Commercial and Retail Bakeries NAICS 311811, 311812
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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
Apr 20, 2026 - Robots Filling Bakery Positions
- Labor shortages and rising wages are pushing bakeries to accelerate automation and robotics adoption to maintain production and control costs, Snack Food & Wholesale Bakery (SF&WB) reports. Difficulty staffing roles, especially overnight, is making manual operations increasingly unsustainable. Robotics offer bakeries lower labor costs and reduced reliance on hard-to-fill positions, consistent product quality and output, and improved safety by handling repetitive or hazardous tasks. Applications for hygienic, food-handling robots include product handling, positioning, decorating, and packaging, particularly in high-care or labor-intensive processes. While upfront investment is required, many facilities can achieve return on investment (ROI) within one to three years, according to SF&WB. For bakery operators, automation is becoming essential to meet demand, offset labor constraints, and improve efficiency. Still, successful implementation requires careful planning, integration with existing systems, and workforce training.
- 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.
- Producer prices for retail bakeries rose 2.7% in February compared to a year ago, after posting a flat previous February-versus-February annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices for retail bakeries are near record high levels driven by the rising cost of sugar and other ingredients, energy, labor and other inputs. At the retail level, the price of bakery products rose 3% year over year and 0.3% compared to January, according to the Labor Department’s February 2026 Consumer Price Index report. Employment by bread and bakery product manufacturers was flat year over year in January, while the average industry wage rose 3.2% over the same period to $23.37 per hour, easing a bit from its peak in December, 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
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