Near the start of 2016, Oprah Winfrey, one of the greatest of American trend-influencers, said three words every baker yearned to hear, “I love bread!” Her video sparked a viral following and provided great free publicity for one of the oldest and most-honored foods throughout human history.
When it comes to sweet goods like doughnuts, Danishes, sweet rolls, muffins and coffee cake, the market is in a state of flux. As Walter Postelwait, president of Pak Group LLC/Bellarise Baking Ingredients, Pasadena, CA, puts it: “The total segment appears to be growing slowly, but has hot pockets of activity.”
Despite Americans’ growing interest in healthier diets and better-for-you foods made with real ingredients, people still enjoy treating themselves to dessert, be it a piece of frosted layer cake, a slice of silky crème pie or a sliver of decadent cheesecake.
The competitive buns and rolls segment overall shows only minimal overall growth, but select ingredients and product dynamics, like better-for-you, can drive new levels of interest.
Buns and rolls continue to emerge from ovens nationwide at a steady pace. While overall category growth has been minimal, several companies saw comparatively significant gains. And while traditional products maintain perennial allure, new interest comes from ingredients like whole grains and sweeteners.
The frozen breakfast category, anchored by waffles, pancakes and French toast, has produced its share of picks and pans over the past year, largely dominated by a handful of big-dollar items with little variation in sales.
The fresh bread category remains the most important segment in bakery today. It’s highly competitive, and the playing field continues to grow more crowded as more product dynamics like artisan and better-for-you come into consideration with increased frequency.
The bars category continues show good to strong levels of growth, with sufficiently diversified product offerings to appeal to nearly every type of shopper. Few product categories so seamlessly fit into today’s on-the-go lifestyle suited to on-demand snacking.
Bakery companies across the industry have built incremental growth through strategic product and line launches that meet the changing demographic demands.
Tradition is the foundation that grounds much of the bakery industry’s continued success. We see this immutable fact across nearly every category, with leading companies selling billions of dollars of traditional baked goods that have long stood the test of time. These are core products beloved by millions of shoppers.