The bread category is having an interesting year. The good news: sales are up in almost every perimeter and center-store bread subcategory. The less-good news: unit sales are down, which is something to keep an eye on (even though in most columns the unit-sale loss is just a modest downtick). However, it’s clear that consumers remain interested in buying bread in its many varied forms—producers that can keep pace with shoppers’ ever-evolving interests and behaviors are more likely to come out on top.

Market data

Data from Chicago-based market research firm Circana for the 52-week period ending September 10, 2023, is filled with some bright spots for bread makers. Center-store breads sales hit $18.8 billion, an increase of 9.9% over the previous 12-month period. Leaders in c-store sandwich bread, which climbed 9.1% to $9.8 billion:

• Grupo Bimbo: $3 billion, an increase of 7.5%
• Flowers Foods: $2.6 billion, up 5.7%
• Private-label: $1.5 billion, up 23.5%

Unit sales in c-store sandwich bread were down overall by 2.2%, to about 2 billion units. However, the fact that none of the ranked performers in sandwich-bread subcategory saw more than a 5.7% loss is probably a bright side.

Other highlights in c-store bread products:

• Crusty/meal bread sales increased by 16.2% to $360 million
• Sweet bread items rose by 20.8% to $54.4 million
• Panini, ciabatta, and focaccia breads climbed by 29.8% to $35 million

The perimeter bread category overall rose, too—hitting 1.6 billion, up 14.1% from the previous 12-month period. Sandwich and crusty/meal bread had similar performance records—the former hit $728.8 million in sales, an increase of 15%; and the latter reached $757.4 million, an increase of 15.2%.

Consumer trends

Lorraine Hale--vice president and general manager of breads, buns, and rolls for Bimbo Bakeries USA—says that the continued adaptation to post-COVID lifestyle and workforce changes continues, and the shifts are impacting consumers’ bread buys.

“As consumers transition back to out-of-home purchases, products consumed at home must deliver even more benefits,” Hale relates. “Consumers are looking for more plus ingredients, such as key benefits in proteins and energy. They are also looking for products that fit the return to an on-the-go lifestyle. Snacking size and calorie portioned products have been popular. And when consumers choose to dine at home, they are looking for an elevated restaurant level experience.”

Brie Buenning, director of marketing with La Brea Bakery, says consumers discovered (or rediscovered) the pleasure of artisan bread. However, while many Americans played around with baking at home, many ended up decided to leave the bread baking to the pros.

“With daily routines returning to normal, people are seeking that fresh- baked bread experience from grocery store bakeries with brands like La Brea Bakery which delivers the highest quality artisan bread baked with simple, clean ingredients,” Buenning says. “Whether for sandwiches or appetizers or even a side with dinner, consumers are seeking elevated experiences especially when the price of eating out continues to escalate. Additionally, consumers are experimenting with textures, flavors and ingredients like seeds and nuts as well as both savory and sweet flavor profiles.”

Hale says Bimbo Bakeries USA harnesses the power of industry research from organizations like the Grain Foods Foundation and American Bakers Association (in addition to proprietary company research) to stay on top of what consumers have on their list of demands, and how their lives constantly fluctuate.

“Smaller households and older consumers are driving the purchases of products that can serve their households’ needs with less waste,” she says. “The continuing globalization of the world population drives interest and affinity in a wider variety of assorted flavors and textures.   Consumers always want to know they’re getting high-quality products at a good value. Especially in a tough economic environment, quality becomes key.”

La Brea Bakery and its parent company Aspire Bakeries, according to Buenning, relies on a number of sources for consumer insights and innovation, including its staff and data insight partners, focus groups, internal analysis and more.

“Sometimes uncovering what the consumer wants can be as simple as opening a social media app on your phone to observe the latest food trends,” Buenning relates. “A large percentage of consumers are curious to try new foods they see on social media and want to see those trends or fads in restaurants. The La Brea Bakery team is careful to make sure that short term opportunities fit the brand, and that we aren’t jumping in on fun fads that will become irrelevant quickly.”

Hale adds, “Consumers have so many options to satisfy their cravings, whether it’s what to use to make a sandwich at home or going out to eat at a local restaurant. This is why it’s so important to use industry research to understand consumers as they are making these choices. We want to be sure we are relevant to consumers throughout the day and for every moment of demand.”

Innovations and products

Hale stated Bimbo Bakeries USA trendwatchers have noted consumer interest in buying bread products that offer health benefits.

“It’s why Bimbo Bakeries USA is offering products that target these key areas, such as products that promote gut balance; we are also adding products that feature whole grain and plant protein, both of which have high interest for consumers,” she relates. “About half of consumers are avoiding carbohydrates in their diets, which has led to an increased interest in keto-friendly products. Our line of keto options is unique in that it provides delicious carb-reduced options that still have the taste, texture and flavor of traditional bread.”

Additionally, consumers remain keenly interested in free-from ingredient labels and product innovations that exclude certain ingredients they are looking to avoid. For example, Schär (a company specializing in gluten-free creations) saw its Artisan Baker Breads division launch a soy-free version of its Artisan Baker Breads. According to Robert Ehret, executive vice president of Dr. Schär North America. "Our plant expansion, and our new soy-free recipes reflect our ongoing commitment to creating inclusive and delectable options for individuals with diverse dietary needs. We understand the challenges faced by those with soy allergies, and we are proud to offer a solution that allows them to enjoy our exceptional bread with confidence."

Over the past several months, La Brea Bakery introduced a number of bread and bun products, Buenning reports: “We launched the La Brea Bakery Plant Based Brioche Bun to foodservice this past spring, it has been great to see the creativity that chefs have brought to the bun. While this bread isn’t available on the retail shelves just yet, it’s already become a one-size-fits-all solution for operators that want an elevated artisan bread to appeal to all dietary demographics. The bread has the same hallmark buttery flavor and texture of a traditional brioche.”

Buenning adds, “Just in time for the holidays, two of our iconic breads return for a limited time. The La Brea Bakery Cranberry Walnut and the La Brea Bakery Take & Bake Holiday Savory Rolls have returned to store shelves. While we can’t guarantee that consumers won’t be fighting over the last Savory Roll, these breads ensure that every holiday meal will be memorable.”

Bimbo Bakeries USA released in the past year included a number of products designed to offer a range of health benefits

“Bimbo Bakeries USA’s Arnold, Brownberry, and Oroweat Breads brand launched Grains Almighty; baked for the nutrition-conscious consumer, Grains Almighty offers consumers diverse and nutrient rich whole grains, with two new-to-category benefits. Consumers have the option of Grains Almighty Gut Balance, which is made with prebiotics and is a good source of fiber, or Grains Almighty Plant Protein, which is made with a balance of chickpea flour and whole grains to offer more protein.”

What’s ahead

Consumers, Hale says, will continue to look for elevated eating experience and appealing variety in their bread purchase.

“Our robust portfolio delivers something for every household whether they’re looking for the best PB&J sandwich, a specialty avocado toast, the crunch and texture of delicious whole grains, or to suit their carb-conscious lifestyle,” Hale tells us. “For example, our Sara Lee brand purpose is built to connect with our family bread consumers. The brand has a strong commitment to serving its communities with its million-dollar commitment to fighting hunger. In addition, our Rustik Oven and San Luis brands deliver a gourmet bread experience in the artisan category.”

In terms of products in Bimbo Bakeries USA’s on-deck circle: “We have many new innovation items in the pipeline across all of our categories to appeal to a wide range of consumers,” she reveals. “The Rustik Oven line of Sourdough Bread has a new Sandwich Loaf in two flavors, Sourdough and Multi-Grain, that will be available in the Western US states. This takes the specialty Sourdough experience from our artisan shaped boules and makes it more sandwich friendly in a standard loaf slice. Another highlight is that we will build the Oroweat Grains Almighty line of Whole Grains Sprouted Breads, which brings new benefits to consumers choosing Whole Grains.”

Buenning said that La Brea plans to bring its Plant-Based Brioche Bun to retail shelves, and it is working on a number of other innovations, to be announced later: “While I can’t share all our secrets, I can say that our R&D team and Bakery team have been baking up some magic in our test kitchen.”