Hole in One: Doughnut Stores industry in the US Industry Market Research Report Now Available from IBISWorld

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Although the recession pulled consumers away from doughnut stores, it did not lessen their sweet tooth entirely. Instead of purchasing doughnuts from specialty shops in the Doughnut Stores industry, consumers were more likely to buy lower-cost doughnuts from grocery stores during low income periods during the recession. As such, revenue growth slowed and declined in 2008 and 2009, respectively. Patrons are now returning to doughnut stores, though, and the growing popularity of big brands like Dunkin' Donuts and Krispy Kreme are driving industry demand and revenue growth. A wider variety of food items and a focus on beverages is also a key contributor to industry success. For these reasons, industry research firm IBISWorld has added a report on the Doughnut Stores industry industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Adding supplementary products and doughnut varieties has helped drive demand

The Doughnut Stores industry is estimated to generate $11.6 billion in 2012 revenue thanks 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. For example, Krispy Kreme recently announced three new signature coffee blends, and that it will offer them to consumers in packaged form by the end of 2012. “By providing coffee and other products in addition to doughnuts, industry operators hope to attract consumers to their stores more frequently,” says IBISWorld industry analyst Brian Bueno. “Another tactic that doughnut stores are using to boost consumer interest is 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.”

Doughnut Stores industry revenue is projected to increase at an annualized rate of 2.5% over the five years to 2012, despite the economic downturn. In 2012, in particular, revenue is expected to jump as stores recover from the slowdown. Revenue growth slowed and declined in 2008 and 2009, respectively, because of low consumer sentiment and personal disposable incomes. When consumers have little discretionary income, they tend to cut back on even small indulgences like doughnuts. “Although the recession pulled consumers away from doughnut stores, it did not lessen their sweet tooth entirely,” says Bueno. “Instead of purchasing doughnuts from specialty shops, consumers were more likely to buy lower-cost doughnuts from grocery stores.” Patrons are now returning to doughnut stores, but this example illustrates potential competition for the industry. When Americans are strapped for cash, they will find low-cost alternatives to their discretionary purchases, including doughnuts.

Over the five years to 2017, as positive conditions in the overall economy place upward pressure on consumer spending, IBISWorld projects industry revenue to accelerate. The number of industry locations is also projected to grow, while the number of companies remains largely stagnant because most growth will be dominated by industry giant Dunkin' Brands. Overall, the industry has a medium level of market share concentration. Because Dunkin’ Donuts’ growth significantly outpaced industry revenue growth over the past five years, its market share concentration expanded over the period. Most industry operators are regional companies with limited plans for market expansion. For more information, visit IBISWorld’s Doughnut Stores in the US industry report page.

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IBISWorld industry Report Key Topics

This industry is comprised of establishments that primarily prepare or serve doughnuts, or donuts as they have come to be spelled in the United States. Purchases may be consumed on-site, taken out or delivered. A doughnut is usually sweet, deep-fried flour dough that has been shaped into a ring or sphere. Some contain fillings, such as jam or custard, and some have toppings, such as frosting or sprinkles.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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