No sweet tooth: External competition and rising health awareness have caused revenue to decline

The Cake and Pastry Manufacturing industry has been characterised by changing consumer trends, volatile commodity prices and a saturated market over the past five years. Rising input prices and intensifying external competition have also posed serious challenges for the industry over the period. For example, supermarkets have extended their private-label offerings in their ongoing push 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 more.

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

Industry Threats & Opportunities

  • Rising 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 nutritional concerns are forecast to drive consumption choices over the period
  • Industry Report - Industry Key Buyers Chapter

    The Cake and Pastry Manufacturing industry is characterised by low concentration, reflecting the existence of a large number of small- to medium-size operators. Roughly 87% of industry enterprises employ less than 20 people. This is despite the existence of some larger manufacturers with global connections like Sara Lee. In 2017-18, the top four manufacturers are expected to account for less than 40.0% of industry revenue.Concentration also varies between product segments. The cake segment tends to be less concentrated, as numerous niche players exist and production tends to be labour intensive. However, pies command higher brand and customer loyalty and are more concentrated, with the major players competing for market share. In ...purchase to read more.

    Additional Insights for the Cake and Pastry Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Cake and Pastry Manufacturing Industry 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 the manufacturing of cakes, pastries and similar bakery products, including frozen products, from either a factory-based premises or home. The industry does not include those companies that produce and sell their products direct to consumers on the same premises, such as retail bakeries and supermarket instore 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
  • Product line extensions
  • Competitive pressures
  • 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
  • Profit
  • Purchases
  • Wages
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Cake and Pastry Manufacturing

  • Basis of Competition
  • External 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 (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
    Australia New Zealand Joint 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 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 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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