In-store Bakery Is Back

While the bakery aisle performed well throughout the pandemic, in-store bakeries took a major hit. But now they’re back. To fight inflation, consumers are biting into more permissible treats, celebratory cakes, and specialty breads and rolls to elevate meals at home. The biggest winners are products that support the morning daypart. Still, guest Melissa Altobelli, principal, client insights with IRI’s bakery vertical, says in-store bakeries should seek inspiration from what’s happening outside the store.      Highlights    High inflation is causing more consumers to trade down from restaurants and coffee shops to baked goods found at retail, especially for the morning meal.    While not the largest share of e-commerce, donuts and pastries are the fastest-growing subcategory.    Younger consumers are looking for adventure from their food. Retail bakery can answer the call with whimsy and fun, including colored or cereal-flavored bagels.