Author: Mintel Group Ltd.
Last saved by: HTTP server

Bread - US - June 2009

SCOPE AND THEMES
What you need to know
Definition
Data sources and methodology
Sales data
Consumer survey data
Advertising clips
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Bread market reached $20.5 billion in 2008
All segments of the market grew during 2006-08
Market consolidation continues
Private-label thrives amid troubled economy
Wholegrain, high fiber, natural are hottest trends
Bread usage frequency is increasing
Consumer attitudes and motivations
INSIGHTS AND OPPORTUNITIES
Time is right to focus on pricing strategy
Private-label has room to grow
INSPIRE INSIGHTS
 CRAFT NOT GRAFT
 TRANSPARENCY
What's it about?
What we've seen
Specifics
Implications
What it means for bread
MARKET SIZE AND FORECAST
Key points
“Eating in” and wholegrain trends give bread sales a boost
Bread prices continue to rise
Figure 1: Total U.S. retail sales of bread, at current prices, 2003-13
Figure 2: Total U.S. retail sales of bread, at inflation-adjusted prices, 2003-13
Walmart sales
COMPETITIVE CONTEXT
Decline in restaurant meals leads to rise in bread sales
Figure 3: Impact of the economy on restaurant spending, by age, February 2009
Private-label becomes a force to be reckoned with
Grupo Bimbo acquires powerhouse brands from George Weston
SEGMENT PERFORMANCE
Key points
Eating-in trend and whole grains movement drive sales in all segments
Figure 4: FDMx sales of bread, segmented by type, 2006 and 2008
SEGMENT PERFORMANCE—FRESH LOAF BREAD
Key points
Sales gains in FDMx being driven by higher prices
Figure 5: U.S. FDMx volume sales and average price of fresh loaf bread, 2005-08
Sales and forecast
Figure 6: FDMx sales of fresh loaf bread, at current prices, 2003-13
Figure 7: FDMx sales of fresh loaf bread, at inflation-adjusted prices, 2003-13
SEGMENT PERFORMANCE—FRESH ROLLS, BUNS AND CROISSANTS
Key points
Volume sales dip, but prices rise in 2008
Figure 8: U.S. FDMx volume sales and average price of fresh rolls/buns/croissants, 2005-08
Sales and forecast
Figure 9: FDMx sales of fresh rolls/buns/croissants, at current prices, 2003-13
Figure 10: FDMx sales of fresh rolls/buns/croissants, at inflation-adjusted prices, 2003-13
SEGMENT PERFORMANCE—TORTILLAS AND TACO SHELLS
Key points
Health-focused products and popularity of Mexican cuisine drive growth
Diet trends have lesser impact compared to other types of bread
Sales and forecast
Figure 11: FDMx sales of tortillas, at current prices, 2003-13
Figure 12: FDMx sales of tortillas, at inflation-adjusted prices, 2003-13
SEGMENT PERFORMANCE—BAGELS AND ENGLISH MUFFINS
Key points
Long recovery from low-carb diet craze continues
Figure 13: U.S. FDMx volume sales and average price of bagels and English muffins, 2005-08
Sales and forecast
Figure 14: FDMx sales of bagels/bialys/English muffins, at current prices, 2003-13
Figure 15: FDMx sales of bagels/bialys/English muffins, at inflation-adjusted prices, 2003-13
SEGMENT PERFORMANCE—FROZEN AND REFRIGERATED BREADS
Key points
Poor economy a boon for sales in 2008
Figure 16: U.S. FDMx volume sales and average price of frozen and refrigerated bread products, 2005-08
Sales and forecast
Figure 17: FDMx sales of refrigerated/frozen bread, at current prices, 2003-13
Figure 18: FDMx sales of refrigerated/frozen bread, at inflation-adjusted prices, 2003-13
RETAIL CHANNELS
Key points
Supermarkets lead in bread sales
Figure 19: Retail channels consumers have bought bread from in the last two weeks, March 2009
Figure 20: U.S. retail sales of bread, by retail channel, 2006 and 2008
RETAIL CHANNELS—SUPERMARKETS
Key points
Supermarkets promoting private-label and discounting prices, but continue to lose share to supercenters
Figure 21: U.S. retail sales of bread at supermarkets/food stores, 2003-08
RETAIL CHANNELS—NATURAL FOODS SUPERMARKETS
Key points
Growing interest in whole grains, natural products drives sales
But the stigma of high prices and other factors hamper the channel’s growth
Figure 22: Natural product supermarket retail sales of bread, at current prices, 2007-09
MARKET DRIVERS
Bread an affordable staple amid troubled economy
Food prices will continue to rise in 2009
Figure 23: Average retail price white and wholewheat bread, 2004-09
Consumers are bargain hunting as indicated in this year’s custom survey
Healthy eating trend drives sales of wholegrain, natural breads
LEADING COMPANIES
Key points
George Weston Bakeries sells off U.S. bakery division
Sara Lee
Flowers Foods’ sales keep blooming
Bimbo Bakeries USA
Interstate Bakeries Corp. emerges from bankruptcy
Campbell Soup Company
Manufacturer sales
Figure 24: FDMx sales of leading bread companies, 2008 and 2009
BRAND SHARE—FRESH LOAF BREAD
Healthy innovation drives brand sales
Poor economy fuels private-label growth
Manufacturer and brand sales
Figure 25: FDMx brand sales of frozen fresh loaf bread in the U.S., 2008 and 2009
BRAND SHARE—FRESH ROLLS, BUNS AND CROISSANTS
Key points
Arnold Select leads growth, gains market share
Sara Lee and Flowers Foods far under-pace GWB
Manufacturer and brand sales
Figure 26: FDMx brand sales of fresh rolls, buns and croissants in the U.S., 2008 and 2009
BRAND SHARE—TORTILLAS AND TACO SHELLS
Key points
Mission leads market in innovation and sales
Manufacturer and brand sales
Figure 27: FDMx brand sales of tortillas and taco shells in the U.S., 2008 and 2009
BRAND SHARE—BAGELS AND ENGLISH MUFFINS
Key points
Thomas’ leads the segment and continues to grow
Figure 28: FDMx brand sales of bagels and English muffins in the U.S., 2008 and 2009
BRAND SHARE—FROZEN AND REFRIGERATED BREADS
Key points
Private-label, small brands steal share from brand leaders
Manufacturer and brand sales
Figure 29: FDMx brand sales of frozen and refrigerated bread in the U.S., 2008 and 2009
BRAND QUALITIES
Pillsbury offers comfort during troubled times
Healthy Life aims to be a dieter’s best friend
INNOVATIONS AND INNOVATORS
Key points
Following a surge in 2008, pace of innovation slows in 2009
Figure 30: Top ten product claims for new bread products in the U.S, 2007-09
Private-label brands among top innovators
Figure 31: Top ten companies ranked, by number of new bread products, 2007-April 2009
What consumers want: whole grains, high fiber, and no HFCS
Natural and organic is growing
Artisan bread is getting hot
Functional bread works for you
ADVERTISING AND PROMOTION
Overview
Arnold makes eating right easier
Figure 32: Arnold bread television ad, 2008
Healthy Life targets dieters
Figure 33: Healthy Life bread television ad, 2008
Nature’s Pride offers the purest ingredients
Figure 34: Nature’s Pride bread television ad, 2009
Pillsbury aims to make every meal a special occasion
Figure 35: Pillsbury Grands Biscuits television ad, 2009
Thomas’ muffins are so good, it’s a crime
Figure 36: Thomas’ hearty grains English muffins television ad, 2008
Grain Foods Foundation promo shows bread is beautiful
Tortillas on a Mission
BREAD USAGE
Key points
Household consumption of bread
Figure 37: Household usage of bread products, by product type, 2005-08
Varieties of bread used in household
Figure 38: Types of bread used in household, 2005-08
Volume of bread usage
Figure 39: Number of loaves consumed by household in last week, by household income, July 2007-September 2008
Brand preferences
Figure 40: Brands of bread used in household, by household income, July 2007-September 2008
IMPACT OF INGREDIENTS, PRODUCT QUALITIES AND THE ECONOMY ON BREAD PURCHASE
Key points
Purchase of bread with health claims
Figure 41: Bread purchased with specific ingredients or marketing claims, by age, March 2009
Most important qualities when purchasing bread
Figure 42: Qualities looked for when purchasing bread, by gender, March 2009
Figure 43: Qualities looked for when purchasing bread, by age, March 2009
ATTITUDES TOWARDS BREAD, BRAND LOYALTY AND THE EFFECT OF THE RECESSION
Key points
Attitudes toward bread
Figure 44: Opinions about various kinds of bread, by age, March 2009
Brand loyalty
Figure 45: Loyalty to brands, and the effect of price when purchasing bread, by age, March 2009
Impact of the economy on bread purchasing
Figure 46: Impact of current economic situation on bread purchasing, by age, March 2009
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Household consumption of bread types follows stereotypes
Figure 47: Household usage of bread products, by product type, by race/Hispanic origin, July 2007-September 2008
Varieties of bread used in household
Figure 48: Types of bread used in households, by race/Hispanic origin, July 2007-September 2008
Attitudes toward bread
Figure 49: Opinions about various kinds of bread, by race/Hispanic origin, March 2009
Purchase locations
Figure 50: Retail channels consumers have bought bread from in the last two weeks, by race/Hispanic origin, March 2009
Brand loyalty
Figure 51: Loyalty to brands, and the effect of price when purchasing bread, by race/Hispanic origin, March 2009
Impact of the economy on bread purchasing
Figure 52: Impact of current economic situation on bread purchasing, by race/Hispanic origin, March 2009
CLUSTER ANALYSIS
Thrifty, unadventurous xenophobes
Who they are
Opportunity
White-averse, bread-aislers
Who they are
Opportunity
In-store breadaholics
Who they are
Opportunity
Cluster characteristics
Figure 53: Bread buyer clusters, March 2009
Figure 54: Retail channels consumers have bought bread from in the last two weeks, by bread buyer clusters, March 2009
Figure 55: Bread bought in the last month, by type, by bread buyer clusters, March 2009
Figure 56: Qualities looked for when purchasing bread, by bread buyer clusters, March 2009
Figure 57: Changes to bread purchasing and eating habits as compared to last year, by bread buyer clusters, March 2009
Figure 58: Opinions about various kinds of bread, by bread buyer clusters, March 2009
Cluster demographics
Figure 59: Bread buyer clusters, by gender, March 2009
Figure 60: Bread buyer clusters, by age, March 2009
Figure 61: Bread buyer clusters, by household income, March 2009
Cluster methodology
CUSTOM CONSUMER GROUPS
Families with teens, single parents and students are prime targets for bread marketers
Figure 62: Volume of bread usage, by key user cohorts, July 2007-September 2008
Figure 63: Household consumption of various bread products, by key user cohorts, July 2007-September 2008
Clear lines distinguish “multigrain” and “white bread” cohort groups
Figure 64: Household consumption of bread types, by key user cohorts, July 2007-September 2008
Figure 65: Brands of bread used in the household, by key user cohorts, July 2007-September 2008
Gender and age differences highlight priorities with bread
BFY bread appeals to more so to women
Figure 66: Opinions about kinds of bread, by gender and age, March 2009
Figure 67: Qualities looked for when purchasing bread, by gender and age, March 2009
Figure 68: Bread purchased with specific ingredients or marketing claims, by gender and age, March 2009
IRI/BUILDERS PANEL DATA—KEY HOUSEHOLD PURCHASE MEASURES
 OVERVIEW OF FRESH BREAD AND ROLLS
 FRESH BREAD
Consumer insights on key purchase measures—fresh bread
Brand map
Figure 69: Brand map, selected brands of fresh bread, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 70: Key purchase measures for the top brands of fresh bread, by household penetration, 2008*
 FRESH ROLLS/BUNS/CROISSANTS
Consumer insights on key purchase measures—fresh rolls/buns/croissants
Brand map
Figure 71: Brand map, selected brands of fresh rolls/buns/croissants, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 72: Key purchase measures for the top brands of fresh rolls/buns/croissants, by household penetration, 2008*
 BAGELS/BIALYS
Consumer insights on key purchase measures—bagels/bialys
Brand map
Figure 73: Brand map, selected brands of bagels/bialys, buying rate by household penetration, 2008*
Brand leader characteristics
Key purchase measures
Figure 74: Key purchase measures for the top brands of bagels/bialys, by household penetration, 2008*
APPENDIX: SIMMONS COHORTS
Figure 75: Married couples cohorts
Figure 76: Single women cohorts
Figure 77: Single men cohorts
APPENDIX: PRODUCER PRICE INDEX FOR WHEAT
Figure 78: Producer price index for wheat, 2003-08
APPENDIX: OTHER USEFUL CONSUMER TABLES
Bread usage
Figure 79: Types of bread bought in the last month, by gender, March 2009
Figure 80: Types of bread bought in the last month, by age, March 2009
Figure 81: Types of bread bought in the last month, by number of children in household, March 2009
Figure 82: Types of bread bought in the last month, by region, March 2009
Impact of ingredients, product qualities, and the economy on bread purchase
Figure 83: Bread purchased with specific ingredients or marketing claims, by gender, March 2009
Figure 84: Bread purchased with specific ingredients or marketing claims, by household income, March 2009
Figure 85: Bread purchased with specific ingredients or marketing claims, by education level, March 2009
Figure 86: Economic effects on bread purchasing, by household income, March 2009
Figure 87: Qualities looked for when purchasing bread, by household income, March 2009
Figure 88: Qualities looked for when purchasing bread, by number of children in household, March 2009
Figure 89: Qualities looked for when purchasing bread, by education level, March 2009
Changes in bread purchasing and eating habits
Figure 90: Bread purchasing habits, by gender, March 2009
Figure 91: Changes in bread purchases since last year, by gender, March 2009
Figure 92: Changes in bread purchases since last year, by age, March 2009
Figure 93: Changes in bread purchases since last year, by household income, March 2009
Attitudes towards bread, brand loyalty and the effect of the recession
Figure 94: Opinions about kinds of bread, by gender, March 2009
Figure 95: Opinions about kinds of bread, by household income, March 2009
Figure 96: Opinions about kinds of bread, by education level, March 2009
Figure 97: Tendencies when purchasing bread, by gender, March 2009
Figure 98: Types of bread used in households, by household income, July 2007-September 2008
Figure 99: Types of bread used in households, by presence of children, July 2007-September 2008
Figure 100: Types of bread used in households, by region, July 2007-September 2008
APPENDIX: IRI/BUILDERS PANEL DATA DEFINITIONS
IRI Consumer Network Metrics
APPENDIX: TRADE ASSOCIATIONS

This report is supplied in accordance with Mintel's terms and conditions.  
© Mintel Group Ltd.