Sweet Baked Snacks, Desserts On a Roll: Report
Americans’ love of sweets has propelled dollar sales of packaged sweet baked snacks and desserts by a compound annual growth rate (CAGR) of 2.5 percent since 2008 to reach $13 billion in 2012, according to a new market research study by Packaged Facts.
The Packaged Sweet Baked Snacks and Desserts: U.S. Market Trends report, projects retail sales in the market will exceed $14 billion in 2017.
Key drivers of sales growth include higher prices from smaller pack sizes that have higher per unit costs. Smaller sizes and single-serve portions will further help drive snack growth to fulfill consumers’ desires for indulgence and on-the-go snacking options with some portion control, noted Packaged Facts Research Director David Sprinkle.
Further, the power of America’s infatuation with cookies, which annually take the cake as the market’s top performer, finds nearly 80 percent of U.S. adults cookies and shelf-stable cookie consumption accounting for 60 percent of total sales in the packaged sweet baked snacks and dessert segment in 2012.
While most sweet product innovation – like the trendy cronut – are often associated with independent and in-store retailer bakeries, manufacturers of packaged goods are also delivering new flavors and experiences on the shelf.
Sprinkle thus recommends food players in the segment to remain vigilant of consumers’ demand for novel tastes and experiences by providing products that satisfy their clientele. Such steps, he adds, will be key in combating the inevitable challenges this mature market will continue to face due to consumers being increasingly concerned about their health and diet, and increasingly seeking out fresher and more innovative snacks and desserts from in-store and independent bakeries.
More information on the report can be found here.