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 Key Buyers Chapter
The industry is characterised by a low level of concentration reflecting the existence of a large number of small-to-medium operators. This is despite the existence of some larger manufacturers with global connections including George Weston and Sara Lee. In 2014-15 the top four manufacturers will account for less than one third of industry revenue.
Concentration also varies between product segments. The cake segment tends to be less concentrated, as numerous niche players exist and production tends to be labour intensive. Pies, however, command higher brand and customer loyalty and are more concentrated, with the major players competing for market share... purchase to read more