Exploring the Challenges in Bakery & Pastry Industry

Elmer 19 September 2024, Tips And Tricks
Exploring the Challenges in Bakery & Pastry Industry

In 2024, the food and beverage industry is experiencing remarkable growth, with the food and beverage business becoming increasingly prevalent in Indonesia. One of the primary factors driving this growth is the lifestyle of the Indonesian people, as well as the annual changes in food and beverage trends. Among the prominent sectors is the bakery and pastry industry, which has successfully carved out a significant presence in the Indonesian market.

The success of the bakery and pastry sector in Indonesia can be attributed to its ability to present timeless innovations in both form and flavor. Furthermore, the increasingly attractive decorations over time have enhanced the value of cakes and bread. The lifestyle of the Indonesian people also contributes to this sector's success, as there is a high demand for bread as a morning meal or snack, and a growing interest in gluten-free products and premium ingredients.

However, alongside its success, the bakery and pastry industry faces several challenges. The intensifying competition, due to the increasing number of bakery and pastry shops, rising production costs, and the scarcity of ingredients such as chocolate, pose significant obstacles. Chocolate, a quintessential ingredient in the production of cakes and bread, is currently facing scarcity and rising prices. According to CNBC Indonesia, the price of cocoa commodities has reached nearly US$8,324 per ton, with limited supply. This situation presents a considerable challenge for the food industry.

To navigate these challenges, MSMEs and businesses in the bakery and pastry sector must adopt prudent strategies. Several approaches that can be implemented include:

  1. Reassessing Product Focus: Chocolate brands can shift their focus to other product variants that are less reliant on cocoa, so consumers do not become overly fixated on products affected by ingredient shortages.

  2. Maintaining Quality: It is crucial to continue emphasizing the quality of products to preserve consumer loyalty, even amid changes in ingredient composition.

  3. Fostering Good Relationships with Partners: Maintaining strong relationships with business partners can help secure more favorable pricing and ensure a stable supply of ingredients.

Every industry has its own set of challenges and will inevitably face future difficulties. Although the bakery and pastry industry appears to have a promising future in the Indonesian market, it is essential for MSMEs and business owners to have effective strategies to address these crises. Continuous innovation and creativity in product development are vital for sustaining relevance in the market. With resilience and determination, opportunities for success remain available.