Industry Analysis & Industry Trends
Changing consumer trends, volatile commodity prices and a saturated market characterise the Cake and Pastry Manufacturing industry. Rising input prices and intensifying external competition have also posed serious challenges for the industry over the past five years. For example, supermarkets have been extending their private-label offerings in their ongoing push into the fresh food market. The move towards artisanal and gourmet foods has increased competition from retail bakeries for the industry, threatening branded manufacturers in other parts of the baked goods sector. In response, industry operators have been relying on innovative new products to stimulate demand in an otherwise stagnant market... 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. Roughly 87% of industry enterprises employ less than 20 people. This is despite the existence of some larger manufacturers with global connections including George Weston and Sara Lee. In 2016-17 the top four manufacturers will account for less than 40.0% 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