Industry Analysis & Industry Trends
The Bread Production industry has faced numerous challenges over the past five years. Growing competition from supermarkets' instore bakeries and the consumer shift away from factory-baked bread towards speciality and artisan retailers have caused the industry's share of the overall bread market to fall. Additionally, volatility in input 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 and the traditional packaged loaf of sliced white bread is falling out of favour, with fresh-baked bread rising in its place... purchase to read more
Industry Report - Industry Investment Chapter
The industry requires a moderate level of capital investment, as measured by the capital to labour ratio. Bread producers require an estimated $6.45 worth of labour for every dollar invested into capital invested.
The industry is dominated by large players with highly automated production lines that require little human involvement, thus making the production process highly capital intensive. However, there has been a movement towards smaller producers that cater to niche hospitality or food-service industries. Such operators have more labour-intensive production methods that require people to perform the majority of tasks involved in production. These include packaging, loading, baking and distribution, which result in higher wage and employment costs... purchase to read more