Bakery Products
Bakery Products
INDUSTRIAL CODES
NAICS: 31-1811 Retail Bakeries, 31-1812 Commercial Bakeries, 31-1813 Frozen Cakes, Pies, and Other Pastries
SIC: 2051 Bread, Cake, and Related Products, 2053 Frozen Bakery Products, Except Bread
NAICS-Based Product Codes: 31-18110, 31-18121, 31-18122, 31-18123, 31-18124, 31-18125, 31-18127, 31-1812A, and 31-1812D
PRODUCT OVERVIEW
In modern industrial practice, bakeries are establishments producing bread, rolls, cakes, pies, and other sweet goods; however, those producing cookies and crackers are not. Restaurants and eateries that bake their own goods for consumption on the premises are also excluded from the bakery category.
The U.S. Census Bureau groups the following industries into the broader Bread and Bakery Product Manufacturing industry: Retail Bakeries, Commercial Bakeries, and producers of Frozen Cakes, Pies, and Other Pastries. A single company can and sometimes does participate in all three of these segments simultaneously. Retail bakeries, the original of all bakeries, were making a major comeback in the United States in the early twenty-first century. In these establishments bread and rolls are baked on the premises from flour (not from purchased dough) and are sold in the shop up front. If such an organization packages some of its product and delivers it to grocery stores for sale there, it must report that portion of its business as commercial baking. If some of the company's sweet products are frozen for later sale, the company is also participating in the frozen industry.
The U.S. commercial bakeries category is made up of approximately 2,400 companies operating nationally or regionally, producing packaged, branded products and selling them through grocery stores and supermarkets. These companies also make most of the frozen cakes, pies, and pastries. By contrast, the U.S. retail bakery category comprises nearly 7,000 companies, which share a much smaller market. They sell locally or, at best, serve a major metropolitan area. They specialize in more expensive products and serve a predominantly affluent market, although that pattern was changing in the early 2000s. Large grocery chains may also participate in retail baking when they bake bread, rolls, and cakes on the premises. A hybrid form, partial baking or par-baking, exists as well, where, for example, a distant bakery specializing in making French baguettes, will produce the dough, partially bake the bread, and ship this product to distant retailers in frozen form. The par-bread is put in the oven on the grocery store's premises and baking is finished on site for sale as freshly-baked bread to the customer.
Beginning in the 1990s and continuing in the first decade of the twenty-first century, the bakery products sector was experiencing shocks and undergoing transformations owing to demographic, health-related, and life-style changes in the United States. For this reason it is illuminating to look at bakery products in the context of other food industries that also convert basic grains into food. Eight major industries are involved, with bakery products representing three of the eight. In terms of ship-ment dollars in 2005 bakery products represented more than half (52%) of the eight-industry group. The others include breakfast cereals (17.6%), cookies and crackers (17.4%), flour mixes and dough manufacturing (6.6%), dry pasta manufacturing (3.2%), and tortillas (3.2%). To provide perspective the performance of bakery products will be compared to the products of these other industries.
Depending on how it is manufactured and packaged, pizza is sometimes included under Flour Mixes and Dough Manufacturing, sometimes under Frozen Foods Manufacturing (which excludes frozen sweet bakery products), and other times under Food Manufacturing, Not Elsewhere Classified. Doughnuts are included under commercial bakeries under a category known as Other Sweet Goods. In the adoption of the North American Industry Classification System (NAICS) in 1997, the United States introduced a brand new category, Snack Food Manufacturing. After that date hard pretzels were classified as snacks but soft pretzels continued to be part of bakery products produced either by commercial or retail bakeries.
A Look at Grains
Grains are the chief source of energy in food. As our cars burn hydrocarbons to move us around, our bodies burn carbohydrates. Both of these fuels are rich in carbon and hydrogen, but carbohydrates also incorporate oxygen. Ideally 55 to 75 percent of food energy should reach us in the form of carbohydrates, and grains are rich in this form of energy.
Wheat is the principal grain in the U.S. diet; however, since the middle part of the twentieth century the American diet has undergone a change. In 1967 wheat represented 80 percent of all grain consumed in the United States, corn 9 percent, and rice 6 percent. Contrast these numbers with 2005 and wheat still tops the list at 70 percent, though with a 10 percent decline, while corn consumption rose to 16 percent, rice rose to 11 percent, oats, barley, and rye round out the remaining 3 percent.
Grains are complex packages devised by nature in which the species that produce them carry their unique genetic codes. The three parts of all grains are: (1) the outer hull or bran, (2) the inner structure that holds the DNA, the germ, and (3) the intermediate mass of the grain, called the endosperm or kernel. The bran is rich in minerals, fiber, and three vitamins: thiamin, riboflavin, and niacin (B1, B2, and B3). The germ carries the same vitamins plus vitamin E, proteins, and fat. The kernel holds most of the grain's mass in the form of carbohydrates and proteins. In obtaining refined flours producers remove the bran and the germ.
White flour comes from refined grains. The word enriched is sometimes used because vitamins removed in processing are added back in. Bakeries refined flour in efforts to improve the taste, texture, and appearance of bread and other baked products. Whole grain flours tend to be darker, less sweet, and slightly bitter. The nutritional content of refined flour, and consequently the products baked from it, is lower than that found in whole grains and also higher in carbohydrate content. Nutritional and medical experts promote use of whole grains in an effort to increase nutritional content, including fiber, which promotes good digestion. Grain refining increases the relative proportion of carbohydrates in the flour and reduces the total protein content.
Major Products
Considering the grain-using industries as a group, sixteen major product categories represented nearly 81 percent of total shipment dollars in 2002. Of these sixteen, eight were produced by the bakery industries, including white bread, dark wheat bread, rye bread, rolls, cakes and pies, other sweet goods, and the retail baking category as a whole. Bakery products accounted for 50 percent of group volume, indicating the dominant position of the baking sector in the distribution of grains.
The largest category, rolls, represents 13.8 percent of the group's shipments. Nearly half of the products in this category are hamburger and hot dog buns, which because of their role in the fast-food industry, explains their prominence. Bagels and English muffins are the largest product line, making up the other half of the rolls category.
The second largest category is white bread (12.1%). Cookies, wafers, and cones (not included in the bakery products industry) follow closely behind (11.8%). Dark breads (3.3%), including the nutritionally richer whole-wheat breads, rank twelfth of sixteen and rye bread (0.7%) rank last.
All of the products in the Retail Bakeries industry are 5.7 percent of the industry group's shipments. Within that industry the three largest product groupings are breads and rolls, cakes, other sweet goods including sweet rolls, coffee cakes, doughnuts, and cookies.
Nutritional and Consumption Issues
Data available from the USDA for 1970 and 2004 show per capita consumption of carbohydrates and proteins by major food groups. These data are displayed in Figure 14 and indirectly point to interesting dynamics in food consumption over a nearly 40-year period.
Carbohydrates | Proteins | |||||
1970 | 2004 | Change | 1970 | 2004 | Change | |
Meat, poultry, fish | 0.1 | 0.1 | 0.0 | 39.7 | 40.3 | 0.6 |
Dairy products | 6.9 | 4.5 | −2.4 | 22.3 | 19.0 | −3.3 |
Eggs | 0.1 | 0.1 | 0.0 | 5.5 | 4.0 | −1.5 |
Fats and oils | 0.0 | 0.0 | 0.0 | 0.2 | 0.1 | −0.1 |
Fruits | 6.0 | 6.1 | 0.1 | 1.2 | 1.2 | 0.0 |
Legumes, nuts, soy | 2.1 | 1.9 | −0.2 | 5.3 | 6.1 | 0.8 |
Vegetables | 10.5 | 8.7 | −1.8 | 6.0 | 5.5 | −0.5 |
Grain Products | 33.9 | 39.8 | 5.9 | 18.2 | 21.8 | 3.6 |
Sugars and sweeteners | 39.1 | 37.3 | −1.8 | 0.0 | 0.0 | 0.0 |
Miscellaneous | 1.3 | 1.5 | 0.2 | 1.6 | 2.0 | 0.4 |
Total consumed in grams per capita per day | 394 | 481 | 87 | 98 | 113 | 15 |
In 1970 the leading source of food energy, carbohydrates, was the sugars and sweeteners category (39.1% of total carbohydrates consumed) followed closely by grain products (33.9%) and then, at a distance, by vegetables (10.5%), dairy products (6.9%), and fruits (6%). By 2004, grain products had become the largest source of carbohydrates (39.8%), representing the largest gain in share, 5.9 percent, of any food group. People changed what they ate in response to very complex communications from public and private authorities concerning what is healthy and what is not. In the same period, however, people increased how much they ate, bumping its daily per capita consumption of carbohydrates from 394 to 481 grams, a 22 percent increase. Grain processors, including the bakery products industries, benefited from both the shift to grains and from increased consumption.
In 1970 the three largest sources of protein were: meat, poultry, and fish (39.7% of total protein consumed); dairy products (22.3%); and grain products (18.2%). By 2004, meats had fractionally increased their share (to 40.3%), but grains had become the second-highest source of protein (21.8%) up nearly 4 percent, while the dairy category (19%) slipped more than 3 percent. Because of the shifts between food groups and increased consumption, people began to eat more protein—up from 98 grams in 1970 to 113 grams in 2004, an increase of 15 percent. Grain processors benefited from this shift as well.
MARKET
The eight industries that form the grain-processing group had total shipments in 2005 of $65.1 billion. Of this total the three bakery products industries were 52 percent—retail bakeries with $3.0 billion, commercial bakeries with $25.5 billion, and frozen cakes, pies, and pastries industry with $5.4 billion for a total of $33.9 billion in shipments.
Industry Growth
From 1995 to 2005 the grain-processing group as a whole experienced compounded growth in shipments at the rate of 2.7 percent per year. This gain was the result of some of the component industries growing energetically, some showing only moderate advances, and one industry losing market share.
The largest industry, commercial bakeries, grew at an annual rate of 2.5 percent, thus slightly under-performing the industry group as a whole. Retail bakeries did much better, growing at 4.3 percent per year. These two industries achieved growth of 2.7 percent annually matching that of the total group. Taking into consideration frozen products, the composite of the three bakery products industries was 3.4 percent per year. Frozen cakes, pies, and pastries had very strong growth, 7.8 percent yearly, thus lifting bakery products above the eight-industry average.
Tortilla manufacturing saw the most rapid growth among the eight industries, with 8.2 percent per year. This was still a relatively small industry in the first decade of the twenty-first century ($2.1 billion in 2005), but it is a growing industry. Frozen products ($5.5 billion) came second in overall growth, at 7.8 percent. Third in annual growth rate was the breakfast cereal industry ($11.5 billion), which grew at a rate of 2.9 percent per year. In total size the cereals industry, was second only to commercial bakeries. Cookie and cracker manufacturing ($11.4 billion) grew 2.7 percent annually, matching the performance of the two bakery categories combined. Dry pasta manufacturing ($2.1 billion) had growth of 1.8 percent per year. The flour and flour mixes industry ($5.4 billion) lost shipments volume at the rate of 3.2 percent annually. The decline in the flour and flour mixes industry reflects broad trends in food toward more purchasing of finished products and away from purchases that demand labor in preparation. This contributed to the strong advance of frozen bakery products.
Looking at eight-year growth trends across industries as a whole, bakery products had moderate growth—below the 5 percent most industries hope to achieve. Retail bakeries outperformed commercial bakeries because companies that comprise the retail industry are smaller, are vertically integrated into direct sales, and have more rapid feedback, so are better able to discern consumer trends rapidly and to respond accordingly.
Product Growth
Of the sixteen large product groups, frozen sweet goods had the most rapid growth in the 1997–2002 period (8.2% per year), tortillas came next (7.1%), and retail-bakery products came third (4.7%). White bread, while the largest of the product segments, experienced relatively small growth for its size (1%). The second-largest product segment—cookies, wafer, and cones—fared slightly better (1.5%). Rye bread and crackers and biscuits turned in the lowest levels of positive growth (0.2% each). At the bottom of the listing were flour mixes and cake mixes, which lost market share (−6.3% and −6.5% per year respectively).
Bread sold by commercial bakeries grew slowly from 1997 to 2005. Mass produced bread is a mature industry receiving pressure from competing products including rolls, the products of retail bakers, cookies, and frozen cakes and pies. Growth in the bakery products industry comes from these products, not from bread. Tortillas, though a relatively small industry also represent a growing competitor to bread.
The two largest product lines of the breakfast cereal industry, corn flakes and wheat flakes, were also growing slowly in this period at 1.2 percent and 0.7 percent per year respectively; however the cereal industry was growing more rapidly in other sectors of their industry, including breakfast bars and other non-traditional breakfast products that have not yet forged a distinct category of their own.
KEY PRODUCERS/MANUFACTURERS
Throughout the latter half of the twentieth century, the leading bakery products manufacturer in the United States was Interstate Brands Corporation (IBC), producer of Wonder Bread (the top-ranked brand), Home Pride (second), Merita (eighth), and nine other bread brands, four major cake brands, and many other baked products. IBC began in the 1930s and is headquartered in Kansas City, Missouri. In 2004 IBC went into voluntary bankruptcy and by mid-2007 had not yet emerged. IBC filed for Chapter 11 citing declining sales, a high fixed-cost structure, excess industry capacity, rising health and pension costs, and increasing cost of ingredients. Sales of IBC stock on the New York Stock Exchange had been suspended. In 2006 the company reported sales of $3.06 billion. Despite IBC woes, Milling & Baking News, citing statistics from Information Resources, reported that IBC continued as the nation's leading vendor of bread.
Until 1985 Sara Lee Corporation was known as Consolidated Foods. It had acquired Kitchens of Sara Lee in 1956 and later took Sara Lee as its name. The company was ranked second in bread production in 2006. A $15.9 billion company, its bakery operations accounted for $1.87 billion of its total sales. Sara Lee is a diversified food company with major meat, coffee, and sweet product brands.
A close third in total bread sales in the United States in 2006 was George Weston Bakeries, Inc., a part of George Weston Ltd., which is a major Canadian bakery, founded in 1882, with total sales of Can$32 billion. George Weston sold its bakery operations in the western part of the United States to Bimbo USA in 2002, but continues to sell products in the rest of the country. Weston's top brand, Arnold, is the fourth ranked bread brand in the United States. It also sells Brownberry, Dutch Country, Freihofer's, and Stroehmann brands of bread, Entenmann's pastries, and the Thomas brand English muffin line.
The fourth-ranked bread producer in the United States in 2006 was Flowers Foods Bakeries Group, founded in 1919 in Thomasville, Georgia. The company had sales of $1.89 billion and owned the third- and sixth-ranked bread brands, Nature's Own and Sunbeam. Early to recognize opportunities presented by a growing health consciousness in the United States, Flowers was first to introduce an entirely sugar-free version of Nature's Own and, in 2003, also introduced a low-carbohydrate, high-fiber version of the brand. The company also makes and sells Mi Casa tortillas, Cobblestone Mill rolls, and a line of frozen specialties.
Bimbo USA is a major regional baked products company serving twenty-two western states from 14 bakeries. Bimbo USA is owned by Mexico-based Grupo Bimbo, which is the third-largest bakery giant in the world and serves Latin America, North America, and Europe. Bimbo USA's 2005 sales were $1.27 billion. In addition to brands acquired from George Weston (Oroweat, Mrs. Bairds, Entenmann's, and Thomas), Bimbo USA's major brands include Bimbo, Francisco, Tia Rosa, and Marinela.
In 1937 Margaret Rudkin founded Pepperidge Farm, Inc. She started the company because she was trying to create bread for one of her sons who had allergies, preventing him from eating breads with preservatives. Rudkin's labors produced a natural bread of such high quality that her friends and neighbors urged her to try to make and sell it. Pepperidge Farm, named after pepperidge (sour gum) trees growing on the farm where the Rudkins had settled, was acquired by Campbell Soup Company in 1960. Pepperidge reported sales of approximately $1 billion in 2001. In addition to lines of bread, the company also sells cookies, crackers, and frozen meals and baked products.
Engelbert and Joseph Franz are credited with inventing the modern form of the hamburger bun early in the twentieth century. The company they founded, United States Bakery, sells under the brand names of Franz, Williams', and Snyder's. The company's 2006 sales were $275 million. United States Bakery is also a producer of pastries and cookies. Other brand names by which the bakery's products are known are Aunt Hattie's, Bay City, Seattle International, Svenhard's, and New York Bagel Boys.
Los Angeles-based La Brea Bakery, owned by the IAWS Group, PLC, an Irish corporation, is the leading supplier of partially baked goods that it prepares and ships to restaurants and retail bakeries. La Brea perfected par-baking when it discovered that partially baked bread, cooled and rapidly frozen, would turn out perfectly when baked the rest of they way. Par-baked bread is 80 percent baked initially. La Brea calls itself an artisan bakery because it specializes in baguettes, batards, rolls, sourdough breads, and extra-large loaves that look and taste as if just produced in a European bakery. La Brea makes and ships virtually all fresh-baked products supermarkets and other baker-sellers offer to their customers.
MATERIALS & SUPPLY CHAIN LOGISTICS
Bakery products are typically produced in close proximity to the markets in which they are bought and consumed. Baked goods were produced at 10,360 locations in 2002, for example, and of these 1,769 employed twenty or more people. In 2005 large metro areas, those with population of 250,000 or more, numbered 171 in the United States, suggesting that there are more than enough large bakeries to supply every town of some size and several small bakeries to supplement the output of the large ones, with some exceptions. According to Census Bureau data, in 2002 Idaho, Montana, Wyoming, North and South Dakota, Kansas, Mississippi, and Maine did not have any bakeries; their bakery products reached them by truck. In 2002 more than 440 flour milling operations supplied the nation's bakeries.
DISTRIBUTION CHANNEL
Unless the product is sold directly to the consumer by a retail bakery operating its own store, most products of this industry reach the customer by means of routes—organized truck deliveries from the bakery to retailers. Bakeries may own routes—Interstate Brands Corp. for example, owns 52 bakeries supported by 9,000 routes, while Bimbo USA has 14 bakeries and operates 3,000 routes. Direct Store Delivery (DSD) entrepreneurs may also in-dependently own routes and may combine a number of products on a single route or serve one bakery exclusively. Frozen bakery products require refrigerated route deliveries. Par-baked bread moves through the frozen bakery products distribution system.
Bakery products also have a specialized retail segment, the baked goods stores. These operations, in distinction to retail bakeries, do not make the products they sell but specialize in selling breads, rolls, cakes, pies, and pastries. In 2002 nearly 4,500 such stores operated across the country. These retailers, like grocery stores and supermarkets, received their product from routes operated by bakeries. Special distribution arrangements are typical in the case of fast food chains whether the product is a bun (hamburger, hot dog, sub-sandwich) or doughnuts. Dunkin Donuts, for instance, operates its own wholly-owned distribution centers to supply its retail outlets.
KEY USERS
Nearly everyone eats bread. Consumption issues turn around how much and what kind of bread to eat. The difficulties experienced by parts of the industry, the relatively strong performance of retail bakeries, the introduction and promotion of whole wheat, sugar-free, and low-carb brands indicates that people are favoring newer brands, more traditional types of bread (even at higher prices), and are at least weakening the sales of white bread made with bleached flour.
ADJACENT MARKETS
Adjacent to bakery products are other markets that use grains, including the two largest, pasta and tortillas. Tortillas are rapidly growing as a category whereas pasta is largely flat. Both industries, however, are under the same pressures as bakery products and changing in similar ways, most prominently by replacing refined flour with whole wheat or other whole grains in making their products. The cereal industry, while not growing in its traditional segment, is growing in the new-product segment of breakfast bars and breakfast pastries. Cookie and cracker manufacturing is also considered an adjacent market to the bakery products industry.
RESEARCH & DEVELOPMENT
The central focus of research and development in the bakery products sector is on product transformation—changing popular products to make them more nutritious without losing customers by altering the product's taste and texture. Interstate Brands introduced whole-wheat versions of its flagship brand, Wonder Bread. The company's aim was to preserve, as much as possible, the taste and soft texture of Wonder Bread while making the bread more nutritious by using whole wheat. George Weston created X-Treme Wheat bread hoping this high-nutrition brand would please children who ate it while assuring parents who bought it that it was healthy.
R&D efforts in formulating new types of high-nutrition breads by a combination of selecting ingredients, modifying production methods, and intensely testing prototype products in so-called sensory panels are, in effect, the continuation of R&D efforts along lines that have characterized the commercial bakery industry since its emergence in the 1920s and 1930s. These efforts have resulted in highly engineered food products. The new and modified brands emerging from the lab are similarly formulated.
La Brea Bakery's innovations in par-baking represent another approach—making use of modern technologies and transportations systems to deliver traditional bakery products more efficiently. The combination of baking and freezing supports another trend in the industry—toward satisfying a public demand for freshness. People in supermarkets holding a French baguette still warm from the oven little suspect that the product was partially baked days earlier a thousand miles away. Additional R&D is aimed at developing products that can be microwaved to produce fresh taste. In these cases technological innovations to enhance microwave ovens themselves to deliver crispness in baked goods is part of the R&D thrust.
Much of the advanced R&D effort in this industry is aimed at ingredient formulations to produce additives that act as fat mimetics, which produce the taste of fats without actually being fats, such as sweeteners, or flavor enhancers. Routine R&D is devoted to nutritional analysis, shelf-life studies, process improvements.
CURRENT TRENDS
Significant trends for the bakery products sectors (and equally influential across the entire spectrum of the food industries) include the growing incidence of obese and overweight individuals in the population; demographic changes producing an age structure heavily weighted toward the elderly; and pressures on people's time due to increasing hours of work, particularly in families where husband and wife both work. These trends, as they are evolving, sometimes produce paradoxical results: time pressures on dual-earner couples disrupt meal planning, foster eating out, and lead to snacking. Eating out and snacking may contribute to weight gain and obesity. Gaining weight impels many people to diet, which leads to shifts between food groups, and the food industry must react to satisfy changing demands. Dieting individuals want to lose weight but are reluctant to give up pleasurable taste sensations. Food producers remove sugar but substitute fats, or remove fats but substitute sugars to hold their customers.
Since 1963 the Centers for Disease Control and Prevention (CDC) has tracked obesity and excess weight information via the National Health and Nutrition Examination Survey (NHANES). In the survey (NHANES II) conducted between 1976 and 1980, 47.1 percent of the adult population was overweight or obese, with those termed obese representing 15 percent. In the 2003–2004 Survey, 66.2 percent of adults were overweight, with those deemed obese representing 32.9 percent of the population. In these same two periods, children with excessive weight increased as well. According to the period from 2003 to 2004, 13.9 percent of children aged 2 to 5, 18.8 percent aged 6 to 11, and 17.4 percent aged 12 to 19 were overweight, showing 8.9, 12.3, and 12.4 point jumps, respectively, over the 1976 to 1980 data.
Each survey has shown a growing trend in obesity. Excessive consumption of carbohydrates, sugars, and fats, and neglect of vigorous physical activity, are the principal causes of this trend. CDC data on physical activity indicate that only 48 percent of people engage in sports or other activities at recommended levels. While feedback from the healthcare bureaucracies does not seem to curb excessive eating or encourage people to exercise more, obesity findings sometimes cause people to shift consumption between food groups. From time to time dieting trends seem to threaten specific food clusters. The popular low-carbohydrate diets, which promote limiting the amount of carbohydrates people eat in the form of bread, pasta, and pastries, have caused many in the baked goods industry to find ways to counter the adverse effects these diets have had.
The American population is getting older. Census Bureau projections to the next population census year, 2010, show that four of six age groups under age 45 will decline as a percent of total population by then. The exceptions are the group aged 14 to 17, which will remain the same as in 2000, and the group aged 18 to 24 which will increase by a slender 0.5 percent. All of the older age groups, from 45 on up, show projected increases, with the largest increase occurring in those aged 45 to 64, which is projected to grow by 26.5 percent by 2010. The 65 and older group is expected to increase by 13.2 percent.
The growth in the group age 45 to 64 has particularly influenced the rapid growth of retail bakeries catering to the most value-conscious but also the most affluent age group in the population. The elderly, those aged 65 and older, may be a factor in the growth of the frozen segments of bread and pastry products in that this age group seeks convenience and smaller portions. Health-awareness increases with age and may become intense as people begin to have less energy or begin experiencing mobility challenges. The elderly generally consume less food, favor lighter foods, and are much more discriminating students of food labels.
In the early part of the twenty-first century it was commonplace to say that life is more hectic. The Families and Work Institute (FWI) provided some data to support this perception. In a 2002 study on changes in the workforce, the Institute reported that the work hours of couples where both people work increased from 81 to 91 between 1977 and 2002. In that same period, households with children headed by a single parent increased from 9 million to 17.6 million. All households increased 47 percent in that period, while single-family households increased by 100 percent. Because people are working more and are pressed for time, they spend ever more of their food budgets on meals eaten in fast food outlets and in restaurants. According to data assembled by the USDA's Economic Research Service, food expenditures away from home have been climbing. In 1965, 30 percent of a family's food budget was spent on eating out and steadily increased to 36 percent in 1975, 41 percent in 1985, 46 percent in 1995, and 48 percent in 2005.
Growing fast food consumption is clearly implicated in growing sales of rolls and tortillas. Pressures on people's time, similarly, favor convenience foods with increasing demand for frozen goods. At the same time they inhibit the urge to purchase food categories that require labor in the kitchen; hence a decline in the sale of flour and flour mixes.
TARGET MARKETS & SEGMENTATION
Bakery products appear, even in industrial classifications, as well-defined and separate markets—rolls, bread, cakes, pies, and pastries. Rolls taken as a whole divide into buns, bagels, breakfast, and dinner rolls all with their characteristic eating situations. In the last decades of the twentieth and in the first decade of the twenty-first century bread has divided into very clear market segments: traditional breads, mass-produced packaged breads, and, within that segment, the refined and whole grain categories. Traditional breads began to be aimed at the affluent segment of the market but are beginning to be widely purchased by everyone. Refined bread categories were in sharp decline at the beginning of the twenty-first century—to the point of driving their largest producer into bankruptcy. Whole grain breads appear to be the new mass segment aimed at routine, day-to-day consumption in sandwiches. The frozen segment, which includes bread, rolls, and sweet products, is growing energetically in response to lifestyle changes that put pressure on people's time.
RELATED ASSOCIATIONS & ORGANIZATIONS
American Bakers Association, http://www.americanbakers.org
American Institute of Baking, https://www.aibonline.org
Independent Bakers Association, http://www.mindspring.com/∼independentbaker
International Dairy-Deli-Bakery Association, http://www.iddba.org/default.htm
Retail Bakers of America, http://www.rbanet.com
Tortilla Industry Association, http://www.tortilla-info.com
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