Private label cake market experiences significant growth

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Private label cake market experiences significant growth

16 May 2025

KANSAS CITY, MO — Cake varieties remain a go-to dessert and indulgent snack. Overall, perimeter cakes are posting 0.9% dollar and 0.8% unit gains with minimal price increases, according to Circana data for the 52 weeks ending Jan. 26, 2025.

“Perimeter has outpaced center store for cakes,” said Sally Lyons Wyatt, EVP and chief advisor, CPG and foodservice for Circana. “While not all perimeter cake segments are growing, perimeter layer and loaf/pound cakes showed gains across dollar, unit and volume sales.”

Perimeter layer cakes posted $1.91 billion sales, a 4.8% increase, and a 3.8% gain in both volume and units. Perimeter loaf/pound cakes showed 5.0% gains for dollar sales and a 2.4% increase for unit and volume sales. Lyons Wyatt noted that predominant growth for these subcategories is due to increased sales at food, mass and club channels.

“Cake brands that seek growth within the perimeter need to deliver on expanded availability, increased assortment and comparable pricing to compete with private label products.” — Sally Lyons Wyatt | EVP and chief advisor, CPG and foodservice | Circana

Private label slices competition

On the perimeter, private label layer cakes increased 5.7% in dollars and 4.4% in units with only slight price increases. Circana also reported private label perimeter specialty cakes showed 2.7% dollar and 5.0% unit gains, with dollar sales of private label loaf/pound cakes increasing by 10.7% and units by 7.0%.

“Since cakes and bakery items appeal to all ages, we only see a few demographic skews,” Lyons Wyatt said. “Boomer buyers of perimeter specialty cakes purchase 24 percent more than the average household. Seniors and retirees also over-index for specialty cakes, while larger households over-index for sheet cakes and cupcakes.”

Lyons Wyatt observed that tiramisu mousse and triple chocolate creme are top flavors for private label specialty items.

Some brands, such as Buffalo, NY-based Rich Products, saw growth for perimeter specialty cakes, with dollar sales increasing 6.5% and unit sales going up 36.1%, according to Circana. This growth may be attributed to appealing flavors.

“Cake brands that seek growth within the perimeter need to deliver on expanded availability, increased assortment and comparable pricing to compete with private label products,” Lyons Wyatt said.

Private label also prevails in center store. For example, the angel/bundt/sponge subsegment boasted a 335.3% dollar sales increase, per Circana.

This story has been adapted from the April | Q2 2025 issue of Commercial Baking. Read the full story in the digital edition here.