In the bakery category, value increased slightly by +1.0% in the 52 weeks ending 23.03.25, while volume declined by –3.6%, indicating a reliance on pricing/mix improvements to offset unit sales, according to research by SmartView Convenience I-TG International Services Ltd in partnership with TWC.
Bread represents 67.8% of Bread & Cake category value but saw notable declines in both value (–8.4%) and volume (–11.7%, SmartView/TWC). This highlights significant pressures in this subcategory. The Home Baking category saw a value decline of –1.3% and a volume decrease of –2.7% (SmartView/TWC). Subcategories performed unevenly.
Flour was down in both value (–4.2%) and volume (–2.7%).
Cake Mixes increased in value +3.7% and was down in volume (-5.1%).
Flavourings/colourings also faced declines in value (-3.1%) and volume (–7.2%).
Cooking Nuts & Decorations both outperformed, growing by +7.0% (nuts) and +24.3% (decorations value), reflecting strong growth opportunities in niche subsegments.
Syrups & Dried Fruit both posted value declines -3.5% (SmartView/TWC).
Louise Reynard, Customer Development Director, UK at St Pierre Groupe comments on behalf of the Baker Street brand: “Growing numbers of local retailers’ shoppers are looking for simple and affordable ways to achieve a healthy balanced diet, making bread products that offer convenience and taste alongside nutritional benefits a key purchase generator for wholesalers. Shoppers are looking for simple and affordable ways to achieve a balanced diet, and increased consumer interest in healthy eating is a trend that’s driving the breakfast opportunity in bakery.”
Rye bread as a category is growing fast in convenience, from top-up shoppers looking for healthier options. The category is up 17 per cent in value and 12 per cent in volume in this channel, with the Baker Street products driving this, up 52 per cent value and 56 per cent volume. Baker Street increased distribution with the Co-op 18 months ago and in turn, almost doubled its share of the Rye category in convenience. It’s proof that consumers will opt for quality branded products, no matter where they shop.
There is a rising demand for premium products in bakery, with growing recognition of the Baker Street brand, particularly its Seeded Rye and Rye & Wheat loaves, Burger Buns and Hot Dog Rolls.
The last two are benefiting from two trends that are working together to fuel breakfast time appetites. These are the move to working from home/hybrid working, which means people have more time for extended breakfasts, and the trend for supersize meals, or ‘Americana,’ that has come through from foodservice.
Baker Street offers quality baked goods with an extended shelf-life, which adds to their ease of use, catering to the trend for premiumisation without compromising on its commitment as a business to long life products. The Baker Street Rye range’s extended life allows retailers to offer their shoppers a broader range without the concerns around increased wastage, which makes Baker Street a great – and less risky way – to introduce new products.
Bread products that offer both convenience and taste are a key sales generator for wholesalers, as local retailers’ shoppers look for simple and affordable ways to achieve a healthy balanced diet. Traditional sliced loaves remain a key staple for the vast majority of UK households, due to their versatility and convenience – particularly in the morning when time is limited, while sales of burger buns and rolls are growing as mealtimes become more fluid.
When people have more time for extended breakfasts, and stretching into brunches, Baker Street’s range of Burger Buns and Hot Dog Rolls offer a quick and easy way to create a host of tasty meals, including bacon and egg baps and sausage rolls. Shoppers are increasingly using these bakery staples outside of the traditional ‘burger’, ‘hotdog’ or ‘BBQ season,’ and Baker Street’s Burger Buns and Hot Dog Rolls are particularly important for consumers enjoying extended breakfasts and brunches at home.
“Wholesalers should offer a broad range covering each part of the category, from value to premium, covering all price points. The top-selling take-home bakery items in convenience are traditional sliced bread for every day, speciality breads, such as rye, and burger buns and hot dog rolls. The Baker Street range offers all these – Sliced White and Sliced Brown bread, Seeded Rye and Rye & Wheat loaves, Burger Buns and Hot Dog Rolls,” adds Reynard.
“Wholesalers should encourage their symbol retailers to merchandise their bakery products clearly and support them with promotions, either in the main fixture with the other bakery items, or in promotional bays and end of aisle displays. Bakery is a section that consumers shop frequently in their local store, and retailers who offer a good, better, best range including products from Baker Street, and communicate it with clear pricing on shelf will encourage shoppers to trade up.
“Cross-merchandising bread and bakery with other products that are bought together, can be highly effective in generating additional purchases. Cash and carries do well to display bakery products on promotion with other relevant lines that are also on promotion. Wholesalers should encourage their symbol retailers to follow the major grocers’ convenience format stores’ example, and position bread and bakery products in-store alongside complementary lines.”
In recent years consumers have been seeking to elevate the everyday in the wider bread and bakery sector. As such, St Pierre grew to be the UK’s 7th biggest bakery brand by the end of 2024. Overall, St Pierre is outperforming the total bakery occasions subsector, where it ranks as the fastest-growing brand in the UK top 10 (Circana), and is delivering 12 per cent (Kantar) of the subsector’s growth.
Shoppers are looking to upgrade their routine bakery purchases from traditional staples to something more premium and that’s where St Pierre is benefiting. Key sectors like morning goods – where the brand is the fastest growing in the top 10 – and brioche, where St Pierre is the UK’s number one brand is driving growth for bakery (Circana).
‘Continental’ sweet bakery items have been in the top 3 fastest growing categories since 2019. The demand for these shows no sign of slowing and has been driving much of the recent bakery subsector growth. In another big subcategory, bakery for brunches, lunch and evening meals, there is growing demand for bold, globally inspired foods, and a shift toward spicy flavour profiles such as Tex/Mex and barbecue, which are out of home favourites, especially among younger generations. These consumers are looking for more adventurous flavour options.
Keeping pace with these trends and delivering innovative products that drive category growth for retailers is key to St Pierre’s ongoing product development. Croissants are the segment delivering most value growth in morning goods, currently worth £140 million and up 17 per cent year on year. That’s why St Pierre extended its breakfast range to attract premium shoppers by launching a two-pack of All Butter Croissants in 2024, RRP £2.30, made with 30 per cent French-churned butter, and a larger serving size, for indulgent breakfasts at home.
As well as the UK’s fastest growing top 10 continental bakery brand, St Pierre is the fastest growing brand in the breakfast top 10 (Circana), with its morning goods, snacking products and brioche winning over consumers for the breakfast occasion, at home and on the move.
UK consumers’ appetite for bread and bakery is undiminished, with 99.9 per cent of the population eating it and households shopping the category twice a week, but our busy lives mean there’s growing demand for products that offer convenience and versatility.
St Pierre’s brioche buns and hot dog rolls are perfect for brunches, lunches, evening meals and in the warmer months, barbecues, with three of our buns sold per second in the UK during the 2024 barbecue season (Circana). They come pre-sliced in multipack formats, with the added benefit of extended shelf life, enabling shoppers to buy them in quantity and use them on different occasions.
The St Pierre brand is driving the burger buns and rolls category, and the figures are impressive. St Pierre is the number one brioche brand in the UK. It is also the second biggest brand in rolls, with 5 SKUs in the top 10 branded buns and rolls category (Circana), and the fastest growing brand in the sector, responsible for 60 per cent of total value growth.
Fabien Pasquier, Retail Sales Manager, Brioche Pasquier, comments: “It is becoming harder to resist the temptation to buy a sweet treat from the bakery section. Stacked with soft bread, fluffy brioches and indulgent cakes, consumers are lured in by the sight of baked goods as these are seen as a premium indulgence.”
Nostalgic flavours, especially the decadent taste of chocolate, are captivating customers looking for a delicious breakfast, snack or dessert.
However, the rise of social media is encouraging baked goods to be more experimental, using inspiration from the global market to bring a taste of different cultures to the UK. The French influence in particular has been significant due to its long association with culinary flair.
With over 50 years of ‘Saviour-Faire’, Brioche Pasquier offers authentic French baked goods based on the original recipe of Gabriel Pasquier, developed in 1936.
“To maintain their pillowy texture and classic flavour, our products are wrapped in portions to maintain freshness, making them convenient for customers looking for a one-off treat (but trust us, they will definitely be back for more!),” adds Pasquier. “The health-conscious consumer can find comfort in the knowledge that we use simple ingredients with no artificial colours or flavourings. To ensure freshness and provide our products with a 29-day shelf-life, we avoid preservatives by using ‘levain’, a completely natural way of keeping our brioche light and delicious.”
For retailers without a same-day bakery selection, Brioche Pasquier provides a simple way to tempt customers. To make its pain au chocolat, brioche dough is transformed into a perfect puffed pastry with layers of irresistible buttery flavour. These delightful treats are ideal for consumers on the go. Alternatively, wholesalers can appeal to popular chocolate cravings with PITCH. Made with children in mind, but enjoyable for grown-ups too, PITCH is a soft brioche roll filled with either choc chips or chocolate hazelnut sauce. PITCH is perfect for everything from long car journeys to football matches and has become a must-have essential for busy families.
Samantha Winsor, Marketing Manager, Americana, comments: “Consumer interest in gut health is becoming ever more popular, with shoppers turning to fermented foods for their positive effects on gut health, heart health and immune-system-boosting characteristics.”
Sourdough is known for its delicious taste but also for supporting gut health, with the fibre and plant compounds acting as an important fuel source for gut microbes. Additionally, it has been reported that the fermentation process enables the enrichment of B12 and improves protein digestibility, and that the acids render the gluten in the flour more digestible, making it less likely to lead to a food intolerance.
“Interest in high-fibre diets has been around for a while but links between fibre and gut-health began in 2024 and has continued to grow; we anticipate that this perceived health benefit will contribute to the continued popularity of sourdough,” adds Winsor. “All Lantmännen Unibake UK sourdough are a good source of fibre as they contain at least three grams of fibre per 100g serving. When clearly communicated to the end customer, these nutritional markers, and therefore perceived benefits, can help drive sales of speciality bread.”
There is a growing demand for artisanal goods. Speciality bread is a growing market, valued at £190 million and has grown 8% in the last year (Circana). It is now purchased by 19.3% UK households (Kantar) showing there are plenty more growth opportunities within the speciality bread market. Occasionality for this product has changed, from once a weekend or a special treat, it is now being consumed regularly as part of everyday occasions. This has been driven by the wide variety of flavours, shapes and sizes available on the market.
This growth is expected to continue. Americana’s insights show that speciality bread will ride the wave of popularity as we move further into 2025. Whilst the sourdough trend continues to rise, providing flavours unique to each brand or supplier, inclusions are becoming increasingly popular. Inclusions allow wholesalers to provide more interesting flavour profiles and quality visual appeal to further engage retailers and customers and drive sales within the speciality bread category.
This can be capitalised on using the current trend of extending beyond classic olive breads to offer a mix of flavour and aromatic notes with a sun-kissed Mediterranean taste. There is also a ‘contrast’ trend which includes flavours and textures, mixing crunchy nuts, juicy fruits, rich spices, and bitter coffee, providing a richer and more indulgent eat.
To go even more premium, wholesalers can combine the sourdough and inclusions trends. Pairing popular fruits, nuts and seeds with complementary sourdough flavours to really give consumers a quality-filled luxury bread with great flavour and stand out visuals.
“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,” says Winsor.
“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.”
Claudia Stratford, Vitalite Brand Manager at Saputo Dairy UK, comments: “While we are seeing consumers as a whole prioritise the convenience of prebaked foods, home baking remains an essential part of life for those with allergies or intolerances because it allows for more complete control over ingredients going into their food, often essential for their safety. Buying pre-made, allergy-friendly items is possible but can be costly or limited in choice.”
Around 2.3 million shoppers in the UK suffer from either a food allergy, intolerance or coeliac disease. With allergies in the UK growing at a rate of 5% every year, this is set to increase even further. Therefore, it is imperative that free-from options are carefully considered by wholesalers.
Vitalite UK Dairy-Free Spread is a trusted dairy-free product, making it an ideal ingredient for baking, as well as cooking and other spread usage. Baking is back, and it’s back for all – consumers with intolerances or allergies can still enjoy home-made baked goods, and by replacing dairy with Vitalite, won’t be excluded from enjoying what’s come fresh out of the oven.
Vitalite is among the top-performing brands in dairy-free spreads (IRI + Kantar). Now worth £12m in Total Market (IRI + Kantar ), Vitalite is dairy, lactose, gluten and soya free and contains 75% less saturated fat than butter.
Inclusivity is essential. Whether shoppers are dairy-free by necessity or choice, they want to be able to shop in their local stores and know they can purchase products from trusted brands such as Vitalite UK that meet their dietary needs without compromising on quality or taste,” adds Stratford.
“Clearly signpost free-from products at shelf, to make product choices quick and simple for customers.”
Elliot Cantrell, Head of NPD at BakeAway, comments: “Consumers are indeed more health conscious of factors such as calories and macros. In turn, they are seeking bakery products and snacks that offer health benefits as well as indulgence. Our partnership with Myprotein shows our awareness of this increased consumer desire for healthier bakery products.”
There’s certainly a growing demand for hand-crafted baked goods as consumers are now seeking more to recreate the restaurant experience at home. Individualism in food preparation is becoming very popular with consumers as they are taking control over their food and experimenting with different fusions and flavours inspired from international travel as well as restaurant experience.
Pizza Express Pizza Dough lends itself to this growing trend as it acts as a delicious blank canvas for consumers to express themselves creatively and put together high-quality, unique food combinations.
Again, there is evidence to suggest that quick and easy bakery products are becoming more and more popular. The grab-and-go market has been growing rapidly over the past few years, and it’s estimated to be worth £15.2bn currently (Kantar). Consumers are busier now more than ever and are seeking bakery products and snacks that they can take while they are on the go that are low effort, satisfying and delicious. BakeAway is currently developing NPD in line with current consumer trends, focusing on the formats and flavours that align to these.
BakeAway remains a leader in NPD. It has made great strides with health-conscious bakery and snack products with Myprotein’s pancakes, as well as the ever-growing snacking and convenience market with the aforementioned pancakes but also with its other product offerings from Abra-ca-Debora pancakes and Pizza Express Pizza Dough.
“One major piece of advice would be to stay on top of consumer trends. Consumers trends shape not only NPD but also EPD, so being aware of what they want is highly important,” adds Cantrell. “Obviously, trends come and go to varying degrees of success, but it is still crucial that we as manufacturers do not dismiss them. At BakeAway, we understand macro and micro trends both being relevant to our products lines, but we implement them on different scales. This is a huge part of our growth strategy as we know consumer needs and trends are constantly changing so we also must change with them. Being at the forefront for key occasions – with pancake day as a great example – can drive sales uplifts and attract additional shoppers to categories. By maximising in-store execution and strategic ranging, there are further opportunities for growth.”
Dan Butt, MD of Baked Earth Bakery, comments: “In the bakery sector, we are definitely seeing increased interest in clean recipe products which also provide a good level of fibre. Protein has been big news across many categories, such as snacking, dairy and drinks for quite a while and it’s also entered the bakery category over the last year or so too.”
Demand for grab and go products is strong. Baked Earth Bakery’s new Mini Naan Bites are satisfying the need for on-the-go snacking as well as sharing, dipping and topping at home for quick and easy meals and snacking. Mini products are also great for those who are mindful of their health, as it means they can still treat themselves, but without the guilt.
Baked Earth Bakery has a wealth of heritage when it comes to producing flat breads – it has been making them as a family for more than 50 years now. Its best-selling products are its Baked Earth Bakery Plain and Garlic and Coriander Naans. But it is very committed to innovation and new product development, which is helping to grow the business. Within the past year the brand has introduced its Mini Naan Bites. They are a first-to-category innovation and come in a range of flavours. Baked Earth Bakery also produces seasonal shapes to exploit more sales opportunities – pumpkin-shaped for Halloween, Christmas tree-shaped for the festive season and bunny-shaped bites for Easter.
Earlier this year, its Valentine’s heart-shaped garlic and coriander Love Bites mini naans were a big hit after they gained shelf space in one of the large supermarket chains.
“My advice to wholesalers and retailers in terms of bread products would be to ensure they have a core range of long-life naans always available. Choose plain and also garlic and coriander to cater for different tastes, as these tend to be the two most popular flavours. For the convenience market, nothing is more frustrating from a shopper perspective than to have an immediate ‘need for now’ and not being able to buy the product,” adds Butt.
“It’s important to maintain brand visibility and Baked Earth Bakery is very committed to being seen on social media platforms, as well as on the shelves. This helps us to raise awareness not only amongst the retail and food service sector, but also with consumers. Our Love Bites certainly gained a lot of traction on social media around Valentine’s Day which was undoubtedly one of the reasons why consumers flocked to buy them.
“Our understanding of the route to market for the convenience sector means we can partner with wholesalers to offer the best quality products at competitive prices to ensure that convenience store retailers can have a competitive position. We also work directly with the Facia groups promoting and marketing the products.”
Stephen Jones, UK Sales Director, Grupo Bimbo UK, comments on behalf of the NYB brand; “Health and wellness remain key drivers in consumer purchasing habits and bakery is no exception. UK consumers are becoming more mindful of what they eat and there is a rising demand for nutrient-dense, functional foods that deliver specific health benefits, such as added protein, high fibre and lighter options.”
Notably, around 90 per cent of UK adults fall short of their recommended daily fibre intake, making this a significant area of opportunity for innovation. At the same time, there is growing interest in protein-rich options and products that offer “better for you” swaps without sacrificing on flavour or quality.
Taste and convenience remain paramount. Shoppers expect healthier options to still deliver on enjoyment and are turning to trusted brands to deliver that balance. New York Bakery is blending health credentials with authentic quality. Its products are made using traditional baking techniques that deliver the unique chew and flavour of New York style bagels – ensuring there’s no compromise on taste.
To meet the evolving demands of health-conscious consumers, New York Bakery has recently introduced a new Health & Wellness range including Lighter NYC Bagels, Fibre Plus NYC Bagels and Protein Boost NYC Bagels.
Each variety is designed to offer a meaningful health benefit – whether that’s fewer calories, high fibre or added plant protein, while still retaining the signature chew and authentic taste the brand is known for.
This range opens up fresh opportunities for wholesalers to tap into growing shopper missions around health without neglecting taste and quality. It is also bringing new consumers into the category who are seeking simple, convenient swaps that align with their dietary goals.
For wholesalers, these new SKUs offer a strong proposition to attract incremental sales while broadening appeal across different shopper segments.
“New York Bakery Bakes You There with every bite delivering on the spirit of NYC, marrying authenticity with functionality,” adds Jones.
“2025 is going to be a very busy year for the New York Bakery brand with a series of new product launches on its way. We are tapping into macro food trends with the launch of three new bagel SKUs that cater to consumers’ needs for better-for-you options on health (Protein, Lighter and Fibre).
“Alongside a raft of new products, we’re also investing in revising our brand identity with updated packaging and kicking off a new marketing campaign through the line. The new “Bakes You There” campaign is designed to highlight our distinctive brand assets while drawing attention to the quality of our products and new offerings. This will be supported by above the line and highlighted in-store to drive brand recognition, awareness and sales across the core and new ranges.”
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