Industry Analysis & Industry Trends
On first glance, the Bread and Cake Retailing industry seems to be struggling. Industry revenue is expected to post compound annual growth of just 0.4% over the five years through 2013-14 due to increasing competition from operators in other industries. However, revenue has grown consistently since 2011-12. Rising disposable incomes and improving consumer sentiment have driven revenue growth. Furthermore, many retailers have altered their product offerings in response to increasing competition. Rising demand for premium products that attract higher prices and profit margins has driven industry performance over the past three years. This premium trend will continue to benefit the industry in 2013-14, with revenue forecast to increase by 1.2% to $795.5 million... purchase to read more
Industry Report - Industry Key Buyers Chapter
The industry displays a low level of concentration. This is due to the industry's high fragmentation. The majority of industry revenue is earned by smaller, independent retailers. The industry's largest player is Retail Food Group, which controls Donut King and Michel's Patisserie. Combined with the next two largest players in the industry, Breadtop and the Cupcake Bakery, these players account for less than 40.0% of industry revenue.
Industry concentration has fallen over the past three years. This is largely due to the reduction in Michel's Patisserie store numbers, which decreased the chain's sales revenue and market share. Although Donut King has posted moderate revenue growth over the period, this has not been enough to counteract Michel's Patisserie's poor performance... purchase to read more