Industrial Baked Goods Producers Investing Big in the U.S.

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Baked goods are an important part of the U.S. diet, and U.S. manufacturers are stepping up their production and product ranges with current and planned construction activity.

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A Big Market

U.S. baked goods manufacturers are investing in new production capacity to meet demand for a wide range of products, from cookies and pastries to breads and frozen bakery products. While some companies are establishing new manufacturing facilities, expansions and production additions at existing plants also feature prominently in the industry's capital spending activity.

Industrial Info Resources data show more than 250 capital projects underway or on the books at U.S. baked goods plants, although not all of the projects will move forward as planned. Expansions feature most prominently in both current and planned U.S. bakery construction activity, with grassroot construction, upgrades and equipment additions also weighing in strongly.

Current Projects

A significant expansion is underway in Columbus, Georgia, from baked snack maker Hostess Brands, which manufactures the beloved Twinkie cream-filled snack cake and a range of other popular sweet treats, including SnoBalls, Ding Dongs and Ho Hos. Hostess was acquired by The J.M. Smucker Company in 2023, which is reshaping the Hostess brand somewhat, and the Columbus expansion, expected to be completed next year, is part of this strategy. Subscribers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here.

Moving into the realm of restaurant-styled baked goods outlets, Paris Baguette, which despite its name is actually a South Korean multinational, has been a global success story, with thousands of café-bakery locations throughout the world and celebrating the opening its 300th U.S. location earlier this year. The company manufactures the dough and baked products used at its locations at centralized manufacturing facilities, flash-freezing the products to be baked later in-store. While this frozen dough previously has been shipped from Asian locations, Paris Baguette is streamlining its U.S. efficiencies and building a grassroot frozen dough production facility in Texas. Work has been ongoing since late last year and is expected to last into 2027, possible opening the door for a potential future expansion in the future.

Multiple other baked goods construction projects are underway in the U.S., with King's Hawaiian Bread maker Irresistible Foods being a particularly notable contributor to on-the-ground U.S. project activity.

Future U.S. Bakery Activity

In a market pattern similar to Paris Baguette, Cheesecake Factory manufactures its celebrated line of more than 60 cheesecakes and baked desserts at consolidated production locations throughout the U.S. The company has plans to expand this footprint with a potential new baked goods plant in Charlestown, Indiana, while planned top-down vertical integration is leading to plans for a substantial grassroot plant in Kansas from Golden Waves LLC. The company intends to perform everything from flour milling to final production of its own Gold N Good Bread commercial line as well as bread for private labels, representing one of the largest planned baked goods projects in the Midwest region.

Multiple other baked goods construction projects are on the table across the country, and Industrial Info Resources is your one-stop shop for information on past, present and future capital and maintenance spending activity for the Food & Beverage Industry and 11 other vertically integrated industrial sectors.

Key Takeaways

• Expansion projects represent the biggest driver of construction activity at U.S. baked goods plants.
• Grassroot construction also contributes notably to project activity, with Texas and Kansas representing particular concentrations of new-build spending.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).