Supermarkets could be missing a significant growth opportunity within the £2.7bn sweet bakery market, according to new research from Nestlé Professional.

The company’s Retail Sweet Bakery Report found that 63% of consumers are more likely to buy sweet bakery products featuring brands they recognise, while half of shoppers choose supermarket in-store bakeries as their first destination for sweet baked goods.

A category worth watching

The UK sweet bakery market is worth £2.7bn, with supermarket in-store bakeries accounting for 28% of sweet bakery occasions. The report suggests that despite already capturing a significant share of purchases, there remains considerable headroom for supermarkets to increase shopper engagement and category value.

More than half of consumers said they would like to see well-known brands represented within supermarket bakery ranges, according to the research, which also points to emerging opportunities linked to changing shopper habits, flavour innovation and evolving expectations around the in-store bakery experience.

The report also explores the changing dynamics of retail bakery, from shopper behaviour and purchasing occasions to flavour trends and the evolving role of brands in influencing purchase decisions, and highlights how supermarkets are increasingly competing with cafés and specialist bakery outlets for everyday treat occasions.

Brand recognition builds confidence

Danielle Griffiths, desserts category lead at Nestlé Professional UK & Ireland, said the category continues to offer significant potential despite its existing scale.

“Sweet bakery remains a highly valuable category for supermarkets, but our research suggests there is still untapped potential,” she said. “Consumers are looking for products that deliver on taste, quality and value, while also offering moments of excitement and indulgence. Familiar brands can play an important role in building shopper confidence and helping products stand out in what is often a highly visual and impulse-driven category.

“This isn’t about reinventing sweet bakery, it’s about understanding what drives shopper choice and using those insights to maximise the potential of a category that remains an important part of the grocery shop.”

Irene Ferre, insights lead at Nestlé Professional UK & Ireland, said shopper selectivity is becoming a defining feature of the category.

“Supermarkets are firmly established as a destination for sweet bakery purchases, but shoppers are becoming increasingly selective in how they navigate the category,” she said. “Understanding what attracts attention, builds confidence and encourages purchase is becoming increasingly important as supermarkets look to create more engaging bakery experiences.”

News from Nestle

For brands, recognition remains a powerful lever in a category the report describes as highly visual and impulse-driven.

With over half of consumers actively wanting to see established names in supermarket bakery aisles, suppliers with strong brand equity have a case for deeper retail partnerships, while supermarkets themselves have an incentive to rethink how branded products are positioned within their bakery ranges.

As competition from cafés and specialist bakeries intensifies for everyday treat occasions, the report suggests that brand familiarity, flavour innovation and a stronger in-store experience will be key battlegrounds for capturing the category’s remaining growth potential.