The total pre-packaged bread market was worth £1.8bn (Nielsen) over the latest year. Its value has grown by +11.0% (Nielsen), and this was driven by price increases, as the average price per loaf increased by +14.9% to reach £1.18 (Nielsen).
Over 55% of total units (Nielsen) in pre-packaged bread are white at present. Given the current economic climate, many shoppers are buying fewer different types of bread for their households (Nielsen) and are increasingly moving towards pre-packaged white bread (Nielsen), which is most likely to satisfy the needs of multiple people.
“It is therefore clearly important for wholesalers to stock white bread as it is a potential “crowd-pleaser” for everyone in the household,” comments Alistair Gaunt, Commercial Director at Hovis.
“However, it’s also crucial not to forget to offer choice via the other bread types. For example, bread with seeds and grains accounts for over 18% of loaves sold and brown/wholemeal for nearly 14% (Nielsen). With this in mind, stocking products such as Hovis® Wholemeal and Hovis® Seed Sensations® (the nation’s #1 brand of bread with seeds and grains, Nielsen) should also be key areas of focus.”
Whilst many shoppers may be looking to save money (in light of rising prices), there is still a huge desire for quality bakery products from recognised brands like Hovis® that consumers know and trust. The extensive Hovis® range continues to offer shoppers a broad range of products from a well-known brand satisfying different needs and budgets with a product that is consistently recognised by consumers as “better quality” (Nielsen).
“Despite the squeeze on grocery spending, we believe there’s still a significant role for premium products in bakery as shoppers look for affordable treats. Our Hovis® Bakers Since 1886® range is the perfect product to stock to tap into this trend. Since its launch just two years ago, the range is now worth over £14m RSV (Nielsen) and continues to build in popularity so we’d highly recommend this as a must stock for wholesalers to take advantage of the continued interest in affordable treats to enjoy at home,” adds Gaunt.
“With summer approaching, many consumers will be dusting off their BBQ’s and picnic blankets ready for the (hopefully) warmer months ahead, presenting great seasonal sales opportunity for wholesalers. To take advantage of this, we’d recommend stocking a range of bakery products such as our Hovis Bakers Since 1886® Premium Burger Buns and Premium Hot Dog Rolls which are the perfect solution for those who are looking for a quality roll from a well-known brand that will enhance any BBQ, picnic or grill night.”
Mark Frossell, Senior National Account Manager at St Pierre Groupe, comments on behalf of Baker Street: “A major bakery trend for wholesalers is that consumers continue to buy bread and bakery at scale in independent convenience stores, making it very important in these outlets both in sales terms and as a driver of store traffic. Convenience retailers are looking for products that will sell well and give good margins.
Meanwhile their shoppers are increasingly looking for breads for everyday eating that offer a point of difference, as well as innovative products that enhance meal occasions. During their visit, these shoppers also purchase across other categories.”
Staying with convenience retail, the cost-of-living crisis means people are being more careful with their money and seeking out bakery products that deliver simultaneously on interest, quality and value. The winning combination of Baker Street’s ‘fakeaway’ appeal and its fresher for longer proposition means it delivers on all counts to cash-cautious consumers and strengthens the attraction of local retailers’ bakery sections.
At the same time, caterers and out of home operators are also major buyers of bread and bakery from wholesalers, and similarly to retailers are seeking bread and baked goods that offer a point of difference, as well as innovative products that enhance their customers’ meal occasions. The Baker Street brand’s extended life benefits make it especially important to wholesalers’ customers in these channels.
Bread and bakery’s growth are being driven by innovation in rolls and baguettes, which are showing volume growth of 3 per cent in the last 12 weeks (Nielsen Value Sales – L52 Weeks Oct 22nd, 2022.) Baker Street’s range of Classic Burger Buns and Original Hot Dog Rolls is driving sales for the brand and can be used for a host of tasty meals from breakfast, lunch and through to dinner. Increasingly, shoppers are using bakery staples outside of the traditional ‘burger’, ‘hotdog’ or ‘BBQ season,’ but with the summer upon us, now is the time for wholesalers to help their retailer customers make the most of the opportunity.
Josh Corrigan, Customer Development Director, UK at St Pierre Groupe comments on behalf of the St Pierre brand: “One trend that continues to grow is consumers choosing premium options as they look for ways to treat themselves well at home and out and about. The move towards premiumisation hasn’t slowed since it gained traction during the various lockdowns, and premium brands like St Pierre give consumers an opportunity to ‘trade up’ and elevate everyday meals, such as gourmet burgers, hot dogs, and French toast.
“Indulgence is another trend gaining traction as many embrace the little pick-me-ups that we all need from time to time. Although restrictions from the pandemic have been lifted, we now face a cost-of-living crisis, so this mix of indulgence and impulse buys will continue to benefit the bakery sector, and in turn wholesalers. Food is more than just a meal on your plate, and there is a strong argument for everything in moderation.”
St Pierre’s Sliced Brioche Loaf and St Pierre Brioche Tear & Share are the best-selling products in its morning goods range, delivering growth of 81 per cent and 838 per cent respectively (Nielsen data w/e 11/3/23). The St Pierre brand is now established in traditional brioche, croissants, pain au chocolat and bagels.
St Pierre is Britain’s fastest growing bakery brand (In the top 20 bakery brands, Nielsen 52 weeks to Feb 11th, 2023) and is catering to a growing appetite for authentic, quality brioche with a stream of innovations. A recent introduction is the launch of Mini Brioche Buns.
“Driven by the trend in foodservice for sharing platters, this exciting product offers something eye catching for entertaining at home and helps increase basket spend by offering something different. Our product quality is what sets us apart in an increasingly competitive landscape and we consistently deliver products that meet shopper needs,” adds Corrigan.
Danielle Dransfield, UK Brand Director at St Pierre Groupe, comments on behalf of the Paul Hollywood brand: “As a result of the interest in healthy eating and nutrition following the pandemic, consumer behaviour has inevitably shifted, leading to a number of ongoing trends, which are significant for wholesalers serving local convenience retailers. These include shoppers ‘trading up’ on their usual staples to something more premium, like part-baked bread, in which Paul Hollywood, part of the St Pierre Groupe portfolio, is a leading brand. The Paul Hollywood Ready to Bake range can be tailored to suit any mealtime, from sharing boards to an accompaniment alongside a main meal. It also appeals to those who are looking to serve freshly made bread, but don’t want to bake it from scratch, offering convenience and versatility.”
As consumers adjust to the current economic conditions, the Paul Hollywood Ready to Bake range continues to perform well thanks to its high quality and great taste, with the Paul Hollywood Ready to Bake White Crusty Rolls and Rustic Rolls and Multi-Seed Rolls making up three of the top six branded part-baked breads (Nielsen Value Sales – L52 Weeks Oct 22nd, 2022). The Paul Hollywood Ready to Bake range’s extended shelf life also means that wholesalers’ independent retailer customers can cater for smaller households looking to add something special on the spur of the moment to their meal occasion. They can be used alongside a host of dishes, or as a carrier for gourmet sandwiches.
Rachel Wells, UK Sales Director, St Pierre Groupe, comments: “The most popular sub-categories in bakery that wholesalers should be helping their independent retailers and out of home operator customers focus on are bread, morning goods and rolls, and St Pierre Groupe’s power brands St Pierre, Baker Street and Paul Hollywood are strong performers in all three.”
St Pierre is the UK’s biggest brand in brioche, offering it in many formats, including the recently launched St Pierre Brioche Soft Bagels and Mini Brioche Buns. It’s also a leading supplier in rolls, with 4 branded rolls in the top 12 value rankings, St Pierre Brioche Burger Buns (4 pack) launched last year, St Pierre Brioche Buns (6 pack), St Pierre Brioche Hot Dog Rolls and St Pierre Seeded Brioche Burger Buns (4 pack). In morning goods, St Pierre has a strong selection, including Vegan Croissants and Vegan Pains au Chocolat.
“The two key trends for wholesalers to bear in mind are indulgence and premiumisation. There’s a lot happening in the world, but that doesn’t change the fact that, as the King’s Coronation celebrations proved, when people get the chance, they like to forget their troubles and enjoy themselves with bakery treats. For everyday eating, shoppers are looking for bread products that enhance their daily lives by offering a point of difference, adds Wells.
“We believe that there will be a continuation of the behaviour patterns we have noticed over the last year, such as people experimenting with new recipes and perfecting their favourite out-of-home dishes at home. This includes the rise of gourmet burgers, hot dogs and ‘fakeaway’ meals, and we don’t anticipate this slowing down. As a result, branded burger buns and hot dog rolls have seen phenomenal growth over the last 2 years.”
Stéphanie Brillouet, Marketing Director, Délifrance, comments: “Indulgence continues to be an important trend as consumers look for speciality breads, particularly at the weekend or when they have guests.
However, with consumers becoming increasingly health-conscious, interest in bread with health benefits has grown exponentially, leading to a stronger appetite for bread with inclusions or alternative flours. On the one hand, bread products that are more digestible – like sourdough – are experiencing market growth. On the other, for those seeking bread with additions, almost a fifth (17%) want more vitamins/nutrients and 14% more cereals, grains and dried fruits. This has ultimately driven greater variety in the category.”
The cost-of-living crisis is starting to have an impact on the bakery industry. Consumers are now value-driven and therefore more likely to look for versatile bread that can be used for a variety of meal occasions. Retailers and operators need to be aware of this key trend and should strive to make limited menus more versatile through bread choices.
“As well as providing everyday breads, like white, wholemeal and brown, retailers should stock a selection of premium products that meet consumer needs for health and indulgence – seeded loaves, baguettes, pavé and sourdough for example,” adds Brillouet. “In addition, as we navigate a period of economic hardship, we anticipate that consumers will be looking for value for money. Looking at in-store bakeries, whom we supply products to, they will have to make sure they cater to all these needs. We also see retailers increasingly replicating artisan bakery products and cues, to ensure their in-store bakery is a destination for consumers looking for good quality, indulgent treats but at a more affordable price. As we mention in our report, a rustic and authentic display can elevate the authenticity of the entire bakery which satisfies shoppers needs for high level products.”
Jen Johnson, Head of Marketing – Cake, Dr. Oetker Baking, comments: “A key piece of advice for succeeding in the home baking category in the current climate is that we must not forget to protect our core baking range for the more traditional home baking customer. The home baking category is very fragmented and although we recognise the need to keep up to date with trends and innovation, there is also a need to maintain the core range as a key focus. There are many different channels to promote through, depending on the demographic that you’re targeting, and traditional bakers shop differently to a typically younger audience or family demographic, thus they are much more likely to stick to traditional bakes. This also means they’re likely to purchase in-store vs. online channels.”
Seasonal events are also of critical importance; the majority of home baking category sales happen around key calendar events such as Christmas, Halloween, Easter and Pancake Day, so it is of the utmost importance to have a plan to showcase products around these events.
Home baking has now become a very experimental and on-trend pastime for many, and the rise of social media baking and TV baking has created a demand for bakers to try new things and experiment. NPD can help with this and promoting a new and different product either in the shopping aisles, online or via social media is significantly more important to offer bakers inspiration and encourage them to try the latest trend.
Samantha Winsor, Marketing Manager, Lantmännen Unibake UK., comments: “As well as keeping up with industry and consumer demand, offering a wide variety of products will help wholesalers maximise sales. Stocking a diverse range of breakfast products in their inventory, including ready-to-eat, quick-bake options and healthy options will promote customer satisfaction with retailers, by ensuring their customers can find the breakfast items that meet their needs.
“Wholesalers should stay informed on the latest breakfast food trends, such as the popularity of plant-based options and low-sugar products, and seek out products that reflect consumer interests. By offering items that align with current trends, wholesalers can attract more customers and increase sales.”
George Tatlow, Head of NPD, Wrights, part of The Compleat Food Group, comments: “While bakery is experiencing an evolution of sorts with a real focus on premiumisation, sustainability and ingredients sourced through regenerative farming, the future of bread and bakery lies in its past.
“Consumers – and therefore our wholesale customers – are expecting more bakery heritage, to understand the production ‘story’ and experience a more distinctive look and taste.
“In going back to traditional methods of baking and finishing, sourcing and fermenting, the flavours and practices of the past are clearly key to the future of bakery sales and is firmly where we are focusing our NPD.”
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