Consumer Preferences

In an effort to appeal to changing consumer preferences, producers responded by promoting healthier products such as whole wheat bread and introducing new varieties, such as gluten-free bread. These efforts allowed the industry to slowly regain some of its previously lost revenue, which is expected to grow 0.2% in 2012.

Gluten-free products also became more prevalent as producers sought to accommodate the growing number of people with celiac disease, an autoimmune disorder that causes an inflammatory reaction to gluten. Nearly two million Americans have celiac disease, according to the research arm of the Mayo Clinic. Celiac disease is four times more common than it was 50 years ago, according to the clinic. Celiac's prevalence has kicked off a consumer trend to avoid gluten consumption, which drove industry operators to rapidly introduce gluten-free products. Demand from consumers on gluten-free diets helped drive revenue gains in 2011 and 2012.

Healthy eating trends will continue to drive bakers to produce items such as fortified breads, gluten-free loaves

In addition, many new bread products are now gluten-free, which accommodates people on gluten-free diets, such as those with celiac disease. These offerings raised demand, and therefore revenue, in subsequent years. Consequently, the industry is anticipated to experience revenue volatility of 3.9% In addition, many new bread products are now gluten-free, which accommodates people on gluten-free diets, such as those with celiac disease. These offerings raised demand, and therefore revenue, in subsequent years. Consequently, the industry is anticipated to experience revenue volatility of 3.9% In addition, many new bread products are now gluten-free, which accommodates people on gluten-free diets, such as those with celiac disease. These offerings raised demand, and therefore revenue, in subsequent years. Consequently, the industry is