In this article, we discuss the top ten donut companies/brands in the world.
The Donut Industry: An Analysis
Donuts are a sweet dessert made by bakers that use flour as their major ingredient and are baked. Donuts are of two varieties — yeast donuts and cake donuts which are commonly accessible in various bakeries and supermarkets globally.
According to Technavio’s most recent projected market analysis, the size of the worldwide donut market is anticipated to increase by $5.02 billion between 2020 and 2025 at a CAGR of 4%. North America will account for 35% of market growth during the projection period. By 2024, donut revenue will reach $55 billion worldwide, according to Statista. The two biggest markets for donuts in North America are the US and Canada. This region’s market will grow faster than Europe, the Middle East, and South America combined. Throughout the forecast period, rising middle-class households and higher living standards will promote the expansion of the donut market in North America. Due to the rising popularity of malls and shopping centers, many new players have made significant investments in the distribution of donuts through these establishments. The development of new highways and airports in developing nations allows major donut brands to open additional retail outlets. The market for donuts is fragmented, and vendors are using organic and inorganic expansion techniques to compete.
Donuts traditionally produced with yeast are made from a sweet dough that has been fermented with yeast to achieve the necessary expansion of the dough. The dough is rolled to the correct thickness and cut out after fermentation. These donuts have a chewy, somewhat yeasty flavor and are light and airy. Vegan consumers are increasingly favoring vegan yeast-raised donuts, particularly in industrialized nations like the US and Canada. Such donuts are widely available from vendors in the market. Another element contributing to the donut’s expanding market share is the rising demand for healthier versions of the treat. Donuts are one of the most popular pastries eaten in the US, both at home and away from home. In 2015, donut sales comprised more than 20% of all pastry sales. However, as consumer lives have changed, there has been an increase in demand for healthy options such as whole grain, high fiber, low-fat, all-natural, and fortified options. Many individuals worldwide prefer freshly prepared dishes over calorie-dense, unhealthily processed, or pre-packaged foods.
The cost of the basic materials needed to manufacture donuts, such as sugar, eggs, flour, cocoa, and milk, might change depending on the supply. Any increase in the cost of raw materials drives up manufacturing expenses and lowers vendor profit margins. Additionally, to stay competitive in the market, manufacturers frequently test out less expensive alternatives. The price of the final product rises due to the growth in raw material costs. This makes it difficult for market sellers to roll out new product lines with distinctive or special ingredients that enhance the flavor of their donuts and draw in additional customers. Consumers’ purchasing decisions are impacted by growing product pricing, which ultimately impacts sales volumes and market expansion.
According to ibisworld, high levels of competition are the main element affecting this industry negatively, whereas per capita coffee consumption is the main factor affecting it favorably. Coffee sales have become a more important source of revenue and customer attraction for donut shops. Donut shops with coffee and related beverages on their menu stand to gain as coffee use rises. The business could benefit from the anticipated rise in per capita coffee consumption in 2022 and beyond.
Photo by Ben Dutton on Unsplash
Our Methodology
For this article, we picked the top 10 biggest donut companies and brands by market capitalization.
10. Laird Superfood, Inc. (NYSE:LSF)
Market Capitalization as of November 28, 2022: $0.01 billion
Laird Superfood, Inc. (NYSE:LSF) was incorporated in 2015 and is based in Sisters, Oregon. Laird Superfood, Inc. (NYSE:LSF) manufactures and markets plant-based natural and functional food in the United States. It offers powdered and liquid coffee creamers, and hydration and beverage enhancing supplements, hydrate coconut water products, activate daily jumpstart products, activate prebiotic daily greens, renew plant-based proteins, and performance mushroom supplements; coffee, tea, hot chocolate products and Pili nuts and Harvest dates. The company provides its products through the wholesale, website, and third-party online channels.
09. Bridgford Foods Corporation (NASDAQ:BRID)
Market Capitalization as of November 28, 2022: $0.10 billion
Bridgford Foods Corporation (NASDAQ:BRID) was founded in 1932 and is based in Dallas, Texas. Bridgford Foods Corporation (NASDAQ:BRID) is a subsidiary of Bridgford Industries Incorporated. Bridgford Foods Corporation (NASDAQ:BRID), together with its subsidiaries, manufactures, markets, and distributes frozen, refrigerated, and snack food products in the United States. Bridgford Foods Corporation (NASDAQ:BRID) offers frozen ready-dough used in preparing donuts. It operates in two segments, Frozen Food Products and Snack Food Products. The company primarily offers biscuits, bread dough items, roll dough items, and dry sausage and beef jerky products. It provides approximately 130 frozen food products to food service and retail customers through wholesalers, cooperatives, and distributors and 170 snack food items to supermarkets, mass merchandise, and convenience retail stores through customer-owned distribution centers, as well as a direct store delivery network.
08. Lifeway Foods, Inc. (NASDAQ:LWAY)
Market Capitalization as of November 28, 2022: $0.12 billion
Lifeway Foods, Inc. (NASDAQ:LWAY) was founded in 1986 and is based in Morton Grove, Illinois. Lifeway Foods, Inc. (NASDAQ:LWAY) produces and markets probiotic-based products in the United States and internationally. Lifeway Foods, Inc. (NASDAQ:LWAY) primary product is drinkable kefir, a cultured dairy product in various organic and non-organic sizes, flavors, and types, including low-fat, non-fat, whole milk, protein, and BioKefir. Apple Cider Donut Holes and Olive Oil Doughnuts are the company’s main donut offerings. Lifeway Foods, Inc. (NASDAQ:LWAY) sells its products under the Lifeway and Fresh Made brand names, as well as under private labels on behalf of customers primarily through a direct sales force, brokers, and distributors.
07. Krispy Kreme, Inc. (NASDAQ:DNUT)
Market Capitalization as of November 28, 2022: $2.68 billion
Krispy Kreme, Inc. (NASDAQ:DNUT) was founded in 1937 and is based in Charlotte, North Carolina. Krispy Kreme, Inc. (NASDAQ:DNUT), together with its subsidiaries, operates through an omnichannel business model to provide donut experiences and produce donuts. The company operates through three segments: U.S. and Canada, International, and Market Development. It also produces cookies, brownies, cookie cakes, ice cream, cookie-wiches, and cold milk, as well as doughnut mixes, other ingredients, and doughnut-making equipment. As of January 2, 2022, Krispy Kreme, Inc. (NASDAQ:DNUT) had 1,810 Krispy Kreme and Insomnia Cookies-branded shops in approximately 30 countries worldwide, which include 971 company owned and 839 franchised. It serves through donut shops, delivered fresh daily outlets, e-commerce, and delivery business. Krispy Kreme, Inc. (NASDAQ:DNUT) was formerly known as Krispy Kreme Doughnuts, Inc. and changed its name to Krispy Kreme, Inc. (NASDAQ:DNUT) in May 2021.
06. J&J Snack Foods Corp. (NASDAQ:JJSF)
Market Capitalization as of November 28, 2022: $3.11 billion
J&J Snack Foods Corp. (NASDAQ:JJSF) was incorporated in 1971 and is based in Pennsauken, New Jersey. J&J Snack Foods Corp. (NASDAQ:JJSF) manufactures, markets, and distributes nutritional snack foods and beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada. J&J Snack Foods Corp. (NASDAQ:JJSF) operates through three segments: Food Service, Retail Supermarkets, and Frozen Beverages. J&J Snack Foods Corp. (NASDAQ:JJSF) provides bakery products, such as biscuits, fig and fruit bars, cookies, bread, rolls, crumbs, muffins, and donuts under the MRS. GOODCOOKIE, READI-BAKE, COUNTRY HOME, MARY B’S, DADDY RAY’S, and HILL & VALLEY brands, as well as under private labels. The company sells its products through a network of food brokers, independent sales distributors, and a direct sales force.
05. Hostess Brands, Inc. (NASDAQ:TWNK)
Market Capitalization as of November 28, 2022: $3.49 billion
Hostess Brands, Inc. (NASDAQ:TWNK) was founded in 1919 and is based in Lenexa, Kansas. Hostess Brands, Inc. (NASDAQ:TWNK) was formerly known as Gores Holdings, Inc. and changed its name to Hostess Brands, Inc. (NASDAQ:TWNK) in November 2016. Hostess Brands, Inc. (NASDAQ:TWNK), a packaged food company, develops, manufactures, markets, sells, and distributes snack products in the United States. The company provides a range of snack cakes, donuts, sweet rolls, breakfast pastries, cookies, snack pies, sweet baked goods, wafers, bread and buns, danishes, honey buns, coffee cakes, and sugar-free products. It offers its products under the Hostess, Dolly Madison, Cloverhill, Big Texas, Voortman, CupCakes, Twinkies, Donettes, Ding Dongs, Zingers, Ho Hos, and Big Texas brands.
It offers Hostess Mini Powdered Donettes and Frosted Chocolate Mini Donettes in the donuts category. The little donuts are baked to golden perfection. These individually wrapped mini donuts are perfect for sharing with a group. In February this year, Hostess Brands, Inc. (NASDAQ:TWNK) announced adding caffeine to its popular Donettes donut brand by introducing Hostess Boost Jumbo Donettes. Each donut contains 50 to 70 milligrams of caffeine, slightly less than one cup of coffee. The Boost Jumbo Donettes are three times bigger than the average mini Donettes and are caffeinated with coffee bean extract. They are available in two flavors: Chocolate Mocha and Caramel Macchiato.
04. Flowers Foods, Inc. (NYSE:FLO)
Market Capitalization as of November 28, 2022: $6.28 billion
Flowers Foods, Inc. (NYSE:FLO) was founded in 1919 and is located in Thomasville, Georgia. Flowers Foods, Inc. (NYSE:FLO) produces and markets packaged bakery products in the United States. Flowers Foods, Inc. (NYSE:FLO) offers fresh bread, buns, rolls, snack cakes, and tortillas, as well as frozen bread and rolls under the Nature’s Own, Dave’s Killer Bread, Wonder, Canyon Bakehouse, Mrs. Freshley’s, and Tastykake brand names. Flowers Foods, Inc. (NYSE:FLO) distributes its products through a direct-store-delivery distribution and a warehouse delivery system, as well as operates 46 bakeries comprising 44 owned and two leased.
Flowers Foods, Inc., through its Tastykake brand, has introduced two new limited-edition mini donut offerings: red velvet and salted caramel. The new red velvet mini donuts feature a red velvet-flavored donut with a traditional powdered sugar coating. The donuts are available in 10-oz bags. The salted caramel mini donuts feature a traditional cake donut covered in caramel and salt-flavored crumble. Tastykake’s salted caramel mini donuts are available in 11.5-oz bags. In June last year, Flowers Foods, Inc. acquired Koffee Kup Bakery from the court-appointed receiver of the assets. Based in Burlington, Vt., Koffee Kup Bakery is a manufacturer of baked foods, including bread, donuts, and English muffins, serving customers in the Northeast and Mid-Atlantic regions.
03. Tyson Foods, Inc. (NYSE:TSN)
Market Capitalization as of November 28, 2022: $24.21 billion
Tyson Foods, Inc. (NYSE:TSN) was founded in 1935 and is based in Springdale, Arkansas. Tyson Foods, Inc. (NYSE:TSN), together with its subsidiaries, operates as a food company worldwide. In addition to being a giant in the meat and chicken market, Tyson also offers bakery products such as donuts, cookies, muffins and cakes.
02. Restaurant Brands International Inc. (NYSE:QSR)
Market Capitalization as of November 28, 2022: $29.88 billion
Restaurant Brands International Inc. (NYSE:QSR) was founded in 1954 and is based in Toronto, Canada. Restaurant Brands International Inc. (NYSE:QSR) operates as a quick-service restaurant company in Canada and internationally. It operates through four segments: Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), and Firehouse Subs (FHS). Under the Tim Hortons brand, the company operates in the donut/coffee/tea category of the quick service segment of the restaurant industry. Restaurant Brands International Inc. (NYSE:QSR) owns and franchises TH chain of donut/coffee/tea restaurants that offer blend coffee, tea, and espresso-based hot and cold specialty drinks; and fresh baked goods, including donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, and others.
01. Starbucks Corporation (NASDAQ:SBUX)
Market Capitalization as of November 28, 2022: $114.27 billion
Topping our list of top 10 donut companies/brands in the world is Starbucks Corporation (NASDAQ:SBUX). It offers its products under Starbucks Coffee, Teavana, Seattle’s Best Coffee, Ethos, Starbucks Reserve, and Princi brands. It offers donuts under the Glazed Doughnut brand. A glazed doughnut is an old-fashioned cake donut glazed with sweet icing. As of October 2, 2022, Starbucks Corporation (NASDAQ:SBUX) operated 17,295 company-operated and licensed stores in North America and 18,416 company-operated and licensed stores internationally.
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Disclosure: None. Top 10 Donut Companies and Brands in the World is originally published on Insider Monkey.
