Health, Convenience Drive Fresh Baked Goods Market

ROCKVILLE, Md.The fresh baked goods market experienced 4% growth in 2009 to reach $16 billion in sales, according to Packaged Facts recently released Fresh Baked Goods in the U.S." report. Steady growth was attributed to consumer interest in healthy eating, artisan foods and localism" countered recessionary pressures. Packaged Facts projects the market for fresh baked goods will exceed $20 billion by 2014.

According to the report, fresh baked goods sales from in-store bakeries, including warehouse clubs, also experienced steady growth, reaching $11 billion in 2010 and comprising nearly 75% of the total retail market.

The report examined baked goods that are prepared fresh at in-store and stand-alone bakeries, using preparation methods such as made-from-scratch, mixes, par-baking (or pre-baking) and thaw-and-heat. It also analyzed trends in the key retail channels through which baked goods are soldboth stand-alone bakeries and in-store outletsincluding traditional supermarkets, supercenters/mass merchandisers, natural food stores, and warehouse clubs. The report also examined activity at the foodservice level, focusing on high-growth areas including bakery cafés.

The report divided the fresh baked goods market into two major product classificationssweet baked goods and breads. The sweet baked goods classification was comprised of cakes, cupcakes, cookies, pies, brownies and other baked dessert products. The breads classification included bread (including sliced and unsliced loaves), rolls, pitas and croissants. This report also discusses breakfast baked goods, including doughnuts, muffins, breakfast breads, bagels/bialys and sweet rolls.

Although fresh baked goods are produced and sold in a wide variety of retail channels, certain overriding trends have affected how these products are marketed across most channels," said Don Montuori, publisher of Packaged Facts. For example, consumer demand for specific kinds of productssuch as those that fill specific dietary needs or budgetary concernshas led retailers to adapt in terms of both product offerings and marketing strategies. In the fresh baked goods market, those bakeries that have managed to succeed in this challenging environment have done so by evaluating and quickly responding to these shifts in consumer demand with products that fulfill a variety of consumer needs and wants."