Sugarshack Bakery attributed its 50% increase in trade during December to its cost-effective Christmas offering.

The cupcake bakery, based in the north of England, said its low-cost Christmas gifts, including individual cupcakes priced from £2.50, alongside boxes of four Christmas-themed cupcake gift boxes, were its most popular product during the festive season.

In addition, its alternative to Christmas pudding, a giant Baileys cupcake, attracted customers looking for a more personalised and traditional hand-baked product in comparison to mass-produced options.

Marie Casey, owner of Sugarshack Bakery, said: “December is always my best month, but more so in 2011. Trade was up by 50% this year, despite everyone being careful when spending. I think just a little something for a few quid is very attractive, which is why we did well.

“For the traditional Christmas pudding-haters, I think consumers are beginning to be attracted to a more personalised, traditional hand-baked and finished product, rather than a mass-manufactured one."