Industry Analysis & Industry Trends
The Bread Production industry has been faced with challenges in the past decade, beginning with the low-carbohydrate craze generated by the Atkins Diet in the early 1990s. Australians cut back their carbohydrate consumption, which negatively affected demand for bread. However, the emergence of the health- and nutrition-conscious consumer, driven by timely and clever product innovation, has stimulated demand for bread and bakery products over the past decade. In 2012-13, industry revenue is forecast to increase by 5.2% to reach $3.01 billion. Over the past five years, revenue is estimated to have increased by an annualised 1.6%... purchase to read more
Industry Report - Industry Investment Chapter
The industry requires a medium level of capital investment, as measured by the capital to labour ratio. IBISWorld estimates that this ratio will be 5.3:1, i.e. bread producers require $5.30 worth of labour for every $1.00 worth of capital invested.
The industry is dominated by large players that have highly automated production lines that require little human involvement, thus making the production process highly capital intensive. There has however been a movement towards smaller producers who, for example, cater to niche hospitality or food service industries that have more labour intensive production methods that require people to perform majority of the tasks involved in production... purchase to read more