Bakery Cafes in the UK - Market Research Report (2013-2028)
London, United Kingdom
Last Updated: October 2023
SIC SP0.070Revenue
£1.2bn
Past 5-Year Growth
Profit
£XX.Xm
Employees
20,417
Businesses
1,621
Wages
£XXX.Xm
Bakery Cafes in the UK industry analysis
Bakery cafes are flourishing amid a growing coffee culture and mounting demand for high-quality, artisanal bakery goods. Increasingly time-poor consumers seeking convenience and on-the-go food have boosted demand for bakery cafes. Shifting consumer preferences towards premium bakery products and high-quality coffee are forcing bakery cafes to increase their product offerings to capture a wider consumer base. More bakeries are now using gluten-free and vegan ingredients for some products to appeal to new consumer tastes and capture some of the growing vegan market. Rising health consciousness is also forcing bakeries to use higher-quality ingredients, reduce sugar and fat content and introduce salads, soups and fruit to their menus.
Trends and Insights
- COVID-19 brings about massive disruption. Lockdowns forced bakery cafes to close for much of 2020-21 and lowered footfall on British high streets, driving down sales.
- Strong competition from supermarkets pushes down bread sales. Some bakery cafes bake artisan bread that supermarkets don't offer, which commands higher prices, sustaining demand.
- London boasts the highest number of bakery cafes. Artisanal bakery products and independent cafes are highly popular with local consumers, who are willing to pay premium prices. High commuter footfall in London also provides a demand boost.
- Bakery cafes face a high level of competition. Smaller companies are more affected by rising input costs (the result of soaring inflation) and higher rents. Larger chains with economies of scale are squeezing smaller cafes out of the market.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 6.3 % over the past five years, to reach an estimated £1.2bn in 2023.
Trends and Insights
COVID-19 restrictions drag revenue down
- Bakery cafes' operations were severely disrupted by COVID-19 restrictions, with the lockdowns forcing them to close for months at a time which. This, combined with reduced consumer confidence, caused revenue to plummet by 42.3% in 2020-21.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Competition from cafes and supermarkets intensifies, luring away valuable consumers
- Out-of-home coffee consumption continues to expand, providing an opportunity for bakery cafes but also increasing competition from cafes and supermarkets.
Biggest companies in the Bakery Cafes in the UK
| Company | Market Share (%)
2024 | Revenue (£m)
2024 |
|---|---|---|
Gail's Ltd | 72.0 | |
Paul UK Ltd | 33.3 | |
Caffe Concerto Ltd | 32.1 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Bakery Cafes in the UK
Products & Services
Industry revenue is measured across several distinct product and services lines, including Bread and sandwiches, Beverages and Cakes, pastries and pies. Bread and sandwiches is the largest segment of the Bakery Cafes in the UK.
Trends and Insights
A rising preference for on-the-go food boosts sales of bread and sandwiches
- Bread is made by mixing flour, water and yeast, then baking it. Sandwiches consist of two pieces of bread with a filling between them. Wraps are flatbread rolled around a filling.
- More insights available in the full report
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Competitors
- Supermarkets in the UK
- Bakery Product Retailing in the UK
- Takeaway & Fast-Food Restaurants in the UK
- Cafes & Coffee Shops in the UK
Complementors
- Bread & Bakery Goods Production in the UK
International industries
- Coffee & Snack Shops in the US
- Bakery Cafes in the US
- Coffee & Snack Shops in Canada
- Cafes and Coffee Shops in Australia
Table of Contents
About this industry
Industry definition
This industry comprises companies that produce flour-based food in an on-site oven for immediate consumption. Typical products include bread, cakes, pastries, pies and bagels, as well as complementary products such as sandwiches, soups, salads, coffee and other beverages. Purchases may be consumed on-site or taken to go.
What's included in this industry?
BreadSandwichesBeveragesCakesPastriesPiesMuffinsSalads and fruitCompanies
Gail's LtdPaul UK LtdCaffe Concerto LtdPurchase this report to view all 5 major companies in this industry.
Related Terms
ARTISANAL BAKERYARTISANPREMIUMISATIONIndustry Code
SIC 47.24 - Bakery Cafes in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
COVID-19 brings about massive disruption. Lockdowns forced bakery cafes to close for much of 2020-21 and lowered footfall on British high streets, driving down sales.
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Strong competition from supermarkets pushes down bread sales. Some bakery cafes bake artisan bread that supermarkets don't offer, which commands higher prices, sustaining dem...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London boasts the highest number of bakery cafes. Artisanal bakery products and independent cafes are highly popular with local consumers, who are willing to pay premium pric...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Bakery cafes face a high level of competition. Smaller companies are more affected by rising input costs (the result of soaring inflation) and higher rents. Larger chains wit...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Gail’s continues rolling out high-quality, innovative products. Using high-quality inputs and offering vegan and vegetarian bakery goods allows Gail's to attract more custome...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Gail's Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Paul UK Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Caffe Concerto Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Gail's Ltd, and factors influencing its performance in the industry
- Description and key data for Paul UK Ltd, and factors influencing its performance in the industry
- Description and key data for Caffe Concerto Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Average working hours edge upwards. The less free time consumers have, the less time they have to cook, encouraging them to pick up takeaway items like sandwiches and pastrie...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Brexit and COVID-19 hurt bakery cafes’ returns. Higher wheat and coffee costs, along with forced closure during the pandemic, slashed profitability.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2021)
- Coverage Ratios (2017-2021)
- Leverage Ratios (2017-2021)
- Operating Ratios (2017-2021)
- Assets (2017-2021)
- Liabilities (2017-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Bakery Cafes in the UK industry in United Kingdom in 2024?
The market size of the Bakery Cafes in the UK industry in United Kingdom is £1.2bn in 2024.
How many businesses are there in the Bakery Cafes in the UK industry in 2023?
There are 1,621 businesses in the Bakery Cafes in the UK industry in United Kingdom, which has grown at a CAGR of 0.3 % between 2018 and 2023.
Has the Bakery Cafes in the UK industry in United Kingdom grown or declined over the past 5 years?
The market size of the Bakery Cafes in the UK industry in United Kingdom has been declining at a CAGR of 6.3 % between 2018 and 2023.
What is the forecast growth of the Bakery Cafes in the UK industry in United Kingdom over the next 5 years?
Over the next five years, the Bakery Cafes in the UK industry in United Kingdom is expected to grow.
What are the biggest companies in the Bakery Cafes in the UK market in United Kingdom?
The biggest companies operating in the Bakery Cafes market in United Kingdom are Gail's Ltd, Paul UK Ltd and Caffe Concerto Ltd
What does the Bakery Cafes in the UK in United Kingdom include?
Bread and Sandwiches are part of the Bakery Cafes in the UK industry.
Which companies have the highest market share in the Bakery Cafes in the UK in United Kingdom?
The company holding the most market share in United Kingdom is Gail's Ltd.
How competitive is the Bakery Cafes in the UK industry in United Kingdom?
The level of competition is high and increasing in the Bakery Cafes in the UK industry in United Kingdom.
