Bread market grows

The bread and bakery products market continued to expand in 2014, rising in value by 2.1%, according to a Key Note report.

Growth has been driven by the ongoing surge in demand for free-from ranges and speciality breads and the impact of inflation on retail prices, but this upward trend disguises the issue of continuing decline in overall bread consumption.

The past year has seen supermarket shelves and bakery windows adapt further, as the past dominance of traditional loaves continues to fade with heightening demand for artisan products and more extensive diversification in the marketplace. This is in line with gathering requests for variety and an increasingly adventurous consumer base.

Bread and bakery products, more broadly, remain a popular and convenient mealtime solution for many Brits, driven by their cheap, highly efficient and multipurpose nature. However, market forces have seen these products increasingly advance from a staple of every household to a luxury good.

These changes are a manifestation of two key drivers in the industry: health and quality. The emerging market for gluten-free and free-from ranges, which continue to flourish, demonstrates the prioritisation of health and nutrition in consumers’ choices. Demand for quality has seen growth in premium ingredient focused products give rise to more advanced and diverse recipes, which is further consolidated by the increasingly pervasive effects of globalisation.

Key Note expects these drivers to remain prevalent in the market, while the convenience phenomenon engrossing the UK food market is expected to seep into and increasingly influence the bread and bakery products market over the next year.

Emphasis is expected to turn to on the go ranges, with simple and quick fixes becoming ever more prioritised, especially among young professionals. These drivers will contribute to further value growth; however, this will be limited by the context of the continued decline in bread consumption.

Overall, therefore, the report forecasts value growth in the bread and bakery products market of just below 6% between 2015 and 2019.

 

 

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