Opportunities in the Bakery Market…
A slump in snacking has seen the number of bakery occasions fall by 2% year on year to 5.7bn
Sweet bakery is declining faster than savoury, with a dip in all day-parts except breakfast. Women make up the majority of sweet bakery consumers at all times except breakfast, with coffee shops/cafes the most popular channel for sweet pastries.
The growth of savoury bakery has seen an increase in the number of breakfast and dinner occasions involving bakery.
The popularity of bagels, baguettes and sandwiches is growing at breakfast, driven by the rise of food-to-go occasions.
Sausage roll & toasted sandwich are most popular among over-50s, while bagels and wraps capture the under-35s.
Younger consumers are particularly prevalent consumers of brownies, shortbread, cupcakes and cookies. Ringed doughnuts are mainly bought by those on lower incomes, while cheesecake is popular among high earners
As a whole, out-of-home bakery occasions are in decline. However, when split by day-part there are positives
Breakfast and dinner visits are in growth, but it is the significant decline in the snack occasion that is cause for concern. An overall decline in sandwich carriers being purchased as a snack is the main catalyst for decline in savoury bakery.
However, it is sweet bakery that has suffered the biggest decline. Each of the top five sweet bakery items purchased as a snack have declined year-on-year.
Overall, fast-food outlets continue to be the most popular channel for savoury bakery
Bakery outlets have the strongest growth in on-premise business among major British quick-service restaurant (QSR) channels, with sales and visits up more than 19% and nearly 18% respectively in the year ending April 2019.
Eight out of ten bakery purchases are consumed whilst on the move
But bakeries only account for £1.2bn or 5% of Britain’s £22.5bn food-to-go business annually, up from £1bn five years ago.
Bakeries service 3% of the total click-and-collect market. Delivery volume is up nearly 63% in the past year and the value of delivery sales has increased by over 47%.
Bakery outlets boosted sales by 6% in the past year and increased visits by 2.2%
There was success in servings, with bakery outlets recording a 9% jump to 1.17bn servings –the strongest servings growth in the past year of any other QSR channel.
Around 1.46bn visits to bakeries involved a deal or promotion, up 16% over the past year.
Many businesses, small and large, are moving away from their traditional bakery offering to a sharper food-to-go focus
This involves putting on good coffee, offering new food choices such as pizza, salads, pasta, hot sandwiches, croissants, pasties, and meeting the demand for click-and-collect and delivery.
Bakeries can secure more growth by increasing their share of the food-to-go market from their current level of just 5%, and by bringing their food-to-go appeal to day parts they don’t normally service, such as dinner. They also have scope to provide delivery, especially at breakfast and weekends.