There’s a reason great inventions are hailed as the best thing since sliced bread. Affordable, reliable and convenient, sliced pan bread checks just about every box for consumers, making it no surprise that 95% of households consume center-store sandwich bread annually, according to a Circana Consumer Household Panel. And with inflation continuing to strain consumer spending and increase at-home eating, pan bread sales have remained elevated following the category’s boom in 2020. 

Dollar sales for the $10.2 billion center-store sandwich bread category increased 2.1% while units dipped 1.4% for the 52 weeks ending June 16, according to Circana. Private label enjoyed stronger growth as consumers seek affordable options, with dollars and units up 14.5% and 8.6%, respectively, over the same period. 

“Consumers are increasingly placing their trust and dollars in a familiar staple — sliced bread loaves,” said Kelsey Olsen, food and drink analyst, Mintel. “However, the decreased consumption of most other types of packaged bread products compared to 2021 suggests that proving reliability and versatility will be critical in the short term as consumers’ budgets are strained.”

It’s true: Slower sales throughout the bread aisle show consumers aren’t afraid to spend their limited food dollars elsewhere. And although pan bread remains a staple baked good, it shouldn’t rest on its laurels and risk going stale. This is especially true as a greater number of consumers, especially younger ones, are expecting more from their baked goods, whether it be innovative flavors and textures, better-for-you boosts or new occasions to enjoy. Consumers know pan bread is reliable, but can the category prove to be just as versatile?

“Versatility will lend to reliability and help packaged bread maintain its place as inflation cools and consumers have more room for variety outside of this staple product,” Olsen said. “Innovation will look like a mix of better-for-you (BFY), better-for-planet (sustainability) and better-for-taste buds (i.e., taste and flavor) improvements.”

Across the category, manufacturers are all-in on this innovation to ensure pan bread is that go-to product for years to come.

This article is an excerpt from the September 2024 issue of Baking & Snack. To read the entire feature on Pan Bread, click here.