FUNCTIONAL INGREDIENTS Baking BETTER-FOR-YOU
Rising demand for fibre, protein and digestive wellness is transforming bakery product
development as manufacturers turn to functional ingredients to deliver nutrition without sacrificing indulgence. Kiran Grewal reports.
H
ealth and nutrition have become defining influences on food product development in 2026, and few categories illustrate
this shift more clearly than bakery. Once considered primarily an indulgent treat category, bakery is increasingly being reformulated to deliver functional benefits such as added fibre, protein enrichment, digestive support and reduced sugar. The trend is driven by a convergence
of factors: changing consumer priorities, increased scrutiny of ingredients, and a broader cultural shift toward preventative health and wellbeing. At the same time, economic pressures continue to influence how households shop, forcing consumers to be more selective about the foods they buy while still seeking value and enjoyment. New data from NielsenIQ illustrates
how these forces are developing in the market. Total till sales at UK supermarkets grew by 4.1% in the four weeks ending 24 January 2026, up from 3.0% in December. However, despite the growth in value sales, unit volumes declined by 0.6% as households moderated spending following the Christmas period. Inflation remains a key factor influencing
behaviour. The average spend per visit rose by 2.5%, reaching £22.08, while the number of items in the shopping basket fell by 2.3% as shoppers took a more cautious approach to their weekly grocery shop.
Yet even in this environment of tighter
budgets, demand for healthier products is accelerating. According to NielsenIQ, one in four households now say health is their number one priority for the year ahead. The impact on food categories is already
visible. In the past 26 weeks, protein-based foods have recorded value growth of 9.6%, while fibre-based foods have grown even faster, rising by 14.1% — significantly ahead of overall FMCG growth. This growing focus on nutrition
is influencing innovation across the food industry, including bakery, where manufacturers are working to integrate functional ingredients into traditional products without sacrificing taste or texture. As Mike Watkins, head of retailer and
business insight at NielsenIQ, explains: “Shoppers have entered 2026 with caution and a need to continue to balance budgets. This is felt most by two-thirds of households who still expect to be moderately or severely impacted by cost- of-living increases.” However, Watkins notes that cost pressures
have not dampened interest in health and nutrition.“What’s interesting is that as well as a shift to essential food and drink there is continued interest in health and nutrition, fuelled by new product launches. For example, we are seeing a 20% boost to sales of cereal bars where there is a protein claim.” For bakery manufacturers, this changing consumer mindset presents both an opportunity and a challenge. The opportunity lies in the category’s ability to deliver nutrition in convenient and familiar formats. The challenge is ensuring that functional improvements do not compromise the indulgent sensory experience consumers still expect from baked goods.
Balancing indulgence and wellbeing One of the defining dynamics shaping bakery innovation is the growing expectation that indulgence and health should coexist rather than compete. Dr. Sara de Pelsmaeker, Group Health &
Clara Faustina, ADM
Well-Being Director at Puratos, says the shift reflects a fundamental change in how
14 • KENNEDY’S BAKERY PRODUCTION • FEBRUARY/MARCH 2026
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