Market Overview
Donuts Market was valued at USD XX million in 2021. It is forecasted to reach USD XX million by 2029, growing at a CAGR of 3.85% during the forecast period (2022-2029).
A donut is a food made from leavened fried dough. It is popular in many countries and is prepared in various forms such as a sweet snack that can be homemade or purchased in bakeries, supermarkets, food stalls, and franchised specialty vendors. Various toppings and flavorings such as sugar, chocolate or maple gazing are used for different donuts. Donuts are available in both natural and artificial flavors. The two most common types of donuts are the ring donut and the filled donut, which is injected with fruit preserves, cream, custard, or other sweet fillings. One of the key factors driving the growth of global donuts market is the growing number of food service centers and retail outlets. Also, the increasing demand for convenience foods and changes in food habits of consumers drive the donut market growth.
Market Dynamics: Increasing number of food service centres and retail outlets drives the market growth
The culture of socializing at caf?s has become popular among urban youth. The increased rush of people to urban areas and a substantially large white-collared demographic segment have necessitated an increase in the number of food service outlets. Varied tastes and preferences for different food and beverages, such as fresh baked goods and hot beverages, have further led to the emergence of donut shops, coffee shops, and quick-service restaurants. The growing popularity of malls also encouraged many new players to invest substantially in the distribution of donuts through these food centers. The growth of the infrastructure in developing and developed countries, like new airports and highways, also provides scope for major coffee chains to establish new outlets. Therefore, the growing number of the food service center and retail outlets are expected to propel the market growth during the forecast period.
Moreover, the growing demand for healthier donuts is a major trend supporting the donuts market share growth. Donuts are one of the most popular types of pastry consumed in the US, both at home and away from home. However, the demand for healthier varieties like whole grain, high fiber, low-fat, all-natural, and fortified options has increased with changing consumer lifestyles. Many people across the developed countries prefer fresh and healthy foods rather than unhealthy processed or pre-packaged foods and foods with high calories. New vendors are launching healthier donuts with less sugar content to meet this demand. Many bakers are using organic, nutritious, and fibrous ingredients like nuts, raw cocoa, fruit, and coconut oil in their donuts.
Market Segmentation: Cake style donut segment accounted for the highest share in global donuts market
In 2021, Cake style donut segment had the highest revenue share of over XX percent. Cake-style donut is made from cake batter. It is available in various flavors, such as baked carrot cake donuts, baked lemon donuts with lemon glaze, baked cinnamon sugar donuts, baked funfetti donuts and old-fashioned powdered sugar donuts. Cake donuts are less oily than yeast-style donuts, but extra fat is included in the batter before frying. Cake donuts are glazed, powdered with confectioner’s sugar, or covered with cinnamon and granulated sugar. They are often topped with cake frosting (top only) and sometimes sprinkled with coconut, chopped peanuts, or sprinkles. Various toppings and flavors of cake donuts attract consumers to buy cake-style donuts, which helps to drive market growth.
Also, yeast style donuts segment contributed significantly to the donuts market. Some of the major key players such as Krispy Kreme Donuts and Dunkin’ Brands Group Inc., offer traditional yeast-raised donuts and Glazed yeast donuts, the most popular type worldwide that helps to increase the sales of donuts. Vegan yeast-raised donuts are gaining popularity among vegan consumers, especially in developed countries like the US and Canada. Vendors are extensively offering such donuts in the market. Therefore, such offerings by vendors are expected to contribute to the growth of the yeast donuts segment of the market during the forecast period.
Geographical Penetration: North America is the dominating region during the forecast period
North America is expected to generate the highest market share in the forecast period. United State and Canada are largest share contributed countries in the region. Canada is the country with the highest donut consumption per capita. Increasing demand from the young generation for donuts and the availability of various toppings and flavors help to increase the sales of donuts in the region. Some of the key players in Canada launched new products. For instance, in June 2021, Tim Hortons launched Filled Ring Dream Donuts. This donut is available in various flavors such as Strawberry, Shortcake and Vanilla Cream Puff. These factors boost the demand for donuts in Canada. Also, increasing consumption of donuts drives market growth. For instance, more than 10 billion donuts are made annually in the United States alone. In 2019, LaMar’s Donuts, largest producer of donut in the United States produced 344,700 donuts per week at their 27 locations, which is 17.9 million donuts per year. The increasing fan base of donuts in the United States and an increasing number of specialty donut shops in the United States drive the market growth. Also, in 2021, Tim Horton’s, a famous donuts manufacturer, rapidly expanded its business in the United States. In 2022, a total of 3.8% of donut stores are increased in the United States than in 2021. One of the leading donut manufacturing companies named Grupo Bimbo increased its donut sales in 2021 by about 389 million in the United States. Krispy Kreme increased sales amounted to 818 million U.S. dollars in 2021, up from 733 million U.S. dollars the previous year, 2020. These factors drive the growth of the donuts market in North America.
Competitive Landscape:
There are several established participants in the industry and local manufacturers; hence, the market is fragmented. Some major market players are Dunkin’ Brands, Daylight Donuts, Mister Donut, Honey Dew Donuts, Krispy Kreme, Tim Horton’s, Eurogerm USA, Donut King, and Mad Over Donuts, among others. Some of the key players expanded their business in the new region. For instance, in May 2022, Daylight Donuts opened its new shop in Bismark. Some key players launched new products to increase their product portfolio and sales. For instance, In July 2021, Eurogerm USA Launched Exciting New European Donut named Quarkb?llchen donut balls in U.S. Market. Also, in March 2021, Mad Over Donuts launched limited edition donuts in partnership with Eros International. The special donuts are filled with dark chocolate ganache, topped with dark chocolate and colorful sprinkles to finish it up; the cutest elephant design on the top completes the wholesome experience. In July 2022, WWE superstars Daria Berenato and Amanda Saccomanno announced the launch of their virtual donut brand DaMandyz Donutz on Uber Eats. This brand was available in Los Angeles, with national distribution plans to make their treats available in more locations.
COVID-19 Impact: Negative impact on the global donuts market
The COVID 19 pandemic caused the food manufacturing plants shut down and there was low manpower, which reduced donut production. The unavailability of raw materials led to a production shortage during the pandemic. The import and export ban imposed in several countries led to the disruption of the supply chain market. The domestic supply chain disruption caused due to transportation restrictions and the shutdown of distribution channels impacted the sales and revenue of the donuts market. Due to the shutdown of food service centers and retail stores, there was decrease in revenue of key players. Especially the labor shortage due to the COVID-19 crisis caused a severe impact on the donut manufacturing companies. Demand for fresh and healthy food increased during the pandemic, which negatively impacted the donuts market.
The global donuts market report would provide an access to approximately 61 market data tables, 53 figures and 170 pages