Millennials, Gen Z upending baked food sales

ORLANDO, FLA. — The bakery buying power of Generation Z and millennials is growing rapidly.

Millennials now account for nearly 28% of all bakery department unit sales, up 2.5% over the past year. Gen Z accounts for 3.1% of sales, but its share is expanding rapidly — up 35% in total bakery, 34% for center-store bread and a whopping 67% for center-store wraps.

As the purchasing power of these generations increases, baking companies are adapting to satisfy their new demands and buying behaviors.

“Consumer priorities are shifting among Gen Z and millennials,” said Eric Dell, president and chief executive officer of the American Bakers Association (ABA), during his presentation on baking category trends at IDDBA 2026, held June 7-9 in Orlando. “They want products that deliver an experience, not just a purchase.”

Gen Z and millennials are more likely to purchase baked foods with unique and globally inspired flavors, for example. ABA’s Bakery Playbook survey found that over half of millennials and Gen Z (52%) would be interested in pretzels with flavors such as Dubai chocolate or spicy dill pickle. Nearly a third of each shopper group (33% and 31%, respectively) said they’d love them, compared with just 24% of Gen X and 8% of boomers. Gen Z and millennials also under-indexed in preference for regular pretzel twists and sticks, but they over-indexed for chocolate-covered and stuffed varieties.

“The boomers aren’t going to change much, but the younger generations are really looking for those opportunities to try something different, something unique and fun, and to browse something new in both the retail and foodservice baking channel,” Dell said.

Millennial and Gen Z consumption of specific baked food categories varies significantly compared with previous generations. Based on dollar spend by share of the population, Gen Z under-indexed in its purchase of center-store bread (63%) and center-store snack cakes (55%), while over-indexing for center-store wraps (106%) and center-store brownies (103%), according to the ABA’s research.

Millennials are similarly less likely to purchase center-store bread (80%) and center-store snack cakes (79%), and they over-indexed considerably for center-store wraps (126%) and center-store brownies (136%). Boomers, on the other hand, index strongly across all four categories, with a strong over-index for snack cakes (111%).

Millennials also over-index for purchasing from supercenters compared with boomers (36% vs. 23%) and club stores (6% vs. 2%) and under-index for traditional full-service supermarkets (38% vs. 60%), the ABA found. They are also more likely to purchase from grocery stores and restaurants online.

Similarly, the web is a driving force in where these generations are inspired to make their bakery purchases, with platforms like YouTube, Instagram, TikTok and Facebook leading the way. Conversely, inspiration for boomers typically comes from routine meals, friends and family, recipe websites and cooking magazines.

Millennials and Gen Z are more likely to use artificial intelligence (AI) to assist with creating their grocery list (18% and 16%, respectively) compared with 8% of Gen X and 0% of boomers. Establishing a strong presence on social media and ensuring products appear among AI search results will become critical for baking companies to remain visible with these younger generations going forward, the ABA research found.

“If you can figure out how to harness AI for your business, I think this is where the future is,” Dell said.

These generations have a greater need for speed as well. More than 50% of Gen Z and millennials prioritize meals they can prepare in under 15 minutes, making simpler, ready-to-eat bakery solutions a growing opportunity.

Millennial and Gen Z shoppers also increasingly prioritize baking companies that make commitments to sustainability, including practices such as sourcing sustainable ingredients and reducing carbon emissions, the ABA found. Fifty-one percent of these shoppers prefer to see such claims made on a company’s website, while 42% want to see them on the package label or menu.

“I think a lot of companies have been doing these things for a while, but you really need to sell that story to the customer,” Dell emphasized.