Lidl beats Tesco for largest share of in-store bakery market

Lidl has overtaken Tesco for the largest share of the in-store bakery (ISB) market in the first quarter of 2024.

The discounter’s market share climbed to 18.2% for the 12 weeks ending 17 March 2024, according to Kantar data, pipping Tesco which held an 18% share for the period.

The discounter, which was named Bakery Retailer of the Year at the 2023 Baking Industry Awards, has been steadily climbing the rankings over the past year, overtaking the likes of Sainsbury’s and Morrisons, which currently have a 13.7% and 11.6% share of in-store bakery, respectively.

The discounter operates a nationwide bake-off operation across its stores with 40 permanently listed lines – including seeded sourdough, croissants, pizza, and pastel de natas – available via its in-store bakeries.

Lidl’s All Butter Croissant is its bestselling bakery item, selling an average of 122 every minute according to Lidl sales data for the first three months of 2024. This is closely followed by the Demi Baguette, Jam Filled Doughnut, and Chocolate Hazelnut Croissant, which all sell at a rate of roughly one a second.

Its market share has also been given a boost by its ‘Special Guest’ range, which sees new limited-edition bakes land in store every fortnight and remain on sale for four weeks. Recent examples of special guests include a Chocolate Cronut (a doughnut-shaped pastry covered in milk chocolate), a Cheese Pretzel Roll, and a Chocolate Twist.

The Special Guests were first introduced last year as part of a revamp of its in-store bakery offering, which also included the addition of ‘Doughnuts of the Month’. Both are sold in brightly coloured fixtures that sit alongside its core ISB range.

“At Lidl, we’re always offering customers a taste of the best products possible, for a fraction of the price – and nowhere is this clearer than in our industry-leading bakery,” said Scott Davey, Lidl GB senior buying director. “Whether customers are popping in for a croissant or trying out one of our innovative special guests, it’s clear our bakery offering is winning over the nation’s bakery popularity contest.”