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 Investment Chapter
Cake and pastry manufacturing requires a medium level of capital investment. IBISWorld estimates that producers require $7.05 worth of labour for every $1.00 worth of capital invested. The industry is populated by a number of small-to-medium bakeries that are more labour intensive as they require people to perform majority of the tasks involved in production. These include packaging, loading, baking and distribution, which result in higher wage and employment costs. While the initial level of capital investment maybe relatively significant, subsequent costs of operation are minimal.
Capital requirements also vary between product segments, with frozen cakes and desserts being more capital intensive than pie or savoury pastry production... purchase to read more