UK bakery ingredients sector set to profit
advantage of an explosion in home baking, according to research
from Mintel.
In a new report, the market analyst said that sales of home baking products have risen by a massive 25 per cent in the last five years alone to reach £429 million this year.
What is more, over the next five years, Mintel expects the market to grow by an estimated 28 per cent to reach almost £550 million by 2011, crashing through the half billion pound mark as soon as 2009.
"There appears to be a certain nostalgia and sentiment associated with home baking, as it is something people remember from days gone by," said Vivianne Ihekweazu, senior market analyst at Mintel.
"The home baking sector has clearly experienced something of a revival, despite the image of 21st century consumers being time-pressed, convenience food devotees."
Mintel suggested that the government's initiative to introduce cooking lessons into all schools by September 2008 should help market growth and ensure that school leavers are able to pass on cooking skills to the next generation.
However, the analyst said that the market needs ongoing investment by suppliers in new products to maintain high levels of interest.
Today, almost half of shoppers are baking from scratch, with cakes proving to be the most popular option. Mintel believes that the vogue for home baking has been helped by easy to use home baking products such as cake and flour mixes and ready-made pastry.
As a result, sales of mixes have grown by an impressive 34 per cent between 2001 and 2006, compared to just 8 per cent growth in the shop bought cakes market.
Another factor that has benefited the home baking market has been the trend towards premium ingredients. Despite the focus on healthy eating, consumers are looking for indulgent and luxurious products to use in home baking and suppliers are responding with the launch of more premium raw ingredients and baking mixes.
"As many consumers are tending to bake for special occasions, they are less concerned about watching the calories, but opt for the best quality ingredients available," said Ihekweazu.
"They take pride in having baked and appreciate the freshness of the fruits of their labour. As such, sales of premium quality ingredients are likely to continue to thrive."
Mintel's 'Home baking in the UK' is available priced £995.
