family baking

What's New in the Better-for-You Bakery Market

As consumers seek healthier lifestyles through better diet, they expect bakery products, as household staples, to play a supporting role. See the better-for-you bakery trends that are meeting their needs.

Highlights

  • Sugar reduction, gluten-free, and high protein are top healthy bakery trends.
  • Natural and non-GMO ingredients matter to most consumers.
  • Ancient grains are in demand for health and environmental reasons.
  • "Free from" claims are growing in new product launches.

Better-For-You Bakery Market Overview

The $83.6 billion US bakery market is expected to grow at a CAGR of 2.9% between 2022 and 2027 to reach $96.4 billion.1 Bread and rolls lead the category at $34.4 billion, with steady growth ahead (+2.5% CAGR), while the $34.3 billion cakes, pastries, and pies segment remains stable.2 Cookies make up the third-largest segment at $9.8 billion, with growth of 1.9% forecasted through 2027.3

US Bakery Market

Product TypeSales ($ millions)
Bread and Rolls$34,428.6
Cakes, Pastries, and Sweet Pies$34,320.1
Cookies$9,819.4
Baking Mixes$3,847.5
Dough Products$1,199.4
Source: Global Data – US Market Sizing, 2022

With baked goods a staple in most households, the shift toward better-for-you nutrition in the category allows consumers a convenient way to take action on their health and wellness goals. Sugar reduction is a major part of this. One-fifth of consumers globally say they consume healthier versions of cookies and cakes/pastries, while launches of cakes/pastries with better-for-you claims grew at a CAGR of 22% from 2018 to 2022.4

Gluten-free is another trend that continues to grow in the bakery category, with 25% of US bakery launches making a gluten-free claim in 2021, up from 18% in 2017.5 Added protein is also gaining traction. High protein claims tripled in US bread launches in just three years, accounting for 14% of launches in the 2021 to 2022 period.6

muffins

The fastest-growing healthy ingredients in US bread launches are fiber (up 5 percentage points in three years) and prebiotics (up 4 percentage points), further strengthening the association between bread and its digestive benefits.7 As for formats, one of the fastest-growing in better-for-you bakery is bite-sized versions of sweet baked goods, such as mini muffins and cookies, that come in portable packaging.8    

Top Consumer Trends in Better-for-You Bakery

For baked goods, consumers want ingredients that are real,  authentic, and free from ingredients they view negatively. About two in three global consumers find non-GMO, natural, and sugar-free claims appealing in bakery products, while almost one in three cite low/free from sodium, carbohydrates, and fat.9 More than a quarter say gluten-free is appealing.10

Ancient grains are particularly desirable, with 58% of global consumers buying bakery products that contain ancient grains—including oats (58%), barley (52%), rye (47%), and quinoa (46%).11 The top two reasons for purchasing these products are that they’re high in fiber (58%) and better for the environment (55%).12 Ancient seeds like chia and flaxseed provide plant-based protein, as well as fiber.

bread

Consumers also find functional and fortified claims appealing in bakery products, including bread (50%), cookies (47%), and cakes/pastries (37%).13 For example, 52% say high protein claims appeal to them when they purchase bakery products, associating protein with benefits such as general health and wellness (77%), immune system support (70%), and improving energy levels (57%).14

"Free From" Claims on the Rise in Bakery

Brands are responding to consumers’ concerns with a range of new “free from” formulations—especially those that replace sugar and wheat. HFCS-free, sugar-free, no added sugar, and low sugar claims have all been increasing in US bakery launches, in addition to the use of erythritol, monk fruit extract, and stevia in new products.15

Gluten-free is the fastest-growing bakery claim in the past few years, impacting new launches across the category, including baking mixes/ingredients (36%), crackers (33%), cookies (21%), breads (17%), and cakes/pastries (15%).16 Often these new gluten-free products also feature sugar-free, allergen-free, plant-based, and non-GMO claims.17 

What’s Ahead

With health and wellness ranking high among spending priorities for many consumers, expect to see more better-for-you bakery products—from bread to cookies—coming to market. This will be achieved largely through high fiber, whole grain, and multi-grain formulations, as well as sugar reduction that doesn’t compromise on taste. The number of baked goods fortified with protein and other well-known healthy ingredients like vitamins, minerals, and prebiotics will also continue to grow.

Glanbia Nutritionals' motto “Better nutrition, built around you” guides everything we do. We are excited to offer nutrition-forward bakery solutions to support today’s better-for-you bakery trends. Our solutions range from plant-based ingredients that add fiber, protein, and visual appeal to bakery products to custom nutrient premixes that streamline your production operations, saving time and money.

Contact us to learn more.


References

1-3. Global Data – US Market sizing, 2022.
4. Innova Health Snacking Benefits Global, 2023.
5. Innova Free From Bakery in the US, 2023.
6-7. Innova Bread & Bread Products in the US, 2023
8. Innova Healthy Snacking Benefits Global, 2023.
9-14. FMCG Gurus, Health & Wellness Trends in Bakery Global, 2022.
15-17. Innova Free From Bakery in the US, 2023.

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