Trends in the U.S. Bakery Industry for 2024: What You Need to Know | ATTB Exporter

The U.S. bakery industry is on a remarkable growth trajectory. With a market value of $98.1 billion in 2023, it has shown a substantial increase of 12.8% from the previous year. Forecasts suggest this growth will continue, with the market expected to reach $132.6 billion by 2028. Understanding these trends can help businesses navigate this vibrant sector and seize opportunities for expansion.

Market Overview

The U.S. bakery market is diverse, with significant growth in several product categories:

- Bread: Valued at $33.6 billion, showing a 9.8% increase.

- Cakes: Generating $31.5 billion, up by 15%.

- Pastries: Worth $24.6 billion, with a growth of 16.2%.

- Pies and Tarts: $3 billion, growing by 5.6%.

- Frozen Bakery Products: At $2.9 billion, showing an 8.2% rise.

- Ready-to-use Mixes: $2.4 billion, increasing by 7.6%.

Most bakery products are bought in-store, with supermarkets being the preferred retail channel, accounting for 92.6% of sales. Online purchases remain relatively low at 7.4%.

Consumer Behavior

In 2022, Americans consumed approximately 6.6 billion kilograms of bread, averaging 19.8 kilograms per person per year. Cake and pie consumption totaled 8.6 billion kilograms. Consumers frequently purchase bakery products for both personal enjoyment and as gifts.

During the COVID-19 pandemic, bakeries adapted by offering delivery and pickup services. As the industry recovers, consumers are returning to in-store dining and seeking bakery items for special occasions. Desserts are increasingly seen as a treat rather than a guilty pleasure. However, bakeries face challenges, as many customers view them as occasional stops rather than daily destinations.

According to Mintel, 82% of bakery consumers are purchasing the same amount or more than usual, and 48% buy bakery items for personal satisfaction. Among those over 45, 53% buy bakery goods to meet personal needs. There are opportunities for bakeries to attract cost-conscious customers with smaller portion sizes.

Challenges Facing Bakeries

The U.S. bakery industry is grappling with labor shortages and rising operational costs due to past supply chain disruptions. To attract and retain staff, bakeries need to offer higher wages and benefits, which can increase operational costs.

Trends in the U.S. Bakery Industry for 2024

1. Gluten-Free Products: Gluten-free bakery items are increasingly popular. In 2021, 25% of U.S. bakeries offered only gluten-free products, up from 17% in 2017. This trend spans various categories, including gluten-free flour, cookies, and cakes. Many gluten-free items are also sugar-free, allergen-free, plant-based, and non-GMO. Gen Z and Millennials are particularly interested in gluten-free options.

2. Health-Conscious Ingredients: Health trends are driving the development of bakery products with beneficial ingredients like fiber, whole grains, and protein. Products with added fiber and prebiotics have grown, supporting better digestion. In 2022, high-protein bread made up 14% of the market.

3. Reduced Sugar: In response to consumer demand for less sugar or alternative sweeteners, bakers are offering more sugar-free products, often using substitutes like erythritol or stevia.

4. Convenience Sizes: Portable bakery items, such as mini muffins and cookies, are becoming more popular. With busy lifestyles, consumers prefer convenient options that fit into their on-the-go routines.

Opportunities for Global Businesses

The evolving U.S. bakery market presents significant opportunities for international businesses. The focus on health and innovative products creates a demand for high-quality, international bakery items.

Conclusion

The U.S. bakery industry is rapidly evolving, driven by health trends, convenience demands, and innovation. For businesses looking to enter this dynamic market, understanding these trends is crucial for success. By aligning with consumer preferences and addressing industry challenges, companies can capture significant market opportunities.

Source: DITP, Euromonitor, Mintel, Statista, Innova Market Insights

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To learn more about how ATTB Exporter can support your bakery product needs, contact us today. Let us help you deliver the best of global bakery trends to your customers!