REPORT: Study Predicts 10 Percent Growth for UK Bread and Bakery Market

By Frazer Jones
The breads and bakery goods market in the United Kingdom is looking promising. According to a new report, the market is on the rise – no pun inten...

The breads and bakery goods market in the United Kingdom is looking promising. According to a new report, the market is on the rise – no pun intended – and can expect to see as much as 10.9 percent growth within the next five years.

Considering the decline in bread consumption, propelled especially in recent years by the gluten-free trend, growth for the bread industry might be the last thing anyone would expect. But the report “Bread and Bakery Product,” published by UK-based market research company Key Note, uncovers the statistic that retail sales of bread and bakery products increased in value by 3.4 percent in 2013.

A key factor of this value growth has been that, while overall consumption of bread is down, consumers are trading in inexpensive sliced breads for higher value specialty breads for a special treat to accompany a meal. The study also notes this value growth has actually happened, not in spite of the gluten-free trend, but at least in part because of the gluten-free trend. The economy has also played a major factor in 2013’s numbers, as consumers in search of budget-friendly lunch options turn to homemade meals. 

“The rapidly-growing demand for both gluten-free breads and homemade sandwiches also contributed to value growth in 2013, despite falling volume sales,” the report claims. “The perception that gluten is unhealthy, difficult to digest and calorific, is fuelling sales of gluten-free bread among the increasing number of consumers who are prioritising weight loss. Homemade sandwiches, on the other hand, are an increasingly popular lunch-time solution because they save time and money. High demand for packed lunch products, among both adults and children, has been boosted by NPDs; combination rolls, wraps and flatbreads are now available, while recent innovations are also focusing on the already-popular bagels category.”

While consumption of bread may continue to reduce in volume, the Key Note report predicts that this growing interest in specialty breads for diverse diets and tastes will ultimately be what pushes the sector to grow as much as 10.9 percent by 2018.


[SOURCE: via ; The whole report is available here:]


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