SCOTTSDALE, AZ — Finances are the No. 1 reason why consumers are buying less, according to The Bakery Playbook 2024, a new American Bakers Association (ABA) consumer research study series conducted by Anne-Marie Roerink, president of 210 Analytics.
The study, conducted in March, involved surveys and interviews with 1,680 consumers and was designed to help bakers better understand perceptions, consumption and purchasing habits of baked item categories across retail and foodservice. Puratos is sponsoring the series, and Avant Food Media, parent company of Commercial Baking, is providing consumer insight video interviews.
Roerink shared her findings in her session, Bakery Playbook: Translating Consumer Expectations, presented during the 2024 ABA Annual Convention, held April 14-17 in Scottsdale, AZ.
Foodservice prices continue to inflate, so consumers are still pretty home-centric, which is just one challenge for the industry. Yet, Roerink noted a bright side to this trend: deli-prepared options in grocery stores are becoming restaurant alternatives.
For example, pizza in deli is up 9% in unit sales, and sandwiches are up 2%. Deli desserts and breakfast foods are two other areas in which to consider capturing consumer dollars.
The Bakery Playbook report revealed that consumers are purchasing baked goods less often and when they do, they purchase fewer items per trip. This is where creativity with endcaps, secondary displays and cross-merchandising come into play, Roerink said.
While Boomers have a greater focus on brand, Gen Zers enjoy visually appealing shelves and unique food experiences like new flavors, so bakers can use these tactics to interrupt their shopping trips, along with highlighting brand storytelling and sustainability. Roerink added that everyone is looking for meal solutions rather than individual food components, and bread is just one example of how many meals a baked good item can be paired with.
Promotions will stop people in their tracks as well. In fact, 80% of consumers are applying one or more money-saving measures when buying baked items, according to the study. Some are even going to different stores to find sales promotions.
“Even though we are starting to promote a whole lot more as an industry, we are still not anywhere near the promotional levels that we saw in 2019,” Roerink said. “Think about all the promotions and the retailer discussions that you’re having and the restaurant discussion that you’re having to promote the right time, the right price point and to drive incrementality a purchase that wouldn’t have happened otherwise.”
The pandemic did a number on consumer finances, and it’s affecting their purchasing decisions, but the baked goods sector has the ability to be versatile and adapt.
“So, the question is, are you distributed correctly?” Roerink asked. “And how can you help retailers and restaurants engage with your category? How can you drive that one extra trip?”
