Starting a Bakery? Niche Ideas to Choose From

The bakery industry offers budding entrepreneurs with a wide range of products to choose from. Hence start-ups with limited capital have to select a specific niche to begin with, going on to add to the product range as business grows over the years. However, before deciding on a specific product line, a lot of factors have to be taken into account. The first is the area that you will be operating in and your target customers. You have to make a market survey and then come to a conclusion in this regard. This is crucial as your sales and business growth will rest exclusively on how well you cater to the requirements of the local population.

It has to be kept in mind though that your initial financial outlay will depend a great deal on the niche you choose. If you plan to begin with commercial production of bread loaves or cookies, the financial outlay will be higher than what will be required for simple sponge cakes and artisan breads that you will be supplying to the community. If you are not sure what type of infrastructure can be set up with the quantum of investment that you can afford, get in touch with a consultant who will structure a business plan for you which will guide you in making the best choice of product line.

Here are some niche ideas for those who want to establish a bakery.

  • Commercial breads and cakes – Bread loaves, cakes, cupcake birthday cake are all high demand areas. You can go for large quantities of yeast breads and cupcakes or even smaller cakes. Commercial production means that your bakery will not have a retail outlet, you will be supplying to retail shops and supermarkets. Such products have great demand round the year so you can be sure that the returns will be high from the initial stages and you can breakeven quickly and start earning profits in the shortest possible time. The most common products in this category are brown and white yeast bread, loaf cakes, cake slices and brown and white scones. The investment for setting up required plant and machinery will be high in this niche and you have to hire a number of trained technicians to operate the baking equipment.
  • Gourmet and customized cakes – This is a very exclusive niche and you must have bakers with a lot of professional expertise in this field. These products are more expensive than the baked goods produced in bulk for the market. Rich delicious cakes and pastries have a round the year demand too as these are almost mandatory for occasions like birthdays, weddings, company celebrations, Christmas and any celebratory and fun events. In this niche, your focus will be on large cakes customised for an occasion as well as unique ones like 3D cakes and character cakes. Your product range will include rich fruit cakes, cheesecakes, chocolate fudge cakes and chocolate mousse cakes.
  • Cookies and biscuits – This is a very rewarding niche with high returns. Here you can sell cookies through a retail counter attached to your manufacturing unit and sell packets of biscuits and cookies in supermarkets stores. There is an almost limited range of cookies that you can create with a little bit of ingenuity. Try out different flavours, frostings and sizes. The largest selling ones are generally coconut cookies, ginger biscuits, short bread cookies and jelly cookies.
  • Sponge cakes – Sponge cakes are a very popular item throughout the world and can be massed produced quite easily. Simply focussing exclusively on this niche will give you high returns. These can be baked fresh everyday and you can create them with various colours and designs. Swiss rolls, Black Forrest cakes and chocolate roulades are some of the examples in this category.

These are some of the niches that you can try out if you are starting your own bakery business.