Sample Business Plan on Bakery Business Plan
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U. S. Bakery Industry Growth
Frost & Sullivan, an industry research firm, considers the U. S. bakery industry as a significant part of the U. S. Food and Beverage Industry. The bakery sector of this industry is characterized as highly competitive by Frost & Sullivan and a mature market increasing annually at a rate of 2.0%-3.0%.
In 2007, the revenue generated from the U.S. bakery industry was estimated to be close to $34 billion. The U. S. bakery industry has undergone significant changes in order to stay abreast with shifting consumer trends. One specific trend is an increasing emphasis on healthier foods, as well as convenience.
Bakery Trends
Today’s bakeries are adding extra ingredients to their products in order to create more desirable and nutritious choices, ingredients such as green tea, berries, fiber, whole grains, nuts, seeds, enhanced meal, assorted flavorings, enzymes, emulsifiers, omega 3, 6, & 9, prebiotics and probiotics for better digestion, fortified ingredients with additional minerals and vitamins, etc., in an effort to present an assortment of healthier bakery products.
Frost & Sullivan’s report states, “The cakes and pastries sector also displayed some level of innovation and differentiation with a mix of sophisticated and ethnic flavors as well as healthy variants such as low/light, fat-free and sugar-free products.” 4
Some of the key trends in flavorings, other than the traditional vanilla, chocolate, and strawberry, include:
§ Natural Flavors, such as:
o Orange
o Banana
o Apple
o Creams varieties
o Cocoa (higher percentage of dark)
o Lemon
o Cinnamon
§ Ethnic choices like anise and blue poppy seed
§ Organics
§ Fusion fruits and spices like white chocolate with cranberries or Tahitian vanilla with honey
§ Nutraceuticals (natural food properties)
§ Customized flavor blends
In a later Frost & Sullivan report, the U. S. Bakery market is said to be responding favorably to heightened consumer health awareness by incorporating value-enhanced ingredients into their products. Health-conscious consumers are now able to enjoy bakery goods of all varieties. An analyst of Frost & Sullivan states, "Since consumer needs are constantly evolving, it is imperative for manufacturers to closely monitor consumer purchasing patterns and demographics to deliver products in sync with these developments." 5
In a report released by Packaged Facts, titled, The U.S. Market for Sweet Baked Goods retail product sales in 2005 were stated to total over $12 billion. The seven principal categories of the report’s sweet baked goods market sector included:
v Cookies
v Pastries
v Snack Cakes
v Cakes
v Doughnuts
v Pies
v Muffins
Donut Facts
v In the U.S. more than 10 billion donuts are consumed every year.
v 65% of U. S. households consume donuts.
v The largest donut ever made was an American-style jelly donut weighing 1.7 tons, which was 16 feet in diameter and 16 inches high in the center.
v Per capita, Canada has more donut shops than any other country.
v The hole in the donut's center appeared in the first half of the 19th Century.
v Adolph Levitt invented the first donut machine in 1920.
v The U. S. donut industry alone is worth over $3.6 billion
Other bakery statistics reveal:
§ 61% of Americans eat breakfast every day, and 32% of them eat out or purchase breakfast at least once a week.
-- Panera Bread
§ 24,000 independent bakers and 20,000 in-store bakeries generate $18 billion in sales a year.
-- Retailer’s Bakery Association
§ Dunkin' Donuts is the largest bagel retailer in the world selling more than 285 million bagels per year.
-- Dunkin Donuts
§ By 2012, the U.S. bread and rolls market is forecast to have a value of $14.2 billion.
-- Datamonitor Industry Profile
§ The word bagel is derived from the Yiddish word, beygl, from the German word bugel, for a round loaf of bread.