Now that more people are back at the office, perhaps needing to pack a sandwich for lunch, the bread category has been doing well. Consumers have been looking to eat healthier, too, and producers are responding, offering multigrain, keto, and other options for loaf bread.

Market data

The breads category has been up and down over the past year, but has, for the most part, shown growth, according to Circana (Chicago) data from the past 52 weeks, ending on March 24, 2024. The subcategory with the most success, percentage-wise, has been the center store Hispanic bread category, with a rise of 17.5%.

The bakery center store breads and rolls category took in $19.8 billion, with a 4.9% increase over the past 12 months. In the center store sandwich bread subcategory ($10.2 billion, $4.3% uptick), Grupo Bimbo led the pack, with $2.9 billion in sales but only slight growth (.4%), and Flowers Foods’ products followed ($2.65 billion, 3.2% increase). Private label placed third, with $1.96 billion in sales and a 15.4% climb.

In the center store crusty/meal bread subcategory ($408.9 million, up 9.5%), one to watch is Ben Bud Growers Inc., with a 691,833.5% increase in sales (not a typo). Campbell Soup Co. brands also brought in $11.6 million, with a large 121.5% climb. In the all other center store bread subcategory, although down 4.1% for the year, Heidelberg Baking Co. shined, with 45.4% growth from last year, and PL was the leader in the category, with $108.3 million in sales.

Other companies to watch include Forever Cheese Inc. (up 1,130.5%) in the center store sweet bread subcategory; Gonnella Baking Co., in the center store panini/ciabatta/focaccia bread subcategory (up 19.75%); Goya Foods Inc., up 97.8% in the center store Hispanic bread subcategory; and Tribeca Oven Inc., with a massive 756.4% in growth, in the perimeter specialty bread subcategory.

Looking back 

“We’ve continued to see an increase in health-forward products over the past year,” says Lorraine Hale, vice president and general manager for bread, buns/rolls, Bimbo Bakeries USA. “Consumers are looking for functional foods and nutritious ingredients, all without compromising the flavors they know and love. As a result, we’ve seen an uptick in whole grain, multigrain, and keto-friendly options.” 

“We’ve also seen growing consumer demand for at-home gourmet experiences. People want to bring high-end flavors and products from their favorite restaurants to the comfort of their own dinner table. This has generated a need for new and innovative premium bread products,” she continues.

Bimbo Bakeries USA introduced several new premium bread options in the past year to keep up with evolving consumer demands for new and innovative products. 

“Recent consumer research indicates that Hawaiian is a top ranked flavor in everyday consumption and purchase intent. In response to this growing demand, we expanded the Sara Lee Artesano and Alfaro’s Artesano Brand portfolio, and debuted Artesano Hawaiian Bread. The bread is available in single (20-oz.) and club packs to offer consumers more options tailored to their varying lifestyles,” Hale finishes.

In the center store crusty/meal bread subcategory ($408.9 million, up 9.5%), one to watch is Ben Bud Growers Inc., with a 691,833.5% increase in sales (not a typo). Campbell Soup Co. brands also brought in $11.6 million, with a large 121.5% climb. In the all other center store bread subcategory, although down 4.1% for the year, Heidelberg Baking Co. shined, with 45.4% growth from last year, and PL was the leader in the category, with $108.3 million in sales.

Other companies to watch include Forever Cheese Inc. (up 1,130.5%) in the center store sweet bread subcategory; Gonnella Baking Co., in the center store panini/ciabatta/focaccia bread subcategory (up 19.75%); Goya Foods Inc., up 97.8% in the center store Hispanic bread subcategory; and Tribeca Oven Inc., with a massive 756.4% in growth, in the perimeter specialty bread subcategory.

Brie Buenning, director of marketing, La Brea Bakery, notes overall health trends are driving the demand for true artisan breads. 

“Consumers are taking their time to read labels and are choosing to purchase healthier breads like sourdoughs and whole grains,” she says. “Full-time and hybrid return-to-office mandates are increasing, leading to more packed lunches that include sandwiches. Another is the state of the economy; with inflation and consumer uncertainty, many are choosing to gather at home for meals. There’s been a sandwich renaissance on social media, driving demand for healthier, artisan bread.”

Within foodservice, operators have expanded their bread offerings, giving consumers more options: softer buns, upgraded brioche, and many fusion breads, adds Buenning. “Bread has returned to the center of the plate, and many restaurants have been promoting the breads they use in their marketing materials. Like most businesses in our industry, we continuously optimize our offerings based on the supply chain, consumer demands, and the marketplace,” she notes.

With the success of the plant-based brioche bun last year, La Brea Bakery released its New York Rye loaf in December 2023. The loaf is a blend of rye and wheat flour, with aromatic caraway seeds baked inside and sprinkled on top. The New York Rye loaf is currently available to in-store bakeries, and the brand looks forward to expanding this offering to foodservice soon.

Dave Gonnella, vice president of sales, Gonnella, says he is continuing to see smaller-sized bakery items and clean-label items trend. 

“Smaller size bread loafs help eliminate food waste, appeal to smaller sized families, and have a larger appeal to Millennials, as they are frequent shoppers. Innovation has become paramount and new offerings are the focus of our R&D team, instead of dealing with the supply chain issues of the recent past that caused many bakers to have to reformulate,” he explains.

In the past year, the brand released a 16-oz. Gonnella Small French/Italian Bread dough, which “speaks to the trend of smaller sized bakery items that are clean label. This is a frozen dough item for in-store bakeries,” shares Gonnella.

Michael Calise, president, Calise Bakery, says sourdough, in particular, has been around for years, but experienced a resurgence recently during and after COVID as consumers experimented with making their own sourdough at home. 

“We introduced our Sourdough Italian Round bread a little over a year ago and sales have exceeded our expectations. We just launched our Sourdough Bulkie Rolls as the next logical addition to the sourdough product line,” he notes. 

“We are seeing increased demand for our products from the mid–Atlantic down through Florida. Our focus is to grow our national sales footprint up and down the east coast in both retail and foodservice. While some companies are focused on better–for–you products, we see that consumers simply want products that are great-tasting with long–lasting freshness. That said, we have also transitioned many of our core products to clean-label formulas and any new items must also meet those criteria. Consumers are also looking for different flavor profiles as popular foodservice trends make their way into the retail segment,” Calise comments.

“We could not be more excited to expand our lineup of authentic bread and rolls with our new unique bulkie offering: Sourdough Bulkie Rolls, released in April 2024. Given the popularity of our Sourdough Italian Round Bread and classic Bulkie Rolls, we’re thrilled for our customers to get a taste of the best of both worlds,” he adds.

Jake Huber, director of sales, St Pierre, a brioche brand, says the brioche category is up 16% in value and 10% in volume in the last year. 

“As a subsector of bakery, it’s now worth more than $660 million to the sector, and as we approach grilling season, growth in its popularity with U.S. shoppers will maintain momentum. Furthermore, it is branded goods leading the growth in the brioche category; brands are delivering $376 million to retail versus $289 million coming from private label. Clearly, consumers are looking for quality products from brands they believe in and that’s part of the reason the St Pierre brand continues to grow, leading the charge with a 72% share of branded brioche in in-store bakery,” he shares.

“Last year, St Pierre launched Brioche Pretzel Rolls—taking [our] delicate sweet brioche and adding the saltiness associated with pretzels. The mix of flavors elevates any sandwich, and it’s another example of the St Pierre brand embracing growing sub-sectors and offering a brioche alternative,” Huber notes.

“Shoppers are demonstrating desire for trusted, high-quality brands, and whilst retailers are reviewing private-label programs to inject brand personality and drive sales, it is authentic brands like St Pierre that are best-placed to help retailers meet that demand,” he suggests.

Looking forward 

“The trend for premiumization shows no sign of slowing—that’s part of the reason for the growth of the St Pierre brand. Premiumization is driving product development in the sector, too,” says Huber. “[Our] most popular products are those that consumers immediately understand how to use, and [we] work hard to communicate the versatility of [our] core range year-round. What’s more, St Pierre offers innovative merchandising solutions, which aid sales in a number of different ways. The first is to act as a trip trigger into the in-store bakery, where consumers head for inspiration. It is here that retailers can drive value and volume across categories, encouraging trade-up. Shoppers in the ISB and deli come with a different mission—actively looking for opportunities to improve the usual menu.”

Gonnella says the Gonnella brand will be debuting a new line of Clean Label Thaw & Sell Sliced Breads with updated labeling that includes new marketing callouts supporting clean product attributes, such as Vegan Friendly, Free From Artificial Colors, Flavors & Preservatives, No Bleached Flour, and No High-Fructose Corn Syrup. The offerings include Cinnamon Raisin, Multigrain, Whole Wheat with Honey, 9-Grain, White, and Sourdough, and will launch at IDDBA this June.

As for La Brea Bakery, Buenning teases the brand’s culinary innovation leader, Chef Jonathan Davis, and his R&D team are always baking something new in the test kitchen oven.