
Ever since I read that the sourdough market was expanding at a rate of 9.1% annually and that it was expected to go from $2.3 billion in 2023 to $5.15 billion in 2032 (source) I became really interested in learning more about what is driving that expansion and how home bakers can capitalize on it. That's why I partnered with Pollfish to run two surveys from Oct. 28 to Nov. 5, to shed some light on the state of the home bakery market, especially with the holidays coming up. We made a customer survey (2,049 U.S. consumers) and a home baker survey (400 professional and aspiring home bakers).
Below you can find a teaser, but a full report on the Leaf & Loaf 2024 Home Baking Survey will be published on Dec. 3 right here on my blog.
Home bakeries are rising in popularity, driven by growing consumer demand for fresh, personalized baked goods. The consumer survey revealed that 36% of Americans have purchased from a home bakery. Among these buyers, 86% plan to shop for home-baked goods this holiday season, underscoring the increasing role of these small businesses in festive celebrations.
The survey also included responses from 400 professional home bakers and aspiring professional home bakers, providing insights into how these entrepreneurs are meeting the holiday demand. Bakers reported finding innovative ways to scale their businesses without compromising the personal touch that defines their work.
Survey Highlights: Home Bakeries Thrive During the Holidays
Key findings from the surveys include:
● 36% of U.S. adults have purchased from a home bakery.
● Among these buyers, 86% plan to purchase baked goods this holiday season.
● 73% of buyers said they favored cookies as a home-baked gift, followed by cakes, pies, and pastries.
● 72% of bakers report receiving bulk orders for parties, events, and gifts during the holidays.
● 66% of bakers plan to increase production this holiday season to meet rising demand.
● 71% of bakers said they typically purchase baking supplies from online marketplaces like Temu and Amazon.
Bakers Crank Out the Cookies—with Help from Technology
The survey highlights significant demand for home-baked goods, with many purchases centered around holidays and special events. Among the 36% of U.S. adults who buy from home bakeries, most shop occasionally—primarily for holidays—while others buy monthly or even weekly.
I found interesting that cookies remain the top choice for holiday treats among consumers, with 73% saying they “typically prefer” them for holiday gifts. Bakers shared the same sentiment, with 46% reporting that cookies are their most popular holiday product, followed by cakes (23%) and pastries (16%). We must make sure cookies are included in our menus.
However, this rising demand presents challenges for bakers. Managing time was cited as the top challenge by 58% of bakers, while 25% said meeting high demand is their biggest hurdle.
To overcome these obstacles, bakers are turning to technology and cost-saving measures. Social media platforms like Instagram and Facebook have become indispensable for marketing, enabling bakers to showcase their creations and connect directly with their communities. Cost-effective tools and packaging from online marketplaces are also helping bakers manage costs while scaling production, with 71% typically sourcing supplies from Temu and Amazon.
Home bakers are the heart of the holiday season, bringing joy to their communities with handcrafted treats, but behind every perfect cookie or cake is a dedicated baker navigating challenges with creativity, resourcefulness, and a deep love for their craft.
Consumers Prioritize Personalization, Quality, and Sustainability
Home-baked goods are valued for their superior quality and the personalized experience they offer. Sustainability is also a significant factor, with 59% of buyers valuing eco-friendly packaging and locally sourced ingredients. Additionally, 71% of buyers appreciate personalized packaging, making home-baked gifts feel even more special.
While cookies lead the way in holiday orders, cakes and pastries follow closely behind. Among bakers surveyed, 72% report that bulk requests for these items are a major part of their workload during the holiday season, with many customers seeking unique treats to elevate their celebrations. Nearly two-thirds (66%) of bakers are increasing production this holiday season to meet rising demand.
Consumers are willing to pay a premium for holiday baked goods, with 84% saying they spend at least $20 per home bakery order and 19% spending more than $50. Among bakers, 31% report an average product price of more than $20.
Stay tuned for a complete survey report being released on December 3rd, 2024.
This is so very useful