Tuesday, December 23, 2008

Oh God give us our daily bread!


Bread has been one of man's greatest discoveries, his basic food. Starting the day with thanking God for our daily bread, today bakery items have become a part and parcel of our life. Think about food and all that mind- boggling delicacies like pizzas, burgers, sandwiches to our traditional vadapav, dabeli to usalpav. No doubt that lately the Indian bakery sector has experienced significant growth, both in terms of volume and customer base.

According to an analysis by Kurt Salmon Associates (KSA), the global management consulting firm, the sector is currently estimated at Rs 3,500 crore -- 3rd largest in Asia Pacific, larger than China’s market -- with a growth rate of 40%. However, the overall consumption of bakery products in the country is 1-2 kg per annum when compared to the overall consumption recorded in advanced countries is 10-50 kg per annum. The two vital factors driving the bakery products are disposable incomes and time constraints in the working population.

“One of the most easiest to carry and best past time biscuits and bread alone account for about 82% of the total bakery products out of which about 35% is produced in the organised sector (75k/85k bakery units operate in the unorgansied sector) and the remaining is manufactured in the unorganised sector” states Mallika Verma, All-India Bread Manufacturers Association, (AIBMA).

Consumer tastes have shown a considerable variation lately. The breakfast palates at households constituting bakery products has been a growing preference not only in metros but also in Tier II and III cities and towns. Breads, biscuits, muffins, pastries, burgers and pizzas are much-sought-after over complicated snacks, especially among the youth. “The fastest growing products include pizzas, burgers, pastries such as mousse, cakes, fresh cream pastries, croissants, flavoured muffins and flavored breads which are catching the fancy of people,” asserts Verma.

Change in consumer perception has been a major factor driving the demand for bakery items not only in the urban areas but also the rural. Once treated as a sick man’s food, bread was only fed to very small children or the sick with the perception of being easy to digest. Now the consumers prefer bakery products not only for good health but also for pleasure, luxury and convenience. With more and more working women and convenience being a driving force, today most people opt for such convenience food.

Various concerns such as obesity, diabetes and cardiac problems, physical appearance, changing lifestyle, soaring costs of healthcare have caused consumers to monitor their dietary habits closely. Malnutrition is another matter of serious concern for the country causing death of nearly 24 lakh children and 1,32,000 women. More than 350 million people are affected by micronutrient malnutrition, which has an adverse effect on health. The state governments are forced to spend huge amounts each year to fight diseases caused by malnutrition.

To fight these serious problems Verma recommends the usage of some substitutes.

According to Verma, “Substitutes like refined flour with high fibre flour and soya flour; saturated fats with fats containing high levels of omega 3 EFA, etc. and sugar with sweeteners or other replacements, use of new products like enzymes, fortification with micro nutrients like Fe, ca, vita Iodine etc. Innovative products like fruit and vegetable rolls, breads containing herbs etc. should also be good add on’s.” The consumption of Omega 3, an essential fatty acid, available in edible oils, is another excellent substitute and found abundantly in camelina oil and mustard oil. It cannot be produced in the body and can be sourced from fish, flax seed, walnuts etc.

Food fortification, adding desired micronutrients, as premixes, to staple foods, is one of the segments that can play an important role for solving the health related problems. Verma says, “Fortifying wheat flour and oils used for bakery products is a practical, cost effective and socially acceptable option. Companies need to leverage on this, to meet the health care needs of the customers.”

Trends in the Market

Realising the shift in demand, many companies dealing with bakery items have already made strategic changes to deliver products according to customer need. Along with food fortification projects addressing the malnutrition issues specifically, the industry has also introduced a vast range of products focusing on the health conscious consumers across the board.

The industry is keen on introducing low or light bakery products using whole grain, multi-grain and similar products having added fibre. The functional bakery products with addition of functional ingredients such as omega-3, proteins, iron fortified flour, probiotics, multivitamins and phyto sterols are another segment where the industry focuses to cater to the health conscious consumer. Further, natural products using honey in the place of sugar and organic bakery products which are prepared with organic ingredients are also becoming a trend in the bakery market in India.

Interestingly, the effort of the industry is not only to support the healthcare sector in disease management, but also to take a step ahead by playing its role in disease prevention. Bread can be positioned to play a key role in changing lifestyles and preventing cardiac and diabetic disorders. The market is currently demanding introduction of more brown, whole wheat and multi grain breads in Indian diets.

The companies which are focusing on this niche segment of preventive healthcare products should insist on fortification right from the raw material stage of the product itself. The manufacturer can increase the fibre content in bread by adding wheat and rice bran, soy flour, processed wheat germ etc and fortify with iron and vitamin. The high fiber content and complex carbohydrates will reduce cholesterol levels in the blood and help manage blood sugar levels while giving the body a sustained energy source.

For instance, wheat germ bread is made with brown or white flour to which at least 10% processed wheat germ has been added. High fibre white bread is made of wheat flour and non-wheat sources such as rice bran or soy flour. Further, adding soy flour to the dough increases the protein content. Fats used in bread making pose no risk to health since the quantity is very little.

Opportunities

Changing consumer trends have opened up opportunities for the ingredients manufacturers. The growing health trend and cut-throat competition in the bakery market has encouraged bakery manufacturers to incorporate ingredients with superior quality properties. For example, consumer concerns in the usage of trans-fats has increased the demands for trans-fat free emulsifiers. The increased scepticism over the fat contents of products has paved the way for enzyme innovations that reduce the use of fat. Salt reduction is another category increasing in importance, in the wake of consumer concern over high salt intake.