Research and Markets: Household Expenditure on Bread and Bakery Products in the UK Was Worth an...

DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c88965) has announced the addition of "Bread & Bakery Products Market Report 2008" to their offering.

Household expenditure on bread and bakery products in the UK

was worth an estimated PS3.56bn in 2007, having increased by 5% on the PS3.39bn recorded in 2006. The market for bread and bakery products is mature, but has suffered over the years from changing eating habits, as well as from other difficulties, such as rising costs -- especially in terms of energy and raw materials.

As a consequence of the sharp rise in ingredient costs, which affected wheat in particular, bread prices increased in the second half of 2007. However, the market has managed to retain momentum, as a result of investment in marketing and new product development (NPD) by both manufacturers and retailers.

Until very recently, white bread accounted for the largest sector of the total bread market; however, this sector has been losing both value and market share since 2005. Conversely, the brown and wholemeal bread sector has experienced a strong revival since 2005. This can be linked mainly to renewed interest in healthy eating, with most health professionals advocating a high-fibre diet.

The speciality breads sector has shown steady but unspectacular growth since 2003. It overtook white bread during 2006 to become the largest sector in terms of UK household expenditure on bread and bakery products, accounting for a 29.2% share of the market, compared with the white bread sector's share of 27%.

Since 2003, the bakery products sector has retained a share of around 25% of the total bread and bakery products market (estimated at 24.1% in 2007). The plant bakery sector is currently under a good deal of pressure, with soaring ingredient costs having a negative effect on profit margins for many companies. This coincides with a period of considerable upheaval in the sector generally, with a number of major changes of ownership having taken place since 2004.

Trends indicate that bread continues to retain its position as a staple part of the consumer diet, with penetration levels remaining at almost 100% between 2004 and 2007. With this in mind, the UK market for bread and bakery products is forecast to continue to increase in value over the next 5 years, reaching an estimated PS4.01bn in 2012.

Companies Mentioned:

British Bakeries Ltd

Fletchers Bakeries Ltd

Frank Roberts & Sons Ltd

Greggs Plc

Warburtons Ltd

William Jackson Bakery Ltd

For more information, visit http://www.researchandmarkets.com/reports/c88965.