Research findings compiled recently by the Manhattan, KS-based American Institute of Baking point out rising sales and other related trends in several different sectors of the baked products industry.
Growth in the retail bakery sector is being boosted by co-branding trends. The tactic has become popular among coffee shops and bakeries, as well as independent retail stores in single locations.
The institute found that private-label and specialty confections were other key ingredients in rising sales. The private-label goods have the highest growth rate in the entire food industry.
Consumer Trends
An increasingly health-conscious society is leading consumers to curtail consumption of fat and sugar. About 67% of consumers have tried fat-free and reduced-sugar products.
Growth in the pie sector is primarily in the health foods niche, where demand for sugar-free products is up, particularly among older adults and diabetics.
Nearly half of all cookie companies now manufacture low-fat, reduced-fat or reduced-sugar products, says the institute.
Artisan Breads
The emerging popularity of “artisan-style” naturally leavened breads is making an impact on overall sales in the bread sector.
Indeed, the fastest growing product category among bakers is crusty/health breads and rolls. Sales of sourdough and ground-wheat products are picking up in the artisan category, particularly in Northern California, where per capita consumption reportedly is four pounds of sourdough products annually.
– Wholesale bakeries generated an estimated $34.6 billion in sales in 1997, a 57% share of the bakery products market. An estimated 23,000 independent bakeries compete with 8,000 in-store bakeries, generating $8.1 billion in sales for major supermarket and general merchandise chains.
– California and New York have the most retail bakeries, with a median sales volume of $371,000 per bakery in 1998. Custom-decorated cakes generate 18% of retail bakery revenue, doughnuts 13% and crusty bread and rolls 11%.
– The No. 1 capital expenditure for bakeries is computerized control equipment for baking, followed by ingredient handling machinery and conveyors. Bakeries spend $6.7 billion annually for services, fuels and energy.
– Cake is most popular in the Northeast and least popular in the West. In-store bakeries generated 25% of the $3.6 billion in cake sales during 1998.
– Cookie and cracker sales in the United States totaled $9.7 billion in 1998, with more than 8,900 varieties distributed across the country. About 27% of cookies sold are not national brands. Cookie makers target women first, followed by children, older adults, younger adults and ethnic groups.
– Supermarket pie sales in 1998 came to $779 million, representing 5% of total baking industry sales. The most popular varieties are apple, followed by cherry and lemon meringue. Pies are a big favorite along the East Coast, particularly in Florida.
– More than 1,000 kinds of breads are marketed in the United States. Naturally leavened artisan breads are particularly popular in the West. Wheat-bread varieties account for more than 34% of sales in bread shops.
– Americans eat an average of 26 bagels annually. The typical household eats two to three cookies a week, and about 21% of consumers have doughnuts at least once a week.
Source: American Institute of Baking
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