Bakery industry could weather a second recession
The bakery industry in the Middle East is likely to withstand a second economic dip far better than many luxury products will, suppliers say.
Citing the status of bakery products as a diet staple, suppliers said the industry had continued to flourish during the last recession; a fact supported by recent statistics from global information publisher Euromonitor International.
“In spite of the fact that it’s been a tough couple of years for the economy, bread is still a basic ‘must-have’ product even during the recession, and we haven’t noticed any negative affect from the downturn in the industry,” said La Marquise sales executive Darya Yurkina.
“Bakery is what we call a ‘hero category’ in a supermarket — along with fruit, vegetables and meat. Many shoppers will shop in a particular store because of the bakery, the fruit and veg or meat sections — all of them are of equal importance to a customer. Supermarkets need to ensure each of these categories is of the highest quality to ensure customer retention,” she added.
The bakery industry’s buoyancy in the region is in many parts due to bakery products being a relatively cheap staple for many consumers. But Cuisine Royale marketing manager Shemaine Doyle said that luxury bakers will not have been afforded the same status.
"The bakery industry in the Middle East slowed down during the downturn but nowhere like the collapse in some parts of Europe. However, I think slowly it will start to climb back up with plenty of room for opportunities within the industry,” she explained.