Sales take a hit as pandemic-forced closings shutter many restaurants and retailers
US demand for bread and bakery products is forecast to increase nearly 1.0% yearly in nominal terms through 2025, according to Bread &Bakery Products: United States, a report recently released by Freedonia Focus Reports. Population growth, rising disposable income levels, and increasing product offerings that have healthier profiles or novelty will drive demand. Furthermore, the food service segment is expected to see recovery once COVID-19 vaccinations grow more common through 2021, contributing to growing sales to 2025. However, market maturity and ongoing concern over the nutritional content of traditional bread and bakery products will curb faster growth. In addition, the popularity of homemade bread and baked goods will continue to strain demand, as will purchases from establishments that engage in retailing for immediate consumption, which is excluded from the scope of this report.
Throughout 2020, many restaurants and other food service establishments were forced to close due to the COVID-19 pandemic, with many of them never reopening. Demand in these outlets will continue to suffer; sales are expected to fall 1.2% in 2021 and potentially further into 2022. Nevertheless, declines will be mitigated to an extent as COVID-19 immunization rates increase and consumer behavior begins to return to trend. In addition, the ubiquity of bread and the view of cakes and pastries as comfort foods will boost demand at retail outlets such as bakeries and grocery stores.
These and other key insights are featured in Bread & Bakery Products: United States. This report forecasts to 2021 and 2025 US bread and bakery product demand and shipments in nominal US dollars at the manufacturer level. Total demand and shipments are segmented by product in terms of:
- non-frozen cakes and pastries
- frozen cakes and pastries
To illustrate historical trends, total demand, total shipments, the various segments, and trade are provided in annual series from 2010 to 2020.
Bread and rolls include both frozen and non-frozen products. Retailing for immediate consumption is excluded from this report. Re-exports of bread and bakery products are excluded from demand and trade figures.