise.

Annual dynamics of production in India in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the output of pastry in India was valued at 651.4 M $ US, with little to no change compared to the previous year. The lowest value was recorded in 2018 at 604.5 M $ US, and the highest in 2019 at 652.2 M $ US. The largest decline was in 2018 with a 5.6% decrease, while the largest increase occurred in 2019 with a 7.9% rise.

Annual dynamics of production in India in value, 2017-2020, M $ US

Exports pastry from India

Exports in kind, t

In 2020, pastry exports from India reached 76 975 t, representing a 10.6% increase year-over-year. Over the period from 2017 to 2020, exports grew by 7.4%, with a compound annual growth rate (CAGR) of 2.4%. The lowest export volume was recorded in 2019 at 69 571 t, which also saw the largest decline of 7.8%.

Annual dynamics of product's exports from India in kind, 2017-2020, t

From 2017 to 2020, India's pastry exports in kind were distributed across many countries. The United States accounted for 24.6% of exports, the United Kingdom for 10.2%, and the United Arab Emirates for 9.6%, with these three countries together making up 44.5% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, M $ US

In 2020, India's pastry exports amounted to 161.3 M $ US, marking a robust increase of 10.9% compared to 2019. Between 2017 and 2020, exports rose by 5.8%, equating to an annualized growth rate of 1.9%. The lowest value was recorded in 2019 at 145.5 M $ US, which also experienced the largest decline of 7.1%.

Annual dynamics of product's exports from India in value, 2017-2020, M $ US

From 2017 to 2020, the United States led as the top buyer of pastry from India, accounting for 28.4% of exports in value terms, followed by the United Kingdom at 14.7%, and the United Arab Emirates at 9.2%. Together, these three countries represented 52.3% of total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports pastry to India

Imports in kind, t

India's pastry imports increased for the third consecutive year. In 2020, imports amounted to 19 585 t, showing a sharp advance of 48.1% compared to the previous year. Between 2017 and 2020, imports surged by 176.7%, with an annualized growth rate of 40.4%.

Annual dynamics of product's imports to India in kind, 2017-2020, t

From 2017 to 2020, Bangladesh was the main supplier of pastry to India, accounting for 53.5% of imports in kind, followed by Indonesia at 15.4%, and Malaysia at 12.3%. Together, these three countries formed 81.2% of total imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, M $ US

Pastry imports into India increased for the third consecutive year. In 2020, India imported pastry valued at 32.4 M $ US, which is 32.4% greater than in 2019. Over the period from 2017 to 2020, imports grew by 139%, with a compound annual growth rate (CAGR) of 33.7%.

Annual dynamics of product's imports to India in value, 2017-2020, M $ US

From 2017 to 2020, Bangladesh was the leading source of pastry imports to India in value terms, accounting for 42.2%, followed by Malaysia at 24.5%, and Indonesia at 10.0%. Together, these three countries absorbed 76.7% of total import value, making them the main directions for imports.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020