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Sandwich bread dominates category, spurs engagement

KANSAS CITY, MO — Bread, buns and rolls are iconic grocery items. Bread is enjoyed by 98% of US consumers and most commonly purchased from the center of the grocery store. But there is growing engagement outside of the bread aisle, especially by younger consumers, according to Mintel’s “US Packaged Bread Market Report 2025.”

All around, sandwich bread holds its own. Perimeter sandwich bread showed 3.3% dollar and 1.1% unit growth, according to Circana data from the latest 52 weeks ending Nov. 30, 2025. Sandwich bread dominates center store, boasting $10.02 billion in sales and 2.94 billion in units, but it’s taken a -3.1% and -4.0% dip in both, respectively, in the latest 52 weeks.

Total US – Multi Outlet w/ C-Store (Grocery, Drug, Mass Market, Convenience, Military and Select Club & Dollar Retailers) | Latest 52 Weeks Ending Nov. 30, 2025 Source: Circana Omnimarket Integrated Fresh, a Chicago-based Market Research Firm (@WeAreCircana)

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Promotional displays for center store bread are being dispersed throughout the store and are often positioned near bread and bun complements, such as peanut butter and jelly, hot dogs and hamburgers.

“Meal solution promotions are always a great way to increase frequency of use,” said Dawn Aho, principal of client insights, bakery vertical at Circana. “King’s Hawaiian sliders and rolls have had a season-long advertising campaign with College Game Day and NFL Slider Sunday, promoting a variety of tailgate and party recipes.”

“High-protein center store breads are a recent addition to the category but may add another benefit for consumers.” — Dawn Aho | principal of client insights, bakery vertical | Circana

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Package sizes and varieties depend on consumer needs. Although center store sandwich breads offer half loaves, Aho noted there is more flexibility with size options in the perimeter, including bulk bins that allow consumers to select the number of buns and rolls they wish to purchase. Half loaves of bread and 4-pack buns and rolls appeal to those who do not eat bread often or to single or small family households that prefer variety in smaller quantities.

Perimeter breads offer a wide range of additional attributes and options that are spurring growth. Private label makes up the majority of perimeter breads for both crusty and sandwich bread segments. They are typically more affordable than center store brands.

Total US – Multi Outlet w/ C-Store (Grocery, Drug, Mass Market, Convenience, Military and Select Club & Dollar Retailers) | Latest 52 Weeks Ending Nov. 30, 2025 Source: Circana Omnimarket Integrated Fresh, a Chicago-based Market Research Firm (@WeAreCircana)

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“A variety of sizes and packaging, perceived freshness and globally inspired flavors are all reasons for growth,” Aho said. “The assortment of flavors and types of perimeter sandwich breads is vast, affording consumers options for special occasions that are not available from center store brands.”

While packaged bread remains a core staple, brands must enhance products, moving beyond budget-friendly or whole wheat to keep pace with modern perceptions of nutrition and clean ingredients, according to Mintel’s report.

“Nutritional claims, including keto, gluten-free and organic, are helping brands limit declines or show slight growth,” Aho said. “High-protein center store breads are a recent addition to the category but may add another benefit for consumers.”

For example, she noted Horsham, PA-based Thomas’ recently introduced two protein bagel varieties.

This story has been adapted from the February | Q1 2026 issue of Commercial Baking. Read the full story in the digital edition here.

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