Bakery goods drive Britain's foodservice market: report
Over four out of ten visits in eat-out foodservice involve the purchase of bakery goods.
The eat-out foodservice market has seen a slight increase in overall visits by 0.3% year-on-year in September as savoury and sweet bakery chains gain traction.
For the past three years, visits for bakery products have continuously risen, based on the NPD Group’s new Bakery Tracker Service report.
The market research company says that the bakery segment banks on convenience as the reason behind its leading contribution in the foodservice market.
“First, breakfast on-the-go is popular with consumers who want baked products such as croissants or savoury baps for their first meal of the day. Second, bakery taps into the fast growth in delivery, drive-thru and work-related food-to-go purchases – the ‘off-premise’ side of the industry that is growing seven times faster than ‘on-premise’,” said Peter Linden, NPD Group’s insights manager for UK foodservice.
Sandwiches and wraps, Linden adds, meet the need for convenience and “represent an affordable way of buying quality, variety and often healthier bakery option.”
Bakery offerings has expanded by 2.5% in September 2019 to a total of 6.2 billion, which now represents 21% of overall eat-out foodservice market servings in Britain.
Savoury bakery products have edged up well (up 2.5%) compared to sweet bakery products (up 2.2%) in the same period.
According to NPD Group, over four out of ten visits in eat-out foodservice involve the purchase of bakery goods.
The group sees bakery visits to increase by 10% to 470 million by September 2022, led by savoury products with 12% visit increase, whilst sweet bakery visits could grow by 8% to 108 million visits.
Out of the five major European markets, Britain’s eat-out market has the slowest growth.
(Also read: Bakeries' on-premise sales up over 19% in 2018: study)
