Bakery Bites: Back to the Future of Bakery
In this Bakery Bites edition, we look at the current growth drivers for the US bakery industry and how they differ from those before the pandemic. In 2019, we were discussing how to attract consumers to bakery aisles and add value through increased offerings. The focus now is on how to keep them engaged as volumes reset to pre-pandemic levels and inflation soars.
- The pandemic has reaffirmed the power of indulgence for baked goods, leading to increased opportunities for innovating pure-fun, indulgent products.
- On the retail front – both center aisles and in-store bakeries – there is work to be done on communicating with consumers who are buying groceries online.
- Inflation is increasingly making consumers more cautious about spending, even for staples, as they are hunting for deals and promotions and experimenting with cheaper offerings.
- Private equity is on the scene, opportunistically moving in and feeding medium-sized players with cash to expand portfolios and territorial reach.
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JP FrossardAnalyst – Consumer Foods