Bread is a key product among baked goods in Iran as it is considered as an essential item in Iranian cuisine. The majority of meals eaten by Iranians are served with bread or rice and it is rare to find a household in which a large quantity of bread is not consumed on a daily basis. In 2010, per capita total volume consumption of bread in Iran was 164 kg, which according to trade sources made it the highest in the world. However, the launch of a subsidies elimination programme in 2010 created a turning point in bread. The Iranian government stopped paying huge subsidies and so in 2011 unit prices in bread experienced a sudden and very large increase. This changed consumption patterns, prompting many consumers to reduce their high level of wastage of bread. Also, the owners of traditional bakeries, which formed the main channel of retail distribution of bread, had to improve the quality of their products as competition intensified upon removal of the subsidies. This resulted in better quality products in bread and thus a lower rate of wastage. Furthermore, strong governmental support of packaged/industrial bread led to increased production and prompted many consumers to convert to packaged/industrial bread. Therefore, bread started to suffer a decline in total volume terms in 2011. This continued in 2013 with a total volume decline of 6%, which was similar to the review period CAGR of -7%. The decline in bread also resulted in a decline in total volume terms in baked goods over 2011-2013.