ARLINGTON, VA. – While food shoppers’ tastes prefer the fresh bread department, pocketbooks find the baked goods aisle in the middle of the store better, according to the Food Industry Association’s FMI – 2026 Power of In-Store Bakery Report.
From quality to value to service, a national sample of 1,519 US grocery shoppers age 18 and older rated in-store bakeries better than commercial bakery aisles in 10 of 13 attributes in the FMI study, released Oct. 27.
The fresh bread department was preferred by 62% of consumers surveyed for freshness and 56% for taste, compared to the central bakery aisle which was rated better by 18% of respondents for freshness and 17% for taste. In-store bakeries also lead the commercial bakery aisle in unique/innovative products (53% to 18%), service (52% to 17%), ingredient quality (51% to 17%), selection (40% to 28%), product consistency (36% to 28%) and shopping convenience (32% to 30%).
“When asked what they think of in-store bakeries, shoppers respond with freshness and specific products,” FMI said in its Power of In-Store Bakery report. “‘Fresh’ and ‘freshly baked’ dominate responses, followed by category-specific items, such as bread, cakes, donuts, pastries, cookies and muffins.
“On the other hand, shoppers perceive the commercial bakery aisle as better in terms of price and value.”
Indeed, 39% of shoppers surveyed found the bakery aisle in the store better in terms of prices than 26% preferring the prices in fresh bakeries. In addition, the aisle bakery area won the price of the in-store bakery by 34% to 32%.
Bakeries in the center also outperformed fresh bread on nutritional information by 28% to 26%. However, a larger margin of consumers rated store-bought bread as healthy (34%) compared to aisle bread (22%) and better for offering natural ingredients (42% to 18%).
“Most consumers buy from the aisles of commercial bakeries and in-store bakeries, but the balance shifts with needs,” according to the FMI report. “Indulgences are what draw shoppers into the bakery, while everyday staples are still in the aisles.”
Nearly half (48%) of shoppers surveyed said they shop fresh bakeries and aisle bakeries for functional bakery items, compared to 27% who sourced them from the center aisle and 22% from in-store bakeries. For indulgent baked goods, 42% of consumers report shopping at fresh bakeries and aisle bakeries. Thirty-three percent said they go to the fresh bread department for attractive offers, compared to 20% who prefer the central bakery area for these items.
Shoppers also have different ideas about the optimal location for fresh bread and bakery aisles in the store, FMI learns. Fourteen percent of those surveyed said commercial bread offerings should be in a separate aisle in the middle of the store. However, 85% of respondents felt that all bakery items should be located in one area of the store, with commercial bakery items placed in or near the in-store bakery.
Of the latter group, 24% said that bakery products in central stores should be mixed with bakery offerings in stores, but sorted by item. Meanwhile, 25% see placing commercial bakery items with the bakery in the store, but on the side, as a better option. Another 36% said the central store’s baked goods should be separate but located near the in-store bakery.
“Consumers value in-store bakeries for freshness, quality and convenience,” said Steve Markenson, vice president of research and insights at Arlington-based FMI. “Nearly three-quarters (74%) of shoppers say major grocery stores have an in-store bakery, and that the department outperforms the commercial bakery aisle on attributes including freshness, taste, service and product innovation.”
Bakery in the store has exceeded all perimeter departments except meat in dollar sales growth, FMI said in a report, citing NielsenIQ (NIQ) retail channel data for the 52 weeks ended July 11. Fresh bakery dollar sales rose 2.3% year over year to $22.04 billion, behind meat (up 4.3%), but ahead of deli (9.1%), but ahead of deli (9.1%). 1.5%), seafood (up 1.4%) and dairy (down 2.7%). In-store bakery unit sales in the period fell 0.8%, but the only perimeter departments to produce unit growth were dairy (up 0.7%) and deli (up 0.4%).
High shopper penetration and a frequency of about twice a month make the fresh bread department “one of the most reliable traffic drivers in the store,” FMI said in its report. Citing NIQ panel data, the study said 91.6% of households made purchases from the store’s perimeter bread department, with an average of 24.9 transactions, in the 52 weeks ending June 27. FMI added that the size of the trip and annual spending per buyer continues to grow.
“Shoppers today see the in-store bakery as a destination,” said David Haaf, vice president of fresh foods at FMI. “From meal planning and impulse buys to special occasions and healthier options, bakeries play an important role in the shopping journey.”