The confectionery and snack industry in Bangladesh presents an expanding array of business prospects

The bakery sector in Bangladesh has witnessed significant expansion, propelled by evolving lifestyles, urbanization, and the rising income of consumers. The increasing disposable income levels among customers have led to a growing demand for a wide variety of bakery items that may effectively meet their changing tastes and preferences. The enduring popularity of conventional food items such as biscuits and cakes persists, with an increasing desire for inventive snacks, bread, and more health-conscious options.

In 2024, the confectionery and snack industry is expected to generate $14.54 billion in revenue. 10.49% yearly growth is anticipated in the industry (CAGR 2024–2028). In 2024, the confectionery market will generate US$9.51 billion in revenue. The market is anticipated to expand at 10.29% a year (CAGR 2024–2028). In 2024, the snack food market will generate $5.03 billion in revenue. The market is anticipated to expand by 10.87% a year (CAGR 2024–2028). Industry forecasts predict that by 2028, the Bangladeshi market will have grown to a volume of 4.51 billion kg.

Bangladesh's reputation as a leading exporter of bakery items is evident, with exports ranging from 15,000 to 16,000 tons annually, as reported by the Bangladesh Agro-Processors' Association (BAPA) and the Bangladesh Auto Biscuit and Bread Manufacturing Association (BABBMA). The statistics mentioned above help to demonstrate the prosperous state of the business and its significant impact on the national economy.

Biscuits are a popular item traditionally used for family evening snacks. This market is substantial and exhibits ongoing expansion. The exact magnitude of the biscuit market in the country remains uncertain. According to officials from multiple companies, the biscuit market in the country is valued at approximately Tk10,800 crore. Out of the total, the market for branded biscuits accounts for over 50%, or approximately Tk5,400 crore. The biscuit market is experiencing an annual growth rate ranging from 12% to 15%. The market has several prominent brands, such as Olympic, Haque, Nabisco, Danish, Romania, Coca-Cola, Pran, Kiswan, Well Food, Fresh, and Dan Cake. In FY 2019-20, Olympic Industries Ltd. emerged as the market leader, with a registered revenue of BDT 1600 crore (USD 189 million), reflecting a year-on-year growth rate of 15.7%.

According to the Bangladesh Auto Biscuit and Bread Manufacturers Association (BABBMA), conglomerates currently hold a significant market share of over 60 percent in the bakery items industry. The traditional bakers in Bangladesh, who specialize in the production of handmade bakery items, are currently facing significant challenges due to the escalating costs of baking ingredients, the increasing prevalence of automation, and the intrusion of large corporations in the bakery industry.

According to available data, the confectionery and snack business in Bangladesh exhibits both resilience and potential for future growth. Bangladeshi snack enthusiasts have a wide array of options to enjoy, ranging from crispy biscuits to delectable candies. Therefore, procure a snack and let us commemorate the delightful and delectable journey!

Market Definition and Segments:

• In the confectionery industry, four distinct segments may be identified: chocolate confectionery, ice cream, preserved pastry goods and cakes, and sugar confectionery.
• The snack segment can be further categorized into three distinct segments, including cookies and crackers, potato chips, tortilla chips, flips, and pretzels.

References:

• statista.com
• dhakatribune.com
• thedailystar.net
• businesspostbd.com