Understanding why, when and how consumers splurge

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Understanding why, when and how consumers splurge

17 Apr 2024

Commercial Baking Staff

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SCOTTSDALE, AZ — Inflation, increased credit card debt, depletion of savings — consumers are facing greater financial pressures following the pandemic, which is causing them to be more choosey about where their money goes. This even extends to the food they buy.

However, it doesn’t mean certain factors won’t push them to say, “Yes, please” and place that baked good into their online or physical shopping cart. In fact, 94% of consumers said they could be persuaded to spend a little more, according to The Bakery Playbook 2024, a new consumer research study series from the American Bakers Association (ABA), conducted by Anne-Marie Roerink, president of 210 Analytics.

The first 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 cookies and bread. The Bakery Playbook series will take a deep dive into 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 on the cookie and bread categories in the session, Bakery Playbook: Translating Consumer Expectations, presented during the 2024 ABA Annual Convention, held April 14-17 in Scottsdale, AZ.

Celebrating everyday occasions

As is evident on social media, consumers love to celebrate, whether it’s a national holiday, birthday, anniversary, or even a Taylor Swift watch party.

“We have a duty and an opportunity to optimize our sales during primary occasions and secondary occasions,” Roerink said. “But also to invent a couple more.”

She gave examples such as the cocktail creations that bars put together during the Barbenheimer phenomenon and the round-shaped food items on display in stores for the recent solar eclipse. It seems all consumers require is a theme and people to share in an experience to find baked goods permissible.

Special occasions aren’t the only excuse for buying baked goods, though. Consumers also aren’t opposed to treating themselves for their good eating behavior, a job well done, or as a means of escaping the monotony and difficulties of everyday life.

For example, many consumers agree any time is a good time to enjoy a cookie. However, some consumers are more specific about their reward system.

“The best time to have cookies, for me, would be on the weekends because I’m a good girl during the weekdays,” said one consumer in a video interview Roerink shared during her presentation.

“We have a duty and an opportunity to optimize our sales during primary occasions and secondary occasions. But also to invent a couple more.” — Anne-Marie Roerink | president | 210 Analytics

In a second video interview, another consumer said she takes a different approach to eating cookies.

“I prefer to eat them at night once the kids are asleep so I can have the whole thing to myself,” she said.

Brands need to lean into this “reward and escape” messaging on their packages and websites, Roerink said, adding that retailers and restaurants should brainstorm options for marketing to these specific types of people.

Keeping an eye on better-for-you attributes

ABA’s research found that consumers are more driven to purchase a baked good if it is acceptable within their balanced diet and provides health benefits. This way of thinking isn’t limited to meal-related baked goods like breads and tortillas. The Bakery Playbook found that consumers also desire better-for-you desserts, including brownies, cookies and pastries.

Brands can reach these health-conscience audiences by showcasing the whole grain aspect in baked goods, incorporating real fruits and veggies in their treats, making their products gluten-free, offering items in small portions and lowering their sugar content.

Permissibility within the baked goods sector is high as long as companies know how to access it. With the right branding, consumers can be persuaded to make that one extra purchase in order to balance their diet, reward themselves or celebrate with friends.

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