How the US made a $1 billion cake fortune
Posted On July 23, 2021
Cake stores have been opening across the US, as the number of people who buy and consume cakes and other desserts has risen sharply.
It’s been a big year for the US bakery industry, with the number selling at least $1.5 billion last year, according to the Bakery Manufacturers Association.
The number of cakes sold by bakeries in the US has also risen sharply in recent years, from $2.2 billion in 2005 to $3.4 billion in 2018.
For some, however, the spike in sales is not enough to convince them to buy.
“I would say we’re on a cake trend, and it’s kind of a slow-motion train wreck,” said Michael Shackelford, president of the National Cakes Association.
The group is a trade group for bakeries that represent about half of the US cake market.
The trend has come as consumers increasingly turn to restaurants, coffee shops, bakeries and other retail outlets to get their sweet treats.
“Cakes are really a hot commodity right now,” Shackel said.
But some consumers are still reluctant to buy them, especially in the case of desserts.
“We’re trying to make it easier to get people to go out and buy cake, but I think we’ve had too many instances of people saying, ‘No, I don’t want to buy that cake,'” he said.
Some people who don’t like the taste of a particular cake say it’s a sign they’ve already eaten too much.
But for others, the trend is good for business.
Bakeries are looking for customers, and customers are coming.
More than 80 percent of all Americans are now buying at least one cake, according the Bakeries Association.
The number of Americans who own or have access to a bakery has more than tripled in the past decade, to about 1.6 million people.
The number is expected to continue to grow, with an estimated 500,000 new people buying cake in 2020, according a survey by the industry group, which predicts more than a million people will shop at or near a bakery by the end of this year.
In many states, restaurants and coffee shops have begun to expand their bakeries.
In Oregon, which already has a large bakery business, the number is up a record 4.4 percent, the Associated Press reported.
In Connecticut, a new bakery is opening in downtown Hartford.
In North Carolina, a bakery is expected in downtown Raleigh.
The bakery industry in North Dakota is growing, and there are more bakeries opening there.
The Bakery Association said in an industry outlook released in April that the rise in demand from restaurants and cafes and from coffee shops is a key driver of the rise.
“Our industry continues to be a driver of growth in the United States and around the world,” Sharckelfords said.
The AP contributed to this report.