The market for cakes and cake bars has increased by 7% in value last year to reach £1.52bn. But while nearly two-thirds of consumers eat them, penetration levels and frequency of use are declining, according to research from Mintel.

It said that the market is expected to grow by 26% between 2008 and 2013 when it should be worth around £2bn, but noted that healthy eating trends have led consumers to ration their intake of "unhealthy" foods including cake. "The current polarisation of the market between healthy and indulgent products is expected to widen," the report stated.

Sales of large cakes have stagnated due to hectic lifestyles and smaller households, which has led consumers towards "more convenient, smaller formats", while sales of celebration cakes have suffered from "low levels of innovation and poor-performing film franchises". Mintel said that cakes tied in with films such as Shrek the Third and Pirates of the Caribbean: At World’s End were taken off the shelves after just 10-12 weeks.

Wrapped products accounted for three-quarters of the market, but unwrapped products took an increasing share, with retail value sales rising from £373m in 2007 to an estimated £407m for 2008. Sales of individual cakes and cake bars have grown from £696m in 2007 to an estimated £767m in 2008. Sales of small cakes rose by 13.3% between 2005 and 2007 to £276m, while slices and cake bars increased by 31% to £231m over the same period.

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=== In Short ===

== Tribute to EPP sales manager ==

European Process Plant’s (EPP) area sales manager for the north east of England, Philip Paul, has died following a motorbike accident at Snetterton race track on 1 August. Paul joined EPP in 1994, after working for Record Pelkman and Baker Perkins. Keith Stalker, managing director of EPP, said: "Philip was very popular with his colleagues, his customers and our manufacturing partners and had extensive knowledge of the baking industry. He will be greatly missed by us all."

== Scottish forum meets ==

The Scottish government’s Food and Drink Leadership Forum, which develops a national food and drink policy, will have its first meeting on 20 August in Edinburgh. It will be chaired by Richard Lochhead, cabinet secretary for rural affairs and the environment.

== Top Tier move ==

Celebration cake company, Top Tier Dreams, in Burgess Hill, West Sussex, has relocated to a new site, due to an increasing customer base. The business, set up by Bernadette Welsh, produces bespoke celebration cakes and sells sugarcraft products, such as candles and icing. The new shop will also sell Belgian and English chocolates.

== Logo winner ==

A Cornish schoolgirl has won Rowe’s Bakery’s Bag For Life logo competition. The design was picked from 500 entries and will be used on a cotton Bag For Life as well as to promote a new children’s range of mini savouries and sweet treats, due to launch soon.

== For chocolate lovers ==

Aimia Foods has launched a new hot chocolate option for vending and foodservice operators. Amour de Chocolat contains a high cocoa content for a rich, continental flavour.

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