Bakeries, foodservice operators and retailers feel the impact of the increase in the cost of living, Baker & Baker’s second Bakery Bites report finds. Research undertaken by Sapio Research, involving a survey of 1,000 UK consumers, looks at how the cost-of-living crisis is changing consumer buying behaviors. The current crisis is reflected in the consumption of sweet bakery goods in particular as only one in five consumers said their spending had not changed in the current circumstances, in interviews taken in Q4. When they do purchase sweet bakery products, consumers look at the price, flavor and quality first, to make their selection. They are also willing to scale down their purchasing habits, by trying out discount stores, non-branded products and standard-tier goods over premium options.
“The research brought up some interesting findings”, comments Helen Sinclair, UK marketing manager at Baker & Baker. “And while the price is a major factor in purchasing decisions as disposable income is squeezed, the research highlights that people are responding in different ways – indicating “value for money” is very much a consumer priority but this does not necessarily mean they are looking for cheaper, lower quality goods.”
Possible ways for businesses to navigate these changes include demand-led baking, reducing SKUs and sticking to familiar flavors.
More Bakery Bites reports will be published throughout 2023, Baker & Baker announced.
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