Bread & Bakery Products 2009 - Market Report

Executive Summary

The bread and bakery products market, like many others, struggled during 2008, with the banking crisis and the consequent difficulty in obtaining credit adding to pre-existing problems, such as the rising costs of energy and raw materials.

These factors meant that the cost of bread continued to rise throughout the year. Its status as a staple dietary item within a mature market has caused problems in the past, with manufacturers having to be continually inventive in order to try to maintain market value. Paradoxically, however, this has at least cushioned the market from the vagaries of consumer behaviour, and consumer expenditure on bread and bakery products grew by 6.2% in 2008, to £3.8bn.

The market is segmented into four broad sectors: white bread, brown and wholemeal bread, speciality breads and bakery products. The white bread sector, which had lost sales during the years between 2005 and 2007, recovered during 2008, with consumer expenditure growing by more than 10% on the previous year and bringing sales to their highest level of the review period (2004 to 2008). This could be linked to the current financial situation, with consumers being more likely to switch to own-label and discounted bread, which tends to be focused more on the white than the brown sector. In terms of market share, however, white bread's share remains considerably smaller than it was at the start of the review period.

By contrast, the brown and wholemeal sector, which saw something of a revival during the middle part of the decade, saw growth slow down during 2008, although household expenditure remained considerably higher than it was in 2004.

The speciality breads sector overtook white bread as the largest market sector in 2006, and has steadily increased its share of the total bread market since then.

Year-on-year growth in household expenditure on bakery products was erratic over the review period and modest in 2008, and its share of the total market has contracted since 2005.

Overall consumption of bread is almost universal and daily consumption is high, but there are significant differences in the types of bread favoured by men and women.

Bakery businesses found 2008 a challenging year. A number of retail craft-bakery chains went into administration and/or were sold, and several larger companies are finding the current financial climate extremely difficult. Although expenditure is forecast to rise in 2009 and beyond, at least some of this will be due to rising prices resulting from increased production costs.

Executive Summary
1. Market Definition
Report Coverage
Market Sectors
White Bread
Brown And Wholemeal Bread
Speciality Breads
Bakery Products
Market Trends
Economic Factors
Demographic Factors
Household Size
An Ageing Population
Immigration
Social Factors
Busier Lifestyles
Changing Working Patterns
Table: The Uk Sandwiches Sector By Value At Current Prices (£m At Rsp And %),-2007
Sophisticated Consumers
Health And The Bread Market
Economic Trends
Gross Domestic Product
Table: Uk Gross Domestic Product At Current And Annual Chain-linked Prices (£m),-2007
Inflation
Table: Uk Rate Of Inflation (%),-2007
Household Disposable Income
Table: Uk Household Disposable Income Per Capita (£),-2007
Unemployment
Table: Actual Number Of Unemployed Persons In The Uk (million),-2007
Population
Table: Uk Resident Population Estimates By Sex (000), Mid-years-2007
Market Position
Table: Consumer Expenditure On Food And Non-alcoholic Drink, And Bread And Bakery Products (£m),-2007
2. Market Size
The Total Market
Table: Uk Household Expenditure On Bread And Bakery Products At Current Prices By Sector (£m),-2008
Figure: Uk Household Expenditure On Bread And Bakery Products At Current Prices By Sector (£m),-2008
By Market Sector
Figure: Uk Household Expenditure On Bread And Bakery Products At Current Prices By Sector (%),
Traditional Bread
White Bread
Table: Uk Household Expenditure On White Bread At Current Prices (£m And %),-2008
Brown And Wholemeal Bread
Table: Uk Household Expenditure On Brown And Wholemeal Bread At Current Prices (£m And %),-2008
Table: Uk Household Expenditure On Brown And Wholemeal Bread At Current Prices By Subsector (£m And %),-2008
Speciality Breads
Table: Uk Household Expenditure On Speciality Breads At Current Prices (£m And %),-2008
Table: Uk Household Expenditure On Speciality Breads At Current Prices By Subsector (£m And %),-2008
Bakery Products
Table: Uk Household Expenditure On Bakery Products At Current Prices (£m And %),-2008
Table: Uk Household Expenditure On Bakery Products At Current Prices By Subsector (£m And %),-2008
Overseas Trade
3. Industry Background
Recent History
Number Of Companies
Table: Number Of Vat- And/or Paye-based Enterprises Engaged In The Manufacture Of Bread, Fresh Pastry Goods And Cakes By Turnover Sizeband (number And %),
Employment
Table: Number Of Vat- And/or Paye-based Enterprises Engaged In The Manufacture Of Bread, Fresh Pastry Goods And Cakes By Employment Sizeband (number And %),
Regional Variations In The Marketplace
Table: Number Of Vat- And/or Paye-based Enterprises Engaged In The Manufacture Of Bread, Fresh Pastry Goods And Cakes By Government Office Region (number And %),
Distribution
Wholesale Distribution
Retail Distribution
Table: Average Weekly Expenditure On Bread And Bakery Products By Place Of Purchase (£ And %),
How Robust Is The Market?
Legislation
Food Labelling
Prescribed Quantities
Key Trade Associations
Federation Of Bakers
Flour Advisory Bureau
National Association Of British And Irish Millers
National Association Of Master Bakers
Scottish Association Of Master Bakers
4. Competitor Analysis
The Marketplace
Plant Bakeries
Table: Vertical Integration In The Uk Flour Milling And Baking Industry,
In-store Bakeries
Craft Bakeries
Market Leaders
Allied Bakeries
Company Structure
Current And Future Developments
Financial Results
Fine Lady Bakeries Ltd
Company Structure
Current And Future Developments
Financial Results
Fletchers Bakeries Ltd
Company Structure
Current And Future Developments
Financial Results
Frank Roberts & Sons Ltd
Company Structure
Current And Future Developments
Financial Results
Premier Foods Plc
Company Structure
Current And Future Developments
Financial Results
Warburtons Ltd
Company Structure
Current And Future Developments
Financial Results
William Jackson Bakery Ltd
Company Structure
Current And Future Developments
Financial Results
Specialist Retailers
Greggs Plc
Company Structure
Current And Future Developments
Financial Results
Outside Suppliers
Wheat Supplies
Table: The Total Uk Wheat Harvest By Volume (000 Tonnes),/1988-2007/2008
Table: Sources Of Wheat Used By Uk Flour Millers (000 Tonnes),/1988-2007/2008
Table: Sources Of Wheat Used By Uk Flour Millers (%),/1988-2007/2008
Flour Millers
Table: Total Uk Flour Production By Volume (000 Tonnes),/1988-2007/2008
Table: Uk Flour Production By Type By Volume (%),/1988-2007/2008
Table: Nabim Member Companies,
Marketing Activity
Main Media Advertising Expenditure
Table: Main Media Advertising Expenditure On Bread And Bakery Products (£000), Years Ending September And�
Table: Main Media Advertising Expenditure By Allied Bakeries, British Bakeries And Warburtons, (£000), Year To September And
Recent Campaigns
Hovis
Kingsmill
Warburtons
Exhibitions
5. Strengths, Weaknesses, Opportunities And Threats
Strengths
Weaknesses
Opportunities
Threats
6. Buying Behaviour
Introduction
Consumer Penetration
Table: Consumption Of Bread In The Last Months (% Of Adults),-2008
Frequency Of Usage Of Bread
Table: Consumption Of Bread In The Last Months By Frequency (% Of Adults),-2008
Table: Consumption Of White And Brown Bread In The Last Months By Frequency (% Of Adults), And
By Sex
Table: Consumption Of Bread In The Last Months By Frequency By Sex (% Of Adults),
By Age
Table: Consumption Of Bread In The Last Months By Frequency By Age (% Of Adults),
By Social Grade
Table: Consumption Of Bread In The Last Months By Frequency By Social Grade (% Of Adults),
By Region
Table: Consumption Of Bread In The Last Months By Frequency By Region (% Of Adults),
By Presence And Age Of Children
Table: Consumption Of Bread In The Last Months By Frequency By Presence And Age Of Children In Household (% Of Adults),
Types Of Bread Eaten
Table: Types Of Bread Eaten In The Last Months (% Of Adults), And
By Sex
Table: Types Of Bread Eaten In The Last Months By Sex (% Of Adults),
Type Of Bread Eaten Most Often
Table: Type Of Bread Eaten Most Often In The Last Months (% Of Adults), And
By Sex
Table: Type Of Bread Eaten Most Often In The Last Months By Sex (% Of Adults),
7. Current Issues
Health Issues
Folic Acid
Salt In Bread
Real Bread Campaign
Corporate Developments
Ferrari's Bakery
Firkins
Gails
John Pimblett & Sons
Lyndale Foods
New York Bagel Company
Princi
Village Du Pain
New Product Developments
Supermarkets
Employment
Consumer News
Children's Eating Habits
Home Bread Making
8. The Global Market
Corporate Developments
North America
Europe
9. Forecasts
Economic Background
Gross Domestic Product
Table: Forecast Uk Growth In Gross Domestic Product In Real Terms (%),-2012
Inflation
Table: Forecast Uk Rate Of Inflation (%),-2012
Unemployment
Table: Forecast Actual Number Of Unemployed Persons In The Uk (million),-2012
Population
Table: Forecast Uk Resident Population By Sex (000), Mid-years-2012
Forecasts To
Table: Forecast Uk Household Expenditure On Bread And Bakery Products At Current Prices (£m),-2013
Market Growth
Figure: Growth In Household Expenditure On Bread And Bakery Products At Current Prices (£m),-2013
Future Trends
10. Company Profiles
Abf Grain Products Ltd
Fine Lady Bakeries Ltd
Fletchers Bakeries Ltd
Frank Roberts & Sons Ltd
Greggs Plc
Premier Foods Plc
Warburtons Ltd
William Jackson Bakery Ltd
11. Further Sources
Associations
General Sources
Government Publications
Other Sources
Key Note Sources