Despite increased concerns for healthful diets, the donut category is poised for steady growth in the next five years.
That’s the conclusion of a new report by London-based research and advisory firm Technavio, which forecasts a 5.5% compound annual growth rate (CAGR) in worldwide donut sales through 2021.
Consumers’ growing desire to add protein, vitamins and fiber to their diets — and in general to eat better — is counterbalanced by other trends, according to Technavio.
“The growth of the global donut market can be attributed to the increasing number of retail stores, rising urbanization, and changing consumer lifestyles,” Manjunath Reddy, a Technavio food research expert, says in a news release. “New product launches and the increase in demand for healthier donuts are major trends that will have a positive impact on the growth of the market over the next five years.”
Donuts’ convenience are a perfect fit for today’s on-the-go consumers, according to the report.
The report breaks down the donut market into three geographical areas: the Americas, Asia-Pacific (APAC) and Europe/Middle East/Africa (EMEA).
Improved living standards and the increase in the number of middle-class families is expected to drive moderate growth in the Americas. In the United States, specialty coffee shops will continue to add donut options to appeal to Americans’ love of donuts with their coffee in the morning.
In APAC countries, increasing population and rising per capita income will lead to increased donut sales in the next five years, according to Technavio. Major donut stores, including Dunkin’ Donuts and Krispy Kreme, are targeting the region for expansion.
Category growth in EMEA countries, meanwhile, could be especially strong in the Middle East, where significant investments have been made in the past decade to develop tourism and infrastructure. Changing eating habits and a large number of young people also should drive growth in the region.