The cost-of-living crisis is having a major impact on the bakery industry as consumers trade down to cheaper alternatives, a new report has found.
According to a UK report by Baker & Baker, a leading European bakery products manufacturer, the cost-of-living crisis is having a detrimental effect on the sweet bakery category due to changing consumer buying habits.
The research, which involved a survey of 1,000 UK consumers, was conducted in Q4 2022 by retail analysis company Sapio Research.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
Baker & Baker revealed that it can no longer be ‘business as usual’ for bakeries, food service operators and retailers, with only one in five (20%) of consumers feeling their spending hasn’t changed because of the cost-of-living crisis.
When asked what consumers prioritise most when purchasing sweet baked goods, the top three reasons outside of diet included price, flavour and quality.
As a result, consumers have been switching from a premium to standard tier bakery goods, and even buying sweet baked products from discount stores to keep costs down.
Also included in the report is independent analysis by Sapio Research alongside tips on how businesses can remain competitive during these economically turbulent times.
“The research brought up some interesting findings,” UK marketing manager at Baker & Baker, Helen Sinclair said.
She added: “And while price is a major factor on purchasing decisions as disposable income is squeezed, the research highlights that people are responding in different ways – indicating “value for money” is very much a consumer priority, but this does not necessarily mean they are looking for cheaper, lower quality goods.”
The news comes as Tesco has partnered with Scottish Bakers to trial an apprenticeship scheme to help with further training for the staff that work in its scratch bakeries.
