What's hot in Bakery

Source: cargill.com

Sales of packaged baked goods and fresh-baked treats performed well over the past year as consumers looked to the category for affordable, permissible indulgences during uncertain economic times. We sat down with four of Cargill’s bakery professionals to get their insights on the trends, ingredients and concepts propelling the category forward. 

What are the key trends shaping the bakery space today?  

WENDY:
Indulgence and premiumization are major forces in the bakery aisle. Whether it’s to satisfy a craving, because they’re feeling stressed-out, or are looking for a quick reward, consumers are giving themselves permission to indulge. Nine in ten consumers report they indulge at least once a week; more than a third indulge at least once per day. 

JANICE:
People view baked goods as treats… and as such, they expect products to delight all the senses. We’re constantly finding that consumers want premium, indulgent experiences to enjoy at home, and it’s often ingredients that serve as the cue. Whether that’s decadent, high-cocoa chocolate inclusions or the use of culinary salts with premium halos like Sea salt or Pink Himalayan salt, ingredient selection has an outsized impact on consumer perceptions of a product. 

WENDY:
Along with that, they’re constantly seeking enticing, new products. Nearly two-thirds of bakery shoppers are motivated to make impulse purchases when they see an item in a new flavor. That’s why seasonal and limited-time offers are huge purchase drivers in this category. Lemon-flavored products will signal the start of spring, and you’ll see vibrant colors like red, white and blue hit stores shelves as we move into summer. Their limited availability plays to the scarcity mindset – you know they won’t be around for long, so you need to try them now. 

COURTNEY:
Consumers want to be wowed in the bakery aisle! We always say, “taste is king” – which is absolutely true – but this is a space where visual appeal is extremely important, too. Rainbow colors, sprinkles and fruity cereal bits are just a few ways bakers are using bright colors to capture consumers’ eyes. 

WENDY:
On the flavor side, it’s hard to beat chocolate, but brands are doubling down: using cues like triple-chocolate or extra-fudgy to signal over-the-top indulgence. However, global flavors and formats are growing, too, especially as manufacturers vie for the attention of younger consumers. Ube, tahini and matcha are all finding their way to the bakery aisle. Of course, there’s still a huge appetite for the classics – especially when they get a modern twist. Think chocolate and chili or a more traditional chocolate-raspberry combination. 

COURTNEY:
And let’s not forget minis, which are taking the bakery aisle by storm. They’re portable, shareable and convenient, and they also offer built-in portion control. These bite-sized treats make the perfect “permissible indulgence” for today’s more-mindful consumer.

DAVE:
That’s a good point. Baked goods are first-and-foremost treats, but there’s a segment of consumers looking for that “better-for-you” option. It could be an emerging opportunity space. While we know that the majority of consumers say they want to avoid sugar, it’s still very niche in the bakery category. In large part, that’s because sugar does so much in these formulas – there’s no one-size-fits-all solution. Adding protein is another way to appeal to more-mindful consumers; but in the bakery aisle, products with protein claims remain relatively rare, too

Consumers want premium, indulgent experiences to enjoy at home, and it’s often ingredients that serve as the cue.

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So what’s next for bakery products? 

COURTNEY:
We haven’t talked much about flavor experimentation, but I’m certain the bakery aisle will continue to be a hotbed for innovation, especially with limitedtime-offers (LTO’s). That’s where brands are really pushing the envelope.

JANICE:
And beyond the sweet space, I’m drawn to the global flavors and streetfood-inspired baked goods that offer a more-savory experience. Bakers are taking seasonings from Mexico and India, combining them with fruit flavors and some salt for a bold spin on traditional sweet/salty pairings. 

WENDY:
Watch what happens with bakery textures, too. I see opportunities for global influences to introduce new eating experiences to U.S. consumers. Whether it’s the airy influence of fluffy Japanese pancakes or the spongy properties of Mexico’s Tres Leches cakes, novel textures are another way for bakers to surprise and delight. 

JANICE:
At the same time, pressure to improve nutritional profiles isn’t going away. We’ve come a long way, but there are still gaps in what we can achieve. Take sodium reduction. Near-term, we have great solutions that let us pull out 30% or more of the sodium in bakery products. But long-term, the FDA is aiming for deeper cuts, and in many cases, those solutions just don’t exist yet. It’s going to take collaboration between food manufacturers and ingredient suppliers to hit those targets and still deliver on all the sensory expectations consumers want in bakery treats.

WENDY:
You’ve really hit on the big advantage that Cargill offers. As a global food company, we bring together experts from ingredients, applications, material science and more, leveraging their collective knowledge to discover the next new technology, solve persistent customer challenges and co-create finished products that win with consumers