Product Type: Market Research Report
Published by: Key Note Publications Ltd
Published: March 2009
Product Code: R310-1670Description The bread and bakery products market, like many others, struggled during 2008, with the banking crisis and the consequent difficulty in obtaining credit adding to pre-existing problems, such as the rising costs of energy and raw materials.
These factors meant that the cost of bread continued to rise throughout the year. Its status as a staple dietary item within a mature market has caused problems in the past, with manufacturers having to be continually inventive in order to try to maintain market value. Paradoxically, however, this has at least cushioned the market from the vagaries of consumer behaviour, and consumer expenditure on bread and bakery products grew by 6.2% in 2008, to £3.8bn.
The market is segmented into four broad sectors: white bread, brown and wholemeal bread, speciality breads and bakery products. The white bread sector, which had lost sales during the years between 2005 and 2007, recovered during 2008, with consumer expenditure growing by more than 10% on the previous year and bringing sales to their highest level of the review period (2004 to 2008). This could be linked to the current financial situation, with consumers being more likely to switch to own-label and discounted bread, which tends to be focused more on the white than the brown sector. In terms of market share, however, white bread's share remains considerably smaller than it was at the start of the review period.
By contrast, the brown and wholemeal sector, which saw something of a revival during the middle part of the decade, saw growth slow down during 2008, although household expenditure remained considerably higher than it was in 2004.
The speciality breads sector overtook white bread as the largest market sector in 2006, and has steadily increased its share of the total bread market since then.
Year-on-year growth in household expenditure on bakery products was erratic over the review period and modest in 2008, and its share of the total market has contracted since 2005.
Overall consumption of bread is almost universal and daily consumption is high, but there are significant differences in the types of bread favoured by men and women.
Bakery businesses found 2008 a challenging year. A number of retail craft-bakery chains went into administration and/or were sold, and several larger companies are finding the current financial climate extremely difficult. Although expenditure is forecast to rise in 2009 and beyond, at least some of this will be due to rising prices resulting from increased production costs.
Table of Contents - Executive Summary
- 1. Market Definition
- REPORT COVERAGE
- MARKET SECTORS
- White Bread
- Brown and Wholemeal Bread
- Speciality Breads
- Bakery Products
- MARKET TRENDS
- Economic Factors
- Demographic Factors
- Household Size
- An Ageing Population
- Immigration
- Social Factors
- Busier Lifestyles
- Changing Working Patterns
- Table 1: The UK Sandwiches Sector by Value at Current Prices
- (£m at rsp and %), 2003-2007
- Sophisticated Consumers
- Health and the Bread Market
- ECONOMIC TRENDS
- Gross Domestic Product
- Table 2: UK Gross Domestic Product at Current and
- Annual Chain-Linked Prices (£m), 2003-2007
- Inflation
- Table 3: UK Rate of Inflation (%), 2003-2007
- Household Disposable Income
- Table 4: UK Household Disposable Income Per Capita (£), 2003-2007
- Unemployment
- Table 5: Actual Number of Unemployed Persons in the UK (million), 2003-2007
- Population
- Table 6: UK Resident Population Estimates by Sex (000), Mid-Years 2003-2007
- MARKET POSITION
- Table 7: Consumer Expenditure on Food and Non-Alcoholic Drink,
- and Bread and Bakery Products (£m), 2004-2007
- 2. Market Size
- THE TOTAL MARKET
- Table 8: UK Household Expenditure on Bread and Bakery Products
- at Current Prices by Sector (£m), 2004-2008
- Figure 1: UK Household Expenditure on Bread and Bakery Products
- at Current Prices by Sector (£m), 2004-2008
- BY MARKET SECTOR
- Figure 2: UK Household Expenditure on Bread and Bakery Products
- at Current Prices by Sector (%), 2008
- Traditional Bread
- White Bread
- Table 9: UK Household Expenditure on White Bread at Current Prices
- (£m and %), 2004-2008
- Brown and Wholemeal Bread
- Table 10: UK Household Expenditure on Brown and Wholemeal Bread
- at Current Prices (£m and %), 2004-2008
- Table 11: UK Household Expenditure on Brown and Wholemeal Bread
- at Current Prices by Subsector (£m and %), 2004-2008
- Speciality Breads
- Table 12: UK Household Expenditure on Speciality Breads
- at Current Prices (£m and %), 2004-2008
- Table 13: UK Household Expenditure on Speciality Breads
- at Current Prices by Subsector (£m and %), 2004-2008
- Bakery Products
- Table 14: UK Household Expenditure on Bakery Products
- at Current Prices (£m and %), 2004-2008
- Table 15: UK Household Expenditure on Bakery Products
- at Current Prices by Subsector (£m and %), 2004-2008
- OVERSEAS TRADE
- 3. Industry Background
- RECENT HISTORY
- NUMBER OF COMPANIES
- Table 16: Number of VAT- and/or PAYE-Based Enterprises Engaged in
- the Manufacture of Bread, Fresh Pastry Goods and Cakes
- by Turnover Sizeband (number and %), 2008
- EMPLOYMENT
- Table 17: Number of VAT- and/or PAYE-Based Enterprises Engaged in
- the Manufacture of Bread, Fresh Pastry Goods and Cakes
- by Employment Sizeband (number and %), 2008
- REGIONAL VARIATIONS IN THE MARKETPLACE
- Table 18: Number of VAT- and/or PAYE-Based Enterprises Engaged in
- the Manufacture of Bread, Fresh Pastry Goods and Cakes
- by Government Office Region (number and %), 2008
- DISTRIBUTION
- Wholesale Distribution
- Retail Distribution
- Table 19: Average Weekly Expenditure on Bread and Bakery Products
- by Place of Purchase (£ and %), 2007
- HOW ROBUST IS THE MARKET?
- LEGISLATION
- Food Labelling
- Prescribed Quantities
- KEY TRADE ASSOCIATIONS
- Federation of Bakers
- Flour Advisory Bureau
- National Association of British and Irish Millers
- National Association of Master Bakers
- Scottish Association of Master Bakers
- 4. Competitor Analysis
- THE MARKETPLACE
- Plant Bakeries
- Table 20: Vertical Integration in the UK Flour Milling and Baking Industry, 2009
- In-Store Bakeries
- Craft Bakeries
- MARKET LEADERS
- Allied Bakeries
- Fine Lady Bakeries Ltd
- Fletchers Bakeries Ltd
- Frank Roberts & Sons Ltd
- Premier Foods PLC
- Warburtons Ltd
- William Jackson Bakery Ltd
- SPECIALIST RETAILERS
- Greggs PLC
- OUTSIDE SUPPLIERS
- Wheat Supplies
- Table 21: The Total UK Wheat Harvest by Volume
- (000 tonnes), 1987/1988-2007/2008
- Table 22: Sources of Wheat Used by UK Flour Millers
- (000 tonnes), 1987/1988-2007/2008
- Table 23: Sources of Wheat Used by UK Flour Millers (%), 1987/1988-2007/2008
- Flour Millers
- Table 24: Total UK Flour Production by Volume
- (000 tonnes), 1987/1988-2007/2008
- Table 25: UK Flour Production by Type by Volume (%), 1987/1988-2007/2008
- Table 26: NABIM Member Companies, 2009
- MARKETING ACTIVITY
- Main Media Advertising Expenditure
- Table 27: Main Media Advertising Expenditure on Bread and Bakery Products
- (£000), Years Ending September 2007 and 2008
- Table 28: Main Media Advertising Expenditure by Allied Bakeries,
- British Bakeries and Warburtons, (£000), Year to September 2007 and 2008
- Recent Campaigns
- Hovis
- Kingsmill
- Warburtons
- Exhibitions
- 5. Strengths, Weaknesses, Opportunities and Threats
- STRENGTHS
- WEAKNESSES
- OPPORTUNITIES
- THREATS
- 6. Buying Behaviour
- INTRODUCTION
- CONSUMER PENETRATION
- Table 29: Consumption of Bread in the Last 12 Months (% of adults), 2005-2008
- Frequency of Usage of Bread
- Table 30: Consumption of Bread in the Last 12 Months by Frequency
- (% of adults), 2005-2008
- Table 31: Consumption of White and Brown Bread in the Last 12 Months
- by Frequency (% of adults), 2007 and 2008
- By Sex
- Table 32: Consumption of Bread in the Last 12 Months by Frequency by Sex
- (% of adults), 2008
- By Age
- Table 33: Consumption of Bread in the Last 12 Months by Frequency by Age
- (% of adults), 2008
- By Social Grade
- Table 34: Consumption of Bread in the Last 12 Months by Frequency
- by Social Grade (% of adults), 2008
- By Region
- Table 35: Consumption of Bread in the Last 12 Months by Frequency by Region
- (% of adults), 2008
- By Presence and Age of Children
- Table 36: Consumption of Bread in the Last 12 Months by Frequency
- by Presence and Age of Children in Household (% of adults), 2008
- Types of Bread Eaten
- Table 37: Types of Bread Eaten in the Last 12 Months
- (% of adults), 2007 and 2008
- By Sex
- Table 38: Types of Bread Eaten in the Last 12 Months by Sex (% of adults), 2008
- Type of Bread Eaten Most Often
- Table 39: Type of Bread Eaten Most Often in the Last 12 Months
- (% of adults), 2007 and 2008
- By Sex
- Table 40: Type of Bread Eaten Most Often in the Last 12 Months by Sex
- (% of adults), 2008
- 7. Current Issues
- HEALTH ISSUES
- Folic Acid
- Salt in Bread
- Real Bread Campaign
- CORPORATE DEVELOPMENTS
- Ferrari’s Bakery
- Firkins
- Gails
- John Pimblett & Sons
- Lyndale Foods
- New York Bagel Company
- Princi
- Village du Pain
- NEW PRODUCT DEVELOPMENTS
- SUPERMARKETS
- EMPLOYMENT
- CONSUMER NEWS
- Children’s Eating Habits
- Home Bread Making
- 8. The Global Market
- CORPORATE DEVELOPMENTS
- North America
- Europe
- 9. Forecasts
- ECONOMIC BACKGROUND
- Gross Domestic Product
- Table 41: Forecast UK Growth in Gross Domestic Product in Real Terms
- (%), 2008-2012
- Inflation
- Table 42: Forecast UK Rate of Inflation (%), 2008-2012
- Unemployment
- Table 43: Forecast Actual Number of Unemployed Persons in the UK
- (million), 2008-2012
- Population
- Table 44: Forecast UK Resident Population by Sex (000), Mid-Years 2008-2012
- FORECASTS 2009 TO 2013
- Table 45: Forecast UK Household Expenditure on Bread and Bakery Products
- at Current Prices (£m), 2009-2013
- MARKET GROWTH
- Figure 3: Growth in Household Expenditure on Bread and Bakery Products
- at Current Prices (£m), 2004-2013
- FUTURE TRENDS
- 10. Company Profiles
- ABF Grain Products Ltd
- Fine Lady Bakeries Ltd
- Fletchers Bakeries Ltd
- Frank Roberts & Sons Ltd
- Greggs PLC
- Premier Foods PLC
- Warburtons Ltd
- William Jackson Bakery Ltd
- 11. Further Sources
- Associations
- General Sources
- Government Publications
- Other Sources
- Key Note Sources
- Understanding TGI Data
- Number, Profile, Penetration
- Social Grade
- Standard Region
- Key Note Research
- The Key Note Range of Reports
|
|
