“Breaking Bread” with innovation: the challenge of product differentiation through alternative flours, fermentation, and traceability systems

The growing demand for more sustainable and healthier foods has stimulated innovation in the food sector, particularly in the bakery industry. However, market differentiation for products such as sliced bread is limited by consumers' marked resistance to certain innovations, such as the introduction of innovative ingredients and processing methods. To this end, a robust Discrete Choice Experiment methodology was used on a nationally representative sample of nearly 1600 Italian consumers. A Latent Class Modelling revealed two distinct preference profiles: an innovation-oriented majority (77.5 %) and a more conservative segment (22.5 %). All unconventional flours were associated with negative WTP, particularly insect flour, although the aversion was less pronounced in the innovation-oriented group. Conversely, characteristics related to sourdough fermentation and digital traceability received positive ratings in both segments. The segmentation according to innovation and conservative-oriented consumers is insightful. Although the novelty of ingredients generates resistance reliable characteristics such as fermentation, traceability, and national origin are able to improve product acceptability, justifying its better positioning. Targeted marketing strategies can be outlined based on these different behaviour: consumers who are open to innovation respond to greater transparency and health-related signals, while conservative consumers require reassurances based on tradition and familiarity. These findings support the promotion of market differentiation that combines innovation and trust in the context of industrial baking.