Entrepreneurs who want to start a bakery or are already in the bakery industry should read this article. It provides an overview of bakery business basics, including market research, industry statistics, and future trends to help them succeed in the competitive landscape.
What Type of Business is a Bakery?
A bakery is a food business that produces and sells flour-based products such as bread, cakes, pastries, and pies. Many bakeries are small businesses that are family-owned and operated. Some larger bakeries may be part of a franchise.
The bakery industry includes all businesses that make fresh, frozen, or packaged baked goods. This includes in-store, online, mobile, and commercial bakeries that sell to restaurants, grocery stores, and other food service businesses.
Bakery Industry Outlook
The bakery industry is growing. In the United States, the retail bakery industry is expected to reach $30 billion in 2025, up from $24 billion in 2020.
The growth is driven by the increasing popularity of indulgent and health-conscious baked goods and the growing demand for convenient online ordering and delivery options.
Important Bakery Industry Statistics
Thinking about opening a bakery? Consider the following valuable statistics.
- There are approximately 6,000 retail bakeries in the United States.
- The average revenue for a bakery is $400,000.
- The average profit margin for a bakery is 4%.
- The average cost of starting a bakery is $10,000 to $50,000.
- Bakery products have a shelf life of 2 to 3 days.
- The most popular bakery products are cookies, followed by cakes and breads.
- The bakery industry employs over 800,000 people in the United States.
Future Trends for the Bakery Industry
There are a few existing and future trends to keep an eye out for in the bakery industry. Leveraging current trends can help attract new customers but shouldn’t be your only business strategy or you’ll be in trouble the first time trends change.
Plant-based ingredients are becoming more popular in the baking industry as consumers become more health-conscious. So expect to see more vegan breads, cakes, and other plant-based baked goods in the future.
Artisanal breads made with high-quality ingredients and unique flavor profiles are becoming more popular among discerning customers.
Miniature desserts and single-serve packaging are becoming more popular as consumers seek out portion-controlled indulgences.
Online ordering and delivery
The growing popularity of online ordering and delivery services is changing the landscape of the bakery industry. More bakeries are offering online ordering and delivery to meet the demand for convenient, hassle-free shopping.
Cupcakes are no longer just a simple dessert. They’re becoming an art form. Gourmet cupcake shops are popping up all over the country, offering creative flavor combinations and beautiful decorations.
The bakery industry is growing and evolving to meet the demands of today’s consumers. If you’re thinking about starting a bakery or are already in the business, it’s essential to stay up-to-date on the latest industry trends.
By understanding the market research, industry statistics, and future trends, you can give your bakery the best chance of success.