There’s no denying doughnuts’ rise to cult status in recent years. They’ve reinvented themselves from a cost-effective supermarket treat to one which generates an insane number of TikTok views with a premium price tag to boot.

But with players shifting their strategies, an acquisition or two, and some exiting the market altogether, it begs the question: has the doughnut bubble burst?

One thing is for sure, making a bricks and mortar proposition work has becoming increasingly difficult with downsizing across several estates.

Planet Doughnut, for example, has “undergone a quiet revolution over the past couple of years”, according to managing director Rob Jones who explains that the business made the decision to close all of its stores last year. Founder Duncan McGregor also parted ways with the business but continues to operate three retail sites in Shrewsbury, Chester and Telford under the name Dipp’d.

“It wasn’t easy, but it was necessary,” explains Jones. “A cornerstone of this evolution has been our move to a frozen model. We still operate very much like a fresh bakery – we make to order daily – but now we blast freeze our doughnuts immediately after production.”

This solves one of the doughnut industry’s oldest problems: waste. Planet Doughnut has also been refining its identity. “In the past, we flirted with the idea of expanding into croissants, cookies, brownies, cupcakes, sourdough – everything a bakery ‘should’ make. But we’ve grown into our identity. We are doughnut makers. That’s what we do. That’s what we love,” Jones adds.

Caramel Brownie doughnut from Planet Doughnut

Source: Planet Doughnut

Planet Doughnut’s Caramel Brownie doughnut

Crosstown has also been on something of an evolution since its acquisition by Karali Snacks last summer. Made via a pre-pack administration deal for an undisclosed fee, the transaction incorporated the business and assets of the brand’s parent company Crosstown Dough Ltd including 27 operating locations comprising stores, market units, kiosks, concessions, and trucks. Three Crosstown stores – in Bath, Bristol, and just off Fenchurch Street in London – were not included in the sale and were subsequently closed. There was further consolidation with 21 sites (11 stores, two trucks, one kiosk, and seven market stalls) operational at the start of 2025 as the new owner made changes.

Since its buyout Crosstown has secured a listing with Waitrose John Barnes in London where it introduced three exclusive flavours, two of which were vegan. It followed this up with further listings in Waitrose High Holborn. Regrowth has also continued into this year.

“We’ve been able to invest in scaling sustainably while staying true to our artisanal craft roots. From the start of the year, we’re proud to have opened three new locations – Westfield White City, Broadgate Circus, and London Bridge Station – serving both commuters, foodies and shoppers,” says Crosstown CEO Jo Blundell, the former Papa John’s MD who came on board late last year.

Dunkin taxi driving around London

Source: Dunkin

Other signs doughnut specialists are struggling to make bricks-and-mortar retail work come from US chains Dunkin’ and Randy’s Donuts. Back in 2023, Dunkin’ had been brazen about plans to double its UK retail footprint over the next two years but, according to British Baker’s 2025 Bakery Market Report, its estate has stayed more or less the same over the period. Randy’s Donuts has also yet to emerge on the scene despite beginning a search for UK franchise partners at the start of 2024.

Difficult trading conditions aren’t unique to retail bakeries, nor are they unique to the doughnut market. But with doughnuts’ rise to fame in recent years, a settling of the market is to be expected particularly when times are tough.

Project D, which had a cult following thanks to on-trend doughnuts, cheeky branding, and several viral videos, seemed set for greatness but sadly fell into administration last year after facing a slew of challenges.

Paying for premium

While players reassess their strategies and make the appropriate tweaks, what does this tell us about consumers’ doughnut eating habits? It would be reasonable to suggest they’re cutting back but, in fact, it seems like they are splashing out.

“Despite ongoing economic challenges, UK consumers continue to demonstrate a willingness to pay a premium for high-quality doughnuts,” explains Dan Jones, British Bakels marketing manager.

“This trend is particularly evident amongst younger demographics, such as Gen Zs who are also more likely to choose products that tap into the next big ‘social’ trend,” he adds, pointing to research that shows nearly three quarters (72%) of Gen Z consumers are influenced by social media when it comes to their choice of sweet treats, including doughnuts.

“As a result of these trends, bakeries are increasingly focusing on more high-end, handcrafted doughnuts, with premium ingredients and unique flavour profiles,” he notes.

Selection of doughnuts and pastries - Donutelier

Source: Donutelier

Donutelier’s selection of doughnuts and pastries

Donutelier, which has two sites in London, is one example of a business serving up ultra-premium doughnuts and has benefited from exposure on the likes of TikTok and Instagram. The cheapest doughnuts listed on its website are £5.50 each with the most expensive £7. More akin to patisserie than doughnuts, the £7 St Honoré features toffee caramel and blonde chocolate ganache filling, hazelnut & chocolate crust, and Chantilly cream with a caramelised vanilla cream profiterole on top.

Doughnuts laden with toppings such as chocolate bars and biscuits have commanded a premium price point, but Planet Doughnut’s Rob Jones thinks things have shifted up a gear over the past year with “remarkable growth” seen in the premium, hand-finished segment.

“The artisan, handmade doughnut is having a moment, with independent bakeries – many producing in small batches – pushing creative boundaries,” he notes. “Think rich ganaches, brûléed tops, and innovative flavour combinations.”

Bread Ahead creme brulee doughnut

Source: Bread Ahead

You can’t talk about brûléed tops without mentioning Bread Ahead’s iconic crème brûlée doughnut, which quickly rose through the ranks to become the London bakery’s bestseller.

Luxury at every price point

That’s not to say everyone has the luxury of spending £5 on a single doughnut. Crosstown, notably, has undergone a price reduction to ensure its “premium treats are accessible even when disposable income is tight”, says CEO Blundell.

Krispy Kreme, meanwhile, has noted the importance of sharing in the doughnut market, which has resulted in positive sales for the brand.

“Although budgets may be tight, we are seeing that people are still looking for opportunities to share their enjoyment of our doughnuts, whether in day-to-day life or at special events,” explains Guy Meakin, president and managing director of Krispy Kreme UK & Ireland who took up the post in November. “Sales of our dozens have increased to roughly 13% of total transactions across the business as customers look to treat their friends, family or co-workers.”

This fits right in with the evolution of doughnuts. CSM Ingredients, sponsor of National Doughnut Week which runs from 10 to 18 May 2025, says the occasions in which doughnuts are eaten has expanded. “They are now considered a dessert, as a snack and party piece and for celebrations and are consumed throughout the day as well as an accompaniment to hot drinks,” explains Miriam Bernhart, director category bread & pastry solutions at the firm.

Consumers’ willingness to splash the cash also varies by channel, according to Helen Sinclair, UK marketing manager at sweet treats manufacturer Baker & Baker. “While retail is more value based and so traditional chocolate, pink- and white-iced ring doughnuts continue to do well, in foodservice we’re seeing there is more appetite for premium products,” she says.

Close-up of pink sprinkle doughnuts

Source: Getty Images / mtreasure

Iced ring doughnuts are becoming increasingly popular in supermarkets

It’s a point echoed by Jacqui Passmore, marketing lead West EU & AMEAP at Dawn Foods, who believes the supermarket five-in-a-bag jam doughnuts are somewhat being replaced by American-style ring and iced doughnuts. “Now the category has moved on even further and its expansion is being driven with limited edition, on-trend filling flavours, hybrids and decorations galore,” she says.

While much of this is being championed by the artisanal channel, Passmore says there are “plenty of cues from artisanal bakeries reflected in the doughnuts produced for retail”.

Raspberry & Pistachio Doughnuts

Source: Asda

She points to Asda’s Raspberry & Pistachio Donuts – sourdough enriched fluffy finger donuts brimming with raspberry filling and smooth pistachio flavoured cream, topped with a freeze-dried raspberry pieces and chopped pistachios – or The Delicious Dessert Company’s Millionaire’s Loaded Doughnuts injected with caramel sauce and topped with chocolate crème pâtissière as examples.

Discounter Lidl has also heavily invested in its doughnut offering, adding brightly coloured Delicious Doughnut bays to its in-store bakeries highlighting the limited-edition and seasonal treats available. The most recent creation is a 79p Strawberry Cheesecake Doughnut.

Flavour of the month

The emergence of limited editions as a go-to tactic has invigorated the flavours seen on the doughnut scene with creators and consumers alike willing to take more chances.

“Limited time offers have been a successful way for us to experiment with new flavours and deliver the growing demand for fresh experiences, which give customers the chance to get their hands on new doughnuts as we build our understanding of which flavours are performing well,” adds Krispy Kreme’s Meakin.

Krispy Kreme new doughnuts for 2024

Source: Krispy Kreme

Krispy Kreme’s new doughnut line-up

The firm revamped its core range of doughnuts last year with a new line-up of fan favourites, bestsellers, and trend-led flavours. The iconic Original Glazed remains a beacon for the business, but it spruced things up with the Blueberry Bubble Bliss, Lemon Meringue Monster, and Cinnamon Swirl. While the Blueberry Bubble Bliss and Lemon Meringue Monster have now been discontinued, it’s now tapped into the trend for dessert-inspired flavours and pistachio too with recently unveiled NPD Cherry Bakewell and Pistachio Iced Doughnuts.

“We are also leveraging confectionery partnerships to make sure that our menu is always offering something different for both new and existing customers,” Meakin adds, highlighting that the most successful doughnut campaign last year was the square Munchies doughnut.

There’s no escaping the influence of pistachio, driven by the viral Dubai Chocolate craze, either.

“Pistachio has also seen a surge of popularity over the past three years, with 8% growth in pistachio product launches worldwide,” highlights Jones from British Bakels. He also points to “exotic, Asian-inspired flavours” such as ube and yuzu gaining popularity.

Crosstown embraced pandan for a limited-edition doughnut for the Lunar New Year in 2024. The treat proved so popular it returned for the 2025 occasion. It also ventured outside the box with a Blue Monday CBD doughnut featuring a blue swirl glaze derived from spirulina with CBD oil infused into the dark chocolate ganache filling, and topped by a sparkly silver speculoos biscuit.

Crosstown - Blue Monday CBD Doughnuts  2100x1400

Source: Crosstown

Blue Monday CBD Doughnuts

While traditional fruit fillings like raspberry and strawberry remain proven favourites, the trend of combining flavours is one to watch, according to Ben Ledger, marketing manager at bakery ingredients supplier Puratos UK. “Stone fruits such as plum and cherry are gaining traction among more adventurous consumers, being paired with everything from black pepper to gochujang,” he says, also highlighting examples such as brioche doughnuts filled with salted caramel custard, ginger pear jam and roasted pears, as well as a raspberry-yuzu jelly in a vanilla yeasted doughnut.

“Floral flavours like earl grey tea and elderflower are becoming huge trends in the doughnut space too, adding a unique and subtle taste, while retro desserts such as tiramisu and peach cobbler are having a moment, too,” Ledger adds.

Peach, specifically peaches and cream, was also highlighted by Bernhart at CSM Ingredients alongside creme brûlée, peanut and toffee as they bring “a touch of ‘home cooked’ nostalgia and feeling of quality and classic flavours combinations”.

Alive and kicking

So, taking all of this into consideration, has the doughnut bubble really burst? No. But with any maturing market following a growth spurt, it has settled and evolved.

“The past five years have seen the category stretch, not split,” assures Planet Doughnut’s Rob Jones. “There’s still a huge appetite for the classics – the sugar-dusted, paper-bagged delights of the fairground, 10 for £6, steeped in nostalgia and warmth. Budget supermarket doughnuts continue to thrive as everyday comfort food, proving that simplicity still has a seat at the table.”

Premium, meanwhile, has expanded the market rather than cannibalise it, he adds. “Gourmet offerings have redefined the market. They’ve added new expectations, new meanings and new occasions.”

Baker & Baker - Salted caramel & nut doughnut - 2100x1400

Source: Baker & Baker

Our market research shows that time and time again, consumers are prepared to find the money to spend on a premium treat… but only if it’s truly premium. For example, in the higher education sector, independent research found that while 81% of students felt the current economic impact, sweet treats maintained their status as an affordable luxury.

With that in mind, Baker & Baker has recently launched two truly premium doughnuts – a Black Label salted caramel and nut doughnut, as well as a Black Label lemon cheesecake option. Both doughnuts are double-filled and have multiple premium toppings which make them seriously memorable treats.

The salted caramel and nut doughnut, for example, is double-filled with a luscious nut-nougat and salted caramel cream, and is decorated with a salted caramel flavoured glaze, milk chocolate drizzle and a sprinkle of crunchy hazelnut pieces.

So, when considering what products to stock… always leave room for something truly premium.