Overview

Fork out the dough: Volatile input prices have put pressure on industry margins

IBISWorld’s Bread Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • The industry's future prospects are modest, but do present some niche growth opportunities
  • Operators have increasingly focused on higher margin products, such as artisan breads
  • Increasing health consciousness is expected to drive ongoing product innovation

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    Industry Analysis & Industry Trends

    The Bread Production industry has faced numerous challenges over the past five years. Growing competition from supermarkets’ instore bakeries and the consumer shift away from factory-baked bread towards speciality and artisan retailers have caused the industry’s share of the overall bread market to fall. In addition, volatile input prices have constrained industry growth prospects and squeezed profit margins. Evolving nutritional concerns, particularly those relating to carbohydrate consumption, have also worked against the industry. Consumers’ purchasing patterns are changing and the traditional factory-baked packaged loaf of sliced white bread is falling out of favour, with unpackaged fresh-baked artisanal bread taking its place...

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    Industry Report - Industry Key Buyers Chapter

    The two largest players, Goodman Fielder and George Weston Foods, dominate the industry. Together, these companies are expected to account for just under 60% of the industry, suggesting a moderate level of market share concentration. This reflects their dominance of the fresh loaf bread segment, with these two players accounting for roughly two thirds of this particular product category alone.

    Increasingly uncertain operating conditions have caused the major players to scale down their operations with the closure of several bakeries over the past five years. At the same time, there still exists a large number of small-scale bakeries. Acc..

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    Additional Insights for the Bread Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bread Production Industry are

  • Control of distribution arrangements
  • Supply contracts in place for key inputs
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Domestic price of wheat and Demand from supermarkets and grocery stores in the Bread Production industry impact industry performance..

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    New Zealand Special Report

    Industry Products

    What is the Bread Production Industry?

    The industry produces leavened and unleavened bread from factory-based premises. Companies that produce bread dough (fresh or frozen), breadcrumbs or par-baked bread are also included. Businesses that bake and sell bread from the same premises are not part of the industry.

    Industry Products
    White breads and rolls
    Flat and savoury breads
    Other breads and bread based products
    Muffins, crumpets and sweet breads
    Other breads and rolls
    Industry Activities
    Bread production (leavened or unleavened)
    Bread roll production
    Breadcrumbs production
    Bread dough production (fresh or frozen)
    Fruit loaf production
    English muffin, panini, bagels and pita bread production

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Domestic price of wheat
  • Demand from supermarkets and grocery stores
  • Demand from catering services
  • Health consciousness

  • Current Performance
  • Profit constraints
  • New competitive pressures
  • Health and premiumisation
  • Chart: Revenue Growth

  • Industry Outlook
  • Importance of innovation
  • Revenue and production
  • Table: Bread Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bread Production Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • General Line Grocery Wholesaling
  • Bread and Cake Retailing
  • Catering Services
  • Supermarkets and Grocery Stores
  • Convenience Stores
  • Restaurants

  • Key Selling Industries
  • Flour and Grain Mill Product Manufacturing
  • Fruit and Vegetable Processing
  • Plastic Bag and Film Manufacturing
  • Sugar Manufacturing

  • Products & Services
  • White breads and rolls
  • Other breads and rolls
  • Other breads and bread based products
  • Flat and savoury breads
  • Muffins, crumpets and sweet breads
  • Chart: Bread Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and grocery stores
  • Food-service providers
  • Wholesalers
  • Chart: Major Market Segmentation for the Bread Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Bread Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bread Production Industry

  • Industry Globalization
    Major Companies
    Goodman Fielder Pty LimitedFood Investments Pty Limited
  • Table: Goodman Fielder Pty Limited - financial performance
  • Table: Food Investments Pty Limited - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Bread Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

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

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Bread Production Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Cost-To-Serve Model
  • A business model that recognises that transaction costs vary by product, by market, by channel and by individual customers.
  • Fortified Bread
  • Bread with ingredients added in order to increase its nutritional value. Added nutrients can include iron, omega-3 or folate.
  • Gluten
  • A mix of plant proteins derived from cereal grains like wheat, gluten is mainly used as a substitute for flour in food production.
  • Starch
  • A natural nutrient carbohydrate derived from a variety of plants (such as corn, potatoes, rice and wheat), starch is normally prepared as a powder for use in food production.
  • Why buy this report?

    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 Bread Production:
    • 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 Bread Production 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 Bread Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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