KANSAS CITY, MO — Donuts excite and delight consumers, with 86% reporting they like or love donuts, according to Datassential. Moreover, Rich Products Corp.’s “2024 Donut Trends and Insights” survey revealed 56% of respondents purchase donuts at least once a month.
Last year, total donut dollars increased 1.1% compared to a year ago, driven by 3.8% growth in perimeter sales, according to Circana data for the 52 weeks ending Dec. 1, 2024. Perimeter donuts edged out center store with $2 billion in sales vs. $1.8 billion, respectively.
“Donuts show strong performance in the perimeter, with units up 18 percent compared with four years ago,” said Melissa Altobelli, senior VP of bakery and dairy for Circana. “Increases can be attributed to producers offering more pre-packaged or fixed-weight items and a variety of sizes. While growth was hotter on the heels of the pandemic, the space is still retaining high sales relative to the last decade, even though perimeter units have not yet returned to 2019 pre-pandemic levels.”
Despite not hitting the pre-pandemic highs, consumers are still responding well to fresh donut offerings on the perimeter. Private label is dominating this space, with traditional items such as glazed ring and cake donuts driving sales. Specialty items such as fritters, Boston cream donuts and variety packs are also appealing to shoppers. Charlotte, NC-based Krispy Kreme is competing with private label, and Altobelli observed that the brand is experiencing success with its “delivered fresh daily concept” and is expanding its footprint within retailers that offer fresh products.
“We also see an opportunity for mini donuts in the perimeter,” Altobelli said. “While mini donuts only comprise about 1.5 percent of sales in the perimeter, units have grown 39 percent over last year.”
Center-store donuts showed strong unit growth in 2021 and 2022. Though sales declined in 2023 and 2024, units are still slightly higher than pre-pandemic levels. Full-size donuts garner the largest share for center store, and there are brands such as Orrville, OH-based The J.M. Smucker Co.’s Hostess Jumbo Donettes and Horsham, PA-based Bimbo Bakeries’ Entenmann’s Donut Cakes, doing well in retail outlets.
“Both of these products offer consumers convenience with individually wrapped full-sized donuts for on-the-go consumption,” Altobelli said. “The center-store Hostess brand has gained 2.2 unit share points compared to last year, driven by the success and continued distribution expansion of its iconic Donettes.”
Mintel’s “March 2024 In-store Bakery” report suggested offering single-serve or bite-sized donuts to engage consumers looking to try new flavors or meet a variety of needs. Some brands are leveraging the appeal of smaller-scale items packaged to feed a household.
“Full-size bags of mini donuts are experiencing the largest unit and dollar growth over last year, including mini-powdered sugar, frosted and old-fashioned flavors, as well seasonal flavors like apple cinnamon, lemon blueberry, and hot cocoa and marshmallow,” Altobelli said. “Innovation with fun and festive mini donuts is likely to continue.”
This story has been adapted from the February | Q1 2025 issue of Commercial Baking. Read the full story in the digital edition here.
