Who doesn’t love to indulge? Amid the stresses of everyday life, consumers are turning to their favorite cakes, pies, brownies and more as a needed pick-me-up or as a way to celebrate. And while inflation is draining consumers’ dessert dollars, they aren’t giving up their beloved sweet goods any time soon.

“We know in the face of inflation, consumers are cutting back on nonessentials, but they are still indulging, which is part of the reason why sweet goods is doing so well,” explained Melissa Altobelli, principal, client insights, dairy and bakery vertical, Circana. “They still want to have a sweet treat.”

Dollar sales for center store desserts and sweet snacks rose 13.5% to approximately $5 billion while unit sales dipped 2.4%, according to Circana data for the 52 weeks ending Aug. 13. In the perimeter, dollar sales increased 9.6% to roughly $10 billion and unit sales fell 2.5%, but there were areas of growth. Unit sales of perimeter whole pies, for example, climbed 3.5%, while dessert bars and squares jumped 13.9%.

Consumers’ love for desserts hasn’t changed, but inflation, the pandemic and other trends have shifted the way they enjoy them. More consumers are indulging at a lower price point, often through smaller sizes and individually wrapped treats. They are also seeking authentic products with elevated flavors and eating experiences, as well as better-for-you claims like clean label. Consumers still want their familiar favorites, but they want them with a little extra. 

“They want to know that their purchase is the real deal in terms of quality while leaving a responsible imprint on the environment,” said Seb Siethoff, chief executive officer of Richmond, Calif.-based Rubicon Bakers, a maker of cakes, snack cakes, cupcakes and muffins. “They are increasingly networked and on-the-go and are looking for impulse solutions that are true moment makers for themselves and their families and friends.”

This article is an excerpt from the November 2023 issue of Baking & Snack. To read the entire feature on Sweet Goods, click here.