The baking industry makes up roughly 2% of gross domestic product (GDP) in the US economy, according to “The Baking Industry 2023 Economic Impact Study,” a new report from the American Bakers Association (ABA).
According to the ABA, bakers, product distributors, importers and retailers accounted for approximately 2.18 million American jobs in 2023, and the jobs paid more than $43 billion in wages and benefits. Of these jobs, more than 789,000 direct baking positions were paid $42 billion in wages, meaning that they work for companies involved in the production, importation and retailing of baked foods as well as pre-prepared dough and frozen bakery products. Additionally, more than 752,000 baking supplier positions (retailers, wholesalers and truckers that handle products through a supply chain) were paid more than $57 billion in wages, the ABA said. Meanwhile, more than 635,000 induced baking positions were paid more than $143 billion in wages. Induced baking positions were defined as jobs created through the re-spending of income received by employees and business owners in the direct and supplier spaces.
The ABA also said the baking industry is a large part of the US economy as it accounts for approximately $533 billion in total economic output, which is “the value of industry production for the model year calculated in terms of producer prices.” Of this output, direct baking employees generated more than $186 billion, baking suppliers generated more than $211 billion and induced baking employees generated more than $134 billion, the report noted. Moreover, the companies and their employees paid an additional $49 billion in taxes to federal, state and local governments, the ABA said.
“The report underscores the vital role the baking industry plays in the US economy, not only in terms of employment but also in its broader economic and fiscal contributions,” said Eric Dell, president and chief executive officer of the ABA. “Despite the challenges we’ve faced, the baking industry has remained a cornerstone of the American economy. The baking community not only feeds America’s families but also fuels our nation’s economic engine. We urge policymakers to consider this significant economic impact in future policy decisions.”
For access to the full report, click here.