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US doughnut store industry to increase at a CAGR of 3.8%

Press Release   •   Aug 28, 2012 14:51 BST

The US doughnut store industry has been forecast to increase at a compound annual growth rate (CAGR) of 3.8% over the next five years, to reach a market value of $13.9 billion by 2017.

By the end of 2012, the US doughnut store industry is predicted to generate $11.6 billion worth of revenue and is forecast to increase 6.5% to 2013. Over the five years to 2012 the market is believed to have increased at a CAGR of 2.5%.

This industry increase can be attributed to companies like Dunkin' Brands (estimated 57.5% market share) and Krispy Kreme (4.6%) expanding their product choices and helping drive demand for doughnuts.

An example of this would be Krispy Kreme, who recently announced three new signature coffee blends that it will offer to consumers in packaged form by the end of 2012.

However, the doughnut stores industry experienced a major slowdown during the recession due to the struggling economy and changing consumer tastes. Furthermore, the trend toward healthy eating has hurt doughnut stores across the US.

An additional tactic being used by doughnut stores is to boost consumer interest by offering smaller doughnuts, which have fewer calories and less fat. These appeal to health-conscious consumers who may be inclined to indulge more often when smaller portions are offered.

The number of industry locations is also projected to grow over the next five years, at a CAGR of 2.7% to 20,653 by 2017, with the number of companies remaining largely stagnant because most growth will be dominated by industry giant Dunkin' Brands, who in 2011, boasted 9,087 locations in the US.

For more information on the US doughnut store industry, see the latest research: US Doughnut Store Industry Report

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