No bread winner: Demand rises for high-quality goods while supermarkets eat into revenue gains

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 high-quality fresh bread and baked goods. The typical family used to purchase a few loaves of factory-produced white bread once a week, now consumers are 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 increased demand for wholemeal, seeded, gluten-free and other breads perceived to be healthy to soar. The introduction of breads that have been enriched with added nutrients has also contributed to the growing demand for premium breads and bakery more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

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-made products
  • Industry Report - Industry SWOT Analysis Chapter

    The Bakery Product Manufacturing industry is in the mature stage of its life cycle, characterised by falling revenue and rising competitive pressures from both internal and external sources. Over the five years through 2017-18, establishment numbers are expected to decline as unprofitable shops close their doors, unable to compete against the large franchises and the ongoing rollout of instore supermarket bakeries with their own rival artisanal bread offerings. Industry value added (a measure of the industry's contribution to the economy) is forecast to contract at an annualised 1.5% over the 10 years through 2022-23. This compares unfavourably with the projected 2.6% annualised real GDP growth over the same period. Thi...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

  • Having a loyal customer base
  • Aggressive marketing/franchising - given the high level of competition
  • Having a wide and expanding product range
  • 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
  • Other bakery products
  • 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
  • Changing demand patterns
  • 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
  • Other bakery products
  • 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
  • Profit
  • Purchases
  • Wages
  • Rent
  • Other
  • 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,
  • Table: Bakers Delight Holdings Ltd - 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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 provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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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