Outline of the UK’s Bakery Sector

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Outline of the UK’s Bakery Sector

Introduction

The United Kingdom is one of the remarkable producers of baked food products. With the fast-moving lifestyle and more population now into the working economy, the need for Ready-To-Eat food products primarily in the Bakery sector is in high demand.

How Diverse Is UK’s Bakery Industry?

The baking commerce in the United Kingdom is divided into three distinct sectors. Around 80% of the bread sold in the UK is produced by the most significant (plant) baking enterprises. About 17 per cent is made by in-store bakeries (ISBs) within supermarkets, while high-street retail (craft) bakers have the rest. New baked goods development seems to be the core of UK’s bakery sector.

The industry has a reasonable level of capital intensity, though there are some differences between segments. A small craft bakery, for example, will require less capital and will be more reliant on labour. The means to labour ratio is at 1:4.92, which means that for every £1 spent on money, £4.92 is spent on labour expenditures.

 

Overview Of The Bakery Market In Uk

Over the last five years, revenue volatility has stayed at a medium level. Volatile industry inputs and shifting consumer demand have contributed to this. Consumer confidence has plummeted due to the high uncertainty surrounding future economic prospects, while inflationary pressures from the weak pound have limited discretionary incomes.

The pace of technological progress is steady, with the most prominent players employing the most technology. To expedite their manufacturing process, extensive facilities require many types of machinery, and thus they invest extensively in this area.

Future Scope Of The Market

Between 2017 and 2022, the UK Bread and Bakery Goods Production industry is expected to be worth over £8.7 billion, with an annual growth rate of 0.9 per cent. Changing consumer trends, most notably increased levels of health consciousness, have impacted industry performance, with customers placing greater emphasis on their diets. Trends such as vegan bakery products have seen huge demand from consumers. Responding to increased health concerns, industry players have done well by expanding their product lines to include healthier options.

Operators have also begun to alter their products to compete with artisan bakers’ offers by introducing more artisanal-style items. An increase in demand from supermarkets due to the COVID-19 (coronavirus) pandemic in the latter two years is predicted to ensure good revenue growth in the two years through 2021-22.

Industry revenue is expected to drop at a compound annual rate of 0.6 per cent to £8.4 billion during the following five years, till 2026-27. Sugary product sales are projected to be under pressure as people become more health-conscious. Inflationary pressures are projected to subside as economic conditions grow less unpredictable following an expected recession this year. Furthermore, disposable incomes are predicted to rise, increasing the likelihood of consumers spending more in the sector.

How Can Food Research Lab Assist In Bakery Product Development?

In the highly competitive bread business, product innovation and reformulation are critical – and an area where Food Research Lab’s experience is highly valued. We work directly with clients to give a personalized service to match their demands. This includes reformulation to provide ‘healthier’ options on bread, biscuits, cakes, and other flour confectionaries to pancakes, cereal bars, and extruded items.  From brainstorming product concepts and translating ideas into prototypes to refining trial items and manufacturing samples for market testing, our discreet services may help you at any stage of the new food product development process. We can also help with pilot production and manufacturing scale-up. We’ve adapted chef recipes for total production, discovered new and profitable uses for the old plant, and reformulated products to allow for new claims, better-eating quality, and longer shelf life.

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Conclusion

Rather of mass-produced goods, consumers may now seek out artisanal delicacies prepared with natural ingredients by local entrepreneurs. We are happy to stand behind the small enterprises and lone traders around the country who are reintroducing artisan bakeries to the mainstream.

 

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