Deluxe, refined and higher quality baked goods as premiumization trend prevails

Premium bakery delivers comfort and accessible luxury. The ‘little treat culture’ among Gen Z and Millennials has them buying deluxe treats as a form of self-care or celebration. This daily or weekly ritual brings joy and happiness for young consumers for whom traditional milestones such as buying a house stay out of reach. Because saving up feels pointless, they choose to spend their money on small luxuries that offer instant gratification, such as a 25 dollar gourmet sandwich or a perfectly made laminated pastry. They don’t want just any croissant, but a premium, artisanally crafted one for extra indulgence. These purchases are about control, celebration and emotional comfort.  

From a consumer perspective, premiumization is about chasing experiences and emotional connections. They look for products that add some shine to their everyday life through exceptional taste, authentic aesthetics and high-quality ingredients. Storytelling, transparency and exclusivity are what transform a simple loaf into something aspirational.

For producers, premiumization is a clear growth strategy. Products that get a premium makeover, whether through a high-end addition like match matcha, sustainable sourcing or functional benefits like focus and performance, can justify higher prices. But these premium varieties also unlock new market opportunities, because they appeal to new audiences. Credibility is key:  the premium aspect must be visible, tangible and tasteable.

Interestingly, premium growth is not limited to flashy innovations. Consumers prefer authentic, quality products that offer a luxury experience. Online interest in bakery classics is soaring, with searches for baguette up 225%, bagel up 179% and sourdough bread up 85%. What is it that makes those – and other baked goods – feel indulgent? That comes down to three factors: artisanal and traditional craftsmanship, rich texture and premium ingredients.

According to our Taste Tomorrow survey across more than 50 countries, 66% of global consumers prefer artisanal baked goods from a local store. A product is perceived as artisanal when it is:

• made by hand - 45%

• made from natural ingredients - 39%

• created by an artisan - 38%

• prepared according to an authentic recipe - 36%

Emphasize any of those aspects in the promotion of a product and it will give your creation a premium appeal. Strong storytelling, but also shop designs with an open bakery, enhance the handmade craftsmanship. Just like the look of a skillfully made sourdough bread with a perfect ear or a laminated pastry of which you can count the infinite amount of layers.

Texture is a powerful premium signal. The shattering sound of a laminated crust or the slow pull of a soft, enriched dough amplifies the sense of indulgence. We’ve asked consumers around the world what textures they search for. In soft bread, that is a fluffy, tender crumb that feels light and airy. The ideal texture should melt in the mouth, offering a delicate and comforting eating experience. For crusty bread, consumers increasingly prioritize bread with a golden-brown, crispy crust that delivers a satisfying crunch.

Consumers increasingly associate premium with high-quality and exclusive ingredients. Key premium signals include the use of sourdough, innovative flavors such as dried fruits, aged cheese or herbs and local sourcing. Sourdough in particular has evolved from a niche product to luxury bakery item. It signals time and care, while at the same time offering great looks and proven health benefits. There are many consumers who spend their Saturday mornings queuing up for sourdough bakeries to obtain the best and most Instagrammable loaf.

In food retail, it's not so much about special ingredients, but the "made with real ingredients" claim. Shoppers scan labels for short ingredient lists, recognizable names and the absence of artificial additives. Premium in this context is about trust. Transparency, clean formulations and clear origin stories create a sense of quality that justifies a higher price. 

TikTok timelines are once again flooded with innovative crossovers between beloved foods, meaning the bakery hybrid is back. This time around, laminated pastry takes center stage, with online searches and social mentions of French crispy pastry growing +2,400% over the past year.