The Bread Box-Blog


Baking Industry

Four Vital Trends in the Baking Industry for 2017

The baking industry is nearing $50 billion in annual sales, according to data from Nielsen. Today’s retail market is filled with health trends, label claims, and marketing strategies, all aimed to link products to targeted customer segments. The encompassing objective used to drive the accelerated retail growth is reaching the right shoppers. By offering a variety of products to attract health oriented shoppers and those seeking indulgence, bakers are prospering.

Changing demographics are making it harder to succeed with classic mass marketing techniques, presenting the marketplace with challenges and opportunities. Between 2010 and 2025, the proportion of white Americans is projected to shrink from 64% to 58%. At the same time, the Hispanic share will jump from 16% to 20%, the African-American ratio will rise to 13%, and the Asian percentage will increase to 6%.

With increased capacity to innovate and target niche markets, brands are investing more heavily in research to learn where new opportunities are popping up. The brands that best connect with the growing population groups will be in better position leverage those connections into sales.

Here are four trends that will help bakers tap into emerging demographic developments and consumer demands.

1. Understanding “Clean Label” Demand

Purchasing decisions are driven by a host of factors, including the number of ingredients, calorie and fat content, and price. The term “clean label” is not defined consistently by consumers or across the baking industry itself.

During a panel presentation by Corbion Caravan at the International Baking Industry Exposition, director of market management for bread Abby Ceule shared that people eating sweet goods are less focused on ingredients and health.

The research found that both ingredient- and nutrition-focused shoppers are willing to pay more for products with 12 or fewer ingredients, but taste, convenience, and other factors also play a role in decision making.

2. Packaging Innovations

Effective branding includes labeling each bakery product to increase word of mouth potential. Innovative ideas consist of customized packaging that identifies brands directly on cups and molds, easy release paper packaging, and tamper-evident and tamper-resistant plastic packaging. Some companies are working with customers to create high-quality, functional packaging that works in real world applications. Friendly design sparks impulse purchases and drives repeat sales.

3. Great Grains

Consumption of whole grains has been linked to reductions in the risk of stroke, heart disease, digestive cancers, and type 2 diabetes. Studies have shown that whole grains can assist in weight management plans and in lowering blood pressure.

Companies that have not yet ventured into the whole grain market should consider doing so, according to Brian Strouts, VP of baking and food technical services at AIB International.

4. Community Connections

Establishing your bakery within the local community is a tremendous asset, and there are plenty of ways to accomplish this goal. Public relations can keep customers informed of your brand and any new items. Winning recognition from news and entertainment networks can do wonders for customer demand.

A Winning Strategy with Baker’s Pride

Baker’s Pride helps baked goods companies respond to market demands and reach the right shoppers. To learn how we can help you build production capacity without breaking your budget on labor costs, construction, or equipment investments, visit our homepage today, or call 319-753-6488 to discuss your needs.