Rising inflation, the climate crisis and the pandemic leave no one indifferent, and consumers must face this context by looking for more affordable alternatives, more sustainable and healthier foods... Even in staple food markets such as bread and industrial bakery products, purchasing decisions are beginning to change, so brands must know how to respond to these new concerns.
What trends are we seeing in the industrial bread and bakery market? What innovation opportunities can help brands in the sector differentiate themselves?
4 TRENDS IN THE INDUSTRIAL BREAD AND BAKERY MARKET
1. Consumers are turning to private label as the cost of living rises.
European households are undoubtedly grappling with inflation, as high energy and ingredient prices contribute to a rising cost of living. In food and beverage retailing, reduced household incomes are driving consumers to turn to private label.
While simple private label products have significant value appeal, consumers are receptive to premium private label offerings, especially those that remind them of their favorite brands.
Source: Mintel GNPD
The chart shows how private label accounts for the majority of launches in the sector, but private label represents an increase in the share of activity in Europe this year to May 2022.
2. Health as a driver of innovation in bread manufacturing.
For many consumers, the pandemic has intensified the importance of maintaining a healthy diet and reducing the risk of disease.
To address this new concern, some of the latest launches in this bread market have eliminated artificial additives and preservatives. Claims of preservative-free, high-fiber or palm oil-free properties have seen growth in recent years.
However, low-salt and low-sugar options remain a niche market.
Source: Mintel GNPD
3. Companies that respond to sustainability
As consumers become more aware of the impact of their purchases on the health of the planet, they will seek out companies that help them make more environmentally friendly purchasing decisions, take more meaningful and demonstrable steps to address the climate crisis, or reduce the use of plastic and packaging.
As an example of this trend, some brands employ regenerative farming techniques to protect the soil health of grain crops.
© Sana - Coconut Flour Tortilla (United States)
The producer claims to use plant-based ingredients made from low-impact crops, such as coconut and cassava, which it says are better for the consumer and the planet.
4. Plant-based bread launches, focusing on natural goodness and positive nutrition.
Vegan, vegetarian and flexitarian diets were gaining popularity prior to COVID-19, and once the pandemic began, experienced tremendous growth. This is related to increased consumer concern about the environmental impact of meat and dairy production, as well as greater recognition of the importance of a fiber-rich diet.
In response to this new trend, bread manufacturers are innovating around plant-based claims. In addition, as nutrient-rich formulations are an increasing priority for health-conscious consumers, plant-based product options often highlight the health and nutritional qualities of recipes.
OPPORTUNITIES FOR INNOVATION IN BAKERY
Once we know the consumer trends in industrial bakery and bread, we highlight three innovation opportunities for this market.
1. Promote the versatility of the market
Bakery brands can make bread even more indispensable by extending consumption moments. More generally, brands can highlight the versatility of their products to adapt to new occasions, such as outdoor cooking, family moments...
2. Take advantage of local interest to sell escapism.
The pandemic has led to a rise in "localism" and the bakery sector can take advantage of this to respond to the consumer's quest for authenticity. Focusing on specific culinary heritage can also offer escapism, experimenting with ingredients and flavors from other cultures.
3. Helping the consumer to enjoy again
Finally, after enduring harsh confinement, consumers are eager to step outside their boundaries and explore, play and enjoy novel experiences. They will look for joyful products that help them reconnect with their loved ones.
Meanwhile, in other markets, people are becoming aware of the challenges of rising inflation.
