Retail In-Store Bakery Performance on the Rise

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.  

For Media:

Members of the press may contact media@fmi.org for a gratis copy of the Power of In-Store Bakery 2022.