FMI’s inaugural in-store bakery report reveals fresh, indulgent and impulse opportunities.
Arlington, Va. – FMI – The Food Industry Association today releases its inaugural Power of In-Store Bakery 2022 report, revealing that consumer engagement with in-store bakery items remained high with virtually all shoppers (95%) eating them at least occasionally and 63% doing so weekly. According to the analysis, food retailers can drive department success even further by emphasizing freshness, expanding indulgent options and inspiring impulse purchases.
In-Store Bakery Performance is on the Rise
The in-store bakery department has performed well in the past year with strong unit (+7.4%) and dollar (+14.4%) sales. The biggest winners in the bakery this year are muffins (+24.2%), cupcakes (+23.6%) and cookies (+21.7%) in terms of dollar sales increases. Cakes, followed by cookies, ranked among the biggest sellers in the grocery in-store bakery department.
FMI’s Vice President of Fresh Foods, Rick Stein remarked on the opportunities detailed in the industry analysis, saying, “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.”
Shoppers Diversify Their Bakery Buys
The report suggests shoppers spend their bakery dollars at a variety of locations, with the majority (78%) purchasing functional bakery items, such as bread, buns, bagels and rolls, at the same store they purchase most of their groceries. However, only about half of shoppers (51%) say their primary grocery store is their main destination for in-store bakery items. For indulgent items like cakes, pies, and store-made desserts, shoppers look to specialty bakeries (24%), grocery stores other than their primary store (11%) and even online options (6%).
Impulse Options Heat Sales
Many shoppers acknowledge that purchases of indulgent items, such as donuts, cookies, snacks, coffee cakes, single-serve desserts and cupcakes, are often impulse purchases. When it comes to making these impulse purchases, shoppers indicate freshness is top of mind. Knowing when a product was baked and the date code labels are key to defining freshness for shoppers. Finally, shoppers say they are influenced by sales or promotions to make impulse purchases.