by Mr Amrinder Singh, Director, Bonn Group of Industries
As India is witnessing the second wave of coronavirus pandemic, it’s certain that the consumers’ needs and preferences are going to change once again and it will continue to do so till the next quarter. The marketplaces for sweet baked goods are also evolving at a record pace to meet the changing demand of the consumers. Now the demand of consumers is combined with their rising desires of sustainability, proactive health and wellness behaviour and desires for product transparency. However, with the changing times no one can predict how the future would be but the clues in the marketplace enable the industry experts to determine the direction of travel and how trends are likely to evolve.
In order to meet consumer expectations around ethical and sustainability, brands can focus on expanding sustainable packaging initiatives, ensuring shorter supply chains and supporting local communities. More brands should connect with startups that deliver farms to finished products. Basically, the brand should provide the foundation for wholesome nutrition with simple ingredients sourced from nature, supported by its technical know-how focused on solving bakers’ most exacting baking challenges.
Impact of COVID-19 on sweet baked goods
Gone are the days when cakes and cake bars are the hottest selling stuff of a company. Now, they have just become mood enhancers and comfort food. This switch in consumer preference is also due to the fact that home baking is the new trend that everybody is following these days. Moreover, the potential eating occasions have also reduced due to the Covid restrictions. However, we are hopeful that the market of sweet baked food products will rise again in the upcoming quarters.
What does the consumer want?
Enhanced taste with innovative flavours
The purchase decision of cake is governed by mostly flavours. As cake falls under the indulgence-driven category, it’s imperative to launch new flavours inspired from the popular culture with new presentations. For example, incorporating unexpected yet complementary flavours into recipes. We can also incorporate organic flavours and contrasting textures that will create the impulse purchase and excite interest in the category. A survey published in a leading FMCG portal says that 77 percent of consumers give taste the first preference when it comes to purchasing the sweet baked products followed by the cost. And, 65 percent say they purchase cakes and cake bars if they see any innovative flavor. Customers are also opting for a flavoured cake mix solution, such as the Toffee Cake Mix, or Complete Ginger Cake Mix. Such innovations in terms of flavor is the need of the hour.
From clean to clear
Consumers now demand transparency right from regarding the whole product lifecycle – including where it’s from, how it’s made, who made it and how it’s packaged. Brands should set the goal for artisanal quality. The cake brands must cash in on the backlash against ultra-processed foods and mass production by focusing on quality ingredients and traditional, artisanal recipes. It has been observed that consumers, who opt for premium cakes/sweet baked goods, will automatically ready to shell out more for freshly baked goods.