KANSAS CITY — Amid slack sales of traditional packaged loaves, bread manufacturers are whetting consumers’ appetites with products that offer something different, something better for you, or something with more value or convenience.

Center-store bread sales in 2024 finished down 0.2% in dollars to $11.67 billion and down 0.9% in units, food research firm 210 Analytics reported, citing Circana multi-outlet plus convenience-store data. Updated figures from Circana showed the downtrend worsening going into 2025, as dollar sales for center-store bread in the 52 weeks ended Jan. 26 fell 0.7% year over year to $11.79 billion and units decreased 1.4%. For the 12 weeks through that date, center-store bread sales declined by 1.8% in dollars to $2.73 billion and by 2.7% in units.

Within center-store bread, sandwich bread — by far the largest segment — saw dollar sales for the 52 weeks ended Jan. 26 dip 0.9% to $10.8 billion, with units down 1.7%. The only other decliner was the specialty bread segment, down 0.4% in dollars and 1.9% in units.

Gainers in center-store bread were led by panini/ciabatta/focaccia bread (up 8.3% in dollars and 7.9% in units), followed by Hispanic bread (up 6.9% in dollars but down 0.4% in units), crusty/meal bread (up 1.3% in dollars and 4.4% in units), all other bread (up 1.3% in dollars and 0.4% in units) and sweet bread (up 0.2% in dollars and 3% in units).

Combined, Grupo Bimbo SAB de CV and Flowers Foods Inc. accounted for 54% of center-store sandwich bread dollar share, with private label at 20%, according to Circana data. The two companies and private brands, for the most part, dominate center-store bread and related products in market share.

“Traditional powerhouses continue to represent the vast majority of sales,” said Anne-Marie Roerink, president of San Antonio-based 210 Analytics. “Traditional sandwich bread, hamburger and hot dog buns/rolls, etc., are the essentials that shoppers expect to find and bring in the lion’s share of dollars. But by tying into the latest trends, retailers have an opportunity to differentiate their assortment and capture the consumers’ eyes for impulse and added purchases.”

Source: The Campbell's Co.

In the center store, buns and rolls have shown steadier growth, with sales up 1.9% in dollars and 1% in units for the 52 weeks ended Jan. 26. Hamburger/hot dog buns, dinner rolls and specialty rolls all tallied dollar and unit sales gains — with the latter segment growing nearly 26% in dollars and 30% in units — while sandwich buns and all other buns and rolls posted dollar and unit decreases.

Decliners in the center store include English muffins (down 2.5% in dollars and 0.9% in units), wraps and flatbreads (down 7.2% in dollars and 8.2% in units), and bagels and bialys (down 2.5% in dollars but up 0.1% in units), despite some growing segments such as flavored English muffins, naan bread and lavash bread.

Dinner rolls have been “outpacing the rest of the (center-store bread) category for years” by meeting a range of consumer needs, said Ama Auwarter, vice president of snacks marketing for bakery and cookies at The Campbell’s Co., Camden, NJ, which offers the Pepperidge Farm brand.

“We have seen consumers exploring different formats and sizes for bread,” Auwarter said. “This past fall, we introduced new Pepperidge Farm Farmhouse Rolls in hearty white and brioche, catering to consumers’ call for versatility. These mini rolls are a staple for side of plate at a meal but are also perfect for a mid-day snack, a time of day consumers are looking for options and where bread is a great solution.”

Bread product sales have fared noticeably better in the perimeter of the store, Circana’s data show. Overall dollar sales for fresh bakery bread and rolls rose 1.9% to $4.86 billion for the 52 weeks through Jan. 26, with units climbing 3.3%.

“Perimeter breads and rolls has grown in the past year, driven by croissants, buns and rolls, and bagels/bialys,” said Dawn Aho, client insights principal for the bakery vertical at Chicago-based Circana. “Center-of-store breads and rolls has declined; however, there have been bright spots of growth for the center of store in buns and rolls and croissants.”

Though perimeter bread sales dipped 0.7% to $1.67 billion, the category saw unit volume grow 6.9%. Buns and rolls gained in dollars and units, while bagels and bialys increased in dollars but declined in units. Both English muffins and tortillas/wraps/flatbreads in the perimeter had dollar and unit sales decreases.

“Perceived freshness, in addition to the ability to control purchase size through random weight such as a single bagel or croissant rather than a full pack available in center of store, may account for the growth of the perimeter,” Aho said. “Consumers are returning to work and are on the go and looking for options to fit in with their busy schedules. Croissants and bagels are a convenient breakfast option, with no need to toast, and buns and rolls offer consumers a quick lunch or dinner options.”

Roerink noted, “Sometimes bread choices are all about economics, other times about health, yet other times about sheer indulgence.”

No slowdown in better-for-you

Healthier offerings remain top of mind for shoppers when it comes to bread product purchases, and manufacturers continue to widen the array of choices, including items that cater to specific diets.

“One of the biggest shifts in the bread category is toward better-for-you options,” said Jessica Wood, vice president of consumer insights at Thomasville, Ga.-based Flowers Foods. “Additionally, there is a shift in consumer awareness of processed foods and leaning into cleaner label trends, including no artificial colors, flavors or preservatives and simpler ingredient panels.”

Wood cited “significant growth” for Flowers with “health-forward” bread products from Dave’s Killer Bread and Nature’s Own Keto.

“Last spring, we built on the success of the Keto Net One loaf with Nature’s Own Life Keto Soft White Buns, which contain one net carb per serving without sacrificing the soft flavor and texture consumers crave,” she said. “Our Nature’s Own Keto line of products took the No. 1 spot in the subcategory in 2024.”

Other new items rolled out by Flowers over the past year include Perfectly Crafted Flatbreads, which are Non-GMO Project verified; Dave’s Killer Bread organic Rock ‘N’ Rolls dinner rolls; a 12-oz loaf of Nature’s Own Ancient Grain Bread; and Canyon Bakehouse Cinnamon Raisin Bread, which is gluten-free as well as free of dairy, nuts and soy.

“By offering differentiated products, we are meeting the unique needs, preferences and lifestyles of a wide range of consumers,” Wood said. “Going back to its introduction in 1977, Nature’s Own has stood out in the bread aisle for its commitment to no artificial preservatives, colors or flavors. Today, all our No. 1-selling national brands — Dave’s Killer Bread, Nature’s Own and Canyon Bakehouse — are made with no artificial preservatives, colors or flavors and no high-fructose corn syrup. Many of our products under these labels offer consumers one or more unique characteristics, such as certified gluten-free, keto/low-carb, kosher, Non-GMO Project verified, USDA Organic and 100% whole grain.”

Most consumers are looking to make smarter choices with bread, Roerink said, who noted that health “continues to be an interesting angle in packaged breads.”

“About 60% of consumers are interested in better-for-you options,” she said. “Importantly, this focus on health is rarely a constant but rather something consumers balance with the rest of the meal or food/beverage intake.

“But certainly, more consumers are open to exploring items that are positioned as whole grain, gluten-free or high-protein. The important notion here is to tie the nutrient to the benefit. In other words, instead of just putting ‘high-protein,’ adding a line that explains what protein does.”

In the total bread and rolls segment, both dollar and unit share have risen around half a percentage point, to 13% and 8% respectively, for items with Non-GMO and organic claims, Aho said.

“Health-driven new products including gut-health, protein-packed, gluten-free as well as keto are also center-of-store options,” she said.

These days, a lot of shoppers also are thinking about portion control while in the bread aisle.

“Many consumers want a bread option that is delicious and full of flavor, but a smaller portion,” Auwarter said. “In April, we’re launching a line of thin-sliced bread that delivers all the flavor consumers love in our (Pepperidge Farm) Farmhouse sandwich bread in a smaller slice to meet consumers’ calorie and carb goals.”

Bimbo Bakeries USA (BBU), a Horsham, Pa.-based subsidiary of Grupo Bimbo, in 2024 launched an array of bread products it described as better-for-you, including The Rustik Oven artisan-style flatbreads (Non-GMO Project verified), Arnold Organic 22 Whole Grains & Seeds bread, Sara Lee half-loaves (no high-fructose corn syrup, artificial colors or flavors), Sara Lee Artesano Hawaiian bakery bread and buns (no high-fructose corn syrup, artificial flavors or preservatives), and Wholesome Harvest Mornings Super Seed & Fruit and Blueberry Oat small loaves, among other items.

BBU also offers the Grains Almighty line across its Arnold, Brownberry and Oroweat brands. Arnold Grains Almighty packaged bread comes in Plant Protein and Gut Balance varieties, the latter made with sprouted grains and containing flax, honey, barley and sunflower seeds.

“Bread products containing grains and seeds continue to be introduced by manufacturers,” Aho said. “With the rise of GLP-1 (weight-loss and diabetes) medications, grains and seeds contain the recommended fiber intake said to slow digestion and promote GLP-1 release.”

Roerink noted that “there continues to be innovation in plant-based and vegan breads as well” but consumers are more interested in fewer and healthier ingredients.

“The emphasis these days is more on clean label, simple ingredients and, more than anything, transparency — understanding which items are included with a focus on natural ingredients and minimal additives,” she said. “This clean label trend has many manufacturers adopting clearer label practices detailing ingredients on the front of pack for easy shopping experiences.”

In the gluten-free segment, United States Bakery, dba Franz Bakery, in 2024 expanded its offerings to include sourdough, brioche and rye-flavored varieties, all of which the Portland, Ore.-based company said are vegan and contain no nuts, soy, dairy, egg or high-fructose corn syrup. Gluten-free bakery Bread SRSLY launched a gum- and rice-free sourdough loaf, while Base Culture rolled out the Simply Bread line of gluten-free, clean-ingredient bread.

Source: Business Wire

Lancaster Colony Corp. is bullish on its new New York Bakery gluten-free frozen bread, which could provide a springboard for other products, said David Ciesinski, president and chief executive officer. Offered via the T. Marzetti subsidiary, New York Bakery’s first-ever gluten-free frozen bread comes in versions of the brand’s Garlic Texas Toast and Five Cheese Texas Toast. Lancaster said the new items “raise the bar” in gluten-free frozen bread via a “first-of-its-kind” dough recipe that maintains the texture, volume and structural integrity of their conventional counterparts.

“It’s a product that we developed,” Ciesinski said in a conference call on fiscal 2024 results. “We got a patent on that technology because, if you’ve tried gluten-free bread products, a lot of times they’re very punchy or have an off-note in the flavor. And these (new products) taste nearly identical to our current item. That’s part of the reason why we’re so excited about it.”

More variety and flavors

One reason sales of traditional bread products in the center store have tailed off is that shoppers are finding more palate-pleasing options.

Last March, for example, Pepperidge Farm added a lemon blueberry flavor to its Swirl breakfast bread line, and in October, holiday-edition Farmhouse Stuffing Seasoned Rolls were added to the brand’s dinner roll offerings. Also on the limited-edition front, BBU last fall brought back Thomas’ cranberry English muffins and bagels.

“Taste is always going to be No. 1 with consumers,” Auwarter said. “As they are looking for flavor-forward bread offerings, we continue to find ways to stay true to the Pepperidge Farm brand and our obsession with quality while keeping pace with evolving consumer demand. For instance, just last year, we launched a delicious lemon blueberry Swirl bread. We knew consumers were looking for new, elevated flavor combinations and variety in their breakfast options to brighten their mornings. Lemon blueberry is a popular breakfast flavor and fills a flavor gap in the commercial bread aisle.”

She also noted the ongoing popularity of brioche.

“We’ve seen brioche products across all bread segments — from buns and rolls to sandwiches — perform well over the past few years. This flavor continues to grow in popularity with consumers and is seen as a way to elevate anything from a burger to a breakfast sandwich with a more indulgent flavor that’s buttery, slightly salty and slightly sweet.”

Artisan bread, too, continues to garner more shelf and display space in stores.

“While specialty breads were the field of the perimeter bakery for many years, we now see items like sourdough, ancient grain varieties or flavored breads — infused with herbs, fruit or nuts — popping up in the center-store aisle as well,” Roerink said. “This trend reflects consumers’ desire for distinctive flavors and textures for a different experience.

“In flavor trends, we are also seeing more nostalgic flavors, but with a modern twist that might be updating the traditional recipe with unique ingredients and creating fusion flavors.”

Early this year, Schmidt Baking, part of the Baltimore-based H&S Family of Bakeries, expanded its Old Thyme brand roster with Artisan’s Choice loaf bread, available in Italian Rustico, Rustic Brioche and Ancient Grains & Seeds varieties. And last April, Calise & Sons Bakery capitalized on the sourdough trend with the launch of Sourdough Bulkie Rolls.

“Perimeter flavors such as sourdough, Hawaiian and brioche have made their way into center of store,” Aho said. “New varieties of breads such as croissant bread and flatbreads/pitas have generated excitement around center-of-store bread brands, offering consumers alternatives to traditional center-of-store bread options.”

BBU, for instance, in May added Hawaiian loaf bread and buns to its Sara Lee Artesano line. And early last year, San Francisco-based Hero Bread rolled out limited-edition Hero Hawaiian Rolls, made with all-natural ingredients.

“Much like recent years, Hawaiian/sweet brioche are trending for bread and rolls,” Aho said. “These sweeter flavors of sliced bread and rolls give consumers a more indulgent option. Sourdough remains a growing flavor for bread and rolls.”

The demand for something different has heightened in the morning meal daypart as well.

“Within breakfast, over the past year, new offerings such as sourdough English muffins and everything breakfast breads have been introduced, appealing to consumer tastes and flavor variety within the category,” Aho said.

The “influence of global cuisine” is enlarging the palette of flavors in the bread aisle, Roerink said. In one example, this past summer, Tom Cat Bakery launched a line of artisanal Japanese Milk Bread items — including Shokupan sandwich loaves, seeded rolls and burger buns — that were created with Yamazaki Baking of Japan. New York-based Tom Cat also makes handcrafted Italian, European and French bread products.

“Korean bakeries, for instance, are popping up all over the place,” Roerink said. “Rather than losing dollars to those stand-alone bakeries, retailers and bread manufacturers are starting to include different global flavors and offerings into their assortment as well. Hispanic breads are another example. While a very small seller, they are outgrowing the total (bread) category.

No matter how you slice it, value matters

Bread, of course, hasn’t been immune to elevated inflation, and there’s “most definitely lingering concern about high prices,” Roerink said.  

“Consumers are trying to find value,” she explained. “In some cases, that means buying a little less to prevent food waste, and in other cases they might divert to the store-brand item. In Europe, in particular, portion sizes are a way of managing food waste as well as the price tag. You’ll see packaged buns/rolls in packages of two, four, six, etc. Likewise, you’ll see packaged bread sold by the half (loaf) or sometimes even less. That allows consumers to buy just what they need.”

Buying smaller package sizes is one strategy that shoppers are adopting to ease affordability, Flowers’ Wood said.

“Some are trading down to lower-priced brands or private label, while others have shifted channel preferences to mass or club retailers,” Wood said. “Other consumers are being more mindful of food waste by eating leftovers or rightsizing their purchases by shifting to smaller loaves of bread. Nature’s Own developed a new, smaller loaf (12 oz) that offers the same taste and texture and a full-size slice, but with fewer slices for less waste and a lower price point.”

Circana’s Aho noted the smaller packs bring an option that was once the province of the perimeter bread section.

“Half loaves and half-packs continue to be introduced and offered to consumers in center of store,” she said. “This, with the growth of the perimeter with random-weight options, meets the needs of consumers with smaller households or those looking for reduced-portion sizes.

“Random weight in the perimeter allows consumers to control how much they spend on items such as buns and rolls, croissants and bagels. Half-packs for both bread and buns and rolls meet the needs of smaller households, often on a fixed income. Club packs also provide economies of scale for consumers.”

Flowers’ Wood described a “bifurcation of choice” in today’s bread aisle.

“Consumers seeking differentiation are choosing premium options, like Dave’s Killer Bread, Canyon Bakehouse, and Nature’s Own Keto products, while food affordability is a top consideration for others,” Wood said.

Yet Campbell’s Auwarter also sees the plethora of bread choices nowadays as an opportunity to enhance mealtimes without the cost of dining out.

“When consumers can’t afford to eat out as much, bread can offer a great option for at-home meals that still feel special,” she said. “Pepperidge Farm offers some delicious offerings to elevate those occasions — whether it’s a soft, buttery brioche bun for burger night, deli-swirled rye bread for a delicious turkey melt, Farmhouse mini rolls for meatball sliders or frozen garlic toast to add that extra touch to pasta night. We strive to give consumers solutions for all families and provide them with ideas and inspiration to add variety to their routine.”