Feature: Britain's Daily Bread

As a nation, bread and bakery products are part and parcel of our daily lives, but the sheer size and scale of the collective operations is easy to overlook.

According to UK Flour Millers, Britain produces around 12 million loaves, two million pizzas and a colossal 10 million cakes and biscuits every day, highlighting the critical role flour and baked products play in our food system.

As inflation has eased slightly from the peaks of 2022-23, spending patterns in the retail sector are stabilising and food sales in particular are holding up – albeit shaped by price sensitivity and value cues. The Office for National Statistics has reported fluctuating monthly volumes through spring and early summer 2025. Food store volumes dipped in May after April’s weather-boosted lift, before broader retail picked up in June.

Price is of course a core purchase driver, but health and nutrition are also resurfacing in addition. The government’s National Diet and Nutrition Survey (2019–2023) reiterates the recommendation that adults should consume 30 grams of fibre per day – which most still fail to achieve – while showing cereals and cereal products as the prime fibre source across age groups. As a result, the momentum behind wholemeal, seeded, high-fibre and reformulated bakery ranges is gathering as retailers push ‘better for you’ options without abandoning value.

Reformulation, health policy and labelling

Mandatory calorie labelling for out-of-home food businesses with 250 or more employees, introduced in England in April 2022, is now part of the operating environment for larger chains with in-store bakeries, cafés and quick-service formats. The Department of Health and Social Care has confirmed it will review the scheme within five years, but already the rules are nudging operators toward reformulation and clearer portion information. For smaller independents, calorie labelling remains voluntary, though it is actively encouraged.

The wider rules on high fat, salt and sugar (HFSS) products also continue to reshape the way products are merchandised. England’s restrictions on prominent in-store placement of HFSS goods took effect in 2022, while the ban on volume price promotions such as multibuy offers is scheduled for 1 October 2025, followed by television and online advertising restrictions in January 2026. According to the Department of Health and Social Care, these measures will have a long-term impact on how bakeries and retailers balance indulgent ranges with healthier, reformulated lines.

Borders, trade friction and supply chain risk

In 2024, the UK’s Border Target Operating Model introduced risk-based sanitary and phytosanitary checks, which affected certain plant and animal-origin ingredients used in bakery supply chains. 

In its 2025 report, the Food Standards Agency highlighted milestones from the first year of implementation and noted areas for ongoing delivery. More recently, the government announced the cancellation of additional border checks ahead of a new SPS agreement with the European Union, signalling an intent to reduce friction on imported plant and animal products. For bakeries reliant on EU ingredients such as seeds, nuts and dairy, this could mean fewer delays and reduced administrative costs, though details are still being finalised.

Sustainability

Sustainability compliance is now tightly linked to costs, and this seems set to continue. For example, Defra has published the first set of Extended Producer Responsibility fees for packaging for 2025–26, which cover common bakery materials such as paper, card, plastics and aluminium. These fees will shape packaging choices, pushing suppliers toward lighter or recyclable materials. 

In addition, HMRC increased the Plastic Packaging Tax from April 2025 to £223.69 per tonne for plastic packaging with less than 30% recycled content. Both policies are designed to stimulate greater use of recycled materials and recyclability, and bakeries are responding with innovations ranging from mono-material films to paper-based wraps.

Food waste is another pressing issue. The latest household food waste report from WRAP confirms that bread remains one of the most wasted products in the UK, despite ongoing campaigns to encourage freezing and smarter portion sizes. In the face of these challenges, The Courtauld Commitment continues to drive collaboration between retailers, manufacturers and charities to reduce bakery waste through packaging tweaks, storage guidance and redistribution of surplus stock.

To continue reading the article, turn to page 28 of our October issue.

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