Insights / Perspectives
Baked Goods Trends 2025: Navigating Health, Innovation, and Sustainability
The U.S. baked goods market saw 6% value sales growth in 2024, while volumes declined. Budget-conscious consumers are more selective and intentional with their purchase decisions, especially in non-essential categories like cakes and sweet treats. While people may be cutting back, they are still willing to spend on products that provide high value. Bakery brands can leverage the following trends to succeed in today’s baked goods retail landscape.
Weight Management
Baked goods are expected to be impacted by the growing popularity of GLP-1 drugs and how they alter people’s diets. According to Euromonitor, “Foods that are typically consumed as a ‘permissible indulgence’ – often low in nutritional value – may be less appealing to those using GLP-1 medications, posing a potential risk for cookies, cakes, and pastries.” As eating patterns change, people seek more satisfying and nutritious treats. When it comes to packaging, clearly communicating a product’s health attributes and benefits – like calorie count, protein content, and sugar content- is important. Also, individually portioned pack sizes can help consumers looking for a balanced diet.
Ingredient Optimization
According to GlobalData, 58% of American consumers say they pay a very high / high level of attention to the ingredients used in the food and drinks they consume. This, combined with growing health-consciousness, is driving demand for baked good ingredients like whole grains, natural sweeteners, and plant-based fats. Organic ingredients will also remain popular and non-genetically modified (GMO), certified kosher, keto-friendly, paleo, and grain-free baked goods are expected to gain prominence. Minimal package design can signal that a product is made with high-quality, simple ingredients. A Journal of Marketing study found that many consumers associate clean packaging with fewer ingredients and leads to a willingness to pay more. Berlin Packaging’s Studio One Eleven has expertise in creating impactful, effective, and minimalist brand design solutions that win with consumers.
Flavor & Format Innovation
Today’s consumers are more curious and adventurous with what they eat and are looking to experiment with different flavors, ingredients, sensory experiences, and product formats. Global ingredients and unusual flavor combinations can appeal to consumers seeking unique experiences (Oreo cookies recently introduced a limited-edition sour patch flavor). Brands continue to innovate with hybrid products like the cronut, brookie (brownie cookie), and crookie (croissant cookie) to appeal to consumers who want to try new things. Creative and innovative packaging can contribute to the novelty of unique baked goods. Studio One Eleven creates one-of-a-kind custom package designs that complement the product and elevate the consumer experience.
Farm to Fork Sustainability
Consumers care about sustainability more than ever and baked good brands can demonstrate their commitment to the environment in various ways. Euromonitor says, “Today's savvy consumers are invested in the product's journey, not just the result. Prioritizing sustainable sourcing, local production, and sustainable farming practices proves a vital commitment to tackling food insecurity - a standout selling point.” Eco-friendly packaging like recyclable materials (e.g., paper and pulp-based, glass, metal, and certain types of plastic), renewable materials (bio-based resins), post-consumer recycled (PCR) content, refillable and reusable models, light-weighting, component reduction, and compostable materials can help brands reduce waste and drive the circular economy. Berlin Packaging’s dedicated team of sustainability experts helps customers with sustainable packaging, portfolio assessments, messaging strategies, and more.
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The brands mentioned in this report are trademarks of their respective owners. Inclusion of these brands in this report is not meant to imply an association with or endorsement from the respective trademark owners.