FMI: In-Store Bakery Outpacing Most Perimeter Departments

In-store bakeries are not only traffic drivers but are outpacing all perimeter departments other than meat in dollar sales, according to FMI – The Food Industry Association’s “The Power of In-Store Bakery 2026” report.

“Today’s shoppers see the in-store bakery as a destination,” said David Haaf, VP of fresh foods at FMI. “From meal planning and impulse purchases to special occasions and healthier choices, the bakery serves an important role throughout the grocery shopping trip.”

Added Steve Markenson, VP of research and insights at FMI, “Consumers value the in-store bakery for freshness, quality and convenience.

“Nearly three-quarters of shoppers say it is important for their primary grocery store to have an in-store bakery, and the department outperforms the commercial bakery aisle on attributes including freshness, taste, service and product innovation,” Markenson noted.

Key findings

Bread (up 6.5 percent) and muffins (up 5.8 percent) led category growth. Three in four shoppers include bread or rolls in their meal plans, while 69 percent add them to meals at least sometimes.
Shoppers want more variety: more than 60 percent would like to see cultural or ethnic bakery items in stores, but only 44 percent believe their store currently offers them.
Health remains top of mind, with more than three-quarters of shoppers saying health and nutrition influence their purchases of everyday in-store bakery products.

“Food retailers can strengthen customer loyalty and grow bakery sales through freshness, innovation and a deeper understanding of what consumers value most,” Haaf added. “Food retailers should focus on stronger meal-solution merchandising and be a key resource for shoppers seeking meal ideas.”

The fifth annual report, sponsored by Rich Products Corp., is based on an online survey of 1,519 U.S. grocery shoppers conducted Aug. 1-8, supplemented with NielsenIQ sales and household panel data, with a maximum sampling error of plus or minus 2.5 percentage points. It is available at FMI.org/FreshFoods.