Lithuanian habits are changing: they eat different bread

During the coronavirus pandemic, Lithuanians did not forget bread, on the contrary, they bought larger quantities. The list of the most popular is changing, too: for decades, the best-selling rye bread has been replaced by wheat bread, which is more palatable to many tastes. Bakers expect the newly formed habits in the second half of the year to return the bread market to a growth path, according to the press release.

For several years in a row, the intense contraction of the bread market has slowed down due to the pandemic: in the first half of this year, the bread market remained stable in value and contracted only 2.7% *, almost the double than in the same period last year. This was influenced by the lifestyle changes caused by the pandemic – cooking at home more often and eating less at restaurants. We anticipate that this trend will only intensify in the second half of the year, as bread consumption tends to grow during this period, ”says Klavs Berzins, manager of Fazer Bakery Baltic, which represents the Gardėsnis bread brand.

Bread consumers are getting younger and choose wheat products

In May this year, for the first time in a decade, light sandwich bread became the most popular in Lithuania, displacing loaves of rye. Bakers say the main reason for this is younger bread consumers, who have started to consume bread more frequently at home.

“For several years, the consumption of bread has declined more in younger consumer groups. Rye products are chosen more often by older consumers, and schoolchildren, students or young professionals are more likely to choose formal bread from wheat. So, as they began to eat more often at home, the sales of wheat products increased. Also, there is a great variety in this category: cakes with vegetables, kefir, seeds or without added sugar, for everyone to find the most attractive product for them, ”says K. Berzins.

Sales of ration breads also grew in the first half of the year: hamburgers, sausage buns, lavashes and other ethnic cuisines. Although this is a small segment, bakers predict that these products will continue to grow in the second half of the year, gaining an increasing share of the overall bread market.

Currently, rye bread and wheat sandwich bread are the most popular in Lithuania, occupying half of the total bread market. Also one of the largest categories: bars, which account for a quarter of the market.

Growing packing

According to AC Nielsen, one of the most significant changes in consumer behavior, which has also affected the bread market, is the lower frequency of purchases. * However, the bread category is still one of the most important reasons for consumers to go to the store: it is relevant for 50%. Lithuanian. Therefore, as the number of purchases decreases, the bread does not disappear from the shopping cart, on the contrary, its packaging increases.

“Today’s bread buyers shop differently: less impulsive purchases, more planning and larger, more familiar packaging. We have an example in our range: until now, consumers of” Jorė “bread were mainly chosen in medium format Baking, to this day we sell much larger loaves. Following this trend, we deliver many of our other products in larger packages. Even when we plan to introduce new products to the market, we are thinking of alternatives to larger packages. This is welcomed by retailers and consumers alike, as it helps them save money, ”says K. Berzins.

Studies show that up to 45 percent. Lithuanian consumers buy in bulk in the hope of saving.

The future of bread: price sensitivity and health care

According to AC Nielsen, in the second quarter of this year, compared to the same period last year, Lithuanians’ concerns about the economic situation increased significantly (17%). This affects the habits of consumers: they plan to spend more carefully. According to Berzins, this trend is quite favorable for the bread category, as bread remains one of the most important components of the human diet, which is inexpensive and universal. However, consumer expectations for bakery products are also changing.

“Today’s consumer is looking for promotions, larger packages, looking for simplicity, clarity, clean labels,” says the bakery manager.

However, according to Berzins, although the price of bread is increasingly important to more consumers, value-added products will not lose their position for health reasons.

“Today, there is more and more talk about strengthening immunity, the overall health of the body, so criteria such as lower sugar content, more fiber, will continue to be important. In the context of the pandemic, the nutritional value and health will become aspects that will determine the further growth and development of the value-added bread segments, ”says a representative from Fazer Bakery Baltic bakeries, which represent the Gardėsis bread brand.

Nielsen data shows that during the pandemic, a third of the Lithuanian population began exploring healthy products.

* Based on AC Nielsen Baltics sales data in modern Lithuanian trade in black and white bread categories and Nielsen Global Consumer Confidence Index survey data, June 2020.