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Bakery Cafes in the UK - Market Research Report (2015-2030)

Pavlos Petropoulos Pavlos Petropoulos London, United Kingdom Last Updated: January 2025 SIC SP0.070

Revenue

£1.3bn

2025-26

£1.4bn

Past 5-Year Growth

Profit

£XX.Xm

Employees

20,465

Businesses

1,759

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 ramp up 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

  • Lingering inflationary pressures reduce footfall. Bakery cafes' sales have taken a hit amid ongoing cost of living constraints dampening consumer demand, especially among those in lower income brackets, for artisan baked goods and coffee.
  • 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.

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  • Market estimates from 2015-2030
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has declined at a CAGR of 4.8 % over the past five years, to reach an estimated £1.3bn in 2025.

Trends and Insights

The removal of COVID-19 restrictions paves the way for recovery, but economic headwinds constrain growth

  • The full easing of COVID-19 restrictions allowed businesses to return to normal, sending revenue soaring in 2021-22, but it remained below pre-pandemic levels.
  • Additional trends and insights available with purchase
Bakery Cafes in the UK
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

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. Many supermarkets have partnered with coffee shops to operate cafes within their stores, providing convenient options for consumers on the go.

Biggest companies in the Bakery Cafes in the UK

Company
Market Share (%)
2024
Revenue (£m)
2024
Caffe Concerto Ltd
47.1
Ole and Steen (Danish Bake UK Ltd)
34.8
Paul UK Ltd
34.4

To view the market share and analysis for all 6 top companies in this industry, view purchase options.

Products & Services Segmentation

Bakery Cafes in the UK
Products & Services
IBISWorld Logo Source: IBISWorld

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

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 fruit

Companies

Caffe Concerto LtdOle and Steen (Danish Bake UK Ltd)Paul UK Ltd

Purchase this report to view all 6 major companies in this industry.

Related Terms

ARTISANAL BAKERYARTISANPREMIUMISATION

Industry Code

SIC 2007

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

Lingering inflationary pressures reduce footfall. Bakery cafes' sales have taken a hit amid ongoing cost of living constraints dampening consumer demand, especially among tho...

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 (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • 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 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

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 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

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 2020-2025
  • 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 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of Caffe Concerto Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Ole and Steen (Danish Bake UK Ltd)'s performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Paul UK Ltd's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 3 additional companies

Detailed analysis

  • Description and key data for Caffe Concerto Ltd, and factors influencing its performance in the industry
  • Description and key data for Ole and Steen (Danish Bake UK 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, key data and performance trends for 3 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 (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

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-related issues and escalating costs hurt bakery cafes’ returns. Higher wheat and coffee costs, along with rising wage costs amid labour shortages, slashed profitabilit...

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 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Liquidity Ratios (2019-2023)
  • Coverage Ratios (2019-2023)
  • Leverage Ratios  (2019-2023)
  • Operating Ratios (2019-2023)
  • Assets (2019-2023)
  • Liabilities (2019-2023)
  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

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 (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

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 2025?

The market size of the Bakery Cafes in the UK industry in United Kingdom is £1.3bn in 2025.

How many businesses are there in the Bakery Cafes in the UK industry in 2025?

There are 1,759 businesses in the Bakery Cafes in the UK industry in United Kingdom, which has grown at a CAGR of 2.0 % between 2020 and 2025.

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 4.8 % between 2020 and 2025.

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 Caffe Concerto Ltd, Ole and Steen (Danish Bake UK Ltd) and Paul UK 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 Caffe Concerto 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.

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Methodology

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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.

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