Are Cupcakes Still a Sweet Spot for Business?
By Katie Little, Special to CNBC
NEW YORK (CNBC) -A handful of big-name players within the cupcake industry are betting that America's cupcake obsession will continue as they embark upon ambitious expansion plans.
Recent data backs up this confectionery gamble -- but with a caveat. Growth within the cake decoration stores industry is expected to slow to 3.7 percent annually over the next five years, according to an October 2011 report from research firm IBISWorld. This forecast represents a dip from the 4.9 percent growth that the industry was predicted to have enjoyed during the past five years.
"The market is becoming more and more saturated as cupcake stores open, but ones like Crumbs (CRMB) or Sprinkles that have a more recognizable brand can succeed," said Mary Nanfelt, the report's author.
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