The Grain Foods Foundation (GFF)’s inaugural consumer insights research, revealed during its latest investor call, went far in breaking down consumer attitudes toward and motivations for purchasing packaged bread. This category has long relied upon its designation as a staple product. With 99% household penetration, it’s easy to understand why, despite declining sales, the industry has felt confident in the loyalty of households that need peanut butter and jelly sandwiches, breakfast toast, dinner rolls, buns, etc., as a part of their daily diets. But GFF research shows that packaged bread’s staple status may not be long for this world. 

The study revealed that the generations younger than baby boomers do not consider packaged bread to be a staple, something that will always find its way into their shopping carts and onto their dinner tables. It’s true that larger households that likely include children rely on packaged bread for lunch box sandwiches, but millennials and Generation Z were less likely to describe packaged bread as a staple, traditional or classic than their older counterparts. The same is true for Hispanic, Black and Asian consumers. As these younger and multicultural consumers gain purchasing power and boomers see theirs diminish, packaged bread will no longer be able to rely on its staple status for maintaining household penetration, much less growing the category.

It’s not all doom and gloom, however. These demographic groups aren’t completely turning their backs on packaged bread, but they do approach these products much differently. These future power players see packaged bread as indulgent, special, irresistible, fun and innovative. It’s shareable, crowd-pleasing, affordable and convenient. These consumers are more interested in packaged bread that’s bringing something to the party, whether it’s nutrition, taste or an experience, and they’re willing to pay for the premium. 

I believe there will always be a place for a standard loaf of white or wheat bread. A value loaf of sliced bread is critical to meeting the dietary needs of families, especially those in the low-income bracket. But there is coming a time when simply coasting by on “staple status” won’t be enough. Baking companies must pay attention to the eating habits of the upcoming generations and minority populations who will control purchasing in the next couple of decades.  

What does this look like? According to GFF’s research, that’s a focus on artisan, brioche and other indulgent varieties of bread. Better-for-you options should focus on lower sugar and carbohydrates, higher protein and multigrain. Gen Z, in particular, is looking for high protein, seeds, vitamin/mineral enriched and gluten-free products. Dairy- and egg-free formulations are also of interest to Gen Z, who are more likely to be vegan, vegetarian or have an allergy to these ingredients. Smaller package sizes and longer shelf life, whether through formulation or innovative packaging, will be critical. And baking companies should also promote ways to use their products with new uses, occasions and recipes.