Industry Analysis & Industry Trends
The Bread Production industry has faced a number of challenges over the past five years. Growing competition from supermarkets' instore bakeries and the move away from factory-baked bread towards speciality and artisan retailers have caused the industry's share of the overall market to fall. In addition, volatility in commodity prices over the past five years has dampened industry growth prospects and squeezed profit margins. Evolving nutritional concerns, particularly those relating to carbohydrate consumption, have also worked against the industry. Consumers' purchasing patterns are gradually changing. The traditional packaged loaf of sliced white bread is falling out of favour, and fresh-baked bread has been rising in its place... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entry in the industry are of a medium level, although the level of initial capital investment required is significant. The biggest threat facing potential new entrants is the extremely well entrenched position of the industry's major players. These companies enjoy high brand and customer loyalty and have considerable resources to invest in advertising and promotions to protect and grow their market share. Further, the major players enjoy favourable contracts with key suppliers such as grocery stores and supermarkets that might be difficult for new entrants to secure.
For wholesale bakeries, establishing links with large retail outlets is very important to generate initial sales... purchase to read more