C-stores Helping to Drive Growth of In-Store Bakery Goods

ROCKVILLE, Md. -- Convenience store bakery sales are contributing to the growing market for in-store baked goods, which now exceeds $13 billion annually in the United States, according to new research by Packaged Facts.

In the overview of its report, In-Store Bakeries: U.S. Market Trends, the research group stated that bakery goods comprise a relatively small percentage of perishable dollar sales at most retail stores, but in-house bakeries are still a significant part of the U.S. food landscape. The study focused primarily on the grocery segment, but concluded that convenience stores are also adding to the momentum.

Retail dollar sales of in-store bakery goods grew to $13.4 billion in 2013, up from $12.8 billion in 2012.

"The result of retail’s reliance on in-house bakeries, combined with higher price points, has allowed the in-house baked goods market to experience dollar sales increase every year since 2008," the research firm stated.

Packaged Facts expects these gains will continue through 2017 and beyond, despite challenging economic conditions, as well as health concerns as Americans look to reduce bread and sugar in their diets.

Looking more closely at the varieties of bakery products sold in retail, Packaged Facts concluded that sandwiches will remain a staple offering and most consumers will still want to indulge at least occasionally in sweet baked goods. Desserts that offer portion control and can be consumed on the go will likely drive overall growth, while bread and rolls will lag. Artisan and higher quality breads that can offer a dietary alternative, however, will remain a standout.

Additionally, breakfast remains an attractive growth area for retailers, but they will be challenged to "remain compelling" in the daypart as customers seek these products in other foodservice outlets.