Bread and bakery

Britain remains a nation of bread-lovers, with nearly every household in the country (96%) buying into the category, according to the latest market figures. But although bread is still the most-consumed food item in the UK, the days when sliced white and perhaps the odd loaf of wholemeal were the only game in town have long been consigned to the recycling bin of history.

These days, they compete for shelf space with the likes of pittas, bagels and ciabattas, as well as ‘artisan’ loaves made with a variety of exotic grains that would have been unheard of 20 years ago.

Branded sales

That doesn’t necessarily mean you should ditch the big names and start making your own organic sourdough to sell in-store – 70% of bread sales still come from branded products, says market analyst Nielsen. But the big brands – along with the retailers who stock them – have been busy adapting their offer to cater for consumers’ changing preferences. “Two key trends are driving branded growth,” says Matthew Cullum, director of marketing at Allied Bakeries, whose brands include Kingsmill, Allinson’s and Burgen. The first of these is premiumisation – as consumers look for better-quality and craft-style breads – and the second is health, he says, with shoppers seeking out healthier alternatives that still “taste great”.

To tap into the trend towards more-premium bakery products, Allinson’s has launched a series of “craft-inspired” loaves featuring distinctive paper packaging. The 650g range is designed to meet the needs of smaller households, who get through less bread than families and have more disposable income. In April this year, Allinson’s launched a premium loaf, Allinson’s Serious White with Sourdough, targeting a market for sourdough that is expected to grow by 6.9% over the next five years. Cullum says the range provides “the visual cues of in-store bakery but with the shelf life of wrapped bread”.

Speciality breads

Also championing the case for speciality and ‘artisanal’ bread is in-store bakery specialist Lantmännen Unibake. “Consumers are demanding both quality and choice at the bakery fixture,” says marketing manager Kate Sykes. “They want a range of shapes, sizes, textures and tastes to meet their ever-changing needs. In 2018, speciality bread sales topped £98m annually, an increase of 5.6% year on year. It now represents 16% of total in-store bakery and is the key driver in the growth of the overall bread category. 

The consumer appetite for speciality breads shows no signs of slowing, presenting a prime opportunity for retailers.” Popular choices include ciabatta and paninis, with Lantmännen’s Schulstad Bakery Solutions range made using extra-virgin olive oil “for an authentic Italian flavour”. Baguettes also remain popular, with sales up 4.3% year on year in convenience, according to market analyst IRI.

Global influence

Sykes says: “The growth of the speciality bread market demonstrates that consumers are becoming increasingly adventurous with their bread purchases and as a result demanding wider choice. Global influences are continuing to inspire the category, with flatbreads, naan and pitta bread all increasing their visibility as consumers search for more-exciting alternatives to traditional sliced white.” She predicts the next big opportunity will come from Scandinavian-style breads, a trend that has also been spotted by French manufacturer Bridor, which has launched its own Nordic Loaf with a recipe based on buckwheat flour, rye flour, malted wheat and malted barley.

Erwan Inizan, the company’s sales director for northern Europe, says the growing popularity of Scandinavian styles follows on from the rise in interest in rye breads traditionally made in Poland, Germany and central Europe, while influences from the south of continent also remain strong. “Speciality lines such as Mediterranean breads have become popular in the UK, with varieties such as olive bread, ciabatta and loaves laced with sun-dried tomatoes, as the Mediterranean diet continues to receive good press.”

Other vegetable-infused breads enjoying a spike in popularity – at least in supermarkets – include beetroot, tomato and rosemary, but the health trend encompasses a wide range of segments. “Health means different things to different consumers,” says Cullum at Allied Bakeries, “so we are seeing a range of segments in growth across ‘healthier bakery’, including 50/50 bread that offers hidden wholegrain, and seeded breads, which consumers perceive as offering both taste and health, sparking a shift away from wholemeal bread in particular.” In September 2018, the company added a Vitamin Boost variant to the Kingsmill 50/50 range, offering families a product fortified with seven vitamins and minerals.

Space constraints

Jeremy Gilboy, founder of St Pierre Groupe, whose brands include Baker Street, says health considerations are behind much of the diversification taking place within the bread category. “With dietary health becoming a growing priority and families moving to multiple options for the same meal occasion, consumers are eschewing the traditional large loaves for products that offer both health and clear functional benefits, like rye breads and ciabattas,” he says.

This growing fragmentation in consumers’ bread-eating habits naturally poses a problem for independent stores where space is limited. “Despite the increase in sales of artisan breads, the volumes can’t always justify using them as a replacement for traditional loaves at this point,” argues Hannah Morter, marketing manager at Country Choice. “That said, where space is less restrictive, traditionally shaped organic and ancient grain varieties have been proven to sell well, particularly in more affluent areas.”

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