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Bakery industry continues to expand in the Midwest

Both Iowa and Wisconsin are home to bakery and food ingredient facilities, and it makes sense. They’re great places for the industry to be.

The baking industry includes companies that produce breads, cakes, pastries, cookies, crackers, donuts, tortillas and more. In 2022, the global bakery products market was valued at $497.5 billion and is expected to exhibit a compound annual growth rate of 3.7% from 2023 to 2028, reaching $625.9 billion in that period.

The traditional commercial bakery industry is in transition due to several factors:

  • The average age of bakery facilities is 61 years, making these plants some of the oldest operating production facilities in the U.S. These outdated, inefficient facilities need to be replaced.
  • Growth in products such as gluten- and grain-free bread create niche bakery categories.
  • Consumer demand and industry operating challenges place greater attention on sustainability efforts across the industry, impacting feedstock sourcing, packaging, energy sourcing and operational improvements.

Facility demand

IBISWorld projects facility demand will result in up to 235 new facilities from 2022 to 2027. Projected industry growth will likely result in new greenfield facilities. Location factors include:

  • Areas with high-capacity, high-quality, robust utilities.
  • Access to interstates, highways and rail.
  • Proximity to major population centers/regions within one day’s trucking.
  • Near sources of key ingredients like wheat, flour, grains and sugar.
  • Serviceable distance to distribution centers and downstream markets.

Why Iowa and Wisconsin

As facilities become more automated and less dependent on larger labor forces, smaller communities are well situated to support this sector’s needs. Adding to the value of moving to this market is access to quality suppliers served by Alliant Energy:

  • Cargill Kitchen Solutions: Egg processing.
  • Red Star Yeast: Bakery yeast.
  • Saf Pro: Bakery blends.
  • AB Mauri North America: Bread and sweet goods mixes.
  • J. Rettenmaier USA: Dietary fibers.
  • Hillandale Farms: Eggs.

If a baked goods manufacturer considers your community, get our economic development team involved in the conversations. Expanding into Alliant Energy territory means company leaders will work with an energy partner who understands food processing by providing a safe, reliable and strong electric system.

Source of data: Schneider Consulting

About Alliant Energy Economic Development

Our experienced team helps businesses streamline processes, mitigate risk and become operational faster.

Learn how we can help you locate a site in Iowa or Wisconsin and customize your options.

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