Table of Contents
Scope and Themes
-
- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
-
- In-store bakery products market reached nearly $12 billion in 2007
- Supply structure
- Innovation focused on smaller portions, artisan breads and premium offerings
- Room to improve consumer perceptions
- Sampling and specialty/healthier products drive consumer interest
Insights and Opportunities
-
- Key points
- Clear up the confusion
- Smaller may be better
-
- Figure 1: Households, by size, 1996-2006
- Convenience, convenience, convenience
- And of course, special orders
Fast Forward Trends
-
- Trend: Authenticity
- What we’ve seen
- How does this apply to in-store bakeries?
- Trend: Trading up, trading down, trading over
- What we’ve seen
- How does this apply to in-store bakeries?
- What should ISB managers do?
Market Size and Forecast
-
- Key points
- Sales gains driven by price increases and store growth
- Bakeries recovering from low-carbohydrate diet trend
- In-store bakeries find ways to deal with rising costs
-
- Figure 2: Producer price index for soft white wheat, 2003-08
- In-store bakery forecast
-
- Figure 3: Total U.S. sales and forecast of ISB products, at current prices, 2002-12
- Figure 4: Total U.S. sales and forecast of ISB products, at inflation-adjusted prices, 2002-12
Competitive Context
-
- Key points
- ISBs compete against the bread aisle
- Standalone bakeries hurt by convenience trend
- ISBs are rounding out product mix
Segment Performance
-
- Key points
-
- Figure 5: Percentage of bakery sales, by segment, 2005-07
- Dessert items
- Bread and rolls
- Breakfast items
Retail Channels
-
- Key points
- Supermarkets losing share to discount formats
-
- Figure 6: Number of conventional supermarkets and supercenters ($2 million or more), 2003-07
- Figure 7: U.S. sales of in-store bakery products, by channel, at current prices, 2005 and 2007
- Consumers shop a variety of channels for ISB products
-
- Figure 8: Location of in-store bakery product purchases in last year, April 2008
Retail Channels—Supermarkets
-
- Key points
- New fresh formats
- Bakeries promote upscale, fresh-baked items
-
- Figure 9: U.S. sales of in-store bakery products at supermarkets, 2002-07
Retail Channels—Discount, Supercenters, and Club Stores
-
- Key points
- Stores compete on price
-
- Figure 10: U.S. sales of in-store bakery products at discount/supercenter/warehouse club channels, at current prices, 2002-07
- Figure 11: U.S. sales of in-store bakery products at discount/supercenter/warehouse club channels, at inflation-adjusted prices, 2002-07
Supply Structure
-
- ISB production methods
- Bake-off leads in production methods
-
- Figure 12: Use of preparation methods at ISBs, 2005-07
- In-store bakery suppliers
- Price increases
- Local suppliers
Market Drivers
-
- Number of in-store bakeries rises in 2007
-
- Figure 13: Number of in-store service bakeries, 2001-07
-
- Figure 14: Number of U.S. retail bakeries, 1998-2005
- Food costs rising, particularly grain and fuel costs
- Convenience is even more important as fuel costs rise
- Aging population gives ISBs a boost
-
- Figure 15: Incidence of buying from an in-store bakery in the past year, by age, April 2008
-
- Figure 16: Population, by age, 2003-13
- Shift from low-carb to everything in moderation
- Consumers looking for healthier baked goods—some of the time
-
- Figure 17: Incidence of buying a “healthy” item from an in-store bakery, by type of product, by age, April 2008
Brand Qualities
-
- Key points
- ISBs offer a mix of private label and small brands
- Some retailers successful in creating strong bakery brands
- Safeway
- Costco
Innovation and Innovators
-
- Key points
- Portion control
- Artisan breads
- Healthier options
- Brand licensed products
- Upscale dessert cakes
Advertising and Promotion
-
- Overview
- Fresh department advertising
-
- Figure 18: Safeway “ingredients for life” logo, 2005
-
- Figure 19: Publix television ad, 2007
- In-store marketing
- Supplier promotions
- Emphasis on fresh-baked and made-from-scratch
-
- Figure 20: Price Chopper store circular, July 2008
In-Store Bakery Usage Trends
-
- Key points
- ISBs visits are down from 2007
-
- Figure 21: Incidence of purchasing at ISBs, by gender, household income and race/Hispanic origin, 2005-08
- ISB purchase patterns differ by age more than income
-
- Figure 22: Incidence of purchasing at ISBs, by age, April 2008
-
- Figure 23: Incidence of purchasing at ISBs, by household income, April 2008
- How many of their bakery items are consumers buying from in-store bakeries?
-
- Figure 24: Channel allocation for household bread purchases, by channel, April 2008
- Figure 25: Channel allocation for household bread purchases, by channel and age, April 2008
What Are Consumers Buying from In-store Bakeries?
-
- Key points
- ISB thrives on more than bread alone
-
- Figure 26: Products purchased at ISBs, April 2008
- ISB product preferences vary by age… but not much
-
- Figure 27: Products purchased at ISBs, by age, April 2008
- Services tried and desired for in-store bakeries
-
- Figure 28: Trial and acceptance of in-store bakery products and services, April 2008
Attitudes and Motivations
-
- Key points
- ISBs don’t always boost store prestige
- Some perceptions toward ISBs vary by age, particularly price perceptions
- Impulse purchases are often ISB purchases
-
- Figure 29: Attitudes about in-store bakeries, by gender, April 2008
-
- Figure 30: Attitudes about in-store bakeries, by age, April 2008
- Convenience and indulgence drive ISB use
-
- Figure 31: Reasons to shop at in-store bakeries, April 2008
Race and Hispanic origin
-
- Key points
- Who is shopping in-store bakeries?
-
- Figure 32: Purchase incidence at ISBs, by race/Hispanic origin, April 2008
- Figure 33: Purchase incidence of bakery items at other retail channels, by race/Hispanic origin, April 2008
- What are they buying?
-
- Figure 34: Products purchased at ISBs, by race/Hispanic origin, April 2008
In-store Bakery Services Used and Desired
-
-
- Figure 35: Trial and acceptance of in-store bakery products and services, by race/Hispanic origin, April 2008
- Attitudes about in-store bakeries
-
- Figure 36: Attitudes about in-store bakeries, by race/Hispanic origin, April 2008
- Reasons for using an in-store bakery
-
- Figure 37: Reasons consumers shop at in-store bakeries, by race/Hispanic origin, April 2008
-
Custom Consumer Groups—Married with Kids vs. Without Kids
-
- Key points
- Children make a difference in healthy habits and perhaps, not as expected
-
- Figure 38: Married consumers’ attitudes and behaviors about nutrition, by presence of children, April 2008
- Married consumers with children rate grocery stores with ISBs higher
-
- Figure 39: Married consumers’ attitudes about in-store bakeries, by presence of children, April 2008
-
- Figure 40: Married consumers’ attitudes about value and convenience in shopping, by presence of children, April 2008
- Reasons for shopping in an ISB
-
- Figure 41: Married consumers’ reasons for shopping in ISBs, by presence of children, April 2008
Cluster Analysis—Bread Aisle Traditionalists, Convenience, Quality, and Healthy Choicers, and Bread Lovers and Healthy Choicers
-
- Key points
- Bread Aisle Traditionalists
- Convenience, Quality, and Healthy Choicers
- Bread Lovers and Healthy Choicers
- Attitudinal and demographics tables
-
- Figure 42: In-store bakery user clusters, April 2008
- Figure 43: Channel allocation for household bread purchases, by cluster, April 2008
- Figure 44: Location of in-store bakery purchases in last year, by cluster, april 2008
-
- Figure 45: Purchase incidence of bakery items at other retail channels, by cluster, April 2008
- Figure 46: Reasons consumers shop at in-store bakeries, by cluster, April 2008
-
- Figure 47: ISB purchases, by cluster, April 2008
- Figure 48: Items purchased from an ISB in the last month, by cluster, April 2008
-
- Figure 49: Consumer attitudes and behaviors, by cluster, April 2008
- Figure 50: In-store bakery user clusters, by gender, April 2008
-
- Figure 51: In-store bakery user clusters, by age group, April 2008
- Figure 52: In-store bakery user clusters, by income group, April 2008
-
- Figure 53: In-store bakery user clusters, by race, April 2008
- Figure 54: In-store bakery user clusters, by Hispanic origin, April 2008
- Cluster methodology
Appendix: Other Useful Consumer Tables
-
- Health beliefs and behaviors
-
- Figure 55: Health beliefs and behaviors, by gender, April 2008
-
- Figure 56: Health beliefs and behaviors, by age, April 2008
-
- Figure 57: Health beliefs and behaviors, by race/Hispanic origin, April 2008
-
- Figure 58: Health beliefs and behaviors, by household income, April 2008
-
- Figure 59: Health beliefs and behaviors, by region, April 2008
- Attitudes about in-store bakeries
-
- Figure 60: Attitudes about in-store bakeries, by household income, April 2008
-
- Figure 61: Attitudes about shopping and cooking, by gender, April 2008
-
- Figure 62: Attitudes about shopping and cooking, by age, April 2008
-
- Figure 63: Attitudes about shopping and cooking, by race/Hispanic origin, April 2008
-
- Figure 64: Attitudes about shopping and cooking, by household income, April 2008
-
- Figure 65: Attitudes about shopping and cooking, by region, April 2008
Appendix: Trade Associations
Back to top