UK bakery market to reach £1.4bn in 2017
Sales in the bakery segment are predicted to grow by 3.6% this year, says MCA’s Branded Bakery Market Analysis, with a 1.4% increase in the number of cafes and bakeries, according
The analysis predicts compound annual growth rate turnover to rise by 4.4% between 2014 and 2017 with site growth of 2.5%. This growth is being fuelled by traditional brands continuing to make headway, including Greggs and Krispy Kreme, as well as the rise of contemporary and artisan operators.
Brands such as Paul, Le Pain Quotidien and Gail’s Artisan Bakery continue to lead in the artisan category, although the market continues to attract new entrants. Danish brand Ole & Steen, which runs more than 50 bakeries in Denmark under the Lagkagehuset bakery brand, entered the UK in 2016 and is due to have five sites open by the end of the year.
Japanese fast food chain Wasabi also recently entered the category with Soboro, its first Asian bakery, which opened in Cambridge in July.
The market is dominated by high street giant, Greggs, which has 1,600 more cafes than its nearest competitor.
Data from MCA’s Eating Out Panel suggests bakery brands over-index for older demographics, with consumers aged 35 or over making up 75% of all branded bakery occasions.
“Bakery brands face pressure from declining consumer visits and increasing input costs, however the segment still outperforms the wider eating out market,” says the report.
“MCA expects contemporary and artisanal brands, and operators who look to grow their presence in travel hubs, will find success.”
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