Bakery exhibition | How consumers prioritize indulgence vs. Inflation

In recent years, the way consumers perceive shopping obstacles has shifted significantly from just a few years prior. Amidst soaring inflation, individuals have been compelled to re-evaluate their expenditures, adopting more calculated approaches. Bakery industry insiders believe,different from the economic downturns of the ‘90s and early 2000s, which saw a sharp curtailment in spending, the current sentiment of 'life is short' has kept the focus on brand loyalty and personal indulgence.

Consequently, sections like the grocery perimeter, known for premium items such as fresh bakery goods, continue to allure shoppers with their perceived value.

“Value is subjective,” notes John DuBois, VP of fresh foods at Acosta Group. “Stores are crafting an engaging perimeter experience because for some, the shopping atmosphere dictates their choice of retailer.”

DuBois explains that integrating offerings across the perimeter, with meal solutions encompassing meats, veggies, bread, and desserts, enhances this experience. The rise of omnichannel shopping, supported by the convenience of store apps, further bolsters customer fidelity.

While promotions addressing value are in place to simplify food selections, consumers are also making nuanced, deliberate adjustments to their budgets, often to justify more luxurious food items. This trend often stems from viewing treats as a form of self-pampering, with a renewed emphasis on well-being.

Bakery exhibition from Acosta Group’s consumer surveys suggests a cutback on extravagance, yet a closer look at the data shows that these reductions are made with careful intent. Despite fewer store visits leading to a drop in spontaneous buys, people are keeping luxury items in their carts and sometimes even spending more in certain categories, regardless of price.

Research by Acosta Group shows nearly 60% of consumers are dining out less, which opens up possibilities for splurges in departments like the bakery section.

In today’s relative economy, even with high in-store prices, shoppers still find some products to be reasonably priced treats. Acosta Group discovered that half of the consumers would indulge in specific items as a treat for themselves or their family, in spite of the costs.

When asked about splurge items, respondents listed desserts, ice cream, cakes, and cookies. Moreover, comfort foods such as pizza, potato chips, and chocolate were popular during stressful periods.

Economically, while a recession looms, American spending behaviors suggest indulgent baked goods might continue to be seen as justifiable extravagances.

Bakery China will continue to share more industry professional content with you, so please stay tuned!

Bakery China, organized by China Association of Bakery and Confectionery Industry (CABCI) and Bakery China Exhibitions Co., Ltd. was launched since 1997. Bakery China is the Asia Pacific's leading event serving the entire value chain for the bakery and confectionery market. The event presents all range of ingredient, equipment, packaging and services, and enables global leading professionals and buyer delegates to meet and share the latest innovations and thinking on manufacturing & distribution, R&D, applications and related services for bakery industry.It is  the first choice trade fair to enter China's bakery market.

The 26th Bakery China will be held on May 21-24,2024 at National Exhibition and Convention Center (NECC), Shanghai, covering 320,000 sqm show space. Over 2,200 exhibitors and 400,000 visits are expected.（source:commercial baking）