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.

Dietary Trends Affect Demand

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

Variable Costs Impact Margins

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


Recent Developments

Jul 20, 2026 - Extending Equipment Life
  • Bakeries are increasingly extending the life of conveyor systems through targeted rebuilds and preventive maintenance rather than full replacements, helping control capital spending while minimizing production downtime, BakingBusiness.com reports. Industry experts say frequent breakdowns often stem from poor conveyor or belt design rather than worn equipment, and upgrading belts or key components can improve reliability and product quality. Regular inspections, lubrication, sanitation, and timely replacement of wear parts reduce maintenance costs and extend equipment life. When expansion, new product launches, or major production changes occur, bakeries may invest in new conveyor systems or retrofit existing lines to increase throughput and improve sanitation. Equipment suppliers are also introducing conveyor designs that simplify cleaning, reduce maintenance, and improve cooling efficiency, supporting higher productivity and food safety.
  • Growing consumer interest in fiber-rich, less processed foods is fueling demand for premium craft flour, The New York Times reports. Increasing demand from health-conscious consumers, including followers of GLP-1 diets and proponents of clean-label and whole-grain foods, is creating new opportunities for artisanal bakeries that emphasize quality, nutrition, and traditional baking methods. Premium flour producers are expanding capacity as bakeries and restaurants increasingly use specialty flours that offer enhanced flavor, higher fiber content, and perceived digestive benefits. Market research cited by NYT found that premium flour ranks among the most appealing bread attributes for Millennials and Gen Z consumers. For bakeries, the trend signals opportunities to differentiate products through heirloom grains, traditional fermentation, clean-label ingredients, and premium bread offerings. However, craft flour is expensive and the cost may challenge margins, requiring bakers to balance ingredient quality with pricing and profitability.
  • 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.
  • Producer prices for retail bakeries rose 1.7% in June compared to a year ago, after rising 2.4% in the previous June-to-June annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices for both retail and commercial bakeries are at record highs driven by the rising cost of sugar and other ingredients, energy, labor, and other inputs. At the consumer level, the price of bakery products rose 2.5% year over year in June and 0.1% versus May, according to the Labor Department’s June 2026 Consumer Price Index report. Employment by bread and bakery product manufacturers remained essentially flat YoY in May, while the average industry wage rose 4.9% over the same period to $23.84 per hour, easing slightly from its high in February, 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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