Summary of Research Findings

In June 2023, Yano Research Institute has conducted a consumer survey to find out the trend of bread consumption, as the price of bread is creeping up against the backdrop of soaring raw material costs and utility prices stemming from the recent depreciation of Japanese yen. The survey was targeted to 1,291 people nationwide in their age between 20 and 79, who stated that they (1) buy bread as meal or meal accompaniment (such as white bread, rolls, croissants, baguettes, and hearth breads) (2) more than once a month (3) at their own expenses (4) for themselves to consume. By limiting the type of bread only to those served as meal accompaniment (i.e., excluding sweet pasties and any other dessert breads), our intention is to figure out what could be done to motivate consumers in buying bread regularly, and how consumption of bread can be increased. This press release shares findings on how consumers view on the bread price rise and their preference on display and merchandising at bakers.

When asked about to the most acceptable approach of raising bread price amid the price hikes on all kinds of food items, 43.4% of the respondents said they accept “add cost onto price”, followed by “keep the price and ingredient quality the same by shrinking product size or quantity” and “keep the price and size the same by downgrading ingredient quality”, 33.8% and 22.9%, respectively.

Looking into the result by age group, younger generation think downgrading is better than downsizing, as seen in result showing that respondents in their 20s chose “keep the price and size the same by downgrading ingredient quality” the most (43.4%), followed by “keep the price and ingredient quality the same by shrinking product size or quantity” (23.1%). Meanwhile, respondents in older age group showed less tolerance to downgrading of ingredients.

Bakers have to choose either increasing price practically by shrinking product size or quantity and keep the current price, or, adding the rising cost onto retail price to maintain current quality. According to the survey results, the best way for bakers to retain their customers is to determine pricing based on the age group of their target customers or main customer base.

Noteworthy Topics

How Pandemic-Surviving Consumers See Unwrapped/Unpacked Breads

In May 2023, a month before this survey was carried out, the government reclassified the novel coronavirus as Class 5 infectious disease. This means that respondents are assumingly recovering to normal (pre-pandemic) lifestyle. Under the circumstances, we have asked a question specifically to 339 respondents (out of the 1,291 as explained earlier) that said “bakery/boulangerie” * had been a place to buy their favorite bread (for meal or meal accompaniment) most frequently in the last year or two, on their thoughts on bakery displaying bread on open shelves (unpackaged).

Overall, 34.8% of the respondents showed likings to “only ‘fresh out of oven’ on open display”, followed by “individually bagged/packaged” (28.0%), " showcased in display cases without package” (18.9%), and “open display without package” (18.3%).

Meanwhile, by assessing the results by gender separately, men showed strongest preference to “individually bagged/packaged” (32.7%), followed by “open display without package” (22.9%) and “showcased in display cases without package" (11.8%). On the other hand, women liked “showcased in display cases without package” the most (24.7%), followed by “bagged/packaged” (24.2%). Only 14.5% of women said they prefer “open display without package”. Seemingly, men tend to prefer “individually bagged/packaged” breads over those “showcased in display cases without package”. Yet, the result also revealed that both men and women liked ‘fresh out of oven’ breads on open display.

Based on the result, bakeries/boulangeries are recommended to embrace a mix of displays based on their product types. Products preferred more by men should be packaged, unless they are fresh out of the oven. Breads chosen more by women may sell better by showcasing in display cases without package. 

*For this research, the “bakery/boulangerie” include in-store bakery at supermarkets if that store bakes and sells on site, as well as bakery trucks if they sell breads fresh from the oven.

Research Outline