emerging
Affordable Indulgence
Consumers seek luxurious and indulgent flavors at accessible price points due to cost-of-living pressures.
Timeframe
near-term
Categories
Impact areas
Detailed Analysis
Economic pressures are driving consumers to prioritize value while still desiring premium experiences. The report notes, "Cost-of-living pressures are forcing consumers to make sacrifices on their everyday essentials and trade down on premium offerings and treat items." This has led to a decline in sales of sweet bakery items, pushing brands to innovate. The trend focuses on delivering high-quality flavors and textures without the premium price tag, emphasizing "core flavors done well" such as salted caramel and Belgian chocolate.
Context Signals
Sales decline in sweet bakery items in 2023
Continued financial pressures into 2024 and beyond
Focus on core flavors like salted caramel and Belgian chocolate
Edge
Private label brands could gain significant market share by offering affordable indulgence options.
Subscription boxes featuring curated affordable luxury treats could become popular.
Hybrid dessert models, combining affordable base ingredients with premium toppings or fillings, could emerge.
