Meanwhile, the center store angel food/bundt/sponge subcategory reported $224.6 million in sales, a majority of which were documented by two companies: The J.M. Smucker Co. ($181.2 million) and Flowers Foods LLC ($37.7 million). In addition, the center store layer cakes and specialty cakes subcategories had strong figures—$23.5 million and $15.9 million of sales, respectively. Of note, each subcategory had year-over-year sales declines, a trend that will hopefully diminish once inflation contracts more.

Sales decreased within the center store pies category as well—by 8.2%, dropping to $406.1 million. Likewise, unit sales declined to $267.7 million, a 9.5% reduction. Although each subcategory (individual/snack pies, tarts, and whole pies) reported sales losses, there was some positive news though. Various producers had substantial growth from March 2025 to March 2026, including:

• Brooklyn Delights (tarts, 38.2% increase)
• Flowers Foods (whole pies, 10% upturn) 
• Table Talk Pies (individual/snack pies, 153.2% rise)

Furthermore, the perimeter cakes category (which features several subcategories, including cheesecakes, cupcakes, ice cream cakes, and layer cakes, among others) had a successful 12-month period. From March 2025 to March 2026, its sales rose to $6.6 billion, a 3.2% increase. Producers like Haydels Bakery (perimeter layer cakes, 50.5% spike), Rich Products Corp. (perimeter angel food/bundt/sponge, 83.4% upturn), and Upper Crust Bakery USA (perimeter snack cupcakes, 73.3% surge) especially stood out.

The perimeter pies, perimeter brownies, squares, and bars, and perimeter specialty desserts categories recorded a mix of sales figures. For instance, the perimeter brownies, squares, and bars category had $489.7 million in sales (a 7.9% increase). However, the perimeter pies and specialty desserts categories documented $1.3 billion and $116.7 million in sales—positive figures overall, yet still year-to-year declines of 2.3% and 23.8%, respectively.

Courtesy of Rise Baking Co.

Finally, the frozen pies category documented $796.1 million in sales, a 1.7% year-over-year proliferation. 152.4 million units were sold overall, a 3.6% rise, as the category’s price per unit actually decreased by 1.9% to $5.23. Two leaders were specifically noticed: Golden Fresh Food Group (frozen pies, 260.2% upturn) and The Village Piemaker Inc. (frozen pie/pastry shells, 9.2% rise).

Looking back

As senior customer marketing manager at Rich Products, Bill Heiler has noticed customers are currently purchasing desserts for two big Cs: comfort and connection. In fact, the bakery’s research shows they’re celebrating more frequently lately, leading to high performances for items like brownies, cakes, and doughnuts, despite rising prices. These ever-increasing prices have simultaneously led consumers to purchase items that Heiler describes as “affordable indulgence,” such as cookies and parfaits. 

“They allow customers to treat themselves without overextending their budgets,” he says.

In agreement with Heiler, Rudy DePaola, CEO and president of Strictly from Scratch, adds that consumers’ demands for desserts is still relatively high, yet also more selective than a few years ago. Comfort, convenience, and indulgence are key, but price points are just as important.

“Customers must feel like it’s worth the price,” he emphasizes. “Strong products can still do very well, but producers have to work harder to protect their margins, keep quality high, and stay in demand.”

With this in mind, “disciplined growth” has become more important than “easy growth,” according to DePaola. The bottom line? Customers are more intentional with their purchases now, and producers have been responding accordingly. 

At Rise Baking Co., Michael Docherty (EVP of marketing, R&D, and innovation) has observed that perceived value and uniqueness are virtual requirements. Portion flexibility is increasing as well.

“There is increased demand for smaller formats and individually sized treats that allow for everyday indulgence without the commitment of a full-sized item,” Docherty says.

Of note, specialty desserts and premium offerings have remained as popular as ever during the last 12 months. In short, customers have proven they’ll pay more for quality—“premium indulgence,” as termed by Valerie Bono-Bunker, co-owner of Golden Cannoli. Consumer selectivity has been showcased over the past year, while authenticity has stood out as prices rise. Simply put, according to Bono-Bunker, desserts must be “worth the indulgence.”

Courtesy of Eli’s Cheesecake

This is true when it comes to cheesecake slices, too. Debbie Marchok, vice president of marketing at Eli’s Cheesecake, saw a steady rise in sales from March 2025 to March 2026. A main reason? In Marchok’s opinion, cheesecake slices have high appeal, as their appearances and assortments often increase consumers’ impulse purchases.

“Consumers are looking for desserts that feel indulgent and occasion-worthy,” she notes. “Cheesecakes, especially whole cheesecakes, are closely associated with celebrations, special occasions, or gatherings, too. The bakery environment also reinforces attributes of quality, freshness, and premium positioning.”

There is no doubt about it. Consumers’ demands are evolving. Prices are, more often than not, upturning. “Make America Healthy Again” initiatives are leading to changes. A higher premium is being placed on health, wellness, and quality. Not to mention, dessert producers have steadily had labor and supply chain issues over the last few months and years.

The challenges and obstacles have been ongoing. Yet, the “bright spots” are abundant within the desserts industry as well. “Occasion-based purchasing” has been very noticeable, according to Claire Jessen, vice president of culinary at Nothing Bundt Cakes. In alignment with Marchok’s insights, Jessen has noticed that “consumers are prioritizing experiences that bring people together” even in today’s “value-conscious environment.”

Holidays, milestones, and everyday celebrations are paramount for dessert producers right now. Moreover, producers are engaging with consumers through loyalty programs and digital channels, according to Jessen. These opportunities are helping them “build deeper relationships” with customers that often lead to long-term loyalty.

“Additionally, local community engagement and grassroots marketing efforts have proven to be incredibly impactful, reinforcing brand affinity at the community level,” Jessen says. “These moments of connection have been a powerful driver of traffic and loyalty.”

While reflecting on the recent past, Heiler is especially pleased with cake sales, particularly “highly decorated, social media-worthy celebration cakes.” Likewise, Rich Products’ “smaller, more affordable indulgences” have been very popular too, including cookies, parfaits, and single-serve cakes.

Due to these trends, Rich Products recently expanded its cakes portfolio through four-inch and five-inch mini cakes. Options range from lemon blueberry, to toasted coconut with pineapple filling, to vanilla bean.

“They feel special and high quality, but they’re in formats that fit smaller moments of indulgence, rather than large, shareable occasions,” Heiler says. 

Courtesy of Nothing Bundt Cake

To continue its positive sales trends—and meet customers’ demands for “products that combine strong visual appeal, familial flavors, and an elevated eating experience”—Strictly from Scratch has expanded into “flavor-forward desserts.” For instance, it just released its ube line. Featuring a purple yam that’s nutty, sweet, and vanilla-like, the lineup is gaining popularity, as an ube cheesecake, ube cream cheese coconut danish, and ube tres leches cake have been released so far.

Focusing on clean ingredients and smaller portions, Rise Baking has lately increased its product offerings through a lineup of Brill Simplicious Buttercremes (which only feature natural sources) and mini snack pies in several flavors, including lemon raspberry and salted caramel pecan.

“Consumers want options that fit easily into their day,” Docherty explains. “Clean-label offerings are also gaining traction, reflecting growing consumer demand for transparency and simpler, more recognizable ingredients. Together, these preferences are guiding how we evolve our portfolio.”

Inspired by its steady growth from March 2025 to March 2026, Golden Cannoli has been focusing on its retail-ready and pre-packaged formats above all else, as they reported double-digit growth. As a result, it’s recently expanded its offerings in pre-filled and ready-to-serve formats. 

“Many retail bakery and foodservice operators are looking for ways to reduce labor while maintaining quality,” Bono-Bunker says. “Through our expansions, we deliver authentic cannoli quality at scale, while helping customers reduce labor and improve consistency.”

Aiming to continue its recent success (a 5% year-to-year rise in sales), Eli’s Cheesecake also unveiled its Neapolitan Cheesecake Sampler lately. Offering three flavors—Original Plain, Strawberry Swirl, and Chocolate Truffle—in one eight-inch sample, the sampler was created for consumers that have small gatherings and special occasions.

“Indulgent, portion-controlled desserts continue to resonate strongly,” Marchok adds. “Our samplers accommodate a variety of preferences, while allowing consumers to enjoy multiple flavors in a single purchase.”

Variety has been critical for Nothing Bundt Cakes, too. Over the past year, it has introduced seasonal and limited-time offerings that ensure its menu remains “fresh and exciting.” Flavors like Biscoff Cookie Butter Cake and Dubai Chocolate Pop-Up have been very popular, providing familiarity and novelty simultaneously.

“We focus on delivering these flavors across multiple sizes as well,” Jessen says. “This gives our customers flexibility for everything from bite-sized treats to larger celebrations.”

Courtesy of Nothing Bundt Cake

Looking ahead

In preparation for the next 12 months, Heiler predicts there will be various growth opportunities in the desserts industry. Consequently, producers will likely continue to innovate as they strive to meet consumers’ ever-evolving expectations.

For example, Strictly from Scratch intends to explore unique flavors and combinations that spark consumers’ interests and stir up their curiosity. According to DePaola, new products will “balance familiarity with a point of difference” through “flavors, formats, and presentations.”

“We believe that approach will continue to resonate as consumers look for desserts that feel exciting and valuable,” DePaola says.

To increase their odds of overcoming persistent challenges like cost volatility, labor and regulatory complexity, and supply chain instability, producers will also continue to release smaller formats, premium products that aren’t “out of reach” for consumers (with regard to prices), and versatile offerings that can be sold in foodservice, grad-and-go, and retail channels, DePaola adds.

Indulgence will remain an “anchor” too, according to Docherty. After all, consumers will continue to treat themselves, while seeking out more premium flavors and convenience, whether items are smaller, grab-and-go, or individually wrapped. 

“At Rise, we’re optimistic about the desserts category,” he states. “Consumers’ emotional connections—paired with variety across formats and flavors—is keeping the category growing.”

Bono-Bunker is also positive about the industry. Despite ongoing challenges, she believes the industry will continue to overcome them since desserts are an “accessible indulgence.” Focused on building on its strengths (consistency, ease of use, and quality), Golden Cannoli can’t release any specifics about its upcoming products yet. Various characteristics will be just as ingrained in them as other past releases though.

“Our focus remains on delivering solutions that help our partners reduce labor, improve presentation, and drive sales, particularly in grab-and-go and retail-ready formats,” Bono-Bunker stresses.

Nothing Bundt Cakes can’t provide details about imminent products yet either. Nevertheless, due to the producer’s overall optimism about desserts, it will continue to innovate its menu. More seasonal and limited-time offerings will be created. New flavors will reflect emerging trends, along with its successful, classic favorites. And a range of sizes and formats will be released for customers’ different occasions and needs.

“We’ll continue to listen to our customers and evolve, based on what resonates the most with them,” Jessen says. “It’s an exciting pipeline, and we’re looking forward to what’s ahead.”

Finally, Marchok projects that the dessert category, as a whole, will steadily expand in another critical way: variety. Through this variety—dairy-free, gluten-friendly, low-sugar, and vegan options, small items for quick, everyday indulgences, party size desserts for entertainment purposes and celebrations—more and more consumer needs will be met long term.

To cater to more customers’ unique requirements, Eli’s Cheesecake is set to introduce a No Sugar Added Plain Cheesecake this summer. Baked on an all-butter shortbread cookie, it will have a blend of allulose, monk, and stevia to ensure sweetness.

In conclusion, “desserts still matter,” according to DePaola, a direct result of their “emotional connection.” Quality products that offer comfort, while also enabling customers to celebrate life, will likely thrive long term. They have “real power.”

“For producers, that means the opportunity is still there, but execution is vital,” he says. “The businesses that listen closely, stay disciplined, and continue innovating with purpose are the ones that will continue to succeed.”