While the bakery aisle performed well throughout the pandemic, in-store bakeries took a major hit. But now they’re back. To fight inflation, consumers are biting into more permissible treats, celebratory cakes, and specialty breads and rolls to elevate meals at home. The biggest winners are products that support the morning daypart. Still, guest Melissa Altobelli, principal, client insights with IRI’s bakery vertical, says in-store bakeries should seek inspiration from what’s happening outside the store.  

Highlights 

• High inflation is causing more consumers to trade down from restaurants and coffee shops to baked goods found at retail, especially for the morning meal.