How the In-Store Bakery Department Is a Growth Opportunity

FMI’s 2026 Power of In-Store Bakery report shows that in-store bakeries continue to grow, as shoppers prioritize freshness, quality and convenience. 

By: Steve Markenson, Vice President, Research and Insights, FMI and David Haaf, Vice President, Fresh Foods, FMI 

Today’s in-store bakery is unique because it offers a blend of what shoppers want: freshness, indulgence and healthy choices. Not only does the grocery bakery provide a culinary delight for shoppers, but it also creates an opportunity for food retailers to strengthen customer loyalty and drive sales across the store. 

FMI’s 2026 Power of In-Store Bakery report shows how these strengths continue to drive growth. In-store bakeries increased 2.3% over the past year to $22 billion in sales and outpaced all perimeter departments except for the meat counter.  

Here are a few of the report’s key findings: 

How In-Store Bakeries Help Grocery Shoppers Complete Their Meals 

Our research shows that the in-store bakery is more than just a destination for treats. For many grocery shoppers, baked goods are an everyday staple and an important part of their meals. In fact, shoppers make an average of 24.9 in-store bakery purchases annually, and more than 91% of U.S. shoppers buy from the grocery bakery each year. 

Bread and muffins lead bakery sales growth, with three out of four shoppers including them in their meals. This number increases among households with children (88%) and millennials (87%), who are especially likely to include bakery items as part of their meal solutions. 

The Impact of Health and Wellness Trends on Bakery Purchases 

More than three-quarters of shoppers say health and nutrition influence their decisions to purchase bakery items. Gen Z and millennial shoppers are especially conscious of health factors, seeking products made with whole grains and without artificial flavorings.  

As health-conscious shoppers continue to balance wellness with indulgence, in-store bakeries have an opportunity to meet both needs through transparent ingredients, portion options and better-for-you offerings. 

Grocery Shoppers Want Their In-Store Bakery to Offer More Variety 

Consumers are also looking for greater variety from their bakery department. More than 60% of shoppers would like to see cultural or ethnic bakery items available in stores, yet only 44% believe their store currently offers them. 

Demand is particularly strong among younger shoppers, signaling an opportunity for retailers to broaden assortments with both familiar favorites and culturally inspired products.  

In-Store Bakery Department Opportunities for Food Retailers 

As shoppers continue to value the freshness, discovery and convenience of the in-store bakery, food retailers have opportunities to build loyalty through customer service, expanded assortment and stronger meal-solution options. By delivering on freshness, food retailers can continue to grow one of the store’s most dependable traffic-driving departments. 

Download 2026 Power of In-Store Bakery