Opportunity knocks in in-store bakeries


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, states “In-Store Bakeries: U.S. Market Trends,” a recently released report by Packaged Facts, a division of Rockville, Md.-based

In-store bakeries are important because they contribute to an image of freshness and quality that carries over throughout the rest of the supermarket, said David Sprinkle, research director for Packaged Facts. 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 drugstores 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 said it expects these gains to continue through 2017 and beyond, despite challenges stemming from economic conditions and consumers’ health and diet concerns. Consumer spending is not likely to surge during 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, Packaged Facts stated. 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.

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