October 31, 2024 – Globally, bread and bread products are preferred for their versatility, convenience, and ability as a staple in meals across the globe. Innova’s 360 research into the global bread industry reveals consumer preferences, product launches, innovations, top claims, and what may develop in the future within the industry.
Consumer Bread Preferences
Globally, 78% of consumers purchased bread and bread products in the past year. The penetration of fresh bread is four times higher than preserved bread, with consumers eating it daily and 2-3 times a week, while preserved bread has less frequent consumption. Males tend to consume both fresh and preserved bread more often. Boomers eat fresh bread more frequently than younger generations. Small households, with 1-2 members, also show the highest consumption of fresh bread.
Bread tends to be eaten at meals rather than snacks, like breakfast, lunch, or dinner. Global bread industry trends research shows that 66% of consumers eat bread and bread products for breakfast over the past year. Consumers prefer bread and bread products because it tastes good and it’s a staple food.
The freshness, taste/flavor, and cost of bread are key factors driving consumer purchases. Consumers are influenced by wholegrain/multigrain and made with real ingredients/natural claims, preferring standard, plain, traditional, mildly flavored bread with added health benefits. While most have maintained their bread consumption from the previous year, 16% have increased their intake due to health, lifestyle, and taste preferences. Supermarkets are the top choice for purchasing bread, followed by specialist stores (including bakeries) and convenience stores.
Bread Market Size and Trends
The sales and volume of the global bread market have been steadily rising throughout the past five years, by 3% CAGR each. Global bread industry trends research predicts a projected growth rate of 3% CAGR in sales and volume in the next five years. West Europe is the top region for global bread and bread product retail sales, followed by Latin America, North America, East Europe, and the Middle East. Egypt and Turkey have the highest per capita consumption rates. Seven East European countries also display above-average consumption levels.
Top Companies and Brands in the Global Bread Industry
The global bread market is highly fragmented by manufacturer, with top companies varying by region. Private label products make up a significant portion of category launches, accounting for 44% in Western Europe, 33% in North America, and around 20% in Asia and Latin America. Mexico-based Grupo Bimbo leads the bread market in North and Latin America, representing over 10% of product launches in these regions.
Grupo Bimbo, with more than 75 years of experience, is known for its wide range of brands, including Arnold, Bimbo, Boboli, Bon Matin, Brownberry, Dempster’s, Harvest Gold, Oroweat, Sara Lee, Thomas, Tia Rosa, and Wonder. The company continues to innovate, and its recently launched product includes Bon Matin Keto Tortillas in Canada, which are high in fiber and free from added flavors or colors. Other recent launches include various types of bread, such as burger buns, protein breads, artisan mini loaves, and plant protein varieties, along with an array of bagels, baguettes, tortillas, and panini.
Bread Product Launch Trends
Global bread and bread product launches have experienced a 2% CAGR growth over the past year. Western Europe leads with 33% of new product launches, followed by Asia, Latin America, and North America. Asia shows the fastest rise in global bread and bread product launches. While ambient bread is the dominant shelving type, refrigerated and frozen bread launches are increasing.
Ethical packaging leads with 39% of product launches. Vegan and vegetarian claims show the highest rise, while no additives/preservatives and high/source of protein claims have experienced smaller growth. Additionally, 46% of bread products globally feature passive health claims.
Bread Flavor and Ingredient Trends
Bread is the top product type for launches. Buns have experienced the highest rise in launches. Over 90% of bread launches include at least one grain ingredient, and three-quarters contain wheat flour. There’s been significant growth in products featuring wheat flour and wheat gluten protein.
Flavored bread has also displayed an increase, with its launches rising from 24% to 28% over the past five years. Cheese, garlic, milk chocolate, raisin, and red tomato are the top 5 bread flavors.
What’s Next in the Global Bread Industry?
One-third of consumers seek health benefits in bread and bread products, with over twice as many preferring options with added health benefits. However, not quite half of bread launches globally include health claims, and nearly all are passive. This indicates a significant opportunity for brands to actively launch bread products featuring fiber, protein, and condition-specific claims, such as gut, immune, heart, and brain health.
Over 90% of new bread and bread product launches contain grains, with wheat flour used in over 70%. While consumers are familiar with grains like wheat, multigrain, and oats, there is less awareness of uncommon grains. This presents an opportunity for brands to raise awareness and knowledge about the availability and benefits of these ingredients.
Flavored breads have gained popularity, increasing from 24% to 28% of product launches in the past five years. Brands can leverage this trend by exploring innovative flavors and launching more creative, flavored breads to capture evolving consumer interests. Brands that combine health benefits with unique flavor innovations are likely to drive future growth in the global bread industry.
This article is based on Innova’s Now & Next in Bread & Bread Products – Global report. This report is available to purchase or with an Innova Reports subscription. Reach out to find out more
