The bread market, between tradition and innovation

• The bakery segment is part of a market centered on demand for conventional foods, where the innovative element is gradually gaining ground. The traditional white Franzela still occupies much of the total market of bakery products, but the orientation of young people, people with higher education, with higher incomes, from the urban environment, towards new varieties will be able to influence the trends for the future, in a period in that the reduction in consumption will be maintained as a trend. The quality of the products, their association with a healthy lifestyle, the convenience they can offer in consumption, such as sliced ​​bread, the small shop next to the house, but also the increase in assortment diversity with new tastes and flavors are key factors that can boost sales.

The average monthly consumption of bread and bakery products, as well as the value allocated, depending on the region, in 2018 (average of the first three quarters)

Bread consumption in Romania decreased in the last decade from 9,2 kg/month per capita in 2008 to approximately 8 kg/month per capita (average of the first 3 quarters of 2018), while the share of monthly expenses allocated to the purchase of bakery products increased only in the last year by 7 percent, according to statistics published by the National Institute of Statistics.

However, the amount of bread and pastry products consumed annually in Romania, according to the latest market study "Understanding the flour products market" presented by Aurel Popescu, president of ROMPAN, is 82 kg/inhabitant and still remains above the European average, which it amounts to 78 kg/inhabitant per year. The annual production of bread in Romania is 1,5 million tons, according to the same source. Also, "the milling and baking market stands at 3 billion euros, ranking first in the local food industry. However, the downward trend of bread consumption in recent years is "viable and correct", even if Romania lost the first place in Europe in this ranking".

 The average monthly consumption of bread and the value allocated, according to social categories and residence, in 2018 (average of the first three quarters)

Differences between regions and social categories

Although at the national level the consumption of bread decreased, and the downward trend continued in 2018, according to the data provided by the National Institute of Statistics, significant differences in consumption behavior are noted between different social categories or from one region to another. Thus, among the unemployed, a sharp increase in bread consumption is observed, even reaching monthly quantities of 9 kg/person in the second and third quarters, the expenditure in lei allocated to bakery products exceeding that of 16 by 2017 percent .

Likewise, the analysis by territorial structure shows that in the Regions with a lower standard of living, such as Oltenia, Muntenia or the North-East Region (Moldova), there was an increase in the consumption of bakery and pastry products in 2018 compared to the previous year.

The South-East Oltenia region still remains the area with the highest bread consumption, but the bread consumed by Oltenia has the lowest price. At the opposite pole is the Center Region where the population pays the highest price for the bread they consume.

Bread, the daily food for eight out of ten Romanians

Frequency of consumption of bakery products

82% of Romanians consume bread daily, according to the GfK study, 7 percent less than in 2009 when this category of frequent bread consumers was 89% (Gallup study). In contrast, the number of sporadic consumers of bread increased to 17% from 7% in 2009. Pastry products have a lower frequency of consumption, with 1 in 4 respondents consuming them only once a week. Pastry products and pretzels are products consumed especially by the inhabitants of big cities, being an "on the go" consumption habit.

 White French bread is the bread of choice

Where do we buy the bread?

In a market already dominated by modern trade, bread and bakery products are mainly bought from traditional trade sources: counter shops, convenience stores, kiosks, other types of shops. In the urban environment, there are more opportunities to buy from modern trade (supermarket, hypermarket) and specialized bakery shops. Consumers - young, educated, innovative - are concerned about buying products that are worth their money, compare brands and choose the product that offers the best value for money. On the other hand, in rural areas bread is largely bought from traditional trade. Traditional stores are chosen especially by the conservative type of consumer - the elderly, those from rural areas (where the diversity of stores is less), people with primary education, but also those from the Muntenia region. In the supermarket and hypermarket, in the bakery district, we meet the innovative consumer - young people, those with higher education and those from the urban environment. Specialized bakery shops have a smaller share in the case of bread, but reach 30% when we refer to pretzels and 40% in the case of pastry products and are more frequented in urban areas or in the regions of Ardeal and Bucharest. This type of shops, set up next to small bakeries or pastry laboratories, could become a key development factor.

The profile of the bread consumer in Romania

White bread still remains the most popular variety. According to the "Understanding the Flour Products Market" study, more than half of Romanians consume bread made from white flour daily, while only 4% of respondents stated that they never consume this product.

White flour bread – tradition and taste

White flour bread can be considered the bread of the traditional consumer, it is a product consumed out of habit and tradition, not just for taste, appearance or convenience.

White bread is more often the food of citizens from the countryside, of people over 40 years of age, but also of those from Transylvania.

How do consumers perceive white bread?

- It is softer and fluffier
- It's cheaper
- It is the local tradition
- He has been eating this kind of bread for a long time
– It is more attractive
– It is available in the store I shop from
- It's tastier
- It stays fresh longer

Black, wholemeal, graham flour bread - few calories

When we refer to black bread or rye bread, consumption habits have changed in the last decade. If ten years ago only half of the respondents preferred black, whole wheat and graham bread, now the percentage of consumers rises to 64%, and one in 10 people eats these varieties daily. Also, between 2011 and 2018, the number of women consuming black bread increased by 8 percent.

In the case of the assortment with rye, the changes are more obvious. If in 2009 only 12% declared that they chose rye bread, now the percentage of consumers is 49%. Most of them come from the urban area and consume the product only a few times a month.

Consumer perceptions about black bread 

– Recommended by doctors in dietary regimes
– It has few calories
- She is healthy
– Contains fiber

Rye bread

The profile of rye bread and multigrain bread consumers are similar.

Multigrain bread

The mentioned bread specialties are mainly characterized by a sporadic consumption, mostly found in the urban environment, in Bucharest and the western area. Also, young people and people with higher education appreciate them in a higher proportion.

Consumers' perceptions of rye and multigrain bread

– Recommended by doctors in dietary regimes
– Contains fiber
- She is healthy
– It has few calories (in the case of rye bread)

  Criteria for choosing bread 

Barriers to eating bread more often

Sliced ​​bread - comfort product

Sliced ​​bread is appreciated by the consumer because it is easy to use (54%), suitable for sandwiches (33%), it is packaged and hygienic (30%), it does not crumble when slicing (28%), being packaged it keeps longer fresh, has a pleasant appearance.

It goes without saying why sliced ​​bread has become a daily habit for over 44% of those surveyed, while another 31% eat it once or more a week. The consumption of sliced ​​bread is influenced by income level. Thus, in households with an income higher than 1.500 RON, sliced ​​bread is preferred. Also, active people, aged between 30 and 55 years, especially consume sliced ​​bread.                                                                                     

The regions with the highest consumption of sliced ​​bread are Transylvania and the eastern area (Crisana, Banat, Maramureș), and at the opposite pole, the regions of Muntenia, Moldova and Bucharest where we find a higher consumption of unsliced ​​bread. 73% of the sliced ​​bread consumed is bread made from white flour, 35% from black or wholemeal flour, 14% with rye and also 14% graham.

Source: Market study "Understanding the flour products market" Rompan and GfK Romania

Cecilia Florescu, Nova Pan marketing specialist