No sugar-coating: External competition and rising health awareness hurt industry revenue

The Cake and Pastry Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.


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 sapped industry performance
  • Health and nutritional concerns are forecast to drive consumption choices over the period

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    Industry Analysis & Industry Trends

    Changing consumer trends, volatile commodity prices and a saturated market characterise the Cake and Pastry Manufacturing industry. Rising input prices and intensifying external competition have also posed serious challenges for the industry over the past five years. For example, supermarkets have been extending 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 for the industry, threatening branded manufacturers in other parts of the baked goods sector. In response, industry operators have been relying on innovative new products to stimulate demand in an otherwise stagnant market...

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    Industry Report - Industry Locations Chapter

    Production of cake and pastry products tends to be concentrated in and along the eastern seaboard. Thus, New South Wales, Victoria and Queensland are expected to account for over 80% of all industry enterprises. A similar pattern is expected for the respective shares of revenue, establishments and employment held by each state.

    Interestingly several of the manufacturing facilities operated by the major players are located in regional areas as opposed to major or state capital cities. Of note is the Patties plant in Bairnsdale in country Victoria. Similarly Sara Lee's manufacturing plant is located in Gosford, north of Sydney. However in both these instances, the food product in question is frozen and therefore lends itself to greater transportation distances. In ..

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    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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    Industry Products

    What is the Cake and Pastry Manufacturing Industry?

    This industry consists of companies engaged in the manufacturing of cakes, pastries and similar bakery products (including frozen products) from either a factory-based premises or home. It 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
    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

    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 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

  • 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
  • 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
  • Convenience stores
  • Specialty retailers
  • Food-service providers
  • Chart: Major Market Segmentation for the Cake and Pastry Manufacturing 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 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
    Major Companies
    Patties Foods LimitedFood Investments Pty LimitedMcCain Foods (Aust) Pty Ltd
  • Table: Patties Foods Limited - financial performance
  • Table: Food Investments Pty Limited - financial performance
  • Table: McCain Foods (Aust) Pty Ltd - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Cake and Pastry Manufacturing Industry
  • 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
    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.
  • 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 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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