The Greatest Thing Since Sliced (Organic) Bread: Innovation in the Bread Aisle

Bread consumption in the US is growing at marginal rates. In the retail segment, packaged sliced bread has lost share to artisan-style products, including those from grocery stores' in-store bakeries, according to Rabobank’s “The Greatest Thing Since Sliced (Organic) Bread.”

Report summary

On the other hand, packaged organic bread sales have grown at double-digit rates, proving that the bread aisle can still attract new audiences and capture healthy premiums. “Consumer preferences are increasingly impacting the entire value chain. Value is no longer to be found just in baking the dough and distributing the aligned slices of bread in a plastic bag, but in bringing together the right ingredients and marketing the staple food as a novelty that is worth the extra buck, guilt-free,” according to JP Frossard, Analyst – Consumer Foods.

“Further innovation is needed to boost top-line growth and expand margins, mostly on new, functional, and clean ingredients; attractive and sustainable packaging; mission-driven brands; and proper display at the point of sale.”