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In-Store Bakery Sales on the Rise

Specialty Food Association

Around 95 percent of shoppers report eating in-store bakery items at least occasionally, with 63 percent purchasing items weekly, according to the Food Industry Association’s Power of In Store Bakery report. 

The research suggests that food retailers can drive department success by emphasizing freshness, expanding indulgent options, and inspiring impulse purchases.

“Our first-ever exploration on consumer perceptions of in-store bakery reveal several opportunities to enhance grocers’ strategies: expand customer loyalty by enticing shoppers with freshness and assortment; incorporate and communicate quality ingredients; and lead with transparency on ingredient and nutrition callouts, even for those indulgent items,” said FMI’s VP of fresh foods, Rick Stein, in a statement. 

This year, the in-store bakery department has performed well with dollar sales up 14.4 percent. The biggest winners in the bakery this year are muffins (up 24.2 percent), cupcakes (up 23.6 percent), and cookies (up 21.7 percent) in terms of dollar sales increases.

The report suggests shoppers spend their bakery dollars at a variety of locations, with 78 percent purchasing functional bakery items, such as bread, buns, bagels, and rolls at the same store they purchase most of their groceries. When asked if their primary store is their location for bakery items, only about half of shoppers agreed. For indulgent items like cakes, pies, and store-made desserts, consumers look to specialty bakeries, other grocery stores, and online. 

Many shoppers acknowledge that purchases of indulgent items are often done on impulse. When it comes to making these purchases, freshness is top of mind. Knowing when a product was baked, and the date code labels are key to defining freshness.

Related: FreshDirect Shares 2023 Food Trends; IRI: Private Label Experiences Modest Gains