Key Insights for In Store Bakery Growth in Great Britain
Klara Lynch, Insight and Planning Specialist
The second in a three-part series of Insightful Articles, this article will look at the Insight Study that was recently commissioned and completed by Bord Bia, which focused on the In Store Bakery (ISB) category in Great Britain. To review the first article in this series (Setting the scene for the Instore Bakery report by Margaret McCarthy), you can click here.
This article will focus on some of the key insights revealed through this recent study, and it will briefly review some of the potential areas of opportunity for Irish suppliers when looking at the ISB in Great Britain.
The Aims and Objectives:
Before going into the insights, it is important to review what the overall objectives of the study were, and why this project was initially undertaken. Bord Bia originally sought to undertake this research last summer as the realities of the Covid-19 crisis struck – and while many different channels and categories were impacted by the crisis and the associated restrictions, one that really stuck out was ISB.
At beginning of the Covid-19 crisis, many consumers were avoiding unpackaged or open foods, for fear that products might be contaminated and while this fear reduced as time went on, we believed that it was important to get an understanding of whether this behaviour would revert to pre Covid-19 times. Essentially, what were once considered tempting and appetising displays of freshly baked goods within In Store Bakeries, were now being questioned.
All of this led to the development of the aims and objectives of the project, and primarily that was to evaluate supplier opportunities in the changing ISB market. In addition to this, there was a desire to get a deeper understanding of the category overall, including how it is changing, the evolving consumer behaviours, drivers and needs seen within it, the lasting impacts that Covid-19 may have and then what future opportunities may exist for Irish bakery suppliers.
Understanding the Category:
As outlined in the first article in this series, the ISB category in Great Britain has faced significant change since the Covid-19 crisis began, and overall this category has lagged behind in performance over the last year, with there being a 1.1% decline in ISB Expenditure 2019-2020 and then a decline of 1.1% in ISB Volume 2019-2020 (Nielsen, 2021). When looking at consumers of ISB in Great Britain, it is not too surprising to see these declines, as the category is over-reliant on the over 55+ age group, who would have likely spent a significant amount of time in 2020 either shielding or reducing supermarket visits. Additionally, the pandemic brought with it an increase in the amount of online grocery shopping, and given that ISB is very reliant on the sensory aspects, online shopping meant that consumers can neither see the bakery products nor smell them. Additionally, sometimes there are accessibility issues with buying ISB products online (e.g. some retailers not having the products available online) and as ISB is often an impulse buy, rather than a planned purchase, the category can suffer more than others when it comes to online shopping.
When it comes to the ISB shoppers and consumers, the research showed that overall bakery penetration is quite high, at about 83% (Bord Bia, 2021). Spend in the category is defined by life-stage and affluence, with older, more affluent consumers spending more, and while younger shoppers are not as engaged with the category, once they do engage with it, they are buying into a broad range of ISB products.
Opportunity Areas:
Irish suppliers who want to unlock future growth opportunities in the ISB category in Great Britain should use this report as a tool for planning, innovation and possibly even range review. Below is a brief look at two of the key areas of opportunity seen within the research were:
Online:
As mentioned above online shopping has increased over the last few years, and even more so since the beginning of the Covid-19 crisis. As it stands, ISB under-trades within online shopping for a number of reasons, including the sensory experience and availability. One clear learning that came from the study was that consumers who are shopping online would be more likely to buy ISB if they had access to a wider range, and guarantees of freshness. In order to make ISB a destination online, Irish suppliers can work with customers and retailers around the space of visual representation and also freshness reassurances.
Engaging Consumers:
While some consumers are particularly engaged with ISB in GB, particularly those aged 55+, there is scope to further engage others. There are a number of ways in which this could be done, but one of the most interesting would be through making ISB a category that’s full of Awe and Wonder, one which consumers want to take the time to visit and experience. This Awe and Wonder could be achieved by giving consumers variety, allowing for customisation, through the creation of unique products and then by visual presentation of the products available.
Implications for Irish Suppliers:
As above, this report can be used by Irish suppliers who are interested in the In Store Bakery category in Great Britain, and if there are any questions or queries, contact Klara.lynch@bordbia.ie or Margaret.mccarthy@bordbia.ie, as we would be happy to answer them.
References:
Nielsen. (2021). Nielsen Panel Data, 52 weeks to 05/09/20.
Bord Bia. (2021). In Store Bakery in Great Britain: Understanding the changes and future direction of the category.