Table of Contents
Introduction and Abbreviations
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- Introduction
- Other relevant reports
- Definition
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- A rapidly maturing $9.14 billion market, with slow growth expected
- Supermarkets losing ground to supercenters and club stores
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- Figure 1: Number of mass merchandiser supercenter retailers, October 2005
- Figure 2: Number of Club stores, October 2005
- Convenience and freshness drive consumer interest
- Increased demand for more healthful bakery foods
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- Figure 3: Types of bread purchases, December 2005
- Retooling the ISB to increase consumer interest
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- Figure 4: ISB sales—Publix Sabor vs. industry average, percentage of total sales 2004
- Age and gender influence likelihood of purchasing at ISB
- Convenience top influence on decision to purchase at ISB
- In-store bakeries given high marks for service and staff knowledge
- Cross merchandising opportunities
Market Drivers
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- Supermarket ISB revenue declines as channel reaches maturity and competition pressures margins
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- Figure 5: U.S. retail sales at in-store bakeries, by channel, 2003 and 2005
- Convenience and freshness drive consumer interest
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- Figure 6: Influence of convenience on decision to buy freash bread or bakery products at an ISB, by age, December 2005
- Desire for convenience drives product innovation
- Single serve and pre-cut products increasingly in demand
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- Figure 7: Influence of portion size on decision to buy freash bread or bakery products at an ISB, by marital status and household size, December 2005
- Cost and labor concerns continue to drive thaw-and-serve, par-baked, and frozen trends
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- Figure 8: Bakery shipments by format, 2003
- Technological innovations cut costs and help drive sales
- Low-carbohydrate product introductions crash to pre-hype levels
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- Figure 9: U.S. low/no/reduced carbohyrdate bakery product introductions, 2001-05
- Increased demand for more healthful bakery foods
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- Figure 10: U.S. bakery product introductions, by top 15 claims, 2004-05*
- Whole wheat and grains drive the bakery market
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- Figure 11: Types of bread purchases, December 2005
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- Figure 12: U.S. whole grain bakery product introductions, 2001-05
- The kosher effect
- Increasing concerns over trans fats drives product introductions
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- Figure 13: Purchase of no trans fat bread, by age, December 205
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- Figure 14: U.S. low/noreduced trans fat bakery product introductions, 2001-05
- Organic foods
- Reduced sugar/sugar-free
- A “treat yourself” society helps drive indulgent offerings despite diet trends
- Premium pricing drives sales
- A more adventurous palette
- Increase in products for the Hispanic market
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- Figure 15: U.S. population, by race and Hispanic origin, 2002-04
- Tortillas have made their way into the mainstream
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- Figure 16: Types of bakery products purchased from bakery area, December 2005
Market Size and Trends
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- Figure 17: Total U.S. In-store bakery sales, at current and constant prices, 2000-05
- Figure 18: graph: Total U.S. In-store bakery sales, at current and constant prices, 2000-05
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- Figure 19: Number of in-store service bakeries, 2000-04
- Figure 20: In-store service bakery percent of total store sales, 2000-04
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- Figure 21: Average weekly sales per in-store service bakery, at current and constant prices, 2000-04
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Market Segmentation
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- In-store bakery sales by segment
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- Figure 22: Sales of in-store bakery items, segmented by product, 2003 and 2005
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- Figure 23: Bakery products’ percentage of in-store service bakery sales, 2000-05
- Breads
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- Figure 24: Sales of ISB breads, at current and constant prices, 2000-05
- A profile of the bread purchasing ISB consumer
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- Figure 25: Consumer profile of purchaser of Italian or French bread at an ISB, December 2005
- Cakes
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- Figure 26: Sales of ISB cakes, at current and constant prices, 2000-05
- A profile of the cake purchasing ISB consumer
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- Figure 27: Consumer profile of ISB cake purchaser, by race/ethinicty and region
- Wider cake variety may drive sales
- Donuts
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- Figure 28: Sales of ISB donuts, at current and constant prices, 2000-05
- Bagels/muffins/croissants
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- Figure 29: Sales of ISB bagels/muffins/croissants, at current and constant prices, 2000-05
- Cookies
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- Figure 30: Sales of ISB cookies, at current and constant prices, 2000-05
- Pies
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- Figure 31: Sales of ISB pies, at current and constant prices, 2000-05
- Danish/sweet rolls
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- Figure 32: Sales of ISB danish/sweet rolls, at current and constant prices, 2000-05
- Other
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- Figure 33: Sales of ISB other, at current and constant prices, 2000-05
- Tortillas have made their way into the mainstream
Supply Structure
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- In-store bakery suppliers
- General Mills, Inc.
- Rich Products Corporation
- Dawn Food Products
- BakeMark
- Best Brands
- Pennant Foods
- Profile of a supermarket ISB
Advertising and Promotion
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- Tactics to differentiate stores from competitors
- Meeting the needs of the neighborhood and customer
- Meeting the needs of Hispanics
- Going all natural
- Seasonality and sales
- Conveying product freshness with seasonal fresh fruit
- Innovative promotions and products
- Display advertising
Retail Distribution
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- Introduction
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- Figure 34: U.S. retail sales at in-store bakeries, by channel, 2003 and 2005
- Supermarkets
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- Figure 35: U.S. sales at in-store bakeries at supermarkets, at current and constant prices, 2000-05
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- Figure 36: Top eight supermarkets with In-store bakeries
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- Figure 37: ISB sales—Publix Sabor vs. industry average, % of total sales 2004
- Mass merchandiser supercenters
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- Figure 38: In-store bakery sales at mass merchandisers, 2000-05
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- Figure 39: Number of mass merchandiser supercenter retailers, October 2005
- Wal-Mart
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- Figure 40: Top mass merchandiser and club store retailers, by sales, financial years ending 2003 and 2004*
- Meijer Corporation
- Target and Kmart
- Club stores
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- Figure 41: Number of Club stores, October 2005
- SAM’s Club
- Costco
- BJ’s Wholesale
The Consumer
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- Introduction
- Consumer likelihood of purchasing at an in-store bakery
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- Figure 42: Consumer purchases of fresh bread or bakery products at an ISB, December 2005
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- Figure 43: Consumer purchases of fresh bread or bakery products at an ISB, by gender, December 2005
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- Figure 44: Consumer purchases of fresh bread or bakery products at an ISB, by age, December 2005
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- Figure 45: Consumer purchases of fresh bread or bakery products at an ISB, by income, December 2005
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- Figure 46: Factors influencing decision to buy fresh bread or bakery products at an ISB, by region, December 2005
- Influences on decision to purchase at ISB
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- Figure 47: Factors influencing decision to buy fresh bread or bakery products at an ISB, December 2005
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- Figure 48: Influence of convenience on decision to buy fresh bread or bakery products at an ISB, by age, December 2005
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- Figure 49: Influence of convenience on decision to buy fresh bread or bakery products at an ISB, by income, December 2005
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- Figure 50: Influence of specialty breads on decision to buy fresh bread or bakery products at an ISB, by income, December 2005
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- Figure 51: Influence of specialty breads on decision to buy fresh bread or bakery products at an ISB, by age, December 2005
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- Figure 52: Influence of special occasion on decision to buy fresh bread or bakery products at an ISB, by marital status and household size, December 2005
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- Figure 53: Influence of cost on decision to buy fresh bread or bakery products at an ISB, by income, December 2005
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- Figure 54: Influence of product promotions on decision to buy fresh bread or bakery products at an ISB, by marital status and household size, December 2005
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- Figure 55: Influence of portion size on decision to buy fresh bread or bakery products at an ISB, by marital status and household size, December 2005
- Service provided in the in-store bakery
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- Figure 56: Knowledgeability of ISB staff, December 2005
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- Figure 57: Knowledgeability of ISB staff, by household size, December 2005
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- Figure 58: Knowledgeability of ISB staff, by education level, December 2005
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- Figure 59: Service rating of ISB staff, December 2005
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- Figure 60: Service rating of ISB staff, by age, December 2005
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- Figure 61: Service rating of ISB staff, by education level, December 2005
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- Figure 62: Waiting time to get served at ISB, December 2005
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- Figure 63: Waiting time to get served at ISB, by age, December 2005
- Types of breads purchased at the ISB
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- Figure 64: Types of bread purchases, December 2005
- Whole grain
- Low carb
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- Figure 65: Purchase of low carb bread, by age, December 2005
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- Figure 66: Purchase of low carb bread, by income, December 2005
- Increased calcium
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- Figure 67: Purchase of calcium enriched bread, by marital status and household size, December 205
- Low sugar/no sugar
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- Figure 68: Purchase of low sugar bread, by income, December 205
- No trans fat
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- Figure 69: Purchase of no trans fat bread, by age, December 2005
- Organic or soy
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- Figure 70: Purchase of organic/soy bread, by marital status and level of education, December 2005
- Bakery product purchases at the ISB
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- Figure 71: Types of bakery products purchased from bakery area, December 2005
- Italian and French breads
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- Figure 72: Types of bakery products purchased from bakery area, by age, December 2005
- Donuts
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- Figure 73: Types of bakery products purchased from bakery area, by age, December 2005
- Cookies
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- Figure 74: Types of bakery products purchased from bakery area, by age, December 2005
- Bagels
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- Figure 75: Types of bakery products purchased from bakery area, by age and region, December 2005
- Muffins
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- Figure 76: Types of bakery products purchased from bakery area, by income and region, December 2005
- Cakes
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- Figure 77: Types of bakery products purchased from bakery area, by age and presence of children, December 2005
- Pies
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- Figure 78: Types of bakery products purchased from bakeryarea, by income, December 2005
- Danish and croissants
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- Figure 79: Types of bakery products purchased from bakeryarea, by age, December 2005
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- Figure 80: Types of bakery products purchased from bakery area, by age and region, December 2005
- Cross merchandising options
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- Figure 81: Types of non-bakery products purchased from bakery area, December 2005
- Cheese
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- Figure 82: Types of non-bakery products purchased from bakery area, by age, December 205
- Dip
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- Figure 83: Types of non-bakery products purchased from bakeryarea, by age and marital status, December 205
- Prepared meals
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- Figure 84: Types of non-bakery products purchased from bakeryarea, by age and marital status, December 205
- Condiments
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- Figure 85: Types of non-bakery products purchased from bakery area, by age, December 205
- Jams
- Wine
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- Figure 86: Types of non-bakery products purchased from bakery area, by age, December 205
- Cake frosting
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- Figure 87: Types of non-bakery products purchased from bakeryarea, by age, December 205
- Summary
Future and Forecast
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- Future trends
- Portion sizes and single-size servings
- Sugar-free and reduced sugar
- Elimination of trans fats
- More fortification
- Indulgence will always be with us
- Hispanics: an untapped market ready for ISB patronage growth
- Market Forecast
- In-store bakeries
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- Figure 88: Forecast of total U.S. sales of in-store bakeries, at current and constant prices, 2005-10
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- Figure 89: Graph: Forecast of total U.S. sales of in-store bakeries, at current and constant prices, 2005-10
- Forecast factors
Appendix: Trade Associations
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