Sales of bread and bakery products continue to grow
Figures released this week suggest the popularity of bread and bakery products continues to grow, with UK consumer spending rising to £3.8bn in 2008.
But despite the surge in sales, the report says that a push in innovation is crucial to arrest an overall contraction in consumer spending on bakery products.
In total, expenditure on bread and bakery products grew by 6.2 per cent last year, according to the research by Key Note Publications.
But tainting the figures, the report finds that year-on-year growth in household expenditure on bakery products was erratic in recent years ‘and modest in 2008’, with its share of the total food market shrinking since 2005.
The report highlights the fact that the market for bakery products, like many others in the food industry, not only struggled in 2008 under the weight of rising costs for energy and raw materials, but also the emergence of the banking crisis.
But with the cost of key commodities like wheat and corn decreasing in 2009, and the vertical fall in price for oil, the cost of inputs for the bakery industry are expected to drop this year, relieving the pressure on margins.