European Bakery Case Study: key trends in the European bread & rolls sector

• Gain insight into the methods used by important industry players to give them a competitive edge
• Identify specific areas for operational improvements
• Capitalize on the knowledge of experienced companies when entering a new niche or market

DATAMONITOR VIEW

CATALYST

SUMMARY

ANALYSIS

Bread & rolls is the largest category of the European bakery & cereals retail market, but growth has been unspectacular

The European bread & rolls sector was worth nearly E73 billion in 2008

Per capita bread & rolls consumption is highest in Germany, while the UK is home to two of the continent's leading companies within the category

Manufacturers have attempted to stimulate growth with healthier variants that can be positioned 'better-for-you' and/or 'good-for-you' and this is reflected in NPD trends

Numerous health claims are influential to a significant proportion of Europeans

Traditional production methods is another key trend in bread products, as consumers seek out nostalgic products

A yearning for the traditional has seen a rise in home baking, with growth being witnessed in home bread baking products

ABF and Premier Foods are two leading companies in the UK bread & rolls category which have benefited from aligning with the health and nostalgia trends

ABF is the leading bread producer in the UK, whose Kingsmill and Allinson brands are well established in the market

The company's Kingsmill brand is promoted as a healthy family brand

Allinson is marketed as a traditional brand which addresses artisanal and health trends

Premier Foods has experienced high growth by marketing its Hovis brand as a nostalgic product

Conclusion

APPENDIX

Case study series

Methodology

Definitions

Secondary sources

Further reading

Ask the analyst

Datamonitor consulting

Disclaimer

List of Tables

Table 1: The European retail bakery & cereals market (E millions), by category, 2008-13

Table 2: The leading five European bread & rolls retail markets (E millions), by value, 2003-13

Table 3: The top 20 European retail markets for bread & rolls, by per capita spend (Euros), 2003-13

Table 4: The leading five European bread & rolls foodservice markets (E millions), by value, 2003-13

Table 5: Leading companies in the European bread & rolls retail, by value, 2008

Table 6: Leading claims in European retail bread & rolls new product launches, July 2008-09

Table 7: The bread & rolls category, by sub-segment in European retail (E millions), 2003-13

Table 8: Company market share in the bread & rolls sector, UK, 2008 (%)

Table 9: Foodservice bread categories

Table 10: Bakery & cereal market definitions

List of Figures

Figure 1: Bread & rolls is the largest, yet slowest growing category in the bakery & cereals market

Figure 2: Bread & rolls launches in Europe have been substantial over the past few years

Figure 3: A third of Europeans are frequent purchasers of functional food and beverages

Figure 4: Consumers in the Middle East are most likely to consider fiber content when choosing food and beverages

Figure 5: Natural and organic claims are appealing to a significant sector of consumers

Figure 6: Many consumers do not like the presence of artificial ingredients in their food and drinks

Figure 7: Gluten-free products are not of significant concern to European or US consumers

Figure 8: Low/reduced fat claims are highly influential for more than a third of Europeans

Figure 9: Low cholesterol product claims are deemed highly influential by more than 20% of Europeans

Figure 10: Cooking from scratch is a frequent activity for many Europeans

Figure 11: ABF produces a wide range of loaves in the UK, to satisfy a wide range of family tastes and health demands

Figure 12: Wholegrain content is influential to the food choices of a substantial proportion of consumers

Figure 13: A 'trust void' is apparent among Europeans when it comes to the nutritional claims made by food and beverage manufacturers and the integrity of food and beverages aimed at children

Figure 14: Premier produces a range of loaves under the Hovis brand name