On a roll: The rising popularity of premium breads has fortified industry revenue

The Bread Production industry has faced numerous challenges over the past five years. Growing competition from supermarkets' instore bakeries, and consumers shifting away from traditional factory-baked bread towards speciality and artisan-style bread have caused the industry's share of overall bread sales to fall. Additionally, volatile input prices have constrained industry growth prospects and squeezed profit margins. Evolving nutritional concerns, particularly relating to carbohydrate consumption, have also worked against the industry.These pressures have restrained industry growth over the five years through 2017-18. Additionally, the industry's performance has been highly volatile, characterised by significant swings in revenue on a yearly basis...read more.

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

Industry Threats & Opportunities

  • The industry’s future prospects are modest, but some niche growth opportunities exist
  • Operators are increasingly focused on higher margin products, such as artisan breads
  • Increasing health consciousness is expected to drive ongoing product innovation
  • 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 over half of the industry, suggesting moderate market share concentration. Increasingly uncertain operating conditions have caused the major players to scale down their operations, with several bakeries closing over the past five years. However, numerous small-scale bakeries remain in the industry.According to the ABS, over one-quarter of industry enterprises were non-employing entities in 2016-17, and a further 54.5% employed fewer than 20 people. These statistics suggest that a large portion of the industry remains fragmented, despite the dominance of Goodman Fielder and George Weston Foods. The...purchase to read more.

    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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    What's in this report

    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 included in the industry.

    Industry Products
  • White breads and rolls
  • Flat and savoury breads
  • Other 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

    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 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
  • External competitive threats
  • 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

  • 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 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
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Other
  • 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
    Goodman Fielder Pty Limited, Food Investments Pty Limited,
  • Table: Goodman Fielder Pty Limited - financial performance
  • Table: Food Investments Pty Limited - financial performance

  • 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
    Table: Industry Data for the Bread Production Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Fortified Bread
  • Bread with ingredients added 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.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Bread Production 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 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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