Supermarkets have seen strong bakery figures so far in 2024. In fact, according to the International Dairy, Deli & Bakery Association's latest “What's In Store” update, bakeries on the periphery of stores are seeing slightly stronger sales than central stores, with breads and rolls performing particularly well.
According to the report, bakery sales in June were just over $2 billion, with desserts and sweet snacks generating $1.1 billion, breakfast bakery sales generating just over $499 million and bread and rolls generating $400 million.
Michael Dougherty, senior vice president of marketing and strategy for IDDBA member company Rise Bakery, said economic fluctuations have made many families more budget-conscious, and some baking trends have emerged from this uncertainty.
“Consumers are looking for more affordable versions of their favorite items in the bakery department, for example budget-friendly versions of their favorite delicious baked goods, such as individually sized cake squares,” he said. “Despite being budget-conscious, many are still willing to spend money on prepared items, such as artisan breads and sweet treats, to complement their meals and give them a restaurant experience.”
In response, Rise Bakery recently launched pre-cut iced square cakes, allowing retailers to address this demand, utilise their labour resources and satisfy consumer cravings in smaller portions at a fair price.
Upward trend
Maria Braus, public relations director for Lakeland, Fla.-based Publix Supermarkets, is seeing a continued rise in customers seeking smaller, more indulgent options. For example, the retailer is offering customers the opportunity to buy cake slices, mini cakes and two-pack options.
“In addition, customers continue to demand freshly baked and handcrafted breads from our bakery,” says Braus. “We continue to produce fresh, handcrafted breads daily and have introduced new options, such as Tuttopan. We also see demand for bakery desserts that incorporate fruit fillings and fresh ingredients. We have introduced new varieties of Tres Leches cakes, which are mini novelty cakes with fresh fruit, icing and toppings such as chocolate chips in cake batter, and mini glazed croissants.”
Whitney Atkins, IDDBA vice president of marketing, said she sees a continued increase in demand for gluten-free and vegan bakery products and believes the category will continue to trend upward.
IDDBA also notes that snacking is on the rise in the United States, driven by younger generations who tend to snack multiple times a day.
“We've seen success with retailers using existing cookies to create smaller packs,” says Doherty, “which entices shoppers who want a snack but don't want to buy a larger pack.”
Jacqueline Alfano, director of marketing and operations at Pembroke Pines, Fla.-based Doris' Italian Market & Bakery, has seen increased consumer demand this year for pistachio-flavored items, including cannoli, cheesecake, biscotti, pound cake and muffins.
“Right now, different flavored cannolis and eclairs are popular,” she says. “I started making chocolate-covered cannolis with different fillings, like hazelnut, pistachio and tiramisu cream. I also started selling different flavored eclairs, like eclairs filled with blueberry, coffee and mango-passion fruit cream.”
To appeal to shoppers looking for unique desserts, the store offers a variety of specialty cake slices and flavored cheesecake slices, allowing customers to try multiple items rather than purchasing one cake.
“We also offer bread in a variety of flavors, including tomato basil, rosemary olive and cranberry walnut,” Alfano said.
Clever display strategy
Whether it’s seasonal flavors, gorgeous cake designs or exciting new flavours, creating an inspiring, eye-catching display is essential to driving foot traffic to your bakery.
For example, highlighting seasonal products or attractive flavors can entice consumers and pique their curiosity to explore a wider range of products.
A smart way for supermarkets to promote their bakery products is to feature them on their social media accounts, especially Instagram and Facebook.
“This provides an appealing visual for customers, which increases demand and awareness of our products,” Alfano says. “We also offer four to five items at discounted prices each week, encouraging customers to purchase different items each week.”
Special events and holidays can also drive sales for bakeries: Dougherty says displaying items based on popular seasonal flavors, like peaches, s'mores or classics like pumpkin, can draw shoppers to your bakery.
“Placing this type of display near the bakery aisle helps attract consumers,” he said, “and placing bakery displays for impulse-buy categories like cookies, crispy bars and brownies in high-traffic areas helps appeal to unplanned buyers and consumers looking for a quick-pickup option.”
After all, customers buy with their eyes first, so creating a warm, inviting bakery with fresh products displayed in a way that stimulates the senses should be a top priority for all retail bakery departments.
“We offer our customers assistance from knowledgeable, friendly store associates and the opportunity to self-serve grab-and-go items,” Braus said. “In addition, customers can shop both online and in-store. Our goal is to meet our customers where they are and help them create memories that will last a lifetime.”
By focusing on affordable prices, small portion sizes and innovative flavors, the bakery caters to the demands of budget-conscious shoppers while providing the indulgent, artisanal options consumers crave.
