Baking & Snack - February 2022 - 29

SPECIAL REPORT
Capital Spending Study
NOT-SO-BLIND
OPTIMISM
D
by Charlotte Atchley
Despite the headwinds of 2021, positivity persists in the
baking industry. It's hard not to be hopeful with consumer
demand for bakery products showing little sign
of slowing, even a full two years after the coronavirus
(COVID-19) pandemic sent people home and changed
their eating and shopping habits.
In Baking & Snack's 2021-22 Commercial Baking
Industry Capital Spending Study, conducted by Cypress
Research and sponsored by BEMA, bakers reported
positive outlooks for retail, foodservice and distributor
channels, with some markets seeing significant upward
movement. When asked in 2020 for 2021 channel projections,
only 56% of bakers reported having a positive
outlook for the foodservice channel. In the most recent
study, when projecting ahead to 2022, that number
jumped to 92%, reflecting the recovery that channel has
experienced in the wake of vaccination programs and
many pandemic restrictions being lifted.
Some economic recovery has tempered enthusiasm
for the retail channel - 60% of bakers reported a very
positive outlook for this channel in 2021 vs. 47% when
looking ahead to 2022. However, a full 93% of bakers
indicated that they are somewhat to very positive about
their prospects on store shelves for 2022. Despite some
equalizing, retail consumers still want their baked goods.
" The demand for baked goods drives the industry
in everything it does, " said Kerwin Brown, president
of BEMA. " The better the economic outlook, the more
consumers can continue to purchase the baked goods
that they love. "
The headwinds may be real, but it's hard to feel down
when the sun is beaming. The overwhelming confidence
bakers have for business - and even the challenges they
are facing - are whetting appetites for investment in
2022 as this industry study reveals.
Sunshine in the forecast
It's fair to say that the past two years have been blustery
for all. But since 2020, bakers have maintained a positive
outlook for their companies and the industry.
That's reflected in trends for the past three study years.
Eighty-five percent of bakers reported a somewhat to
very positive 2020 outlook for the US baking industry,
which then jumped to 93% in 2021. For 2022, that number
has held fairly steady at 90%.
" In spite of ongoing supply chain challenges tied to the
pandemic, through this benchmarking study, bakers are
telling us that they do have sustained positivity when it
comes to the outlook for their companies and for the commercial
baking industry both here in the US and globally, "
said Marjorie Hellmer, president of Cypress Research.
This level of optimism has also been reflected in
www.bakingbusiness.com / February 2022 Baking & Snack 29
Challenges related to supply chain and labor
issues have bakers investing in automation to meet
consumers' sustained appetite for baked goods.
©PARILOV EVGENIY - stock.adobe.com
http://www.bakingbusiness.com
Baking & Snack - February 2022

Table of Contents for the Digital Edition of Baking & Snack - February 2022
