Traditional Bakery under Threat?

‘New age’ snacks and even dried seaweed constitute threats to the baking industry, according to food trend analysts in the USA.

At the recent annual meeting of the American Bakers’ Association, Nielsen and Mintel – along with the Natural Marketing Institute – particpated in a SWOT analysis to look at current retail and consumer trends in bread and rolls.

The increased popularity of new age snacks from other categories ranging from energy bars to dried seaweed and competitive snack categories like cereal, energy bars, fruit, nuts and cheese were seen as a threat to baking.

Lynn Dornblaser, director of consulting, Mintel International, warned that fresh bread increasingly is viewed as not so fresh.
She cited data indicating about two thirds of consumers believe in-store baked foods are fresher than packaged bread. She advised bakers to counter this perception by promoting the fact bread is ‘baked fresh daily’.

Todd Hale, Nielsen’s senior vice-president, consumer and customer insights, said said front-of-label claims, including gluten free and bioengineered-free, may pose a threat to baking.

Several panelists mentioned increased attention to bioengineered organisms as an area of concern.

Other threats cited by panelists included the increased popularity of consumer products even more convenient than baked foods and the growing popularity of artisanal baked foods that reinforce the image of packaged baked foods as highly processed.

Just as they found no trouble finding multiple threats, the panelists were quick to identify numerous powerful strengths enjoyed by the baked foods category.

The magnitude of the category – $40 billion – making it one of the largest in food stands out as a significant benefit, Hale said, and Dornblaser said the industry benefits from the diversity and value of its products.

“There is something for everyone, at every price point,” she said. “Choice is abundant. There are more than 2,000 bakery products introduced each year.”

Additionally, overall baked foods sales are performing worse than other major food and beverage categories. Weaknesses identified by the other panelists related principally to health and wellness issues.

The aging of the population was described as a weakness by Hale, who said bread is an easy target for cutting for people getting older and consuming fewer calories. He suggested bakers could adapt to the changing demographics by offering smaller packs and products with desired features such as added fibre.