Industry Analysis & Industry Trends
Changing consumer trends, volatile commodity prices and a saturated market are characteristics of the Cake and Pastry Manufacturing industry. In addition, rising input prices and intensifying external competitive pressures have posed some serious challenges to the industry over the past five years. The entrenched position of the major players, coupled with enviable levels of brand and customer loyalty, has enabled them to pass on cost increases during times of unsustainably high input costs. Sweeping changes in consumption needs and preferences have led to innovation and new product introductions to stimulate demand in a mature and stagnant market.
In the five years through 2014-15, industry revenue is expected to contract at an annualised rate of 1.3% to total $1.5... purchase to read more
Industry Report - Industry Analysis Chapter
Over the past five years, industry growth has been tempered by rising input prices (particularly for wheat) and changing consumer dietary and lifestyle trends. Health and nutritional awareness has led to a decline in the consumption of high-calorie foods such as cakes and sweet pastry products. Additionally, strong competition from retail bakeries and instore supermarket bakeries (as well as private-label products in some segments, such as fresh pies and savoury pastries) has also affected industry performance. Aggressive price-cutting tactics and heavy discounting by the major players constrained growth in industry revenue throughout much of the period... purchase to read more