Annette Kenny, Consumer Foods Division, Bord Bia

While this may be a time of financial constraint, there would seem to be an increase in the number of bakery manufacturing businesses in the UK, according to recent data from the Office for National Statistics. Looking more closely at the statistics, a total of 1,915 businesses (producers of bread, fresh pastry and cakes) were registered in mid 2009 versus 1,815 at the same time the previous year.  Just 4% of those registered have an annual turnover in excess of €5 million.

Bread remains popular with the UK population with a household penetration of 99%. Major contributory factors behind the high consumption levels include more people now making their own sandwiches, as well as households returning to staple items such as bread in times of recession.

Leading bakers include Warburtons, Allied Bakeries and Premier Foods. Looking more specifically at Warburtons annual bakery review, those products which did very well over the past 12 months include, Everyday 800g Bread, Own-Label Rolls, Crumpets, Brioche, English Muffins and Part-baked bread.  Despite Warburtons announcing a 20% drop in wrapped Danish pastries, overall the Danish pastry category (in store bakery) is valued by IRI at £45m, making it the second fastest growing sector behind muffins. One of the reasons for its success is that consumers are now pursuing more affordable treats.

Some commentators predict that these trends will continue, possibly with some of the premium varieties seeing a dampening in demand. In–store varieties are expected to perform strongly.