Project report for Cake Making

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Cakes are consumed fresh as well as they can be consumed after a week. As the consumption of cakes is gaining market traction, owing to consumers’ changing perceptions, as well as their convenience and health attribute, leading to a rise in popularity of on-the-go cake products, which are baked off or made at the convenience of the consumer. As a result of urbanization and increase of working population, the preferences for out-of-home consumption and demand for instant and nutritious products have increased, which is expected to propel the market growth.Hence, the demand for these products is also increasing among the young generation across the world more over in India. Moreover, in some Asian countries such as Japan and South Korea, few local players are very popular for their sponge cotton cakes. Online sales of cakes are significantly increasing in many parts of the world as it is very easy and convenient for the customers to place an order for the desired cakes. In addition to this, the growing penetration of smartphones, along with increasing the use of the internet, is propelling the online sales of the product. Almost all the retail companies are entering the industry through e-commerce portals owing to maximum customer engagement. A cupcake or patty cake is a small cake designed to serve one person, which may be baked in a small thin paper or aluminum cup. As with larger cakes, frosting and other cake decorations such as fruit and candy may be applied. These sponge cakes have a high shelf life as compared to dessert counterparts.


Market potential & Strategy

The global cake market size was valued at INR 3,1960 Crores in 2019 and is anticipated to grow at a compound annual growth rate (CAGR) of 3.3% from 2020 to 2027. The high popularity of celebrating various types of special occasions and success through cake cutting is expected to remain a key driving force over the next few years. Moreover, rising demand for the cakes as desserts post meals during dine-out and weekend parties among millennials and Generation Z consumers across the globe is projected to expand the industry size in the near future. Consumers have been increasing spending on purchasing occasion specific cakes, which is expanding the market scope. The bakery industry has been witnessing new gains owing to changing preferences among consumers toward advanced baked variants. For instance, increasing adoption of a western-style bakery in Asian countries.

The rise in supermarket in-store bakeries is projected to attract a significant number of consumers, further contributing to accelerated market growth. Consumers are looking for value-based products and are attracted to artisanal bakeries with high-margin products. The in-store bakeries found in supermarkets or hypermarkets have a comparatively small floor area. However, they offer an extensive range of fresh-baked products with clean labels and healthier ingredients, owing to the demand from health-conscious consumers. An increasing volume of cakes in in-store bakeries has been significantly observed, as cakes are dominating the dessert category in in-store bakeries. Likewise, cakes are indulgent products that entice consumers shopping in supermarkets. The value-conscious consumers are spending on lower priced cakes offered by in-store bakeries, and the convenience of one stop shopping further adds to the sales of the market.

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