The bread and bakery category is expanding beyond the traditional sliced loaf, with speciality items now the fastest-growing segment in in-store bakery, according to supplier Country Choice. Cookies, muffins and doughnuts are also on the rise, while health-focused products such as rye are gaining ground in convenience retail.
Speciality Lines Drive Growth
Stewart Linehan, category and insights manager at Country Choice, says growth across the convenience channel is being driven by premiumisation and innovation. Retailers are expanding fresh bakery ranges in response to shopper demand for indulgent, high-quality and speciality items.
Despite this shift, wrapped bread remains important for top-up and distress purchases. Adding a small number of well-chosen speciality lines can give shoppers a reason to trade up.
Health and Rye on the Rise
Health is also reshaping the category. Analyst Circana figures show rye breads in convenience growing by 17% in value and 12% in volume. Josh Corrigan, UK customer development director at St Pierre Groupe, says shoppers are increasingly interested in “everyday health” rather than highly restrictive diets.
Products that add fibre or protein while remaining easy to use have broad appeal. Corrigan adds: “Rye should no longer be viewed as a niche addition to the bakery fixture.”
Artisan and Clean-Label Demand
Brioche Pasquier sees demand for bread made with fewer ingredients. Duncan Chappell, national retail sales manager, says sourdough and artisan loaves are benefiting. “The market for bread and baked goods is being driven by premiumisation, and customers now want authentic products that are created with clean labels and recognisable ingredients,” he says.
Household spending remains under pressure, but this does not remove the appetite for treats and small upgrades. Rachel Wells, commercial director at St Pierre, says premium bakery can benefit because moving from a standard product to a more premium version such as a brioche bun may add relatively little to the total cost of a meal.
“Shoppers remain conscious of household budgets, but they are still willing to make small and affordable upgrades when products deliver visible quality, better taste and a more elevated eating experience,” she says.
Sweet Treats and Versatile Options
Country Choice also sees opportunity at the sweeter end of the category. Its figures show cookies up 8.3%, muffins 7.6% and doughnuts 7.2%, with the whole sweet category up by 2.9% in the past year. Linehan says shoppers continue to place an emphasis on freshness and taste despite tighter budgets, making small treats such as filled croissants and doughnuts popular.
Sandwich alternatives like bagels and wraps also remain popular. Stephen Jones, UK sales director at Grupo Bimbo, which owns the New York Bakery brand, says versatility is central to the appeal of bagels. “They can be used for breakfast, lunch, snacks or more premium at-home meals,” he says.
