New Report Examines Trends in the Bakery and Coffee Cafe Segments

There's growth potential in the bakery and coffee cafe segments, says a new report by Technomic, but those brands must adapt to shifting consumer behavior.

The 2018 Bakery & Coffee Cafe Consumer Trend Report finds that health trends are leading consumers toward better-for-you items, such as soups and salads. Consumers are pushing back from sugary treats and drinks commonly associated with bakeries and cafes. Likewise, a shift toward more off-premise occasions can benefit cafes with a grab-and-go focus as well as those that offer delivery service.

"Despite some recent headwinds caused by increased competition and shifting consumer demands, bakery and coffee cafes are still well-positioned for growth," explains Charles Winship, senior research analyst at Technomic. "However, cafes must be willing to evolve with a growing emphasis on functional offerings, new technology that enhances convenience, and operational flexibility to satisfy consumers' various need states."

Key findings in the report:

• 25% of consumers visit bakery cafes at least once a week and 35% visit coffee cafes at least once a week
• 54% of bakery-cafe consumers visit these locations more so for their food or a specific food product, while 25% visit more so for their beverages or a particular beverage
• 44% of coffee cafe consumers say they are loyal to a specific cafe because it serves their preferred coffee

The findings in the 2018 Bakery & Coffee Cafe Consumer Trend Report come from more than 1,000 consumer responses, as well as menu and industry data from the Ignite database.