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In-Store Bakeries: U.S. Market Trends

In-Store Bakeries: U.S. Market Trends

Despite comprising a relatively small percentage of perishable dollar sales at most retail stores, in-house bakeries are a thriving and growing part of the U.S. food landscape. In-store bakeries help create and build an image of freshness and quality that carries over throughout the rest of the supermarkets they occupy, and help support the convenience of one-stop shopping that is so essential for mass merchandisers and warehouse clubs. The result of retail’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 will continue through 2017 and beyond.

In-Store Bakeries: U.S. Market Trends estimates that retail sales of the in-store bakery goods market reached $12.8 billion in 2012. The market has been challenged by the economy and health and diet concerns, yet many consumers still choose to indulge and have an increasing desire for fresh rather than packaged foods. Further optimism surrounding the in-store baked goods market stems from the continued expansion of these products beyond the retail shelves they have traditionally occupied and into convenience stores and drug stores. In-Store Bakeries: U.S. Market Trends examines these and other trends that food manufacturers and marketers must be aware of going forward as they will impact future growth in the baked goods segment.

Scope of Market

In-Store Bakeries presents a detailed analysis of the U.S. consumer market for bakery goods sold in in-store bakeries (ISBs) of retailers. It outlines key issues and trends affecting the overall market and analyzes all product categories and segments of sweet and non-sweet baked goods. The report also discusses major players and brands and analyzes their key activities and performance. Market size data are provided for 2008–2012 and projections for 2013–2017. Retail channels that sell consumer in-store bakery goods are covered and considered in arriving at market trends and competitive analysis. Market size estimates are derived from sales through grocery stores and supermarkets, including chains, independents, natural and specialty stores. Sales through mass merchandisers and warehouse club stores are also included. Sales through convenience and drug stores are not included in market size estimates although these channels are discussed since many of them sell fresh baked goods. Not included are sales through independent bakeries, cafes, restaurants or shops, as well as sales covered by IRI of packaged branded products from in-store bakeries or packaged products generally sold in the center of the store. These channels and products are covered to provide context for market trends and competitive analysis.

Methodology

The information in this report was obtained from both primary and secondary research. Primary research included consultation with industry sources and on-site examinations of the retail sector. Secondary research entailed gathering data from relevant trade, business and government sources, as well as company promotional literature and annual reports.

Our estimates of market size and company performance are based on reported revenues of product manufacturers and retailers, and figures from other market research sources including International Dairy-Deli-Bakery Association’s (IDDBA) What’s In Store, Progressive Grocer’s Bakery Operations Review, and Nielsen Perishables Group FreshFacts. Our analysis of consumer trends primarily relies on cross-tabulations of data compiled by Simmons national consumer surveys, New York, NY, from Experian Marketing Services. On an ongoing basis, Simmons conducts booklet-based surveys of a large and random sample of consumers who in aggregate represent a statistically accurate cross-section of the U.S. population. The 2004 through 2013 surveys cited in this report are based on samples of approximately 25,000 U.S. adults. Our consumer analysis also draws on a national online consumer usage survey conducted in June 2013 by Packaged Facts. Our survey data represent a national online consumer panel of 2,000 U.S. adults (age 18+) balanced to Census on the primary demographic measures of gender, age bracket, race/ethnicity, geographic region, marital status, presence of children in the household, and household income.


  • Executive Summary
    • Introduction
      • Scope of Market
    • Methodology
    • In-Store Bakeries
    • Preparation Methods
      • Table In-Store Bakeries Preparation Methods, 2009 vs. 2013 (percent)
    • In-Store Bakery Goods Market Sales at $12.8 Billion in 2012
      • Dollar Sales Increase Each Year Since 2008
        • Table Retail Dollar Sales of In-Store Bakery Goods, 2008-2012 (in millions)
    • Category Sales
      • Table Sales of In-Store Bakery Goods: By Category, 2008-2012 (in millions)
    • Product Segment Sales
      • Table Sales of In-Store Bakery Goods: By Segment, 2008-2012 (in millions)
    • Sales by Retail Channel
    • Market Forecast
    • Types of Suppliers
    • Product, Retail, and Marketing Trends
    • Healthier Breads Gain Popularity Over White Bread
      • Table Types of Bread Eaten Most Often by Consumers Who Eat Bread: By Product Type, 2004-2013 (percent)
    • 6% of Adults Eat Organic Bread
    • Cinnamon Rolls Most Popular Breakfast Pastry
      • Table Consumption Rates for Breakfast Pastries: By Type, 2004-2013 (percent)
    • 40% of American Adults Eat Low-Fat/Fat-Free Foods
    • Consumers Want to Eat Healthier, but Also Indulge
    • Consumers Cutting Back on Wheat Flour and Gluten
    • Consumers Look for Whole-Grain and Multi-Grain Baked Goods
    • In-Store Bakery Key Factor in Grocery Shopping Destination for 30% of Consumers
    • Consumers Buying Shelf-Stable Products Less, Products from In-Store Bakeries More
    • 35% of Consumers Buy Bread Products from In-Store Bakery
  • The Market
    • Introduction
      • Scope of Market
    • Methodology
    • In-Store Bakeries
    • Product Category Definitions
    • Preparation Methods
      • Table In-Store Bakeries Preparation Methods, 2009 vs. 2013 (percent)
    • Products Outside Market Scope
    • Market Size and Growth
      • In-Store Bakery Goods Market Sales at $12.8 Billion in 2012
      • Dollar Sales Increase Each Year Since 2008
        • Table Retail Dollar Sales of In-Store Bakery Goods, 2008-2012 (in millions)
      • Economy's Impact on Sales
      • Household Formation Lags
    • Category Sales
      • Table Sales of In-Store Bakery Goods: By Category, 2008-2012 (in millions)
    • Product Segment Sales
      • Table Sales of In-Store Bakery Goods: By Segment, 2008-2012 (in millions)
    • Sales by Retail Channel
    • Market Forecast
  • The Suppliers
    • Types of Suppliers
      • Private Label Manufacturing
    • Select Supplier Profiles
      • Maplehurst Bakeries
        • Table Maplehurst Bakeries In-Store Bakery Goods
    • CSM Bakery Products
      • Table CSM Bakery Products In-Store Bakery Goods
    • Rich Products Corporation
      • Table Rich Products In-Store Bakery Goods
    • Dawn Food Products
      • Table Dawn Food Products In-Store Bakery Goods
    • Clyde's Delicious Donuts
      • Table Clyde's Delicious Donuts In-Store Bakery Goods
    • Dianne's Fine Desserts
      • Table Dianne's Fine Desserts In-Store Bakery Goods
    • Vie De France Yamazaki
      • Table Vie De France Yamazaki In-Store Bakery Goods
    • Baker Boy
      • Table Baker Boy In-Store Bakery Goods
  • Product, Retail, and Marketing Trends
    • Product Trends
    • Healthier Indulgences
      • Trans Fats
      • TranSmart Thaw & Serve Trans Fat-Free Cakes
      • Whole Grain Greek Yogurt Muffins
      • Ancient Grains, Sprouted Grains
      • Indulgence for Calorie Watchers
      • Gluten-Free
      • Vegan Desserts
      • GMO-Free
    • New Tastes and Experiences
      • Expanding Flavor Palates
      • Salty and Sweet
      • Savory Pastries
      • Regional Tastes
      • Combo Products Offer Different Tastes and Textures
    • Fresh Convenience
      • Single-Serve & Slices
      • Portable Pies
      • Cake Pops
      • Take and Bake
    • Retail Trends
    • Showcasing Behind Glass
    • Open Air Baking
    • Let Them See Decorated Cakes
    • Grab and Go Merchandising
    • Artisanal at Sam's Club
    • Made from Scratch
    • Micro-Bakeries Innovating in Home Kitchens
      • Whole Foods Supports Local Suppliers
    • Fresh Baked Goods in Other Retail Outlets
      • 7-Eleven Fresh Bakery
      • Kwik Trip Keeps It Fresh
      • Walgreens Fresh Bakery Items
    • Marketing Trends
      • Marketing to Consumers
      • In-Store Events
      • Celebrity Appearance In-Store
      • Cake Decorator Challenge
      • Mobile Merchandising
      • Retailer Food Trucks
      • Walgreens Up Market: Fresh Experience
    • Marketing to Retailers
      • Trade Promotions
      • Rich's Cake Pros Decorators' Club
      • DawnFoodsInsights.com
  • The Consumer
    • Note on Data Sources
    • Bread Has High Penetration, Consistent Use
      • Table Consumers Who Eat Bread, 2004-2013 (percent)
    • Healthier Breads Gain Popularity Over White Bread
      • Table Types of Bread Eaten Most Often by Consumers Who Eat Bread: By Product Type, 2004-2013 (percent)
    • Consumers Overwhelmingly Prefer Fresh Bagels
      • Table Consumers Who Eat Bagels: By Type, 2004-2013 (percent)
    • 6% of Adults Eat Organic Bread
      • Table Adults That Eat Organic Foods: By Product Type, 2004-2013 (percent)
    • Demographics Vary by Organic Product Type
      • Consumers Who Eat Any
      • Bread
        • Table Demographic Characteristics of Organic Food Consumers: By Select Product Types, 2013 (index)
    • Cinnamon Rolls Most Popular Breakfast Pastry
      • Table Consumption Rates for Breakfast Pastries: By Type, 2004-2013 (percent)
    • 40% of American Adults Say They Eat Low-Fat/Fat-Free Foods
      • Table Households That Eat Low-Fat/Fat-Free Foods: By Type, 2004-2013 (percent)
    • Demographics Vary by Low-Fat/Fat-Free Food Product Type
      • Consumers Who Eat Any
      • Cookies
      • Cakes/Pastries/Pies
        • Table Demographic Characteristics of Low-Fat/Fat-Free Food Consumers By Select Product Types, 2013 (index)
    • Diet and Nutrition Trends
      • Table People Watching Diet: Reasons and Foods Eaten To Watch Diet, 2005-2013 (percent)
    • Consumers Want to Eat Healthier, but Also Indulge
      • Table Consumer Attitudes about Food: Agree a Lot, 2004-2013 (percent)
    • Consumers Cutting Back on Wheat Flour and Gluten
    • Consumers Look for Whole-Grain and Multi-Grain Baked Goods
    • In-Store Bakery Key Factor in Grocery Shopping Destination for 30% of Consumers
    • Consumers Buying Shelf-Stable Products Less, Products from In-Store Bakeries More
    • 35% of Consumers Buy Bread Products from In-Store Bakery

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