COVID-19 pandemic has certainly changed the way people, both consumers and industry professionals, look at baking.
A recent proprietary research conducted by Tate & Lyle PLC covering 400 senior bakery industry professionals in Europe, revealed that almost three quarters (73%) of European bakery manufacturers said reduced sugar and calorie products are the biggest driver of business growth.
This is followed by “free from” products (54%) and ‘improving the product-consumption experience’ (48%), which both highlighted the ongoing importance of health and wellness in the industry.
The survey covering 400 bakery industry professionals across Germany, France, Spain and the UK found that calorie reduction is the aspect of health and wellness most businesses are prioritising, with almost three quarters (74%) citing this as most relevant to them, followed by sugar reduction (71%) and fat reduction (54%).
However, it is not just about reduction, as more than half of the professionals (51%) said that consumers are also more likely to choose products that offer nutritional benefits, such as added protein and added fibre.
More than 44% of respondents said that a substantial proportion of consumers are willing to pay more for healthy and nutritious foods, while a third (34%) said consumers are increasingly looking beyond the labels on products for details of nutritional contents.
Olivier Kutz, Category Development Manager of Tate & Lyle Europe said, “More and more people are looking for ways to stay healthy and improve their wellbeing, a trend that has been building for a while and continues to grow. Paying more for products with enriched nutritional benefits has accelerated, as consumers gain interest in, and understanding of, exactly what is in the products they buy. A heightened awareness of healthier diets and the long-term health implications of the Covid-19 pandemic has also meant people spending more time at home and taking up baking as a hobby are wanting to use healthier products where possible.”
Following the onset of the pandemic, the majority of businesses saw a fall in demand for bakery products across the convenience retail (40%), wholesale (42%) and fresh bakery (53%) channels, with much larger reductions in the travel (79%) and out-of-home (89%) channels. Grocery retail was the only channel where businesses saw an overall increase in demand, with half (50%) saying demand has grown.
As expected, cost optimisation across the supply chain and managing cash flow, cited by 46% and 45% of businesses respectively, have been the top strategies of those looking to counter the business impact of COVID-19. However, a third (37%) said that they are focusing on new product development to support business recovery, and another 36% said they are prioritising product reformulations in line with current trends, to drive consumer demand.
Will Ballantyne, Technical Manager Bakery, Tate & Lyle, Europe said, “As with many sectors, bakery has found itself heavily impacted by the rapid onset of the pandemic. But we see a positive picture here with the industry adapting to remain profitable and boost sales. It’s encouraging to see bakery businesses working hard to understand consumer demand and putting steps in place to ensure future growth and resilience.”
Katya Witham, an analyst from Mintel added that the pandemic has created major challenges for the food industry, however it also opens up huge opportunities as businesses thrive to adapt to consumer needs.
In a separate but related development, Tate & Lyle has recently extended its partnership with Codexis, Inc to enhance the production of 2 Tate & Lyle’s newest sweeteners namely DOLCIA PRIMA® Allulose and TASTEVA® M Stevia Sweetener.
Codexis’ latest novel enzyme products, generated in close collaboration with Tate & Lyle’s experts will replace existing Codexis enzymes, and allow Tate & Lyle to convert raw material into more finished stevia and allulose, reducing the already highly competitive cost of goods on the 2 products.
“TASTEVA® M Stevia Sweetener and DOLCIA PRIMA® Allulose are two of our most exciting new label-friendly sweetener product launches, supporting our purpose of Improving Lives for Generations by allowing our customers to offer healthier food and drink choices to their consumers,” said Judith Whaley, Tate & Lyle’s Senior Vice President of Research and Development.
These new sweeteners will also help to address growing societal health problems of diabetes and obesity.
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