Sector Trend Analysis – Bakery products in the United Kingdom

Note: This report includes forecasting data that is based on baseline historical data.

Executive summary

The United Kingdom (U.K) was the tenth largest global retail sales market for baked goods with values of US$10.6 billion (2.4% market share) in 2022, representing an increase in CAGR of 3.1% from US$9.1 billion in 2017. In the forecast period, the market is expected to increase in CAGR by 5.0% to achieve retail sales of US$13.6 billion by 2027.

In 2022, the U.K was the second largest global market for baked goods with imports valued at US$3.6 billion (7.8% market share), 1.1 billion kilograms, representing an increase in CAGR of 8.3% from US$2.4 billion (880.8 million kilograms) in 2017.

Canada was the U.K's ninth largest supplier of baked goods, representing a 1.3% market value share and providing US$45.9 million, 11.6 million kilograms in 2022, representing an increase in CAGR of 5.6% from US$35.0 million in 2017. Top baked goods imports from Canada in 2022 included bread, pastry, cakes and biscuits (HS code: 190590) valued at US$44.4 million (96.7% market share), 11.3 million kilograms.

Recently labour shortages, the energy crisis and the increasing costs of raw materials, in conjunction with the implementation of the HFSS (high fat, sugar, salt) regulation in October 2022, have led to strong price increases in baked goods in 2022. Growth in the baked goods category is expected to remain positive at 5.0%, as retail sales reach US$13.6 billion by 2027, despite the implementation of the HFSS regulation which is expected to challenge the immediate performance of baked goods, especially in 2023.

Bread was the largest category in the baked goods market with retail value sales of US$5.1 billion (47.9% market share) in 2022. The category grew at a measurable CAGR of 2.9% during the 2017-2022 period, increasing in retail sales from US$4.4 billion in 2017.

According to Mintel's Global New Products Database (GNPD), there were 9,323 new bakery products launched in the U.K from January 2017 to December 2022.

The predominant sub-categories of new bakery products released were cakes, pastries and sweet goods (3,079 products), sweet biscuits/cookies (2,268 products) and bread and bread products (1,660 products).

 

Global trade overview of bakery product imports

The global market for baked goods has experienced positive value growth with a moderate compound annual growth rate (CAGR) of 7.3% as imports have increased from US$32.7 billion, (11.2 billion kilograms) in 2017 to US$46.5 billion, (13.9 billion kilograms) in 2022. The United States (U.S) was the largest global market for baked goods in 2022 with imports valued at US$9.8 billion, (21.1% market share), 2.4 billion kilograms, representing a substantial increase in CAGR of 13.9% from US$5.1 billion in 2017, followed by the United Kingdom (U.K) with imports valued at US$3.6 billion (7.8% market share), 1.1 billion kilograms, and an increase in CAGR of 8.3% from US$2.4 billion (880.8 million kilograms) in 2017 and Germany, with import values of US$3.1 billion (6.7% market share), 1.0 billion kilograms, in 2022.

Canada in comparison, was the fifth largest global market for baked goods with import values of US$2.0 billion (4.4% market share), 509.9 million kilograms in 2022, representing a moderate increase in CAGR of 6.5% from imports of US$1.5 billion, (491.7 million kilograms) in 2017.

Baked goods[1] imports by top global markets (based on 2022 imports), - Historical imports in US$ millions, growth and market share
Country 2017 2018 2019 2020 2021 2022 CAGR* % 2017-2022 Market share % in 2022
World Total 32,672.8 35,675.4 37,079.6 37,253.8 42,890.1 46,474.4 7.3 100.0
United States 5,120.2 5,722.6 6,172.5 6,445.4 7,808.5 9,828.8 13.9 21.1
United Kingdom (2) 2,421.5 2,612.2 2,747.8 2,766.0 2,787.4 3,608.2 8.3 7.8
Germany 2,294.6 2,473.0 2,556.0 2,710.8 3,068.0 3,115.4 6.3 6.7
France 2,260.7 2,365.2 2,377.9 2,357.0 2,668.5 2,688.3 3.5 5.8
Canada (5) 1,485.3 1,554.8 1,635.3 1,655.1 1,762.0 2,036.3 6.5 4.4
Netherlands 1,235.5 1,410.3 1,451.9 1,470.8 1,753.5 1,853.0 8.4 4.0
Belgium 1,147.6 1,228.2 1,191.8 1,139.6 1,476.4 1,555.9 6.3 3.3
Italy 950.0 993.4 960.7 932.2 1,053.6 1,118.6 3.3 2.4
Spain 746.9 845.9 874.0 777.5 925.4 999.0 6.0 2.1
Australia 637.5 698.9 762.9 779.5 890.9 996.2 9.3 2.1

Source: Global Trade Tracker, 2023 (accessed August 23, 2023)

1: Baked goods; HS code 1905

*CAGR: Compound Annual Growth Rate

Baked goods[1] imports by top global markets (based on 2022 imports), - Historical imports (volume) in million kilograms, growth and market share
Country 2017 2018 2019 2020 2021 2022 CAGR* % 2017-2022 Market share % in 2022
World Total 11,211.6 11,985.2 12,549.9 13,431.6 13,582.8 13,991.2 4.5 100.0
United States 1,563.7 1,724.5 1,833.3 1,939.4 2,181.7 2,425.9 9.2 17.3
United Kingdom (2) 880.8 897.5 964.1 977.0 863.7 1,063.6 3.8 7.6
Germany 794.9 828.4 899.7 923.5 993.2 1,024.8 5.2 7.3
France 753.2 752.1 772.5 786.3 863.8 871.5 3.0 6.2
Netherlands 424.0 457.3 537.1 594.2 656.5 786.2 13.1 5.6
Belgium 439.6 456.9 441.7 397.5 518.7 556.3 4.8 4.0
Canada (7) 491.7 508.0 519.2 505.3 498.0 509.9 0.7 3.6
Italy 334.0 326.2 338.7 319.0 347.1 366.2 1.9 2.6
Spain 248.9 261.8 290.7 267.9 304.9 337.6 6.3 2.4
Austria 219.9 232.9 254.7 244.1 257.0 260.0 3.4 1.9

Source: Global Trade Tracker, 2023

1: Baked goods; HS code 1905

*CAGR: Compound Annual Growth Rate

United Kingdom trade overview of baked good imports

The U.K has a diverse supply network of baked goods products. In 2022, the top three suppliers of baked goods to the U.K were France with values of US$548.0 million (15.2% market share), 157.0 million kilograms, followed by Belgium with values of US$475.6 million (13.2% market share), 137.7 million kilograms and representing a measurable increase in CAGR of 12.0% from US$270.3 million in 2017, and Germany with values of US$460.7 million (12.8% market share), 133.5 million kilograms. Canada in comparison, was the U.K's ninth largest supplier of baked goods, representing a 1.3% market value share and providing US$45.9 million, 11.6 million kilograms in 2022, representing an increase in CAGR of 5.6% from US$35.0 million in 2017.

Baked goods imports by the United Kingdom, and top suppling countries - Historical imports in US$ millions, growth and market share
Country 2017 2018 2019 2020 2021 2022 CAGR* % 2017-2022 Market share % in 2022
World Total 2,421.5 2,612.2 2,747.8 2,766.0 2,787.4 3,608.2 8.3 100.0
France 437.4 441.4 447.4 433.9 374.3 548.0 4.6 15.2
Belgium 270.3 297.5 255.1 284.4 393.6 475.6 12.0 13.2
Germany 405.7 421.7 436.2 412.8 351.0 460.7 2.6 12.8
Ireland 287.4 313.6 381.7 411.3 380.1 421.0 7.9 11.7
Netherlands 242.0 261.3 274.5 255.4 206.9 355.3 8.0 9.8
Poland 136.4 186.1 199.8 202.0 222.8 321.2 18.7 8.9
Italy 153.6 153.5 192.2 213.2 270.5 275.3 12.4 7.6
Spain 103.0 125.9 132.4 132.9 136.4 151.4 8.0 4.2
Canada (9) 35.0 42.6 40.9 44.9 48.1 45.9 5.6 1.3
Luxembourg 0.7 0.6 0.6 0.4 0.1 43.9 125.8 1.2

Source: Global Trade Tracker, 2023

*CAGR: Compound Annual Growth Rate

Baked goods imports by the United Kingdom, and top supplying countries - Historical imports (volume) in million kilograms, growth and market share
Country 2017 2018 2019 2020 2021 2022 CAGR* % 2017-2022 Market share % in 2022
World (Total) 880.8 897.5 964.1 977.0 863.7 1,063.6 3.8 100.0
Ireland 143.6 146.3 158.3 175.3 143.7 164.0 2.7 15.4
France 152.2 145.4 154.8 159.3 123.6 157.0 0.6 14.8
Belgium 89.3 97.5 93.8 98.3 122.6 137.7 9.0 12.9
Germany 153.6 147.5 161.9 144.8 107.2 133.5 −2.8 12.5
Netherlands 86.5 86.9 90.3 87.1 59.3 111.5 5.2 10.5
Poland 41.0 47.5 55.7 55.9 57.2 79.3 14.1 7.5
Italy 35.1 35.3 44.4 54.4 64.6 61.4 11.8 5.8
Spain 41.8 46.7 49.6 49.3 46.2 47.9 2.8 4.5
Czech Republic 21.9 16.5 24.5 19.3 17.9 14.7 −7.7 1.4
China 10.7 10.8 12.2 10.3 12.4 13.7 5.1 1.3
Canada (13) 9.9 12.9 11.1 12.2 12.7 11.6 3.4 1.1

Source: Global Trade Tracker, 2023

*CAGR: Compound Annual Growth Rate

The U.K is a net importer of baked goods products. In 2022, the U.K's baked goods trade deficit was US$2.4 billion as imports were valued at US$3.6 billion while exports were valued at US$1.2 billion. Of the U.K's baked good imports, bread, pastry, cakes and biscuits (HS code: 190590) were the largest with values of US$2.6 billion (71.5% market share), 793.1 million kilograms, followed by sweet biscuits (HS code: 190531) with values of US$540.5 million (15.0% market share), 160.6 million kilograms and waffles and wafers (HS code: 190532) with values of US$420.4 million (11.7% market share), 93.5 million kilograms in 2022. Of note, Canada has attained measurable market representation in each of the U.K's baked goods imports (with the exception of crispbreads) particularly gingerbread imports, which Canada's supply represented 3.7% of the market share in 2022.

The United Kingdom's top baked goods imports by HS code, and supplying countries in 2022 - Import values in US$ millions and volume in million kilograms
HS Code Description Import value (US$M) Import volume (million kilograms) Top suppliers and market value share % Canada's value share %
1 2 3
Baked goods total (HS code 1905) 3,608.2 1,063.6 France: 15.2 Belgium: 13.2 Germany: 12.8 1.3
190590 Bread, pastry, cakes and biscuits 2,579.1 793.1 France: 19.4 Ireland: 15.6 Belgium: 12.6 1.7
190531 Sweet biscuits 540.5 160.6 Netherlands: 25.2 Germany: 18.6 Belgium: 18.5 0.1
190532 Waffles and wafers 420.4 93.5 Poland: 40.8 Germany: 11.4 Belgium: 10.9 0.0
190540 Rusks, toasted bread 32.8 9.3 Italy: 20.9 France: 18.1 Netherlands: 10.1 1.2
190520 Gingerbread 19.7 4.5 Germany: 38.7 Belgium: 25.7 Denmark: 7.4 3.7
190510 Crispbread 15.7 2.4 Thailand: 35.3 Germany: 20.8 Italy: 13.6
Source: Global Trade Tracker, 2023

Canada's performance

The United Kingdom's baked goods imports from Canada

The U.K was the second largest global market for baked goods products with imports valued at US$3.6 billion, 1.1 billion kilograms in 2022. Of these imports, Canada was the ninth largest supplier to the U.K (representing a 1.3% market share) with imports valued at US$45.9 million, 11.6 million kilograms in 2022. Top baked goods imports from Canada in 2022 included bread, pastry, cakes and biscuits (HS code: 190590) valued at US$44.4 million (96.7% market share), 11.3 million kilograms, gingerbread (HS code 190520) with values of US$0.7 million (1.6% market share), 0.2 million kilograms and rusks, toasted bread (HS code: 190540) with values of US$0.4 million (0.9% market share), 0.1 million kilograms, signifying Canada's position as a trusted and capable supplier of baked goods (products) to the U.K and the surrounding EU region.

The United Kingdom's top baked goods imports by HS code, from Canada in 2022 - Import values in US$ millions and volume in million kilograms
HS Code Description Import value (US$) Import volume (kg) Market value share %
Baked goods total (HS code 1905) 45.9 11.6 100.0
190590 Bread, pastry, cakes and biscuits 44.4 11.3 96.7
190520 Gingerbread 0.7 0.2 1.6
190540 Rusks, toasted bread 0.4 0.1 0.9
190531 Sweet biscuits 0.3 0.0 0.6
190532 Waffles and wafers 0.1 0.0 0.2
Source: Global Trade Tracker, 2023
Canada's baked goods supply gap to the United Kingdom, in US$ millions
Category 2017 2018 2019 2020 2021 2022 CAGR* % 2017-2022
United Kingdom imports from the World 2,421.5 2,612.2 2,747.8 2,766.0 2,787.4 3,608.2 8.3
United Kingdom imports from Canada 35.0 42.6 40.9 44.9 48.1 45.9 5.6
Supply gap 2,386.5 2,569.6 2,706.9 2,721.0 2,739.3 3,562.3 8.3

Source: Global Trade Tracker, 2023

*CAGR: Compound Annual Growth Rate

Canada's export market

Canada, unlike the U.K, is a net exporter of baked goods products. In 2022, Canada enjoyed a baked goods product trade surplus of US$2.7 billion with imports of US$2.0 billion, and exports valued at US$4.7 billion (Canada was the second largest (after Germany) global exporter of baked goods).

Top baked goods products that Canada exported to global markets included bread, pastry, cakes and biscuits (HS code: 190590) with values of US$3.7 billion (71.0% market share), 712.6 million kilograms, sweet biscuits (HS code: 190531) with values of US$561.9 million (11.9% market share), 109.3 million kilograms and waffles and wafers (HS code: 190532) valued at US$533.3 million, 79.9 million kilograms in 2022.

The U.S was the largest market for Canadian baked goods product exports with values of US$4.5 billion (97.0% market share), 911.2 million kilograms, followed by the U.K with values of US$44.7 million (1.0% market share), 14.4 million kilograms and Mexico with values of US$34.7 million (0.8% market share), 4.0 million kilograms in 2022.

Canada's baked goods exports to top global markets in 2022 - US$ million and volume in million kilograms
Country Export value (US$ millions) Export volume (million kilograms) Market value share % in 2022
Global total 4,656.2 947.2 100.0
United States 4,518.2 911.2 97.0
United Kingdom (2) 44.7 14.4 1.0
Mexico 34.7 4.0 0.8
Australia 12.1 3.0 0.3
Japan 7.5 2.2 0.2
Korea 3.6 1.3 0.1
Ireland 3.6 1.3 0.1
Saudi Arabia 3.1 0.6 0.1
Philippines 2.1 0.5 0.0
Costa Rica 2.0 1.3 0.0
Source: Global Trade Tracker, 2023

The province of Ontario was predominant in supplying baked good products to the U.K, occupying a 91.7% market share, followed by Québec, representing a 7.0% market share in 2022. Bread, pastry, cakes and biscuits (HS code: 190590) was the largest baked goods product exported to the U.K with values of US$43.4 million (97% market share), 13.9 million kilograms in 2022.

Canada's top baked goods exports to the United Kingdom by supplying provinces in 2022 - Export values in US$ million and volume in million kilograms
HS Code Description Export value (US$ M) Export volume (million kilograms) Top provincial suppliers and market value share %
Baked goods total (HS code 1905) 44.7 14.4 Ontario: 91.7 Québec: 7.0 British Columbia: 1.1
190590 bread, pastry, cakes, biscuits 43.4 13.9 Ontario: 92.2 Québec: 6.9 British Columbia: 0.9
190520 gingerbread 0.5 0.1 Ontario: 100.0
190510 crispbread 0.4 0.2 Ontario: 69.3 Nova Scotia: 30.7
190531 sweet biscuits 0.4 0.1 Ontario: 58.1 British Columbia: 21.7 Québec: 19.2
190532 waffles and wafers 0.1 0.0 Québec: 100.0
190540 rusks, toasted bread 0.0 0.0 Ontario: 100.0
Source: Global Trade Tracker, 2023

Retail markets

Global retail sales overview of bakery products (baked goods)

Global retail sales of baked goods have increased moderately in CAGR by 6.0% from US$328.5 billion in 2017 to US$439.9 billion in 2022 and are expected to increase at an additional CAGR of 6.5% as retail sales attain US$604.1 billion by 2027. The United States (U.S) was the largest global market for baked goods with retail sales of US$82.9 billion (18.8% market share), followed by China with values of US$38.1 billion (8.7% market share) and Brazil, with retail sales of US$24.9 billion (5.7% market share) in 2022.

The U.K was the tenth largest global retail sales market for baked goods with values of US$10.6 billion, representing a 2.4% market share in 2022. The U.K experienced an increase in CAGR of 3.1% as retail sales grew from US$9.1 billion in 2017 and are expected to further improve with an increase in CAGR of 5.0% in the forecast period as retail sales are anticipated to achieve US$13.6 billion by 2027. In comparison, Canada was the twelfth largest retail sales market for baked goods, accounting for a 1.7% retail sale market share with values of US$7.6 billion in 2022. Similarly, Canada is also expected to achieve positive growth, albeit at a lower rate of 2.5% in the forecast period as retail sales attain US$8.6 billion by 2027. Of note, Brazil is anticipated to experience the largest increase in CAGR (11.1%) in the forecast period as retail sales of baked goods reach US$42.3 billion by 2027.

Baked goods[1] retail value sales by top global markets (based on 2022 sales) - Historical and forecast retail value sales in US$ millions and growth (*CAGR %)
Geography 2017 2022 CAGR* % 2017-2022 2023 2027 CAGR* % 2022-2027
Global total 328,499.2 439,977.1 6.0 473,991.7 604,081.9 6.5
United States 64,714.1 82,933.7 5.1 86,641.3 97,740.0 3.3
China 28,380.8 38,095.8 6.1 41,265.3 53,975.9 7.2
Brazil 15,950.4 24,952.0 9.4 28,300.2 42,275.7 11.1
Japan 22,937.9 24,515.1 1.3 25,140.6 26,423.9 1.5
Mexico 15,423.1 23,801.0 9.1 25,555.0 32,831.3 6.6
Italy 18,254.6 21,837.2 3.6 22,983.2 26,080.9 3.6
Germany 16,940.0 18,765.8 2.1 19,405.8 20,876.3 2.2
France 14,993.6 17,150.6 2.7 17,943.3 20,359.6 3.5
Russia 7,994.0 10,754.9 6.1 11,947.4 16,246.7 8.6
United Kingdom (10) 9,121.9 10,623.3 3.1 11,267.7 13,556.0 5.0
Canada (12) 6,180.5 7,633.6 4.3 7,880.4 8,626.1 2.5

Source: Euromonitor International, 2023

1: Baked goods (as defined by Euromonitor International) - the aggregation of bread, pastries, dessert mixes, frozen baked goods and cakes. Note: Baked goods from in-store bakeries are classified under unpackaged/artisanal, not packaged/industrial.

*CAGR: Compound Annual Growth Rate

Retail sales overview of bakery products (baked goods) in the United Kingdom

Retail sales of baked goods in the U.K were valued at US$10.6 billion in 2022. During the 2017-2022 period, this market grew at a CAGR of 3.1% from US$9.1 billion in 2017 (−0.4% from 2019-2020 with the onset of the pandemic). Between 2020-2021, the market increased by 1.6%, and a further 9.0% from 2021 −2022 (as retail sales grew from US$9.7 billion in 2021), despite consumers spending less time at home as restrictions eased (Euromonitor International; Baked Goods in the U.K, November 2022). Recently however, labour shortages, the energy crisis and the increasing costs of raw materials, in conjunction with the implementation of the HFSS (high fat, sugar, salt) regulation in October 2022, (legislation which will affect price promotions, in-store product location, and online locations of foods high in fat, sugar and salt), have led to strong price increases in baked goods in 2022.

Inflation has since limited the consumers' disposable incomes and decreased demand for packaged leavened bread, cakes and pastries. However, despite recent inflationary pressure, overall baked goods were expected to remain more resilient compared to other staple foods in 2022, guided by the demand for unpackaged options and the high penetration of private and artisanal offerings which are competitively priced, have innovative flavourings and can be consumed on the go (Euromonitor International; Baked Goods in the U.K, November 2022).

The top baked goods categories in the U.K, in terms of retail value sales in 2022, were bread, with values of US$5.1 billion (47.9% market share) increasing at a CAGR of 2.9% from US$4.4 billion in 2017, followed by cakes valued at US$3.1 billion (29.6% market share), representing an increase in CAGR of 2.2% from US$2.8 billion in 2017 and pastries with values of US$1.2 billion (11.1% market share) and experiencing the greatest performance, increasing in CAGR by 5.8% from US$889.3 million in 2017.

Growth in the baked goods category is expected to remain positive at 5.0%, as retail sales reach US$13.6 billion by 2027, despite the implementation of the HFSS regulation which is expected to challenge the immediate performance of baked goods, especially in 2023, when the regulation is set to apply to the first, and full year of baked goods' sales. In addition, alongside its negative impact on impulse buying, the upcoming restrictions on advertising HFSS products in January 2024 are expected to create further barriers to the promotion of new products and is likely to hamper growth. Although the category is unlikely to be dominated by HFSS-compliant products over the forecast period, innovation is expected to continue focusing on healthier products through calorie reduction to address rising consumer demand with permissible indulgence. In addition, sustainability commitments for manufacturers and retailers will remain as concerns around climate change intensify (Euromonitor International; Baked Goods in the U.K, November 2022).

Baked goods retail value sales by Product Category - Historical and forecast retail value sales in US$ millions and growth

Category

2017 2022 CAGR* % 2017-2022 2023 2027 CAGR* % 2022-2027
Baked Goods (Total) 9,121.9 10,623.3 3.1 11,267.7 13,556.0 5.0
Bread 4,406.7 5,090.5 2.9 5,403.1 6,160.4 3.9
Cakes 2,817.2 3,148.2 2.2 3,343.4 4,226.4 6.1
Dessert Mixes 130.9 171.8 5.6 183.8 222.6 5.3
Frozen Baked Goods 180.1 229.3 4.9 242.1 299.4 5.5
Pastries 889.3 1,180.2 5.8 1,249.4 1,587.7 6.1
Dessert Pies and Tarts 697.7 803.3 2.9 845.9 1,059.6 5.7

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Competitive landscape

The U.K baked goods market remained a highly fragmented industry in 2022. The top five baked goods companies (Warburtons Ltd, Hovis Ltd, Premier Foods Plc, Associated British Foods Plc and Mondelez International Inc) represented a combined market share of 19.8% in 2022.

In terms of retail sales, Warburtons Ltd, (Brand name; Warburtons) was the largest baked goods company in the U.K with values of US$856.7 million (8.1% market share), while Hovis Ltd (Brand name; Hovis), the second largest baked goods company, attained US$544.7 million (5.1% market share) in 2022.

Private label companies in comparison, continue to show a moderate presence in the baked goods market in the U.K with retail sales of US$3.9 billion (36.4% market share) in 2022, increasing in CAGR by 5.3% from retail sales of US$2.9 billion in 2017, while artisanal companies attained retail sales of US$2.7 billion (25.0% market share) in 2022, representing an increase in CAGR of 1.7% from US$2.4 billion in 2017.

The recent application of the HFSS regulations in the baked goods sector has classified a majority of packaged cakes, pastries and sweetpies and tarts as high fat, sugar and salt (HFSS) with an accompanying nutritional score for each product. Euromonitor International reports that in order to address these classifications, brand manufacturers are investing in recipe adjustments and developing healthier variants to reduce the nutritional score of their products, such as limiting sugar, salt and fat, and increasing fibre content to compete with their artisanal unpackaged counterparts, who are exempt from these regulations (Euromonitor International; Baked Goods in the U.K, November 2022). For example, Premier Foods Group, the U.K's third largest baked good company, launched Deliciously Good featuring a range of non-HFSS cakes and pies made with real fruit, 30% less sugar and a higher fibre content (Euromonitor International; Baked Goods in the U.K, November 2022).

Top 10 Baked goods Companies in the United Kingdom in 2022 - retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 10,623.3 100.0
Warburtons Ltd 856.7 8.1
Hovis Ltd 544.7 5.1
Premier Foods Plc 314.7 3.0
Associated British Foods Plc 230.3 2.2
Mondelez International Inc 153.8 1.4
Pladis Ltd 94.5 0.9
General Mills Inc 86.9 0.8
Grupo Bimbo SAB de CV 73.4 0.7
Frank Roberts & Sons Ltd 69.9 0.7
Lightbody Celebration Cakes Ltd 64.0 0.6
Private Label 3,867.6 36.4
Artisanal 2,652.4 25.0
Others 1,203.5 11.3
Source: Euromonitor International, 2023

Distribution channels

The majority of the U.K's baked goods market is distributed through grocery retailers versus non-grocery retailers. Grocery retailers (offline) distribution of baked goods accounted for a 98.4% market share in 2022, decreasing slightly from 98.6% held in 2017, while grocery retailing (online), e-commerce in particular, increased from US$391.9 million (4.3% market share) in 2017 to US$915.7 million (8.6% market share) in 2022. Further, within grocery retailers (offline), supermarkets and hypermarkets were the predominant distribution channels for baked goods representing US$2.5 billion and US$2.6 billion each, with market shares of 26.0% and 27.2% respectively, while convenience retailers and discounters occupied a 15.8% and 15.1% market share respectively, in 2022.

Distribution retail channels for baked goods in the United Kingdom - Retail value sales in US$ millions and market share
Outlet Type 2017 2022
Actual Share % Actual Share %
Retail Channels Total 9,121.9 100.0 10,623.3 100.0
Retail Offline 8,730.0 95.7 9,707.6 91.4
Grocery Retailers 8,608.1 98.6 9,556.3 98.4
Convenience Retail 1,234.5 14.3 1,505.9 15.8
Convenience Stores 1,033.6 83.7 1,312.9 87.2
Forecourt Retailers 200.8 16.3 193.0 12.8
Supermarkets 2,667.6 31.0 2,480.5 26.0
Hypermarkets 2,143.4 24.9 2,595.0 27.2
Discounters 1,170.8 13.6 1,446.1 15.1
Warehouse Clubs 6.4 0.1 8.0 0.1
Food/drink/tobacco specialists 729.9 8.5 802.4 8.4
Small Local Grocers 655.5 7.6 718.5 7.5
Non-Grocery Retailers 121.9 1.4 151.3 1.6
General Merchandise Stores 121.9 100.0 151.3 100.0
Retail E-Commerce 391.9 4.3 915.7 8.6
Source: Euromonitor International, 2023

Market segmentation

Bread

Bread was the largest category in the baked goods market with retail value sales of US$5.1 billion (47.9% market share) in 2022. The category grew at a measurable CAGR of 2.9% during the 2017-2022 period, increasing in retail sales from US$4.4 billion in 2017.

Leavened bread was the largest bread segment with retail value sales of US$4.6 billion (90.2% of bread market share) in 2022. Of the leavened bread segment, packaged leavened bread increased in CAGR by 3.0% from US$3.0 billion in 2017 to US$3.5 billion in 2022, while unpackaged leavened bread achieved the best performance, increasing in growth by 13.5% as retail sales increased from US$927.1 million in 2021 to US$1.1 billion in 2022. Flat bread in comparison, grew by 6.0% from US$371.0 million in 2017 to US$497.1 million in 2022. Of the flat breads, packaged flat bread experienced an increase of 6.2% from retail sales of US$356.3 million in 2017 to US$481.2 million in 2022, while unpackaged flat bread experienced the greatest performance, expanding by 12.8% from US14.1 million in 2021 to US$15.9 million in 2022.

The bread market is forecast to remain positive with a CAGR of 3.9% as retail sales are anticipated to reach US$6.2 billion by 2027. Flat bread is anticipated to achieve greater growth (5.9%) in relation to leavened bread growth of 3.7% in the forecast period, as more consumers choose the perceived healthier option of flat breads (Euromonitor International; Baked Goods in the U.K, November 2022). Relatedly, packaged leavened bread is expected to continue to improve the nutritional value of their products and strengthen their brands' value amongst those consumers able to afford premium offerings (Euromonitor International; Baked Goods in the U.K, November 2022). In the bread (flat and unleavened) market competitive landscape, Waburtons Ltd (Brand names: Warburtons) led sales with a market share of 16.3%, followed by Hovis Ltd. (Brand names: Hovis and Mothers Pride) with a market share of 10.6% and Associated British Foods Plc (Brand names: Kingmill, Allinson, Bürgen and Sunblest) with a market share of 4.1% in 2022. In comparison, private label and artisanal companies represent a significant presence in the U.K bread market, attaining market shares of 30.0% and 21.0% respectively, in 2022.

Bread retail value sales by category - Historic retail sales in US$ millions
Category 2017 2018 2019 2020 2021 2022
Bread 4,406.7 4,507.6 4,598.0 4,652.5 4,662.9 5,090.5
Flat Bread 371.0 394.7 415.4 444.1 447.5 497.1
Packaged Flat Bread 356.3 379.5 399.6 430.8 433.4 481.2
Unpackaged Flat Bread 14.7 15.2 15.7 13.3 14.1 15.9
Leavened Bread 4,035.7 4,112.9 4,182.6 4,208.4 4,215.3 4,593.3
Packaged Leavened Bread 3,049.8 3,093.5 3,130.6 3,331.0 3,288.3 3,541.3
Unpackaged Leavened Bread 986.0 1,019.4 1,052.0 877.4 927.1 1,052.1
Source: Euromonitor International, 2023
Bread retail value sales by category - Historical retail value sales growth
Category Annual growth % 2021-2022 CAGR* % 2017-2022 Total growth % 2017-2022
Bread 9.2 2.9 15.5
Flat Bread 11.1 6.0 34.0
Packaged Flat Bread 11.0 6.2 35.1
Unpackaged Flat Bread 12.8 1.6 8.2
Leavened Bread 9.0 2.6 13.8
Packaged Leavened Bread 7.7 3.0 16.1
Unpackaged Leavened Bread 13.5 1.3 6.7

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Top bread companies in the United Kingdom in 2022 - retail value sales in US$ millions and market share
Company Retail Sales (US$ millions) Market share %
Total 5,090.5 100.0
Waburtons Ltd 830.4 16.3
Hovis Ltd. 540.4 10.6
Associated British Foods Plc 207.7 4.1
Private Label 1,528.6 30.0
Artisanal 1,068.0 21.0
Others 479.3 9.4
Source: Euromonitor International, 2023
Bread retail value sales by category - Forecast retail sales in US$ millions
Category 2023 2024 2025 2026 2027
Bread 5,403.1 5,613.4 5,811.7 5,987.2 6,160.4
Flat Bread 537.6 569.8 601.7 631.4 661.2
Packaged Flat Bread 520.1 551.0 581.5 610.1 638.8
Unpackaged Flat Bread 17.5 18.8 20.1 21.3 22.5
Leavened Bread 4,865.4 5,043.6 5,210.0 5,355.7 5,499.1
Packaged Leavened Bread 3,695.9 3,779.5 3,855.4 3,914.8 3,972.7
Unpackaged Leavened Bread 1,169.5 1,264.1 1,354.6 1,440.9 1,526.4
Source: Euromonitor International, 2023
Bread retail value sales by category - Forecast retail value sales growth
Category Annual growth % 2022-2023 CAGR* % 2022-2027 Total growth % 2022-2027
Bread 6.1 3.9 21.0
Flat Bread 8.1 5.9 33.0
Packaged Flat Bread 8.1 5.8 32.8
Unpackaged Flat Bread 10.1 7.2 41.5
Leavened Bread 5.9 3.7 19.7
Packaged Leavened Bread 4.4 2.3 12.2
Unpackaged Leavened Bread 11.2 7.7 45.1

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Cakes

Cakes were the second largest category in the U.K baked goods market with retail value sales of US$3.1 billion (29.6% market share) in 2022. The category grew at a CAGR of 2.2% during the 2017-2022 period, increasing in retail sales from US$2.8 billion in 2017.

Packaged cakes were the largest cake segment with retail value sales of US$1.9 billion (59.4% of cake market share) in 2022, increasing in CAGR by 2.9% from US$1.6 billion in 2017. Of note, unpackaged cakes experienced a decline in growth of 15.7% with the emergence of the pandemic (2019-2020) and the accompanying lockdowns (home seclusion) and restrictions (foodservice and non-essential retail closures) as celebratory occasions and gatherings were limited, however as restrictions eased, the segment recovered, and experienced the best performance from 2021 to 2022, expanding 12.8% as retail sales increased from US$1.1 billion to US$1.3 billion from 2021 to 2022.

The cake market is forecast to remain positive with a greater increase in CAGR of 6.1% as retail sales are anticipated to reach US$4.2 billion by 2027. In the cake market competitive landscape, Premier Foods Plc (Brand names: Mr. Kipling and Lyons Cakes) led sales with a market share of 6.6%, followed by Mondelez International Inc (Brand names: Cadbury and Cadbury Dairy Milk) with a market share of 4.9% and Pladis Ltd (Brand names: Galaxy, Jaffa Cakes, McVitie's and Penguin) with a market share of 3.0% in 2022. In comparison, private label and artisanal companies represent a significant presence in the U.K cake market, attaining market shares of 28.1% and 40.6% respectively, in 2022.

Cake retail value sales by category - Historic retail sales in US$ millions
Category 2017 2018 2019 2020 2021 2022
Cakes 2,817.2 2,878.2 2,989.7 2,803.4 2,875.6 3,148.2
Packaged Cakes 1,625.1 1,654.8 1,726.0 1,738.1 1,743.8 1,871.2
Unpackaged Cakes 1,192.1 1,223.4 1,263.8 1,065.3 1,131.8 1,276.9
Source: Euromonitor International, 2023
Cake retail value sales by category - Historical retail value sales growth
Category Annual growth % 2021-2022 CAGR* % 2017-2022 Total growth % 2017-2022
Cakes 9.5 2.2 11.7
Packaged Cakes 7.3 2.9 15.1
Unpackaged Cakes 12.8 1.4 7.1

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Top cake companies in the United Kingdom in 2022 - retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 3,148.2 100.0
Premier Foods Plc 208.5 6.6
Mondelez International Inc 152.8 4.9
Pladis Ltd 94.5 3.0
Private Label 883.6 28.1
Artisanal 1,276.9 40.6
Others 367.6 11.7
Source: Euromonitor International, 2023
Cake retail value sales by category - Forecast retail sales in US$ millions
Category 2023 2024 2025 2026 2027
Cakes 3,343.4 3,552.1 3,771.9 3,992.8 4,226.4
Packaged Cakes 1,943.7 2,049.4 2,166.7 2,287.9 2,415.8
Unpackaged Cakes 1,399.7 1,502.6 1,605.2 1,704.9 1,810.6
Source: Euromonitor International, 2023
Cake retail value sales by category - Forecast retail value sales growth
Category Annual growth % 2022-2023 CAGR* % 2022-2027 Total growth % 2022-2027
Cakes 6.2 6.1 34.2
Packaged Cakes 3.9 5.2 29.1
Unpackaged Cakes 9.6 7.2 41.8

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Pastries

Pastries were the third largest category in the U.K baked goods market with retail value sales of US$1.2 billion (11.1% market share) in 2022. The category grew at a moderate CAGR of 5.8% during the 2017 at 2022 period, increasing in retail sales from US$889.3 million in 2017.

Packaged pastries were the largest segment with retail value sales of US$872.8 million (74.0% of pastries market share) in 2022, increasing in CAGR by 6.1% from US$648.7 million in 2017. Similar to unpackaged cakes, unpackaged pastries also experienced a decline in growth of 5.2% with the emergence of the pandemic, however as restrictions eased, the segment recovered, expanding 10.4% as retail sales increased from US$278.5 million in 2021 to US$307.5 million in 2022 (+5.9% from 2020 at 2021).

The pastry market is forecast to increase in CAGR by 6.1% as retail sales are anticipated to reach US$1.6 billion by 2027. In the pastry market competitive landscape, Warburtons Ltd (Brand name: Warburtons) led sales with a market share of 2.2%, followed by Associated British Foods Plc (Brand name: Kingsmill) with a market share of 1.9% and Hovis Ltd (Brand name: Hovis) with a market share of 0.4% in 2022. In comparison, private label and artisanal companies represent a significant presence in the U.K pastry market, attaining market shares of 55.9% and 26.1% respectively, in 2022.

Pastries retail value sales by category - Historic retail sales in US$ millions

Category

2017 2018 2019 2020 2021 2022
Pastries 889.3 940.0 996.6 1,044.8 1,094.0 1,180.2
Packaged Pastries 648.7 681.8 719.3 781.8 815.5 872.8
Unpackaged Pastries 240.6 258.2 277.4 262.9 278.5 307.5
Source: Euromonitor International, 2023
Pastries retail value sales by category - Historical retail value sales growth
Category Annual growth % 2021-2022 CAGR* % 2017-2022 Total growth % 2017-2022
Pastries 7.9 5.8 32.7
Packaged Pastries 7.0 6.1 34.5
Unpackaged Pastries 10.4 5.0 27.8

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Top pastries companies in the United Kingdom in 2022 - retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 1,180.2 100.0
Warburtons Ltd 26.3 2.2
Associated British Foods Plc 22.6 1.9
Hovis Ltd 4.3 0.4
Private Label 659.6 55.9
Artisanal 307.5 26.1
Others 157.3 13.3
Source: Euromonitor International, 2023
Pastries retail value sales by category - Forecast retail sales in US$ millions
Category 2023 2024 2025 2026 2027
Pastries 1,249.4 1,326.2 1,409.9 1,496.1 1,587.7
Packaged Pastries 912.6 962.5 1,017.7 1,074.4 1,134.6
Unpackaged Pastries 336.8 363.7 392.3 421.7 453.0
Source: Euromonitor International, 2023
Pastries retail value sales by category - Forecast retail value sales growth
Category Annual growth % 2022-2023 CAGR* % 2022-2027 Total growth % 2022-2027
Pastries 5.9 6.1 34.5
Packaged Pastries 4.6 5.4 30.0
Unpackaged Pastries 9.5 8.1 47.3

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Dessert pies and tarts

The dessert pies and tarts category attained retail value sales of US$803.3 million (7.6% market share of baked goods) in 2022. The category grew at a measurable CAGR of 2.9% during the 2017-2022 period, increasing in retail sales from US$697.7 million in 2017. Sweet pies and tarts were the largest segment with retail value sales of US$455.7 million (56.7% of dessert pies and tarts market share) in 2022, increasing in CAGR by 3.0% from US$392.4 million in 2017 (+9.1% from US$417.6 million in 2021.

The dessert pies and tarts market is forecast to remain positive with a CAGR of 5.7% as retail sales increase to US$1.1 billion by 2027. In the dessert pies and tarts market competitive landscape, Premier Foods Plc (Brand name: Mr. Kipling) led sales with a market share of 7.8%, followed by Nomad Foods Ltd (Brand name: Aunt Bessie's) with a market share of 1.8% and Oetker-Gruppe (Brand name: Coppenrath & Wiese) with a market share of 1.1% in 2022. In comparison, private labels represented a significant presence in the U.K dessert pies and tarts market, attaining a market share of 79.3% in 2022.

Dessert pies and tarts retail value sales by category - Historic retail sales in US$ millions
Category 2017 2018 2019 2020 2021 2022
Dessert Pies and Tarts 697.7 693.7 712.7 730.2 739.0 803.3
Sweet Pies and Tarts 392.4 384.4 394.4 408.1 417.6 455.7
Frozen Cakes, Sweet Pies and Tarts 305.3 309.3 318.3 322.1 321.4 347.7
Source: Euromonitor International, 2023
Dessert pies and tarts retail value sales by category - Historical retail value sales growth
Category Annual growth % 2021-2022 CAGR* % 2017-2022 Total growth % 2017-2022
Dessert Pies and Tarts 8.7 2.9 15.1
Sweet Pies and Tarts 9.1 3.0 16.1
Frozen Cakes, Sweet Pies and Tarts 8.2 2.6 13.9

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Top dessert pies and tart companies in the United Kingdom in 2022 - retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 803.3 100.0
Premier Foods Plc 62.9 7.8
Nomad Foods Ltd 14.6 1.8
Oetker-Gruppe 9.1 1.1
Private Label 636.7 79.3
Others 72.7 9.1
Source: Euromonitor International, 2023
Dessert pies and tarts retail value sales by category - Forecast retail sales in US$ millions
Category 2023 2024 2025 2026 2027
Dessert Pies and Tarts 845.9 891.2 942.7 996.2 1,059.6
Sweet Pies and Tarts 482.3 509.2 540.1 572.3 612.8
Frozen Cakes, Sweet Pies and Tarts 363.6 382.1 402.6 423.8 446.8
Source: Euromonitor International, 2023
Dessert pies and tarts retail value sales by category - Forecast retail value sales growth
Category Annual growth % 2022-2023 CAGR* % 2022-2027 Total growth % 2022-2027
Dessert Pies and Tarts 5.3 5.7 31.9
Sweet Pies and Tarts 5.8 6.1 34.5
Frozen Cakes, Sweet Pies and Tarts 4.6 5.1 28.5

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Frozen baked goods and dessert mixes

Frozen baked goods and dessert mixes attained retail value sales of US$229.3 million (2.2% market share of baked goods) and US$171.8 million (1.6% market share of baked goods) respectively, in 2022. Dessert mixes increased in CAGR by 5.6% from US$130.9 million in 2017, while frozen baked goods was the greater performing category between 2021-2022, achieving growth of 7.8% from US$212.8 million in 2021.

In the forecast period, both frozen baked goods and dessert mixes will achieve positive growth, increasing to US$299.4 million and US$222.6 million respectively, by 2027. In the frozen baked goods competitive landscape, General Mills Inc (Brand name: Jus-Rol) led sales with a market share of 8.9% in 2022. In comparison, private labels represented a substantial presence in the U.K frozen baked goods market, attaining a market share of 52.6% in 2022. In the dessert mixes competitive landscape, Premier Foods Plc

(Brand names: Angel Delight, Bird's and Rowntree's) led sales with a market share of 25.3%, followed by General Mills Inc (Brand names: Betty Crocker and Jus-Rol) with a market share of 24.7% and Kerry Group Plc (Brand name: Green's) with a market share of 9.7% in 2022. In comparison, private labels represented a measurable presence in the U.K dessert mixes market, attaining a market share of 22.5% in 2022.

Frozen baked goods and dessert mixes retail value sales by category - Historic retail sales in US$ millions
Category 2017 2018 2019 2020 2021 2022
Frozen Baked Goods 180.1 187.3 193.9 209.0 212.8 229.3
Dessert Mixes 130.9 137.7 144.3 156.1 160.5 171.8
Source: Euromonitor International, 2023
Frozen baked goods and dessert mixes retail value sales by category - Historical retail value sales growth
Category Annual growth % 2021-2022 CAGR* % 2017-2022 Total growth % 2017-2022
Frozen Baked Goods 7.8 4.9 27.3
Dessert Mixes 7.0 5.6 31.2

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

Top frozen baked goods companies in the United Kingdom in 2022 - retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 229.3 100.0
General Mills Inc 20.5 8.9
Private Label 120.7 52.6
Others 88.1 38.4
Source: Euromonitor International, 2023
Top dessert mixes companies in the United Kingdom in 2022 - retail value sales in US$ millions and market share
Company Retail sales (US$ millions) Market share %
Total 171.8 100.0
Premier Foods Plc 43.4 25.3
General Mills Inc 42.5 24.7
Kerry Group Plc 16.6 9.7
Private Label 38.6 22.5
Others 27.8 16.2
Source: Euromonitor International, 2023
Frozen baked goods and dessert mixes retail value sales by category - Forecast retail sales in US$ millions
Category 2023 2024 2025 2026 2027
Frozen Baked Goods 242.1 254.2 268.3 283.3 299.4
Dessert Mixes 183.8 193.7 203.2 212.9 222.6
Source: Euromonitor International, 2023
Frozen baked goods and dessert mixes retail value sales by category - Forecast retail value sales growth
Category Annual growth % 2022-2023 CAGR* % 2022-2027 Total growth %2022-2027
Frozen Baked Goods 5.6 5.5 30.6
Dessert Mixes 7.0 5.3 29.6

Source: Euromonitor International, 2023

*CAGR: Compound Annual Growth Rate

New product launch analysis

According to Mintel, European launches of cakes and sweet baked goods with premium packaging claims remains niche yet remain a focus of innovation as consumers look for everyday luxuries and affordable treats (47.0% of adults in the U.K see premium cakes and sweet baked goods as an affordable luxury, and this peaks among parents with young kids). Innovation also focuses on smaller-sized (mini or bite-sized) formats as more consumers look for cakes in varying sizes that can suit a variety of consumption choices (Mintel; A year of innovation in cakes, pastries and sweet goods, 2023). Consumers are also looking for cookies and crackers with healthier ingredients such as nuts, grains, fruit and vegetables and a reduction in the use of palm oil (31.% of cracker consumers in the U.K would like to see palm-oi-free crackers), (Mintel; A year of innovation in biscuits, cookies and crackers, 2023).

According to Mintel's Global New Products Database (GNPD), there were 9,323 new bakery products launched in the U.K from January 2017 to December 2022. The number of yearly product launches has decreased in growth by a CAGR of 3.8% from a launch of 1,752 bakery products in 2017 to its most recent launch of 1,444 bakery products in 2022. Of note, new launches of bakery products experienced the only increase in growth rate (19.7%) from 2020 to 2021 as product launches increased from 1,346 to 1,611 products.

The predominant sub-categories of new bakery products released were cakes, pastries and sweet goods (3,079 products), sweet biscuits/cookies (2,268 products) and bread and bread products (1,660 products). The most popular product claim was vegetarian (6,419 products), followed by ethical - environmentally friendly packaging (4,922 products) and ethical - recycling with (4,793 products). The companies with the highest number of new product launches were Asda with (857 products), followed by Sainsbury's (738 products) and Tesco (734 products). Just under one half (47.8%) of the product launches were new variety/range extension (4,461 products), whereas 27.1% were new packaging products (2,531 products). The top five packaging types included flexible packaging (6,883 products), carton (855 products), clam-pack (330 products), tub (288 products) and flexible stand-up pouch (234 products). Top flavours were unflavoured/plain (2,032 products), chocolate (857 products) and milk chocolate (252 products).

New product launches of bakery products (category) in the United Kingdom, 2017 to 2022
Product attributes Number of new products by year Total
2017 2018 2019 2020 2021 2022
Yearly product launches 1,752 1,670 1,500 1,346 1,611 1,444 9,323
Top 5 sub-categories
Cakes, pastries and sweet goods 549 536 476 457 508 553 3,079
Sweet biscuits/cookies 416 376 328 330 445 373 2,268
Bread and bread products 346 352 284 266 232 180 1,660
Baking ingredients and mixes 262 286 271 198 313 254 1,584
Savoury biscuits/crackers 179 120 141 95 113 84 732
Top 10 claims
Vegetarian 1,272 1,171 1,023 898 1,065 990 6,419
Ethical - environmentally friendly package 693 721 685 725 1,038 1,060 4,922
Ethical - recycling 679 711 666 705 1,006 1,026 4,793
No additives/preservatives 558 400 410 326 372 306 2,372
Free from added/artificial colourings 486 326 364 276 323 254 2,029
Free from added/artificial flavourings 433 283 329 252 310 252 1,859
Social media 292 322 302 207 238 170 1,531
Low/no/reduced allergen 290 286 264 204 238 179 1,461
Vegan/no animal ingredients 164 184 249 234 309 256 1,396
Seasonal 169 221 189 163 325 312 1,379
Top 10 companies
Asda 237 110 145 104 130 131 857
Sainsbury's 67 94 74 153 133 217 738
Tesco 158 216 102 78 79 101 734
Marks & Spencer 81 71 31 80 106 163 532
Aldi 52 60 71 53 107 91 434
Morrisons 69 64 66 70 77 71 417
Waitrose 77 41 53 71 79 37 358
Lidl 45 37 38 19 47 50 236
Premier Foods 50 67 37 31 35 16 236
Mondelez 31 45 38 24 33 16 187
Top product launches
New variety/range extension 867 783 710 586 827 688 4,461
New packaging 437 477 411 403 400 403 2,531
New product 230 238 242 187 215 173 1,285
Relaunch 181 144 121 160 154 162 922
New formulation 37 28 16 10 15 18 124
Top 5 flavours (including blend) unordered
Unflavoured/plain 434 411 335 305 305 242 2,032
Chocolate 161 162 151 108 144 131 857
Chocolate (milk) 56 43 34 29 47 43 252
Lemon 21 20 22 30 27 30 150
Vanilla/vanilla bourbon/vanilla Madagascar 20 29 25 21 29 25 149
Top 5 ingredients
Wheat flour (food) 1,247 1,134 981 984 1,176 1,061 6,583
White sugar (food) 1,174 1,129 985 917 1,206 1,118 6,529
Salt (food) 1,231 1,162 980 935 1,153 1,014 6,475
Emulsifiers 932 888 806 732 917 890 5,165
Iron (food) 852 795 695 704 828 802 4,676
Top 5 package types
Flexible 1,317 1,237 1,100 1,006 1,186 1,037 6,883
Carton 154 178 150 135 112 126 855
Clam-pack 52 51 52 60 44 71 330
Tub 59 46 41 31 62 49 288
Flexible stand-up pouch 53 36 42 30 38 35 234
Total pack size
200.00 grams 93 106 90 93 100 99 581
150.00 grams 88 76 74 52 92 61 443
100.00 grams 72 79 64 61 54 56 386
400.00 grams 60 63 51 58 83 47 362
250.00 grams 60 50 36 51 39 57 293
Source: Mintel Global New Product Database (GNPD), 2023
New product pricing, 2017 to 2022
Sub-category Number of products Average price per product (in US$)
Cakes, Pastries & Sweet Goods 3,079 3.67
Sweet Biscuits/Cookies 2,268 3.32
Bread & Bread Products 1,660 2.05
Baking Ingredients & Mixes 1,584 3.15
Savoury Biscuits/Crackers 732 2.62
Source: Mintel Global New Product Database (GNPD), 2023

Examples of new product launches

Organic Petit Fours Mince Pies

Source: Mintel, 2023
Company Highgrove Enterprises
Brand Highgrove
Category Bakery
Sub-category Cakes, pastries and sweet goods
Market United Kingdom
Location of manufacture United Kingdom
Import status Not imported
Store type Internet / mail order
Date published December 2022
Launch type New product
Price in US dollars 12.20
 

Highgrove Organic Petit Fours Mince Pies are now available for 2022 Christmas, and retail in a 210 gram pack. The finest organic products inspired by the Royal Gardens Highgrove, the private residence of HRH the Prince of Wales - Suitable for vegetarians - Part of the Prince's Foundation - Recyclable pack - Logos and certifications: OF&G Organic, EU Organic

Coffee & Cardamom Shortbread

Source: Mintel, 2023
Company Waitrose
Brand Waitrose & Partners The Levantine Table
Category Bakery
Sub-category Sweet biscuits / cookies
Market United Kingdom
Store type Internet / mail order
Date published July 2021
Launch type New product
Price in US dollars 3.06
 

Waitrose & Partners The Levantine Table Coffee & Cardamom Shortbread is suitable for vegetarians. The product is described as rich, all butter shortbread with the flavours of fragrant cardamom coffee, a popular drink in Middle Eastern cafés. It retails in a partly recyclable 145 gram pack.

Thick Sliced Toastie Bread

Source: Mintel, 2023
Company Warburtons
Brand Warburtons Gluten Free
Category Bakery
Sub-category Bread and bread products
Market United Kingdom
Store type Supermarket
Date published September 2020
Launch type New variety / range extension
Price in US dollars 2.46
 

Warburtons Gluten Free Thick Sliced Toastie Bread is free from gluten, milk and wheat This vegetarian white bread is high in calcium and provides a source of fibre. It is halal and kosher certified, is suitable for home freezing and retails in a 400 gram recyclable pack featuring Facebook, Instagram, Pinterest, Twitter and YouTube logos.

Natural Madagascan Vanilla Extract

Source: Mintel, 2023
Company Dr. Oetker
Brand Dr. Oetker
Category Bakery
Sub-category Baking ingredients and mixes
Market United Kingdom
Store type Internet / mail order
Date published December 2019
Launch type New variety / range extension
Price in US dollars 5.12
 

Dr. Oetker Natural Madagascan Vanilla Extract is said to be made from real Madagascan vanilla bean pods, which are renowned for delivering the best all round vanilla flavour. Vanilla is claimed to enhance the creamy and sweet flavours in cakes, desserts and icings. The vegan product retails in a 95 millilitre recyclable pack featuring Facebook, Twitter and Instagram.

Sour Cream & Chive Flavour Salted Savoury Snack Biscuits

Source: Mintel, 2023
Company Mondelez
Brand Tuc
Category Bakery
Sub-category Savoury biscuits / crackers
Market United Kingdom
Store type Mass merchandise / hypermarket
Date published December 2017
Launch type New variety / range extension
Price in US dollars 1.34
 

Tuc Sour Cream & Chive Flavour Salted Savoury Snack Biscuits are now available. The product retails in a 120 gram pack, containing about 21 5.2 gram units.

Opportunities for Canada

The U.K was the tenth largest global retail sales market for baked goods with values of US$10.6 billion, representing a 2.4% market share in 2022. The U.K experienced an increase in CAGR of 3.1% as retail sales grew from US$9.1 billion in 2017 and are expected to further improve with an increase in CAGR of 5.0% in the forecast period as retail sales are anticipated to achieve US$13.6 billion by 2027.

The U.K is a net importer of baked goods products. In 2022, the U.K's baked goods trade deficit was US$2.4 billion as imports were valued at US$3.6 billion while exports were valued at US$1.2 billion. In 2022, the U.K was the second largest global import market for baked goods (7.8% market share) after the United States, with imports valued at US$3.6 billion (7.8% market share), 1.1 billion kilograms, representing an increase in CAGR of 8.3% from US$2.4 billion (880.8 million kilograms) in 2017. Of the U.K's 2022 baked good imports, Canada was the U.K's ninth largest supplier, representing a 1.3% market value share, providing US$45.9 million, 11.6 million kilograms in 2022.

Top baked goods imports from Canada in 2022 included bread, pastry, cakes and biscuits (HS code: 190590) valued at US$44.4 million (96.7% market share), 11.3 million kilograms, gingerbread (HS code 190520) with values of US$0.7 million (1.6% market share), 0.2 million kilograms and rusks, toasted bread (HS code: 190540) with values of US$0.4 million (0.9% market share), 0.1 million kilograms, signifying Canada's position as a trusted and capable supplier of baked goods (products) to the U.K and the surrounding EU region.

Canada's broad (and growing) trade network provides Canadian companies preferred access to diverse markets all over the world. Information on Canada's free trade agreements (FTA) may be found at Global Affairs Canada, Trade and investment agreements

The Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA) came into force on April 1, 2021, and provides continuity, predictability, and stability for trade between Canada and the United Kingdom (UK). (Trade Agreements; Canada-UK Trade Continuity Agreement). The Canada-UK Trade Continuity Agreement (Canada-UK TCA) replicates the main benefits of the Canada-EU Comprehensive Economic Trade Agreement (CETA) to ensure continuity in Canada's trade with the UK following the UK's departure from the EU (Canada-UK Trade Continuity Agreement explained).

The Canada-UK TCA provides Canadian exporters with continued preferential access to the UK market and includes the elimination of 98% of tariffs on Canadian exports to the UK (carried over from CETA) on entry into force, and the elimination of an additional 1% of tariffs on Canadian exports to the UK by January 1, 2024, when the TCA is fully implemented–which will bring the elimination of tariffs on Canadian exports to 99% (Canada-UK Trade Continuity Agreement explained).

Given the expected and continued growth in the baked goods product market in the U.K, Canadian producers have the opportunity to expand their exports of baked goods, including value-added products to the U.K market. That said, it is important for Canadian suppliers to work closely with their importing partners and Trade Commissioners to understand and ensure that the U.K's import requirements for their specific products are met.

For more information

The Canadian Trade Commissioner Service:

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

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For information on the upcoming trade show Anuga, please contact:

Ben Berry, Deputy Director
Trade Show Strategy and Delivery
Agriculture and agri-food Canada
ben.berry@agr.gc.ca

Resources

Sector Trend Analysis – Bakery products in the United Kingdom
Global Analysis Report

Prepared by: Laurie Bernardi, International Market Research Analyst

© His Majesty the King in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2023).

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