Cakes Pastries Industry

Would a Sugar Tax Have an Impact on the Cakes and Pastries Industry?

The cake and pastries industry in the UK faces many different challenges. It is an industry that is extremely important to the consumers in the country. Many of the families in the UK enjoy their selection of cakes and pastries, but at the same time, they take into account the prices for the extra food staples.

Cost Concerns

Those that are in the bakery business whether on a large retail level or a simple bakery shop, have to be concerned about their costs. The government sometimes makes decisions for industries that have a dramatic effect on their bottom line. There was great concern when the government clamped down on the pop and beverage industry and levied a sugar tax against these companies. There was fear that this was going to be carried over into the cake and pasty industry. Should this take place it is going to have a dramatic impact on this industry.

Sugar Use

It is difficult to make the product line within the cake and pastries selection without using sugar. However, the industry has been very innovative on ways to cut back on its usage, and with replacements. By doing this it often drives the cost of the products up which means that they have to answer to the consumer as to why.

Unfortunately, many times consumers will take things for granted. They may approve of sugar substitutes and going more natural without compromising the quality and taste of the cakes and pastries. They may not approve of the increase in cost that goes with it though. In most cases, it is simply because they don’t understand that these new methods increase the cost for the bakery shop or the retailers.

Making Changes

It is much easier for those in this industry to make the changes on their own rather than be forced to pay a tax such as a sugar tax, as it doesn’t give them time to experiment or adjust their costs.

There will always be a market for cakes and pastries in the UK, because these are food items that have a long history. Consumers now want delicious, great tasting food which has healthy ingredients.