The bakery industry is embracing the trend of omnichannel shopping. According to the bakery China, consumers are increasingly seeking delicious and affordable baked goods through various channels, including supermarkets, convenience stores, and coffee shops.
The challenge posed by inflation, which has driven up ingredient prices, is prompting businesses to offer value for money while maintaining profit margins. This has led consumers to explore a mix of shopping channels, from physical stores to online platforms.
Online business continues to be a significant part of the bakery industry, driven by social media and the demand for instant gratification. Direct-to-consumer (DTC) models, which gained popularity during the pandemic, along with growing subscription models, are meeting consumers' needs for personalized and convenient shopping experiences.
"Click and collect" services offer an attractive combination of brick-and-mortar and online delivery benefits with less investment required. Physical stores remain essential for capturing impulse buys and providing premium experiences that online and D2C models find hard to replicate.
Convenience stores are gaining importance as a channel for bakery products. Research from IGD shows that the category share of bakery products in convenience stores has grown from 5% in 2019 to 5.6% in 2023. Many convenience stores are investing in their facilities and adding hot food and coffee-to-go options to attract customers.
Tesco has introduced its "bake on the shop floor" model to smaller stores, integrating an oven, cooling rack, loose product display cassettes, and product shelving within just over one square meter of shop floor space. ISB products are also being included in meal deals, as seen with The Co-op and coffee shops like Wild Bean Café, Costa, Starbucks, and Caffè Nero, which offer pastry meal deals. Siren Craft Brew in Reading, a pub, also provides a hot drink and pastry for £5.
Meal deals are a crucial part of the food-to-go market, which is positioning itself as a major growth area for forecourts. Data from Lumina Intelligence indicates that forecourt operators are expanding their offerings to include a wider range of sandwiches, wraps, salads, healthier options, and hot meals.
Greggs has opened its 2,500th location within a petrol station at Sainsbury's Bridgeway superstore in Cobham, Surrey, highlighting the expansion of bakery chains into travel hubs and roadside locations.
The growth in these channels signals the future development of the bakery industry under an omnichannel strategy. As the industry continues to evolve, it is crucial for businesses to adapt to these trends to meet consumer demands and preferences effectively.
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Bakery China 2025, organized by China Association of Bakery and Confectionery Industry (CABCI) and Bakery China Exhibitions Co., Ltd. was launched since 1997. Bakery China 2025 is the Asia Pacific's leading event serving the entire value chain for the bakery and confectionery market. The event presents all range of ingredient, equipment, packaging and services, and enables global leading professionals and buyer delegates to meet and share the latest innovations and thinking on manufacturing & distribution, R&D, applications and related services for bakery industry. It is the first-choice trade fair to enter China's bakery market.
(source: British Baker)