Executive Summary

Despite continuing threats to the bakery market including market saturation, discounting and the current media fascination with low-carbohydrate diets, the UK market managed to hold its own during 2004, showing year-on-year growth of 2.1% to reach a total of Ł3.1bn.

Sales of white bread - which has traditionally been less likely to be viewed as healthy than brown and wholemeal varieties - have suffered more than other sectors from the current media focus on low-carbohydrate diets.

However, there has been continuing activity by manufacturers in terms of marketing and new product development (NPD). Much of this has had a health-related slant - for example, cholesterol-reducing loaves and products with added calcium or low carbohydrate levels.

The brown bread sub sector has suffered in the past from consumer resistance to the taste and texture of wholemeal bread, and sales have been declining for some years. However, the sales decrease slowed during 2004, helped both by NPD aimed at making brown bread more palatable to consumers, and by a renewed focus on the fibre content of bread. Paradoxically the sector may have been helped by publicity surrounding low-carbohydrate diets, some of which make a distinction between different types of bread.

Growth in the ethnic and speciality bread sub-sector is now somewhat slower than it was at the beginning of the decade. However, it has been maintained at a healthy level of just under 3%.

The emphasis within the bread market over the next few years is likely to be on premium, added-value products. In particular, there is likely to be a high level of NPD in the areas of health-related and/or indulgence premium bakery products.

Price:	£ 399.00 GBP ex VAT (£ 468.82 GBP inc VAT )
Publication date:	28 Feb 2005
Licence period:	365 days

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