Increasing production and consumption of feed grains is the leading factor driving the U.S. retail packaged bread market growth. Key industry players are primarily focusing on upgrading their machinery and supply chain networks in order to minimize their operational expenses. Moreover, rising number of retail chains across the country are also aiding the expansion of market.

According to new research report, Inc., the U.S. retail packaged bread market is expected to cross USD 24 billion by the year 2026.

As per product type, fresh bread segment is projected to capture a major chunk of the market with a share of over 80% in the U.S. retail packaged bread market over the analysis period. Advancements in technology pertaining to fresh bread manufacturing has led to improvement in vitamin and calcium content in the products. Furthermore, the high demand for this product category can be credited to its cost effectiveness - fresh breads are relatively cheaper as compared to frozen variants. These factors coupled with shifting preferences towards freshly baked products are augmenting the demand for the product across the country.

Speaking of ingredients, inorganic bread segment is expected to witness a growth rate of 1.5% during the forecast period. Inorganic breads not only have lower prices as compared to their counterparts, but are also easily available across various supermarkets and stores in the U.S. Adding to this, factors such as high presence of bakers and companies that offer inorganic bread in various weight and sizes would amplify the remuneration potential of the U.S. retail packaged bread market.

Based on the recipe, breadsticks segment will accumulate approximately 15% share in U.S. retail packaged bread industry during the estimated timeframe. Breadsticks are crispy food items which are usually served with soup. They are also available in several variants and flavors, which in turn is contributing towards the popularity of the recipe in the U.S. Moreover, development of innovative products by key industry players are also propelling the market growth. In 2018, for instance, Ellio’s Pizza introduced a novel collection of artificial preservative free breadsticks, to gain momentum among both kids and adults.

In terms of distribution channel, supermarkets & hypermarkets segment is estimated to grow with a CAGR of 2.5% during the period of 2019-2026. Supermarkets & hypermarkets offer convenience of shopping to customers. They offer numerous product brands and multiple price ranges under one roof, which helps target diverse demographics.

Considering the geographical landscape, estimates claim that northwest U.S. retail packaged bread market held 20% share and is projected to witness a lucrative growth graph in the years ahead. Key industry players in the northwest part of U.S. are primarily focusing on R&D activities to develop innovative products with high nutrition content. For instance, SEYLOU has collaborated with local farmers in order to produce organic breads boasting 100% whole grains content.

The prominent companies operating in U.S. retail packaged bread market are Gonella Baking Co., Flowers Foods Inc., Gonnella Baking Co. and Bimbo Bakeries USA Inc. among others. These market magnates are continuously developing various strategies to gain competitive advantage. For example, Walmart reportedly launched a strategy wherein customers can order online while travelling towards the supermarket. Apparently, this facility would help customers receive their products as soon as they reach the supermarket.