Why Budget-Friendly Bakery Items Are Gaining Popularity

Supermarkets are seeing significant growth in their bakery departments as 2024 progresses, with perimeter bakery sales outperforming center store categories. According to the International Dairy Deli Bakery Association’s latest “What’s In Store” update, bakery sales in June alone exceeded $2 billion, with breads and rolls, desserts, and morning bakery items leading the charge.

Michael Docherty, senior vice president of marketing and strategy at Rise Bakery Co., noted that economic uncertainty has driven a shift in consumer behavior. More households are becoming budget-conscious, opting for affordable versions of their favorite baked goods. “Consumers are seeking budget-friendly alternatives, like individually sized cake squares, to enjoy their favorite treats without overspending,” he said. Even while being frugal, many are still indulging in prepared items like artisan breads or small sweet treats, aiming to replicate the restaurant experience at home.

In response to this demand, Rise Bakery recently launched iced, pre-cut cake squares to better serve both consumers and retailers, offering smaller portions at a more affordable price point while maximizing labor efficiency.

Trending Up

Maria Brous, director of communications at Publix Super Markets, observed a rise in customers looking for indulgent yet smaller portions. Publix offers options like cake slices, mini cakes, and two-packs, allowing shoppers to indulge without committing to large quantities. The bakery department also continues to introduce new fresh-baked and artisan options, such as the store’s popular Tutto bread and fruit-filled desserts.

Whitney Atkins, vice president of marketing for the IDDBA, noted a strong demand for gluten-free and vegan bakery items, a trend that shows no signs of slowing down. Alongside these healthier options, smaller pack sizes are becoming popular among shoppers, especially those looking for quick snacks. Docherty mentioned that offering smaller packages of existing products, like cookies, can cater to the growing snacking culture, particularly among younger generations.

Jacqueline Alfano, marketing director at Doris Italian Market & Bakery, observed that pistachio-flavored items are increasingly popular, with customers seeking everything from pistachio cannoli to flavored cheesecakes and biscotti. In response, Doris Italian Market has expanded its offerings, including flavored breads like rosemary olive and cranberry walnut, to appeal to customers seeking a variety of options.

Savvy Display Tactics

To entice consumers, supermarkets are creating eye-catching displays that highlight seasonal products or exciting new flavors. Seasonal flavors like pumpkin or s’mores, paired with a visually appealing display, can spark consumer curiosity and increase bakery traffic.

Social media plays a crucial role in promoting bakery products. Alfano shared that showcasing bakery items on platforms like Instagram and Facebook, along with offering weekly discounts, helps increase product awareness and drive sales. Additionally, creating seasonal displays and placing impulse-buy products like cookies and brownies in high-traffic areas encourages unplanned purchases.

Brous emphasized the importance of providing a warm, inviting atmosphere in bakeries. Whether through self-service options or assistance from friendly staff, creating an enjoyable shopping experience helps drive bakery sales. Publix also offers both in-store and online shopping, meeting customers where they are and creating lasting memories.

With a focus on affordability, smaller portion sizes, and innovative flavors, supermarket bakeries are successfully catering to budget-conscious shoppers while maintaining the indulgent and artisanal options that consumers crave.