Commercial and Retail Bakeries NAICS 311811, 311812

        Commercial and Retail Bakeries

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Purchase Report

Industry Summary

The 11,075 bakeries in the US produce bread, rolls, and other baked goods. Commercial bakeries sell primarily to businesses (retailers, restaurants, and food service companies). Retail bakeries sell primarily to consumers. Major revenue categories include bread, rolls, cakes, cookies, and crackers. Companies may also sell frozen bakery products or may specialize in a particular type of product, such as cupcakes.

Variable Costs Impact Margins

The cost of ingredients, such as flour, sugar, cocoa, and dairy products, can vary and affect margins.

Dietary Trends Affect Demand

Trends and fads that drive food preferences can impact demand for bakery products.


Recent Developments

Mar 20, 2026 - Herbicide Found in Bread
  • Florida’s Department of Health detected glyphosate, a common but controversial agricultural herbicide, in six of eight bread products tested from major grocery brands, Supermarket News reports. While the measured levels were well below the EPA’s safety threshold, the findings have raised public health concerns and increased scrutiny of ingredients used in bread production. For commercial bakeries, the testing could lead to greater regulatory attention, consumer scrutiny, and pressure for supply chain transparency, particularly regarding wheat sourcing and agricultural practices. Bakeries may face growing demand from retailers and consumers for glyphosate-free grains, organic ingredients, or additional product testing and labeling. The findings could also encourage stricter quality control and supplier verification to ensure compliance with evolving food safety expectations. While current levels fall within federal safety limits, the publicity surrounding the tests may influence purchasing decisions and require bakeries to proactively address ingredient safety and traceability to maintain consumer trust.
  • GLP-1 medications for weight loss are reshaping consumer eating habits, creating significant challenges for small and medium-sized bakeries (SMB), reports Food Industry Executive. Consumers are eating smaller portions, snacking less, and shifting away from high-carb and high-sugar products, directly impacting demand for baked goods. As adoption of these medications accelerates, bakeries are facing increased pressure to reformulate products, such as adding protein, fiber, or reducing calories, to stay relevant. Unlike large food companies, SMB bakeries often lack resources and rely on manual processes, making rapid product changes, labeling updates, and compliance more difficult and time-consuming, creating operational risks and slow response to shifting demand. Adopting modern enterprise resource planning (ERP) systems can help bakeries centralize data, speed up reformulation, manage labeling accurately, and better plan which products to update or discontinue. SMB bakeries that improve operational agility and adapt product offerings quickly will be better positioned in today’s market.
  • Commercial bakeries face rapidly shifting consumer expectations and operational pressures, pushing them toward more differentiated products and smarter production models this year, writes restaurant and bakery supplier Plastic Container City. Texture mash‑ups have become a major sales driver, requiring bakeries to rethink formulations and invest in packaging that preserves delicate contrasts during distribution. Sourdough is expanding beyond bread, offering longer shelf life, premium pricing, and versatility across categories. Frozen bakery continues to surge as operators seek consistency, reduced early‑morning labor, and predictable costs. Functional baking is accelerating, with high‑fiber and high‑protein items gaining traction without compromising taste. Plant‑based products have moved mainstream, especially in cookies, brownies, and quick breads. Premiumization remains a strong margin lever, while single‑serve formats capture all‑day snacking demand and reduce waste. Finally, automation and digital tools have become essential, helping bakeries maintain quality and output despite chronic labor shortages and rising operational complexity.
  • Producer prices for retail bakeries rose 3.4% in November compared to a year ago, after inching up 0.5% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Industry producer prices at retail bakeries eased slightly from their record high in September as the rising cost of ingredients, labor, and other inputs continues to drive producer price inflation. Employment by bread and bakery product manufacturers shrank 1.3% year over year in November, while the average industry wage rose 4.9% over the same period to a new high of $23.44 per hour, BLS data show.

Industry Revenue

Commercial and Retail Bakeries


Industry Structure

Industry size & Structure

The average commercial bakery employs 46 workers and generates between $14 million annually, while the average retail bakery employs 12 workers and generates about $1.4 million annually.

    • The bakery industry comprises about 11,075 firms that employ about 218,739 workers and generate about $46.6 billion annually.
    • Commercial bakeries account for 22% of firms and 75% of industry revenue.
    • The commercial bakery industry is concentrated - the top 50 firms account for 70% of industry revenue. The retail bakery industry is fragmented - the top 50 firms account for just 16% of industry revenue.
    • Large companies include Grupo Bimbo (Sara Lee, Arnold), J.M. Smucker-owned Hostess Brands, and McKee Foods (Drake’s Cakes, Little Debbie).
    • Bread is a standard household staple, with per capita consumption in the US of about 57 pounds annually.

                                    Industry Forecast

                                    Industry Forecast
                                    Commercial and Retail Bakeries Industry Growth
                                    Source: Vertical IQ and Inforum

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