United Kingdom Bakery Product Market

Market Overview

The United Kingdom bakery product market size witnessed significant growth in the past and is expected to grow at a CAGR of 4.3% during the forecast period (2022-2030).

Highlights

• Biscuits dominated the market by product range.
• Online retailing dominates the market by distribution channel.
• The low calories segment dominates the market by form.

Bakery products have gained immense importance in both formal and informal occasions. They are made from grains and cooked using dry heat in an oven or hot ashes, encompassing bread, rolls, pies, cereals, and cakes. Baking has a long history, dating back thousands of years, and the demand for these products has consistently grown over time. Initially, bakers would create baked goods at home and sell them on the streets. This eventually led to dedicated bakeries providing their goods to households and commercial establishments.

Market Dynamics

United Kingdom Bakery Product Market Drivers

Rising Trend of Healthy Living, Natural Nutrition, and Organic Products

In the United Kingdom, the demand for natural, healthy, and organic food products is steadily increasing, leading to a noticeable impact on the market for items that prioritize whole wheat, lightness, natural ingredients, and the absence of additives. The increasing sales of packaged products, including options like whole wheat, whole meal, gluten-free, and natural alternatives, indicate a growing inclination towards healthier food choices among consumers. Bakery products have always played a vital role in nutrition, providing convenience, accessibility, and nutritional value, contributing to their enduring presence in today's market. These products hold significant importance in the diets of countries with middle to lower-income groups. Despite global economic challenges, bread, a staple food in various local cuisines worldwide, has demonstrated remarkable growth and resilience even in difficult circumstances.

United Kingdom Bakery Product Market Restraints

High Entry Barriers Owing to Brand Loyalty and Huge Capital Investments

The bakery industry faces fierce competition due to customers' strong brand loyalty and the significant financial investments required, creating entry barriers. Major companies adopt strategies to achieve optimal business growth, including forming partnerships, engaging in mergers and acquisitions, establishing strategic alliances with local manufacturers, and expanding their distribution networks.

United Kingdom Bakery Product Market Opportunities

Growing Confectionary Market

The confectionery market in the United States is poised for favorable growth, reflecting the positive prospects of the overall confectionery industry. The rising demand for convenient snacks is a key driver behind the expansion of the confectionery products market in the country. Market growth is fueled by introducing innovative product offerings, including low-fat, low-calorie, and sugar-free options in chocolate and non-chocolate confections. Promotional activities and the influence of social media marketing also contribute significantly to the market's upward trend.

Segmental Analysis

The United Kingdom bakery product market is segmented into product range, distribution channel, and form.

It is further segmented by product range into cakes, pastries, bread and rolls, cookies, biscuits, pretzels, tortillas, and others.

The biscuits dominated the market and are expected to register a CAGR of 5.7% over the forecast period.

The biscuits market type is further segmented into rolled, drop biscuits, scones, shortcakes, and others. The drop biscuits dominate the market and are expected to register a CAGR of 6.9% over the forecast period.

The cake market type is further segmented into cupcakes, dessert cakes, and sponge cakes. Dessert cakes dominate the market and are expected to register a CAGR of 2.5% over the forecast period.

The pastries market type is further segmented into shortcrust pastry, filo pastry, and puff pastry. The puff pastry dominates the market and is expected to register a CAGR of 5.4% over the forecast period.

The bread and rolls market type is further segmented into baguettes, loaves, rolls, burger buns, ciabattas, sandwich slices, frozen bread, etc. The rolls dominate the market and are expected to register a CAGR of 5.6% over the forecast period.

By cookies market type, it is further segmented into molded cookies, drop cookies, bar cookies, rolled, refrigerator (icebox), sandwich cookies, and others. Bar cookies dominate the market and are expected to register a CAGR of 6.6% over the forecast period.

The distribution channel is further segmented into convenience stores, specialty stores, hypermarkets and supermarkets, online retailing, and others.

Online retailing dominates the market and is expected to register a CAGR of 5.3% over the forecast period.

It is further segmented by form into organic, gluten-free, sugar-free, low-calorie, and others.

The low calories dominate the market and are expected to register a CAGR of 5.3% over the forecast period.

Regional Analysis

Regional disparities can be observed in the bakery product market of the United Kingdom, with consumer preferences and demand differing across various areas. Urban regions like London and Manchester prefer artisanal and specialty bakery items, including organic and gluten-free options. Additionally, the rise of bakery cafes and upscale patisseries is evident in these areas. Conversely, rural locations show sustained popularity for traditional bakery goods such as bread, pastries, and pies, with local bakeries serving as vital community establishments. The UK bakery product market showcases a diverse regional landscape shaped by distinct consumer tastes and lifestyle choices.

Recent Developments

• January 2021- Chipita SA, a global baker of packaged cakes and pastries, was acquired by Mondelez International Inc. Croissants bagel chips, cake bars, biscuits, and spreads were among the company’s products, which were largely offered under the 7Days, Chipicao, and Fineti names. Mondelez plans to use Chipita’s Central and Eastern European distribution network to expand its regional distribution while introducing its brands to new nations in the region and beyond.