IDDA’s ‘What’s in Store 2012’ report said that the “lacklustre economy” had led more consumers to dine at home creating a larger market for in-store bakeries (ISBs).
It said that in 2010, ISB sales had climbed 5.2% compared to the previous year to $11.56bn and cited a poll that said an increase had been witnessed into 2011.
The report cited Joanna Parker, director of account services at the Perishables Group, who said: “The bakery [ISB] really isn’t as limited in its reach as people might have thought.”
The ISB market is moving beyond simply middle-to-high income earners and has opened itself up to new consumers, said the report.
It identified couples without children and Hispanic consumers as having “a strong shopping index for in-store bakeries”.
Bakery sales in Latin America are forecast to grow 10.1% from 2010-2015, which gives a taste for the Hispanic consumers preference for baked goods.
Those less likely to opt for ISBs are the 18-24 age group who are perhaps unaware of the quality benefits in ISB products, said the report.
More and bigger
The number on ISBs in the US is also on the rise. For supermarkets that post a minimum of $2m annual sales, ISBs increased from 25,960 stores in 2009 to 25,960 in 2010, according to What’s In Store.
The size of the ISBs is also growing, up from 1,320 sq m in 2009 to 1335 sq m in 2010.
The average number of employees also rose over the same period to around four per store, said the report.
Ingredients suppliers hit by shift
The shift to in-store and out-of-home bakery has also been noticed by ingredients suppliers, who have seen the rise of ISBs in Europe.
Bakery supplier CSM suffered a 30% slump in profits in 2011 and announced that it was to refocus its efforts in supplying ingredients for ISBs.
Eva Linder, director of corporate communications at CSM previously told this site: “We have seen a shift between the bakery shops in the streets to in-store and out-of-home bakery,” adding that the most prenounced shift could be seen in the UK.
According to What’s In Store, scratch baking in ISBs has almost doubled since 2005, while direct-store delivery has fallen 11.4% over the same period.
“Stores, well aware of consumers’ desires for fresher products, have in some cases opted to buy dough and bake their own products,” said the report.
However, bake-off remains the most common production method, just behind thaw-and-sell.
Smaller and healthier
“The rising tide of health consciousness in the US isn’t excluding bakeries,” said the report.
The amount of products laden with fat and sugar in ISBs are increasingly appearing as mini-bites or small portions.
“But, editors suggest, bakeries can do more to advertise their whole-grain products, as well as fortification with vitamins and minerals, including B vitamins, iron, magnesium, selenium and fiber,” the report continued.