Trends in the Food Service Industry

Part
01
of three
Part
01

Bakery Sector Trends

Three trends regarding the current state of bakery sectors in the food service industry, specifically related to donuts and how they are predicted to perform include Americans looking for convenient breakfasts due to busy schedules and hectic lifestyles, coffee shops offering donuts, and increasing health-conscious American consumers who are avoiding baked products containing artificial ingredients and flavors.

Americans looking for convenient breakfasts due to busy schedules and hectic lifestyles

Coffee Shops offering Doughnuts

Increasing health-conscious American consumers

Your Research team applied the following Strategy:

Initially, we searched for research and survey reports published by research firms that talked about the trends regarding the subject. We looked into these resources because usually these contain trends derived from a market study using samples. Sometimes, they also interview some of the key people of leading bakery companies or donut companies in the United States. Further, they provide insights on growth trends, propositions, and strategies of bakery companies or donut companies in the United States.

We looked into Gartner, Delloite, IBISWorld, Euromonitor, EY, Grand View Research and the like. We also examined press releases and news distribution sites such as Business Wire, PR Newswire, and NewsLookup. However, we were not able to find any relevant research or survey report. However, we found the market sizes, major companies, and a list of three growth trends surrounding the global donuts market. Following this, we examined several third-party sources to verify whether the global donuts market growth trends are applicable for the United States as well. We looked for multiple sources for each trend and gathered at least three different reliable sources to support each trend.

In order to find the required information, we looked into the following sources:
  • Media sources such as WSJ, Forbes, USA Today, HuffingtonPost, New York Times, and Quartz.
  • Market research firms such as from Marketwatch, Grand View Research, and Morningstar
  • Magazines such as qsrmagazine, foodiecrush, Food & Wine Magazine, and SAVEUR
  • Government websites such as Agriculture and Agri-Food Canada, Nutrition.gov, and the U.S. Food and Drug Administration
  • Business news portals such as Bloomberg, Forbes, WSJ, and CNBC
  • Food and beverage blogs such as European Coffee Trip, The Cinnaman, and Broma Bakery
  • Food retail websites such as The Restaurant Group, supermarketperimeter, Social Hospitality, NRF News, and RetailWire
The trends included in this brief covers the overall bakery food service items sold to grocery stores, convenience stores, and/or other retailers.
Part
02
of three
Part
02

Ready-To-Serve Sector Trends

While there is no publicly available information to fully answer your question, we have used the available data to pull together key findings. Companies such as Clyde’s Donuts, Rich’s Foodservice, and Dawn Foods provide ready-to-serve/ready-to-finish donuts to bakeries in the US. Below you will find an outline of our research methodology to better understand why the information you have requested is publicly unavailable, as well as a deep dive into our findings.

HELPFUL FINDINGS

  • Clyde’s Donuts’s ready-to-finish donuts are ready to eat but allow bakeries to apply finishing touches or decorations before selling them.
  • Rich’s Foodservice ready-to-finish donuts are ready to eat plain donuts but allow bakeries to apply the desired finishing.
  • Dawn Foods’ ready-to-finish donuts program allows businesses to just thaw and finish.
  • The increasing the demand for packaged breakfast baked products such as bagels, donuts, croissants, and muffins is driven by the importance of morning meal.
  • Rising demand for portability and convenience food is one of the major driving forces influencing the bakery market.
  • Quick service restaurants in the US are serving foods which can be prepared in less than 30 minutes and this benefits the frozen bakery market.
  • Changing lifestyles/food preferences and different varieties of flavored foods are drivers of convenient ready-to-eat products, which includes the bakery products segment.
  • The increase in demand for specialty frozen baked goods is due to healthy offerings available for this segment.

RESEARCH STRATEGY

Please note instead of “ready-to-serve,” "ready-to-finish" is the more commonly used term in the US donuts and bakery industry. An examination of research papers published by Gartner, Deloitte, IBISWorld, Euromonitor, EY, and Grand View Research, and articles and press release published by news distribution sites such as Business Wire, PR Newswire, and NewsLookup did not reveal any trends regarding how the ready-to-serve/ready-to-finish sector of the foodservice industry, related to donuts or bakery food service items sold to grocery stores, convenience stores, and/or other retailers. Only trends of the overall food service industry market size of the donuts industry within the US and globally and information related to donuts chains such as Krispy Kreme, Dunkin, and other famous brands were found.
An examination of the websites and press releases of companies that provide products in the ready-to-finish segment such as Clyde’s Donuts, Rich’s Foodservice, and Dawn Foods did not provide the required information. Only information related to their products, in general, could be identified.
An examination of the websites and press releases of companies that offer bakery food service items sold to grocery stores, convenience stores, and/or other retailers also did not provide the required information. Trends specifically for ready-to-serve products are not available. The articles only provide information on packaged breakfast baked products.

Part
03
of three
Part
03

Frozen Dessert Sector Trends

Three trends regarding how the frozen dessert sector of the foodservice industry is currently and predicted to perform are the growing size of the market, increase in the variety of products, and use of technology and innovation to create new products and flavors.

THE US FROZEN DESSERT MARKET IS GROWING

  • The US frozen desserts market size is expected to reach $35.2 billion by 2025.
  • The US frozen desserts market size was over $25.80 billion in 2016 and is expected to grow at a CAGR of 3.7% between 2017 and 2025.

PRODUCT variety

  • Frozen desserts available on the US market include "cakes & pastries, confectionery & candies, doughnuts & pies, custards & pudding, ice creams, frozen yogurt, tofu, sweet Treats, sherbet, and frozen novelties."
  • Ice creams have emerged as the dominant segment in 2016 and accounted for over 60% of the market revenues.
  • There are over 400 frozen yogurt brands in the US.
  • However, American consumers are increasingly losing interest in frozen yogurt, which believed to have peaked in 2013.
  • The market became oversaturated as foodservice outlets began flocking the market with frozen yogurt products, and many companies ended up losing their competitive edge and closed down.
  • Due to the growing concern of American consumers with the high obesity rate, many are turning to healthier options when it comes to ice cream and frozen desserts.
  • This has led to an increase in demand for low-calorie options, vegan alternatives, and dairy-free products.
  • The increase in demand for low-fat content desserts is due to widespread calls for increased consumption of healthy and nutritious frozen desserts.
  • Frozen tofu is expected to grow slightly over the forecast period at a CAGR of 4.4%.

TECHNOLOGY AND INNOVATION


Sources
Sources

From Part 01
Quotes
  • "Market Trend Consumers having busy schedules and hectic lifestyles rely on doughnut shops to have breakfast Many specialty coffee shops are also offering doughnuts as many customers prefer a combination of doughnuts along with coffee Companies offering Yeast-raised doughnuts like Dunkin' Donuts and Krispy Kreme Doughnuts are more preferred by consumers as they are lighter in texture in comparison to cake doughnuts. "
Quotes
  • "Where people drink their coffee is strongly correlated to age. People 65 years and older are the most likely to have coffee exclusively at-home. Meanwhile, coffee drinkers under 35 years are nearly one-third more likely to drink coffee from a café or donut shop."
Quotes
  • "The combination of coffee and the fried pastry comes from the United States, where doughnuts are picked up as a morning breakfast treat, as well as an afternoon snack. "
Quotes
  • "Despite United States (US) consumers' love of baked goods and especially pastries, the United States market is challenged by those searching for better-for-you treats that still taste good. "
  • "Increasingly health-conscious Canadian and American consumers are moving away from highly processed products containing artificial ingredients and flavours in recent years, in favour of food perceived to be more natural due to shorter ingredient lists and less reliance on added preservation ingredients."
Quotes
  • "Health-conscious trends can be spotted everywhere. From the decline of processed foods and the surge of organic in-store options, to the swelling of the $3.7 trillion wellness industry, to legislative policies like those enacted in San Francisco — requiring companies to include health warning labels on all sugary soda products — Americans want to live healthier lives."
Quotes
  • "Appling says Lawrence Foods also has had to keep up with the increased demand for healthy donut options. Lawrence Foods works with its customers to ensure that they are meeting the demographic trends within their marketplace. "
From Part 02
Quotes
  • "Widespread importance on the morning meal will spur the demand for packaged breakfast baked products, which includes bagels, donuts, croissants and muffins. Rising demand for portability and convenience food are some of the major driving forces influencing this market. "
  • "Hotels, restaurants and caterers’ segment will witness highest CAGR in U.S. frozen bakery market during the forecast timeframe. This segment also includes quick service restaurants, which is poised to experience a prominent growth rate in the U.S. during the forecast period. Quick service restaurants have become popular in the U.S., especially the food trucks culture has gained American attention to a great extent. These restaurants mostly have recipes that can be prepared under 30 minutes, which attracts a large pool of consumers who are always in hurry and prefer eating while walking. This positive attitude of consumers towards quick service restaurants will ultimately be beneficial for frozen bakery market size over the forecast timespan."
Quotes
  • "The bakery products segment is part of a demand-driven market for convenience food. The major market drivers include the convenience of ready-to-eat products, changing lifestyles and food preferences, and large varieties of flavored foods. "
Quotes
  • "The growing foodservice market, including ready-to-bake and ready-to-thaw frozen baked goods, continues to encourage increasing consumer demand for frozen bakery market."
  • "Meanwhile, the rise of specialty frozen baked goods is complemented by the healthy offerings associated with it."
From Part 03
Quotes
  • "The U.S. frozen desserts market is expected to reach USD 35.2 billion by 2025, according to a new report by Grand View Research, Inc. Rising demand for healthy and nutritious frozen desserts has been a major factor driving low-fat content desserts. In addition, technological advancements in refrigeration and conveyor techniques have also driven the industry growth in recent years."
Quotes
  • "The U.S. frozen desserts market size was estimated at USD 25.80 billion in 2016. Increasing demand for low-content sugar and low-calorie desserts backed by consumer spending across the region is expected to be a key factor driving market growth. Frozen desserts are made by freezing liquids, semi-liquids or even solids. They are based on various distinct flavors such as fruit purees, flavored water, and milk among others. Several companies in the U.S. are investing extensively in improving the shelf life and storage facilities of these products, which in turn, is predicted to positively influence growth over the forecast period."
Quotes
  • "With growing concerns over the high obesity rate in the US increasing numbers of consumers are looking for healthier options when it comes to ice cream and frozen desserts, such as low-calorie options, vegan alternatives and dairy-free products. This has resulted in the rise of Eden Creamery LLC with its Halo Top brand and other players that offer healthier options."
Quotes
  • "At this year’s Ice Cream Technology Conference, innovation and inspiration were top of mind for everyone in attendance. Mintel’s research reveals that the global ice cream market managed to muster a 3% increase in 2014. Global volume sales of ice cream climbed slightly faster (4%), reflecting the category’s expansion in emerging markets. The industry is keenly focused on market opportunities and flavor inspirations to spur growth and reengage consumers."