In-Store Bakery Goods Market Exceeds $13 Billion
By Grocery Headquarters Staff
Despite comprising a relatively small percentage of perishable dollar sales at most retail stores, in-house bakeries are a thriving part of the U.S. food landscape. Retail dollar sales of in-store bakery goods reached $13.4 billion in 2013, up from $12.8 billion in 2012, according to In-Store Bakeries: U.S. Market Trends, a recently released report by market research publisher Packaged Facts. In-store bakeries are key because they contribute to an image of freshness and quality that carries over throughout the rest of the supermarket, says Packaged Facts research director David Sprinkle. Further, in-house bakeries help support the convenient one-stop shopping that is essential for supercenters and warehouse clubs. The continued expansion of fresh baked goods products beyond their supermarket perimeter base and into convenience stores and drug stores lends the market additional momentum. Grocery retailing’s reliance on in-house bakeries, combined with higher price points, has allowed the in-house baked goods market to experience dollar sales increase every year since 2008. Packaged Facts expects these gains to continue through 2017 and beyond despite challenges due to economic conditions and health and diet concerns. Consumer spending is not likely to surge over the next few years, and more consumers will look to reduce bread and sugar in their diets. Nonetheless, the sandwich remains a staple of American-style on the go eating, and most consumers will still want to indulge at least occasionally in sweet baked affordable indulgences. Desserts should continue to drive overall growth with similar sizes, portion control, and on-the-go products leading the way. Breads and rolls as a whole should lag, but artisan and higher quality breads, as well as different varieties of rolls, should stand out on the shelves. Commodity breakfast bakery products will be challenged to remain compelling as consumers seek out these products in various other outlets, including foodservice.