Toronto · Worldwide business briefings
Wednesday · 29 April · Vol. 5 No. 118

Bakeries Lean Into Traditional Bread as Industrial Brands Slip

Bakeries Lean Into Traditional Bread as Industrial Brands Slip A growing number of bakeries worldwide are shifting their focus back to traditional bread, driven by consumer demand…
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Bakeries Lean Into Traditional Bread as Industrial Brands Slip

A growing number of bakeries worldwide are shifting their focus back to traditional bread, driven by consumer demand for healthier and more authentic products. According to industry experts, this trend is gaining momentum in key markets such as Europe and North America.

In the UK, artisanal bakery sales have risen around 15% over the past two years, while industrial brand sales have declined approximately 10%. "Consumers are becoming increasingly disillusioned with mass-produced bread that lacks nutritional value," said Maria Okonkwo, hospitality analyst at Mercer. She points to a recent surge in demand for sourdough and other artisanal products as evidence of this shift.

In Europe, Germany's traditional bakeries have seen a significant increase in sales, driven by consumers seeking out more authentic and locally-sourced bread options. "There is a growing awareness among consumers about the benefits of traditional bread-making techniques," said David Lindqvist, partner at a Stockholm legal consultancy who specializes in food law.

The Rise of Artisanal Bread

As industrial brands struggle to maintain market share, artisanal bakeries are capitalizing on the trend by emphasizing high-quality ingredients and traditional production methods. In the US, companies such as La Brea Bakery have seen significant growth by focusing on artisanal bread-making techniques and locally-sourced ingredients.

In Asia, Japan's growing demand for artisanal bread has led to a proliferation of small-batch bakeries in major cities such as Tokyo and Osaka. According to market research firm Euromonitor International, the Japanese artisanal bread market grew around 20% between 2018 and 2020.

As consumer preferences continue to shift towards healthier and more authentic food options, it remains to be seen whether industrial brands can adapt quickly enough to stay relevant in a rapidly changing market. One thing is certain: the traditional bakery is here to stay – and will likely play an increasingly prominent role in shaping the global bread industry.

Photograph: Vitaly Gariev / Unsplash