October 2, 2024 – In the US, bread and bread products are preferred for their adaptability, convenience, and role as a key dietary staple in consumer’s diets. Innova’s 360 research into the bread industry, highlights the latest innovations, consumer preferences, market trends, and what may develop in the future within the industry.
Consumer Insights in the Bread Industry
In the US, 72% of consumers have purchased bread and bread products over the past year, with nearly 1 in 3 eating bread more than four times a week. Households with six or more members and those with mid-low, mid, and high incomes are the most frequent fresh bread consumers. Bread is primarily eaten as part of a meal, with 63% of consumers eating it at lunch and over 40% at breakfast or dinner.
Additionally, 17% have increased their bread consumption due to health benefits, promotions, and lifestyle changes. Freshness, taste, and cost are the top factors influencing consumers purchasing decisions, with plain, standard, traditional, and mildly flavored bread varieties and added health benefits preferred. Supermarkets are the leading outlets for bread and bread products purchases, followed by dollar and specialty stores. This indicates a sustained demand for bread, with opportunities for brands to tap into preferences for health-focused and affordable options. This highlights a strong consumer preference for bread as a versatile and affordable staple.
Bread and Bread Products Market Trends
US bread and bread product sales have steadily grown over the last five years. Additionally, bread industry market research from Innova predicts a 2% CAGR growth rate in sales over the next five years. North America accounts for 12% of global sales and volume. In the US, bread and bread products consumption rates are 20 kg per capita over the past year.
Companies and Brands in the Bread Industry
Private label holds the largest share of bread and bread product launches, accounting for 32% of the market. Following private label, Grupo Bimbo and Ahold Delhaize are the leading companies.
Grupo Bimbo, the top bread manufacturer in the US, has been in business for over 75 years. The company is known for brands like Arnold, Bimbo, Bobol, Bon Matin, Brownberry, Dempsters, Harvest Gold, Oroweat, Sara Lee, Thomas, Tia Rosa, Wonder, The Rustik, and Mrs. Baird’s.
The company accounts for 12% of bread product launches in the US over the past five years. Their recent US launch includes Arnold Grains Almighty Gut Balance Bread, while global innovations feature a variety of products such as burger buns, tortillas, and artisan mini-breads. These diverse offerings reflect Grupo Bimbo’s commitment to catering to evolving consumer preferences for flavor, health benefits, and convenience across multiple categories.
Product Launch Trends in Bread Industry
In the US, bread and bread products have experienced a 5% rise in launches over the past five years. Notably, buns and bagels show the highest growth among bread types, with wheat flour displaying an 11% increase in grain ingredient launches.
Consumers are seeking healthier options across sweet goods, salty snacks, and breads categories. There has been a notable rise in products with no additives or preservatives, or HCFS-free claims. Ambient is the leading shelving type for bread and bread products, followed by freezer, and fridge.
Additionally, one-quarter of US bread launches are flavored, with garlic, cinnamon, and raisin being the top choices. This trend reflects the growing consumer demand for variety, healthier options, and convenient storage solutions in bread products.
What’s Next in the US Bread Industry?
The US bread and bread products market is ripe for continuous growth and innovation. 28% of US consumers are looking for health benefits in bread and bread products. This highlights opportunities for bread companies to launch bread products with fiber and protein claims and active health claims, such as gut, immune, heart and brain health.
Bread is more frequently eaten as a meal than as a snack. Lunch has the highest bread consumption frequency in the US, followed by breakfast and dinner. However, there’s potential to boost bread consumption as a snack, especially as in-home snacking. Brands can tap into this trend, by focusing on at-home snack marketing.
Flavored breads represented 26% of new product launches over the past five years. Brands can explore opportunities to launch more innovative flavors in the market, offering consumers something new and indulgent. Brands that blend healthy claims and innovative flavors in their offerings are likely to meet evolving consumer demands.
This article is based on Innova’s Now & Next in Bread & Bread Products in the US report. Find out more about this report by booking a demo or reach out to us using our Contact Form.
