KANSAS CITY — Bread companies are working to reinvigorate slack sales of traditional packaged loaves by appealing to consumers’ “better-for-you” instincts — that is, better for your health, better for your palate and better for your wallet.

To that end, leading brands are rolling out bread products providing more fiber and protein, more varieties and flavors, and more value and convenience. Though the overall category remains challenged, industry executives expect innovation to further diversify the grocery store bread aisle beyond conventional soft white and wheat loaves and draw a broader cross-section of shoppers.

“We are strategically adapting our portfolio to align with consumer trends by prioritizing better-for-you and value-oriented products, ensuring we meet consumer preferences for the long term,” A. Ryals McMullian, chairman and chief executive officer of Flowers Foods Inc., said when reporting fiscal 2025 results in February. “To facilitate this transition, we are aggressively innovating unique, premium products with attributes such as protein, sourdough and keto-friendly options, alongside value-oriented offerings like small loaves.”

Center-store bread sales declined in 2025, down 2.3% year over year to $11.4 billion and down 3.4% in units, food research firm 210 Analytics reported, citing Circana multi-outlet plus convenience-store data. The downtrend has continued into 2026, with updated figures from Circana showing dollar sales for center-store bread in the 52 weeks ended Feb. 22 falling 2.4% year over year to $11.53 billion and units decreasing 3.6%.

The sandwich bread segment — 88% of center-store bread volume in the 52-week period — saw unit sales drop 3.9% year over year and dollar sales slip 2.8% to just under $10 billion. Two other center-store bread segments also posted declines: sweet bread (down 3.2% in dollars and 3% in units) and “all other” bread (down 2.4% in dollars and 3.5% in units).

Center-store bread segments tallying gains included specialty bread (up 8% in dollars and 5.5% in units), panini/ciabatta/focaccia bread (up 4.8% in dollars and 3.6% in units), crusty/meal bread (up 4.5% in dollars and 0.6% in units) and Hispanic bread (up 3.8% in dollars and 3.4% in units).

“The latest data shows softness in some of the largest bread categories, driving declines for total packaged bread,” said Rebecca Elkinson, director of client insights for Chicago-based CPG market researcher Circana. “Center-store bread unit sales are down 4% versus a year ago, while center-store buns and rolls unit sales are down 2%.

“However, pockets of growth exist. Center-store wraps/flatbreads are benefiting from strong momentum for no-net-carb wraps. Center-store pita is also growing volume for the category.”

Among aisle bakery bread product segments, 210 Analytics reported growth only in tortillas and wraps (up 6% in dollars and 4.3% in units) and bagels/bialys (up 0.4% in dollars and 0.2% in units) based on its latest data from Circana, covering the 52 weeks through March 1. All the other packaged segments had decreases: bread (down 2.1% in dollars and 3.4% in units), buns and rolls (down 0.9% in dollars and 1.6% in units) and English muffins (down 1.3% in dollars and 2.4% in units).

“The current marketplace and its K-shaped economy are definitely impacting the bread aisle,” said Anne-Marie Roerink, president of San Antonio-based 210 Analytics. “On the one hand, retailers are exploring more private brand offerings, while on the other, premium products continue to fuel growth. The latter is driven by higher-income consumers seeking artisan bread, products enhanced with protein or other nutrients, production claims such as non-GMO and organic, as well as the latest TikTok-inspired trends and flavors.”

Indeed, healthy eating continues to rise as a priority for consumers, including when they shop for bread, Elkinson said.

“Consumers are avoiding foods with artificial ingredients in their diets, including UPF (ultra-processed food), artificial colors/flavors, artificial sweeteners, preservatives and GMOs,” she said. “With GLP-1 usage increasing, consumers are also seeking more protein and fiber, along with less sugar and carbs, in their diets. This evolving consumer perspective and increasing attention to labels are influencing bread purchasing as well. No-sugar, non-GMO and vegan claims are helping drive volume growth within packaged bread. No-sugar, no-net-carb and protein are also some of the fastest-growing health and wellness claims within packaged bread.”

What consumers seek is balance — among taste, nutrition and convenience, said Ama Auwarter, vice president and category lead for snacks, bakery and cookies at The Campbell’s Co., which offers the Pepperidge Farm brand.

“They want breads that deliver great taste while also offering nourishing ingredients like protein, whole grains, fiber or portion-conscious formats such as thinner-sliced breads,” she said, adding, “Our focus is on delivering breads that combine great taste with ingredients that support balanced lifestyles.”

For example, Campbell’s has expanded the Pepperidge Farm Farmhouse Thin-Sliced sandwich bread line with sourdough and butter bread varieties, which added to 100% whole wheat and 15-grain offerings.

“These products were developed in response to growing demand for portion-conscious formats, delivering the same bakery-style flavor and texture consumers expect in a lighter, 70-calorie slice,” Auwarter said.

Fewer calories and carbs remain relevant for many bread shoppers, said Elkinson, who cited the Pepperidge Farm Thin-Sliced products.

“Hero Bread, another brand with low-net-carb products, also expanded into bagels, with low-carb plain and everything bagels that are also packed with protein,” she said.

The momentum surrounding health and wellness is reshaping bread manufacturer product rosters and retailer shelf sets, Elkinson noted.

“Looking across bread categories in the center store and perimeter, the average number of packaged bread items per store selling with no/low/less sugar claims increased by approximately 10 items versus a year ago,” she said.

Flowers’ McMullian said “traditional loaf remained challenging” and called it “one of the weaker areas in fresh packaged bread” as the Thomasville, Ga.-based baked foods company closed out its 2025 fiscal year. Yet better-for-you brands Dave’s Killer Bread (organic), Nature’s Own (clean label) and Canyon Bakehouse (gluten-free) — along with the Wonder brand — helped Flowers uphold unit share in fresh packaged bread.

“The trend away from foods perceived as less healthy continued,” he said, adding, “With increased GLP-1 adoption, changes to the food pyramid, and the rise of online influencers and health apps, we expect this trend to continue.”

Source: Circana Omnimarket

McMullian described Dave’s Killer Bread (DKB) as a “standout,” helping to drive unit sales and share growth in areas such as specialty premium loaf, sandwich buns and rolls, and breakfast.

“The brand’s commitment to uncompromising taste and texture, along with its unique better-for-you attributes, has driven significant distribution gains in underpenetrated segments like sandwich buns and rolls and breakfast,” McMullian said. “And customers are proactively asking for more innovation from this leading brand.”

Canyon Bakehouse and Nature’s Own also pitched in with unit share growth in specialty premium loaf, while in sandwich buns and rolls, DKB, Nature’s Own and Wonder helped Flowers outpace unit sales growth in the overall category, McMullian said.

“Nature’s Own played a crucial role in this success, with the addition of new keto buns and, particularly, its Perfectly Crafted brioche buns, which are among the fastest-growing products in the bun subcategory,” he said. “The success of Nature’s Own Life keto buns is just one example of how our investments in innovation are bearing fruit.”

In January, Flowers rolled out Nature’s Own Life Wheat+Protein bread, described as a “protein-rich, keto-friendly loaf” offering 22 grams of protein per two slices plus 9 grams of fiber per serving — in addition to the brand’s mantra of no artificial flavors, colors or preservatives and no high-fructose corn syrup.

Other bread products launched by Flowers within the past year include DKB Supreme Sourdough and Oats & Blues bread, Sandwich Rolls Done Right and 21 Whole Grains & Seeds sandwich rolls; Nature’s Own Perfectly Crafted Thick-Sliced Italian Herb bread and Keto Multigrain bread and hot dog buns; and Canyon Bakehouse Gluten-Free Sourdough-Style bread.

“By focusing on better-for-you items that target the most promising pockets of growth in the category, our recently introduced slate of on-trend innovation is off to a great start,” McMullian said. “Looking ahead, we anticipate even more exciting innovations in 2026.”

Grupo Bimbo SAB de CV also ended fiscal 2025 with US market share improvements in bread, notably share gains in mainstream bread and buns and rolls.

“We are particularly encouraged by recent innovation launches that address evolving consumer needs, including Sara Lee’s half loaves, designed to serve smaller households and more accessible price points, and Thomas’ Protein Bagels, which resonate with health-conscious consumers,” Alejandro Rodriguez, chief executive officer, told analysts in a Feb. 26 conference call.

Bimbo Bakeries USA (BBU) launched Thomas’ High Protein Bagels last April and expanded them to national distribution in the fall. The bagels come in plain and everything varieties, and each bagel contains 20 grams of protein.

Rodriguez said Bimbo has sharpened its focus on health attributes in its bread and other products based on consumer demand as well as rising use of appetite-suppressing GLP-1 weight-loss drugs, in which the company has developed a “greater understanding” and “detected some changes in consumer behavior among users.”

“We’re actively working on enhancing our portfolio,” he explained. “One example, we’re making products with a higher fiber and protein content. We believe this trend is here to stay, and we will continue to ride on it as Protein Bagels or within the Thomas’ brands.”

The company also will pursue smaller portions, sugar-free recipes and increased innovation in premium products.

“We will continue to transition into simpler and more natural recipes,” Rodriguez said. “By this, we will provide options for these emerging consumers. As I said, more grains, higher fiber, more protein-based solutions and continue to innovate in that space.”

Bimbo is “particularly excited” about its performance in mainstream bread and buns and rolls, as category share growth has “continued on, even at the beginning of this year,” said Diego Gaxiola, chief financial officer.

“The consumer continues to be bifurcated across the market — value, mainstream and premium — and our response is to make sure that we are innovating into those spaces appropriately to move where our consumers are going for each of the cohorts,” Gaxiola said.

In the new flavors realm, BBU last June introduced Ball Park Butter Buns hamburger and hot dog rolls, which the Horsham, Pa.-based company said bring an “added layer of rich, buttery taste in every bite.” Also, in November, BBU’s Bimbo Bakehouse division rolled out two premium, “restaurant-quality” offerings under The Cheesecake Factory brand: Our Famous Brown Bread Bakery Buns and Slider Buns. The products joined a line that included wheat dinner rolls, mini baguettes and sandwich loaves.

The Sara Lee Half Loaf line, featuring 12-oz loaves priced at $2.49 apiece, made its debut last April with three varieties: white, honey butter and 9-grain. That was expanded in October with three more items: 100% whole wheat, sourdough and Hawaiian half loaves.

“Small loaves really go to shrinking overall households in terms of number of people,” Greg Koehrsen, president of BBU, said in the analyst call. “And then our protein efforts, Thomas’ (Protein) Bagels being one example of that, are reaching to not only new consumer cohorts, but also existing consumer cohorts that are changing their purchasing behaviors and their consumption behaviors. So you can expect us to continue to innovate along those lines, because those have both been successful.”

Likewise, Flowers has expanded its small-loaf lineup since its launch in 2024. In April 2025, the company added three new Nature’s Own Small Loaf varieties — Hawaiian, sourdough and 100% whole wheat — to the original ancient grain and homestyle white offerings and introduced the Wonder Mini Classic White loaf. All of the small loaves are 12 oz, with fewer slices.

“Half loaves and small loaves continue to be growth drivers for bread,” Elkinson said. “Retail affordability is top of mind for consumers right now, and a recent Circana survey showed that 9 in 10 households are adjusting household budgets or spending behaviors in response to financial challenges. These pack sizes offer lower price points that may be motivating as consumers continue to say prices are worse than expected, despite inflation slowing down.”

Lewis Bakeries Inc. has embraced smaller-package bread products, recently dubbing itself “the Home of the Half Loaf.” The baked foods company offers more than 20 varieties of half loaves and half packs across bread and buns.

“Half Loaf isn’t just a product; it’s a way of thinking about how people actually eat,” said Karsten Short, senior vice president at Evansville, Ind.-based Lewis. “For smaller households, it’s the taste they love without the waste, and for medium to larger households, it makes it easier to keep everyone happy. Kids can go for something sweeter like Hawaiian, while others can choose whole wheat or a different favorite. With half loaf varieties ranging from honey wheat and Nutty Oat to brioche and sourdough, we make it easy to choose what you love, try something new and keep more meals fresh.”

The Sara Lee half loaf line was expanded in October to include three more varieties: 100% whole wheat, sourdough and Hawaiian.

Source: Sosland Publishing Co.

Smaller pack sizes offer consumers solutions from various angles, 210 Analytics’ Roerink explained.

“For instance, smaller household sizes, particularly among Gen Z on one end of the age spectrum and boomers on the other,” she said. “Smaller packs also introduce more price-point variety. A shopper may not want to spend on a full loaf of cinnamon raisin bread, but a half loaf at just a few dollars can feel like an affordable treat. Additionally, smaller portions help address the needs of the growing number of households using GLP-1 receptor agonists.”

Fresh bread and rolls remain one of the “most consistently purchased items in the grocery store,” with 97% of US households buying bread in some form, Campbell’s Auwarter said.

“Shoppers are looking for breads that fit naturally into their daily routines, including breakfast toast or bagels, sandwiches at lunchtime, snacks throughout the day and complements to at-home dinners,” she said. “We also see strong interest in breads that feel elevated or bakery-inspired, including artisan-style loaves and rich flavors like sourdough and brioche.”

A bread trend that Campbell’s is “seeing most clearly” among consumers is “a balance between premiumization and everyday practicality,” including a preference for products “that elevate meals at home,” Auwarter said.

“Flavor-forward varieties like brioche, butter breads and sourdough are continuing to gain popularity as shoppers seek small indulgences in everyday foods,” she said.

Recent introductions include Pepperidge Farm Farmhouse brioche hot dog buns, which “bring a rich, buttery twist to classic cookout favorites like hot dogs and lobster rolls,” and Pepperidge Farm Swirl Caramel Brioche breakfast bread, which offers “a more indulgent morning option,” Auwarter said. Other new items include Pepperidge Farm Farmhouse Black Pepper & Sea Salt burger buns and Pepperidge Farm sourdough bagels.

“Texture is also playing an increasingly important role in how consumers experience bread,” she added. “Bread naturally delivers on the sensory side of eating, whether it’s the crunch of toast, the added texture from seeds and grains, or the softness of a bakery-inspired loaf. That experiential element is becoming a bigger driver of interest as consumers look for foods that feel both satisfying and enjoyable.”

Circana’s Elkinson noted that sourdough continues to perform well in the center store, with unit sales up 30% year over year.

“A fermented product that supports healthy digestion, sourdough is likely benefiting from consumers’ increased focus on gut health,” she said. “Sourdough and its health benefits also have high visibility on social media, with many content creators sharing their homemade sourdough baking tips, recipe ideas and experiences online. Packaged sourdough bread is a great alternative for those who want to participate without the home baking component.”

While overall packaged bread sales have been “somewhat soft” over the past year, there have been some “notable exceptions,” said 210 Analytics’ Roerink.

“Tortillas are a great example,” she said. “Gen Z and millennials love tortillas, buy them in all sizes and use them for a wide variety of meal occasions, from breakfast to snacks. They also use tortillas in many different ways, from making fresh chips and sandwiches to breakfast tacos, burritos and fajitas. This younger consumer grew up during the low-carb era and saw foodservice offer tortillas and wraps as a way to cut back on carbs versus a traditional sandwich format.”

In response, retailers have invested in more varieties and sizes, expanding the typical tortilla set from only a few options to a wide assortment, Roerink said.

“That’s a great example of taking a market trend and leveraging it to drive growth,” she said. “The same can happen with packaged bread, buns, bagels and other bakery staples. The bottom line is that the shopper base is changing, with dollars and trips rapidly shifting from boomers to Gen Z and millennials. That shift requires a very different approach to what is being purchased and where.”