Despite comprising a fairly low percentage of perishable dollar sales at most retail stores, in-house bakeries are thriving in the U.S. Retail dollar sales of in-store bakery goods reached $13.4 billion in 2013, up from $12.8 billion in 2012, according to “In-Store Bakeries: U.S. Market Trends” a recently released report by market research publisher Packaged Facts.

These bakeries are key because they convey an image of freshness and quality that extends through the rest of the supermarket, asserts Packaged Facts research director David Sprinkle. Furthermore, in-house bakeries help support the convenient one-stop shopping that is essential for supercenters and warehouse clubs. The continued expansion of fresh baked goods beyond their supermarket perimeter base and into convenience stores and drug stores lends the market additional momentum.

Grocery retailing’s reliance on in-house bakeries, combined with higher price points, has allowed the in-house baked goods market to experience dollar sales increase every year since 2008. Packaged Facts expects these gains to continue through 2017 and beyond, despite challenges due to economic conditions and health and diet concerns.