In-Store Bakery Outpacing Most Grocery Store Perimeter Departments

Arlington, Va. - FMI - The Food Industry Association released The Power of In-Store Bakery 2026 report, finding that in-store bakeries are not only traffic drivers, but also are outpacing all perimeter departments other than the meat department in dollar sales. Bakery sales increased 2.3% to $22.0 billion over the past year, with 91.6% of U.S. households purchasing from an in-store bakery and shoppers making an average of 24.9 bakery purchases annually.

"Today's shoppers see the in-store bakery as a destination," said David Haaf, vice president 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."

"Consumers value the in-store bakery for freshness, quality and convenience," said Steve Markenson, vice president of research and insights at FMI. "Nearly three-quarters (74%) 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."

The key findings from The Power of In-Store Bakery 2026 include:

• The importance of bakery items to complete a meal cannot be overstated. Bread (+6.5%) and muffins (+5.8%) led category growth. Three in four shoppers include bread or rolls in their meal plans, while 69% add them to meals at least sometimes.
• Shoppers want more variety of bakery items. More than 60% of shoppers would like to see cultural or ethnic bakery items in stores, but only 44% believe their store currently offers them.
• Health remains top-of-mind for bakery shoppers. More than three-quarters of shoppers say health and nutrition influence their purchases of everyday in-store bakery products.
  

Haaf continued, "The insights in The Power of In-Store Bakery 2026 demonstrate that food retailers can strengthen customer loyalty and grow bakery sales through freshness, innovation and a deeper understanding of what consumers value most. Food retailers should focus on stronger meal-solution merchandising and be a key resource for shoppers seeking meal ideas."

The Power of In-Store Bakery 2026 is generously sponsored by Rich Products Corporation and available online at FMI.org/FreshFoods.

FAQs From The Power of In-Store Bakery 2026

What is The Power of In-Store Bakery 2026 report?
The Power of In-Store Bakery 2026 is FMI's fifth annual research report examining shopper attitudes, behaviors and purchasing trends related to grocery store in-store bakeries. The report combines consumer survey findings with retail sales and panel data to identify opportunities for food retailers and suppliers.

How was the research for The Power of In-Store Bakery 2026 conducted?
The Power of In-Store Bakery 2026 is based on an online survey of 1,519 U.S. grocery shoppers conducted from August 1-8, 2026, and supplemented with NielsenIQ sales and household panel data. The survey has a maximum sampling error of plus or minus 2.5 percentage points at the 95% confidence level.

Who is the audience for The Power of In-Store Bakery 2026 report?The audience for The Power of In-Store Bakery 2026report includes in-store bakery department leaders, fresh food merchandisers and food product suppliers in the bakery category. In addition, food industry leadership in fresh food developing business strategy and interested in consumer trends in foodservice would benefit from this report.

What are the key findings from The Power of In-Store Bakery 2026 ?
The Power of In-store Bakery 2026 found that in-store bakery dollar sales grew 2.3% to $22.0 billion, making bakery the second-fastest-growing perimeter department behind the meat department. Household penetration reached 91.6%, demonstrating the department's broad appeal and importance to grocery shoppers.

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