On the go: Firms have relied on new products to stimulate demand in a saturated market

Changing consumer trends, volatile commodity prices and a saturated market have characterised the Cake and Pastry Manufacturing industry over the past five years. Intensifying external competitive pressures have also posed serious challenges for industry operators over the period. Supermarkets have extended their private-label offerings in their ongoing foray into the fresh food market. The move towards artisanal and gourmet foods has increased competition from retail bakeries, threatening branded industry manufacturers in other parts of the baked goods sector. In response, many industry operators have been relying on innovative new products to stimulate demand in an otherwise saturated market...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Volatile input prices and strong external competition have been challenging for industry firms
  • Competition from retail bakeries and instore supermarket bakeries has limited industry performance
  • Health and nutrition awareness are anticipated to drive consumption choices over the next five years
  • Industry Report - Industry SWOT Analysis Chapter

    The Cake and Pastry Manufacturing industry is in the decline stage of its life cycle, which is characterised by a saturated domestic market, a range of well-established products and a falling number of participants, as both internal and external competitive pressures intensify. Industry value added, which measures the industry's contribution to the economy, is forecast to grow at an annualised 0.1% annualised over the 10 years through 2023-24. This growth represents an underperformance of overall GDP, which is projected to grow at an annualised 2.6% over the same period. This trend indicates the industry's contribution to the Australian economy is falling, as it continues to underperform relative to the economy...purchase to read more.

    Additional Insights for the Cake and Pastry Manufacturing Industry

    IBISWorld has determined the most important Key Success Factors for the Cake and Pastry Manufacturing are:

  • Ability to pass on cost increases
  • 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 Cake and Pastry Manufacturing industry impact industry performance..

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    What's in this report

    What is the Cake and Pastry Manufacturing Industry?

    Industry firms are engaged in manufacturing cakes, pastries and similar bakery products, including frozen products, from either a factory-based premises or home. The industry does not include companies that manufacture and sell their products direct to consumers on the same premises, such as retail bakeries and instore supermarket bakeries.

    Industry Products
  • Savoury pastries
  • Sweet pastries
  • Cakes
  • Other products
  • Industry Activities
  • Cake icing or decorating
  • Cake or pastry (including frozen)
  • Doughnut and crumpet
  • Cake or pastry-based slice
  • Pie (meat, vegetable or fruit)
  • Pastry (including frozen)
  • Cake or pastry-based pudding and dessert
  • 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 bakery product manufacturing
  • Demand from convenience stores
  • Domestic price of sugar
  • Health consciousness

  • Current Performance
  • Product line extensions
  • Competitive pressures
  • Profit and prices
  • International trade
  • Chart: Revenue Growth

  • Industry Outlook
  • Competition trends and product line extensions
  • Table: Cake and Pastry Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Cake and Pastry Manufacturing 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
  • Butter and Dairy Product Manufacturing
  • Flour and Grain Mill Product Manufacturing
  • Fruit and Vegetable Processing
  • Meat Processing
  • Milk and Cream Processing
  • Sugar Manufacturing

  • Products & Services
  • Savoury pastries
  • Cakes
  • Sweet pastries
  • Other products
  • Chart: Cake and Pastry Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Pricing and substitutes
  • Health, nutrition and dietary trends
  • Disposable incomes

  • Major Markets
  • Grocery channel
  • Food-service providers
  • Cafes and specialty retailers
  • Petrol stations and convenience stores
  • Chart: Major Market Segmentation for the Cake and Pastry 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 Cake and Pastry Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Cake and Pastry Manufacturing Industry

  • Industry Globalization
    Patties Foods Pty Limited, McCain Foods (Aust) Pty Ltd,
  • Table: Patties Foods Pty Limited - financial performance
  • Table: McCain Foods (Aust) Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Cake and Pastry 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 Cake and Pastry Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Australia New Zealand Food Standards Code
  • A code that represents the complete set of food regulations for both Australia and New Zealand. The code includes labelling requirements for industry players.
  • Hazard Analysis Critical Control Point (Haccp)
  • A systematic preventative approach to food safety that addresses physical, chemical and biological hazards as a means of prevention rather than final product inspection.
  • Percentage Daily Intake (%Di)
  • A packaging labelling system that allows consumers to understand the relationship between food products and daily nutritional requirements.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Cake and Pastry 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 Cake and Pastry 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 Cake and Pastry 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 Cake and Pastry Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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