1. Innovation is key to bread and bakery success
2. Functional bread
3. Helping customers trade up
4. In-store bakery no longer essential
5. Health a focus in bakery food to go
6. Own label option for retailers
1. Innovation is key to bread and bakery success
Bread has always been one of the staples of the forecourt store offering but the category has had an image overhaul of late, driven by consumer demands for new tastes and suppliers pushing boundaries when it comes to bakery.
According to Country Choice category & insights manager Stewart Linehan, the growth in the category is being driven by demand for pastries and sweet bakery products, premiumisation, and innovation. “Convenience retailers are responding with expanded fresh bakery offerings and new retail models, while consumer preferences continue to evolve towards indulgent, high-quality, and speciality bakery items.”
He advises retailers to explore opportunities by considering NPD to pique consumer interest.
“It’s important to create space for new products. Once a retailer has established their core lines they can then use NPD to maintain consumer interest by regularly introducing new products, or seasonal specials, to keep their offer original.”
Hovis has been on a roll when it comes to innovation, with its new food culture-inspired Sub Rolls and new loaves – White n’ Fibre, Signature White and Farmhouse Batch Wholemeal with Oats. The new lines look to encourage trade up to more premium options within the category.
The Hovis Sub Rolls, in particular, were launched in response to the growing trend of out of home sandwiches and aims to give shoppers the chance to create and enjoy deli style rolls in the comfort of their own home, an important benefit with a rise in consumers working from home due to hybrid working.
Chief marketing officer at Hovis, Mark Brown explained how the launches tap into the need for something new. “We have worked diligently to ensure we’re offering shoppers premium yet accessible, everyday options that will tap into different meal occasions and provide the consumer with something different from a brand they know and love.”
St Pierre has also innovated its range with a limited-edition Spicy Chilli Brioche Bun four-pack. Available through to the end of September, the seasonal SKU is designed to offer incremental sales during the summer peak, targeting consumers seeking restaurant-style indulgence at home.
Georgia Dales-Smith, head of UK brands at St Pierre Groupe, said: “We know that consumers are looking for more adventurous mealtime options, particularly during barbecue season. This launch allows retailers to capitalise on the shift toward spicy flavour profiles and elevate the role of brioche in savoury meal occasions.”
2. Functional bread
In May, Warburtons launched two brand new lines in the free-from space – Gluten Free Soft Brown Pittas and Gluten Free Seeded Tiger Bloomer.
The brand said it “continues to invest significantly in the gluten free category as gluten free consumers look for new and interesting bakery products to make mealtimes more exciting”. The launch of these new products demonstrates the bakery’s commitment to continuous innovation, with the brand holding the top spot in the Free From bakery category with sales increasing by 17.1% year-on-year compared to market growth of 1.5%.
When the range was launched, chairman of Warburtons Jonathan Warburton said: “Innovation is critical to the growth of the free from category, so we’re delighted to be expanding our gluten free range to help everyone enjoy high-quality bakery products, regardless of dietary restrictions. The launch of our Gluten Free Soft Brown Pittas and Gluten Free Soft Seeded Tiger Bloomer are part of our continued commitment to significantly invest in our Gluten Free range, helping us to meet the increasing demand for versatile, delicious and convenient free from products.”
Free from isn’t the only growth area for bakery, with Hovis launching Buttermilk Protein Sub Rolls and Sunflower & Honey Protein Sub Rolls for consumers wanting to add more protein into their diets. The Protein Sub Rolls contain 12g protein per roll.
3. Helping customers trade up
According to Nielsen NIQ data, the alternative sandwich segment experienced a 3.9% year-on-year value growth which driven by demand for more exciting and portable options. This has led brands to provide more flavour options, including Hovis’ Sub Rolls range, available in Buttermilk and Cheese & Herb.
To help consumers trade up, Hovis recently launched Farmhouse Batch Wholemeal with Oats. Made with a golden wholemeal starter dough, Hovis Farmhouse Batch Wholemeal with Oats is designed to add value to the wholemeal bread category, providing a premium wholemeal loaf option.
Jason’s is capitalising on the demand for more premium offerings with the launch of two new product ranges – Jason’s Sourdough Creations and Jason’s Everyday Seeded Protein Rolls.
Master baker at Jason’s Sourdough Jason Geary, explained how bakeries have to keep on top of category trends. “As the category evolves, we’re committed to developing products that respond to changing consumer preferences and offer great choice for different consumption occasions while maintaining the quality, craft and simplicity that defines our brand. These two new ranges show the versatility of our sourdough – it’s about combining innovation with tradition, whilst maintaining exceptional quality.”
4. In-store bakery no longer essential
From a food to go point of view, the bakery category was one mostly reserved for sites that could invest the cash and the space into baking facilities which meant that it was out of reach for some stores. However, that’s no longer the case as suppliers have created options for stores of all sizes.
Dez Paterson, commercial director at Rich’s, explains the changes. “The sweet in-store bakery market is evolving – it’s no longer just for stores with baking facilities. Rich’s has developed a convenient and indulgent solution that enables convenience stores without in-store bakeries to offer high-quality bakery products. Our bespoke research shows that customers have many shopping missions in convenience stores – whether it’s a treat on the go, a pick-me-up between meals, or something to share at home.”
In June, Delice de France launched a service for London-based stores to sell ready-made morning goods and treats with no production required.
The Delice Fresh range offers a selection of 28 lines from the supplier’s range of sweet and savoury bakery products. The offering features a “range of price points to suit different outlets” and includes items such as buttery croissants, pains au chocolat, chunk cookies, and artisan breads like baguettes, rolls, and bloomers.
It estimates that the Delice Fresh service could save some operators up to 1.5 hours per day in defrosting, baking, cleaning, and other operational costs associated with food preparation.
Arthur Magne, head of Delice Fresh, said that “for the first time ever, Delice de France can now cater for businesses that do not have the room for an oven or a freezer, or do not have the teams required to bake on site”.
Linehan adds that sweet bakery performs well in smaller store format, particularly doughnuts, Viennoiserie, and Danish pastries as they are often included in deals that pair them with a tea, coffee, or hot chocolate.
5. Health a focus in bakery food to go
While consumers want a sweet treat, health is a growing concern for many. Linehan outlines how sourdough has proven to be more than just a fad. “Health is a growing focus, with sourdough gaining popularity for its perceived health benefits. Indeed, the UK sourdough bread market has witnessed quite a resurgence in recent years. The growth that started during covid – when consumers were stuck at home and looking for more interesting bread carriers for their lunchtime sandwich or evening meal – has continued, thanks to increased demand for high-quality, artisanal bread. I think it’s fair to say that this has become a lasting shift rather than just a trend.”
Tapping into the rise in sourdough popularity, Hovis recently introduced its new Signature White loaf – a premium white bread with added sourdough for a “richer taste experience”.
6. Own label option for retailers
Of course, it’s not just brands that are pushing dough – own label is on the rise in the bread and bakery category. In January, Spar added a white thick sliced bread option to its range, following on from the medium white launch in February 2024. It plans to add a brown/wholemeal option later this year but Spar UK trading controller Katy Button explained the range extension. She said it “addresses growing market trends, with own label bread sales on the rise and thick sliced bread gaining significant popularity”. By introducing this format, Spar aims to fill a key gap in its range and meet increasing customer demand for “high quality, affordable bakery options”.
“The new white thick sliced bread offers shoppers exceptional quality and value, reflecting the growing demand for own label products,” added Button. “Introducing this variety ensures we cater to a wide range of preferences.”
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