Just recently, British Baker released its annual Bakery Market Report, 2025.[i]  Taking a deep dive into the trends across bakery and coffee shops, as well as the top 75 businesses in the market, this report is a great analytical review that can help operators tap into consumer demands and improve performance.

This report comes at a time where Lumina Intelligence reports that food to go channels are driving growth – especially in C-stores, cafes, bakeries and sandwich shops, as well as fast food. This has been in part due to a diversification of formats, with expansion in drive-thru and smaller sites in key locations.[ii]

With value, digital innovation and cultural credibility all important for today’s consumer, visit British Baker to find out what the top players are doing to stay relevant.

Read on for our key takeaways from British Baker’s report:

  • The food-to-go market is forecast to turnover £24bn in 2025, outpacing the overall eating out market in terms of growth.
  • With younger consumers embracing more sober-curious attitudes, cafes are a new type of social space.
  • Lunch accounts for a third of food-to-go occasions. We know that in retail, the ‘Meal Deal’ is popular, but foodservice operators should look to offer something unique that competes with this offering.
  • Opportunity can come from expanding your operation and meeting new dayparts. High street giants like Greggs expanded its range of hot food to move from breakfast and lunch into dinner occasions.
  • Health is on the agenda. Out with the ultra-processed, in with the plant-forward.

(Veganuary showed that consumers were focussing on more vegetable-led choices, over processed meat alternatives, hence a rise in discussion around plant points).

  • Treat remains important to consumers. Lumina Intelligence found it’s still the leading reason for why those in the UK are eating out of home.[iii]
  • Coffee shops have weathered the storm of the last few years.
  • How do you feel about additional charges for ‘milk’ alternatives? Whole milk and semi-skimmed milk remain the two most popular milks, but an oat alternative comes in third! Soya is generally free, but PETA has complained that chains are still charging for other options – like oat or almond.

(Note: Brands should be careful about using the term milk for non-dairy alternatives, following legal battles).

  • We’ve seen coffee shops embrace trending flavours in their drinks and food offerings – including pistachio.
  • Loyalty schemes are becoming more sophisticated! I’ve personally joined Ole + Steen’s. Not only can you order and pick-up in store without the queue, each purchase offers a very generous points system to put towards popular treats like the Cinnamon social.

Of course, these are just our takeaways. For more information, and for the performance of the top 75 businesses, visit British Baker’s website, here.
[i] Bakery Market Report 2025. The out of home bakery market is proving to be resilient in the face of strong headwinds, but operators will have to adapt their offering and pay even closer attention to their customers’ needs if they want to remain in growth. https://bakeryinfo.co.uk/bakery-market-report/bakery-market-report-2025/703671.article
[ii] Lumina Intelligence, March 2025

[iii] Lumina Intelligence, Easting & Drinking Out Panel, 5WE 24/11/2024

Caitlin Hynd
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