A growing competition among local competitors

The bakery market in Bangladesh has been experiencing a rapid transition over the years. Once, the industry used to be dominated by traditional sweet shops and family-run bakeries. Still, now it has evolved to meet the increasing demand for modern and international-styled bakery products. This growth has led to intense competition among local businesses. Rapidly changing lifestyles, urbanization, and consumers' ever-changing consumer preferences have made bakery items like bread, buns, cakes, pastries, and cookies more popular. A new phenomenon has been added to Dhaka: "Live baking."

If you want warm and soft bread, this is your place. Fresh-baked bread smells very attractive and is topped with cream and butter. The popularity of live bakeries is on the rise.

This is increasing because bakery products are quick, convenient, and offer healthier snack options. Bangladesh's rapid urbanization has contributed significantly to the popularity of bakery products. People in urban areas, especially the working class and students, lead busy lives and seek foods that are easy to carry, quick to eat, and still satisfying and healthy.

Bakery products fulfil all these criteria and have become a natural choice for all those people. And the best thing about bakery goods is that there's something for everyone.

Moreover, the rise of cafes, fast-food shops, and Western culture has made bakeries more familiar and desirable. Mr Ahsan Ali, the owner of Zamzam Bakery, says, "We've noticed a significant change in our customers' preferences in recent years. They no longer want only traditional sweets. They're looking for unique and budget-friendly options."

He adds, "In this competitive industry, we must keep our customer's choices and expectations in mind, which is why we continuously expand our menu to meet their preferences."

The growth of chain bakeries has made the competition more challenging for the local bakeries. Chain bakeries like Tasty Treat and Cooper Bakery have the advantages of solid brand recognition, consistent quality, and strict hygiene standards that attract customers who value these qualities. These larger chains also have better access to high-quality ingredients that help them maintain the best product quality across their outlets. For many customers, consistent quality and product hygiene matter the most. For this reason, they trust these chain bakeries more than local bakeries, which makes the competition more intense for the smaller, local bakeries.

Mr Aminul Islam, Al Madina bakery's manager, says, "One of the biggest challenges we face is sourcing quality ingredients at affordable prices. Larger chains have the advantage of buying wholesale, lowering their costs. Also, big chain bakeries have established brand names that attract urban customers. Competing with that brand recognition and consistency level, especially in a price-sensitive market, is brutal. We do our best to stand out by focusing on freshness and building personal customer relationships."

A new trend known as live bakery has recently added another dimension to Bangladesh's market. This concept allows customers to watch the product being made in front of them, adding a sense of transparency and authenticity for the customers.

Also, the rise of live bakeries is creating a new wave of interest and competition among local bakeries, adding another dynamic element to the already competitive market.

Rony Amed, one of the bakers of Rosh Sweets Live Bakery, states, "The live bakery trend has changed the game. Customers enjoy watching their food being made in front of them. It gives them a sense of trust in the quality and hygiene of our products."

He also notes that "The trend has helped attract new customers. Of course, keeping up with the demand during peak hours is challenging, but it's worth it. This trend is helping us compete with larger chains."

However, whether the breads are served live or not is a question. Md Arif Hussain lives in Narinda. To him, a live bakery is a new trend that doesn't serve what it should. He says, "I did buy these breads quite often, but most of the time, they taste like ordinary bread, nothing special. Sellers say they cannot serve live bread because they cannot preserve it for too long. Then what is the point of saying live backing?"

As Bangladesh's bakery market keeps growing, local bakeries are finding new ways to succeed in the face of tough competition. Mixing traditional flavours with modern baking trends, they're trying to attract a wide range of customers.

New ideas like live bakeries, healthier ingredients, and customized options show these local businesses' creativity and determination. This blend of old and new is changing the dynamics of the bakery industry and paving the way for a future where local bakeries play an essential part in shaping and adding variety to Bangladesh's bakery industry.

[email protected]