Home Consumers Branch facts
Branch facts
In western Europe the consumption of bread and confectionery constitutes a great part of the food market. Therefore, it is important for CEBP to take interests for both minor as well as major companies and to ensure that EU regulations do not interfere with the survival of the old craft whether it is done by hand or machine.- Total worth of West European Bakery Products Market in 2005 was € 88.9 billion, and the top ten West European companies supplied 24.5% of this market.
- Total worth of West European Confectionery Market in 2005 was € 41.6 billion, and the top ten confectionery West European companies supplied 66.8% of this market.
The Western European Market
The western European bread industry produces 25 million tonnes of bread per annum, of which the industrial or plant sector's share is 8 million tonnes.- Germany and the UK are the main operators with 60% of the plant sector production
- France, the Netherlands and Spain produce another 20% between them.
Changing Markets
Even though industrial bakers are dominating some European markets, craft bakers continue to represent the bulk of bread production in Europe, accounting for an estimated 48% of the total volume in 1997, compared with 36% for industrial bakers and 16% for semi-industrial bread, including frozen part-baked products and in-store bakery production.- France, Italy and Germany craft bakers have the largest market share although the situation is changing
- The plant sector is taking market shares from the master bakers. In Germany, there are 18,000 craft bakers, however, the number is expected to half in the next five years.
- In the UK and Denmark, plant bakeries currently hold between 75 – 80% of the market.
Decreasing number of craft bakeries
The younger generation are not prepared to work the very long hours required in craft bakeries. They prefer working shorter shifts in modern industries. However, the main reason is commercial pressure.- In Germany the larger plant baking companies are supplying their own chains of retail shops instead of supermarkets. These chains have grown rapidly and now account for more than 30% of the German market.
- In France frozen dough and part baked baguettes have transformed the market so that co-operatives and industrial baking companies are flourishing at the expense of the craft sector.
In-store bakeries are perhaps the fastest growing sector, continuing to increase in number as the larger retailers gain an increased share of the overall retail market. Freshness remains a significant factor in bread, with many consumers buying bread daily for same day consumption. In-store bakeries therefore have a distinct advantage over industrial pre-packed products and offer strong competition to the small craft baker.