Appetite is rising for sweet bakery such as cookies, muffins, and doughnuts, especially as an afternoon treat, latest research has found.
A new report from Nestlé Professional, entitled ‘Sweet Ambition: Growing sweet bakery opportunities in Out-of-Home’, draws on results from the company’s March 2025 survey of 1,000 UK consumers as well as Kantar data on OOH purchases for the 52w/e 29 December 2024.
It highlighted how the sweet bakery market was now valued at £2.7bn, an increase of 10.3% year on year, with volume in packs up by 3.7% to sell 1.5bn during the period. A total of 39.8m British shoppers were making around 28 trips per year to buy sweet bakery, spending an average of £2.47 each time.
Separate data provided to British Baker by Circana, focussing on snacking occasions in Great Britain, heralded sweet bakery as one of the fastest growing categories with servings up 16% in 2024 versus the year prior. Driven by strong performances of the likes of waffles, pancakes, and doughnuts, sweet bakery was outpacing other major snacking categories like ice cream, confectionary, chicken items, cereal bars, and crisps, reported Circana.
Nestlé looked back to its 2023 research to recall how lunchtime had previously been the prime time for sweet bakery treats. Fast forward to 2025, and the crown has now passed to the 2pm-5pm slot, with a third of consumers turning to sweet bakery as their go-to treat between lunch and dinner. The shift reflects wider consumption trends that suggest people look forward to an afternoon’s moment of enjoyment, added Nestlé.
Breakfast remains a stalwart for sweet treats, however, especially croissants. In 2024, more people ate out of home, with the breakfast occasion up a healthy 13.7%, thanks to more people returning to the office. “Hybrid working is here to stay, creating opportunities in sweet bakery for breakfast on the go, or desk-side,” commented Irene Ferre, insights lead at Nestlé Professional.
There’s also been a change in where consumers are snaffling their sweet treats. The latest data revealed that over half (51%) of these items are now being eaten at home, even when purchased from venues such as coffee shops or retail bakeries. Josh Lewis, desserts category lead at Nestlé Professional, noted how this “means formats need to travel well, look appealing, and deliver on taste and quality.”
Results from the survey included 73% of respondents saying the visual appearance of sweet bake goods plays an important part of their purchasing decision, with 83% demanding good looking treats. Nestlé recommends innovations such as cube croissants with colourful glazes – something bakery supplier Bridor also endorsed in its recent research report on croissants – along with Japanese rice doughnuts (mochi) and hybrids like cronuts and cruffins.
In terms of the nation’s favourite bakes, cookies are leading the charge in both value and growth. They account for £328m in spend (+15.2% YOY) and have improved volume sales by 9.4%. Nestlé explained this success had been driven by broad consumer appeal as well as their ability to cater to a range of tastes and occasions. Cookies consistently outperform doughnuts in actual sales and purchase frequency, although doughnuts are still handpicked by 26% of consumers as their preferred OOH treat.
Muffins, meanwhile, are also doing the business with +12/9% growth in value buoyed by their variety and versatility. And the aforementioned croissants have risen by 14.7% in value, reflecting their appeal as an all-day snack.
“Sweet bakery plays a growing role in people’s everyday routines, whether it’s a cookie with a coffee or a moment of pause in a busy afternoon,” said Lewis. “Consumers are also becoming more mindful. They still want to enjoy something satisfying, but they’re looking for options that reflect their values, like lower sugar, plant-based, or sustainably packaged products.”
Of the people interviewed for the research, 17% said they would like to see more sustainable options in sweet bakery, including ethically sourced ingredients and eco-friendly packaging. “For operators, this opens up real opportunities to offer variety, drive footfall and stay relevant,” Lewis added.
Brand power was another key takeaway from the report. Almost two thirds (60%) of consumers claimed that seeing a brand they knew and trusted was important when choosing sweet bakery. This was especially evident in the younger demographic – 77% of 25- to 34-year-olds are on the lookout for a trusted brand, compared to 46% among those aged 55 and above. Branded doughnuts were the products sought out most by consumers, followed by cookies and cheesecakes.
As such, Nestlé is making a play for a slice of the sweet bakery market. Its chocolate brands including KitKat, Rolo, Aero, Munchies, and Milkybar are set to feature on bakery products launching at retailers via co-manufacturing partnerships with Cherry Tree Bakery and Rich’s. Not only are they used as additional toppings, some such as KitKat and Milkybar have been adapted into sweet sauces for filling and drizzling over bakes.
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