Stale performance: Fresh external competition from supermarkets is eating into industry margins

The Bakery Product Manufacturing industry is going through a major period of change. While per capita bread consumption is falling, Australians are spending more on higher quality, fresher breads and baked goods. Where the typical family used to purchase a few loaves of factory-produced white bread once a week, consumers are now more likely to buy a range of freshly baked bread, including sourdough, ciabatta, brioche and baguettes. Over the past five years, rising health consciousness has caused demand for wholemeal, seeded, gluten-free and other breads perceived to be healthy to soar. The introduction of functional breads that have been fortified with ancient grains or enriched with nutrients has also contributed to the growing demand for premium breads and bakery more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • While per capita bread consumption is falling, consumers are spending more on fresh baked goods
  • Aggressive price discounting and rising input costs have negatively affected industry operators
  • Consumers are expected to continue buying artisanal breads over factory-produced white bread
  • Industry Report - Industry Locations Chapter

    New South Wales accounts for the highest number of bakeries, followed by Victoria and Queensland with these three states accounting for roughly 80% of all artisanal bakeries. This is in line with other retail industries, owing to the large populations in these states. The relative importance of each state has essentially remained static over the past five years. Bakeries have traditionally been located along suburban shopping strips neighbouring other retailers and benefiting from increased exposure to consumer traffic. While many smaller bakeries are still located in these areas, a rising number of bakeries can now be found in shopping centres as well...purchase to read more.

    Additional Insights for the Bakery Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bakery Product Manufacturing Industry are

  • Loyal customer base
  • Aggressive marketing and franchising
  • Having a range of bread and cakes
  • IBISWorld analysts also discuss how external factors such as Domestic price of wheat and Demand from bread production in the Bakery Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Bakery Product Manufacturing Industry?

    Industry companies primarily bake and sell bread and other bakery products, such as cakes and pastries, on the same premises. The industry does not include bread and other baked products pre-baked in factories. The industry also excludes establishments operating cafe-style operations where food is served for on-premises consumption.

    Industry Products
  • White bread
  • Wholemeal and seeded bread
  • Artisanal bread
  • Savouries and sweets
  • Hot pastries and pies
  • Cakes
  • Industry Activities
  • Baking and selling white bread and rolls
  • Baking and selling wholemeal and seeded bread and rolls
  • Baking and selling artisanal bread
  • Baking and selling pastries, pies and pasties
  • Baking and selling cakes
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic price of wheat
  • Demand from bread production
  • Demand from supermarket and grocery stores
  • Real household disposable income
  • Demand from cafes, restaurants and takeaway food services
  • Health consciousness

  • Current Performance
  • Changing consumption trends
  • Supermarket price wars
  • Falling profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Icing on the cake
  • Industry restructuring
  • Table: Bakery Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bakery Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cafes and Restaurants
  • Consumers

  • Key Selling Industries
  • Grain Growing
  • Sugar Manufacturing
  • Tea, Coffee and Other Food Manufacturing

  • Products & Services
  • White bread
  • Cakes
  • Wholemeal and seeded bread
  • Artisanal bread
  • Savouries and sweets
  • Hot pastries and pies
  • Chart: Bakery Product Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest household income quintile
  • Fourth household income quintile
  • Third household income quintile
  • Second household income quintile
  • Lowest household income quintile
  • Chart: Major Market Segmentation for the Bakery Product Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Bakery Product Manufacturing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bakery Product Manufacturing Industry

  • Industry Globalization
    Bakers Delight Holdings Ltd, Retail Food Group Limited,
  • Table: Bakers Delight Holdings Ltd - financial performance
  • Table: Retail Food Group Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Bakery Product Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Bakery Product Manufacturing Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Artisanal Breads
  • Refers to breads and other bakery products made by a craftsperson using largely traditional techniques. These include baguettes, batards, ciabattas, focaccias and panettone among other types.
  • Brioche
  • A French bread made with flour, egg, butter and milk.
  • Ciabatta
  • An Italian bread made from flour and yeast. It is typically used for cafe paninis.
  • Sourdough
  • A bread made using a long fermentation of dough using naturally occurring yeast.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Bakery Product Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Bakery Product Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Bakery Product Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Bakery Product Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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