Bakeries target £22.5bn food-to-go market

Bakeries target £22.5bn food-to-go market

Bakery outlets have seen the strongest growth in on-premise business among quick-service restaurants, with sales up more than 19% and visits up nearly 18% in the year to April 2019, according to The NPD Group’s Bakery Trends Tracker.

While eight out of 10 bakery purchases are consumed on the move, bakeries account for just £1.2bn (5%) of the UK’s £22.5bn food-to-go business annually. This is up from £1bn five years ago, but suggests room to grow.

Bakeries also only service 3% of total click and collect, but sales are increasing. Delivery is also still low, but up nearly 63% in a year, with value of sales growing over 47%.

For the year, bakery outlets boosted total sales were up by 6% and visits up by 2.2%, outperforming pizza and chicken outlets, which saw visits drop.

Bakeries reported a 9% jump in servings to 1.17bn.

They also have a part to play in snacking, with a 10% increase in snack sales during the year, as well as seeing the strongest growth in coffee servings, up nearly 19%.

“Bakeries and patisseries are an important part of Britain’s £57bn out of home or eat-out foodservice industry,” comments Peter Linden, insight manager foodservice UK for The NPD Group. “Many businesses – small and large – are moving away from their traditional bakery offering to a sharper food-to-go focus. This involves putting on good coffee, offering new food choices such as pizza, salads, pasta, hot sandwiches, croissants, pasties and much more, and meeting the demand for click and collect and delivery. Bakeries by their very nature focus on food-to-go and this is where the growth is.”