This growth is impressive given the rising popularity of baking from home. The trend for home baking can primarily be attributed to the popularity of TV baking programmes such as The Great British Bake Off, the third season finale of which drew an audience of approximately 9.1 million people when it aired in 2013.
Yet, the growing popularity of baking from scratch is restricting potential market performance and has been restricting volume sales of biscuits and cakes in recent years.
Consumers have realised that baking is fun as well as being a means of guaranteeing what ingredients have been used, as opposed to relying on complex food supply chains for ready-made products at retail.
Despite this trend, the size of the market expanded significantly in 2013 based on two factors:
This has encouraged sales in the individual cakes sub-sector and limited the negative impact from the declining demand for whole or large cakes. However, given the substantial influence of inflation and innovation on this market in 2013, long-term future growth has the potential to be unstable as the market deals with products saturation and increasing competition from rival markets, such as the confectionery industry.
Over the next five years, inflation looks set to continue rising and as such, Key Note forecasts total market growth of 14.8% between 2014 and 2018.
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