No dough: Fierce internal competition and competition from supermarkets has hindered growth

The Bread and Cake Retailing industry has shrunk slightly over the past five years, with revenue fluctuating on a year-by-year basis. Disposable incomes and consumer sentiment influence consumer spending on bread and cake products, which in turn affects industry revenue. Largely negative consumer sentiment and increases in disposable income have altered consumer spending patterns over the past five years, causing revenue to fluctuate on a year-by-year basis. For example, positive consumer sentiment combined with modest disposable income growth boosted revenue in 2013-14. Furthermore, steady growth in disposable incomes over the past five years has driven demand for higher value products, such as organic bread. Despite this, industry revenue is expected to decrease at an annualised more.

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

Industry Threats & Opportunities

  • Increasing competition has led to store closures and financial troubles for larger players
  • Rising health consciousness has helped stimulate spending on healthier baked goods
  • Organic, premium and dietary-specific products are anticipated to benefit from increasing disposable incomes
  • Industry Report - Industry Key Buyers Chapter

    The industry displays low market share concentration, with the four largest players accounting for less than 40% of revenue. The industry is highly fragmented, with sole proprietors or companies that employ fewer than 20 staff making up most enterprises. Only 3.0% of businesses employ more than 20 people. Most industry players generate revenue between $200,000 and $2.0 million, with only 6.5% earning over $2.0 million. Industry concentration has fallen over the past five years, largely due to falling store numbers among the industry's largest player. Several of Retail Food Group's Donut King franchises have closed over the past five years due to unsatisfactory leases or unsuitable premises...purchase to read more.

    Additional Insights for the Bread and Cake Retailing Industry

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

  • Having a clear market position
  • Production of goods currently favoured by the market
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Consumer sentiment index and Real household disposable income in the Bread and Cake Retailing industry impact industry performance..

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    What's in this report

    What is the Bread and Cake Retailing Industry?

    Industry retailers sell a range of baked goods including bread, cakes, pastries and biscuits. Industry players may operate independently or as part of a franchise network. Products are made off-premises, purchased from wholesalers or supplied by franchise parents.

    Industry Products
  • Bread
  • Cakes
  • Pastries and other bakery products
  • Mixes
  • Industry Activities
  • Biscuit retailing
  • Bread retailing
  • Cake retailing
  • Pastry retailing
  • Other bakery item retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer sentiment index
  • Real household disposable income
  • Domestic price of sugar
  • Domestic price of wheat
  • Health consciousness

  • Current Performance
  • Consumer spending
  • Retail landscape
  • Competition
  • Input costs
  • Chart: Revenue Growth

  • Industry Outlook
  • High-value products
  • Trading landscape
  • Purchase costs
  • Table: Bread and Cake Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bread and Cake Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Bread Production
  • Cake and Pastry Manufacturing
  • Cereal, Pasta and Baking Mix Manufacturing
  • Chocolate and Confectionery Manufacturing
  • Dairy Produce Wholesaling
  • General Line Grocery Wholesaling

  • Products & Services
  • Cakes
  • Pastries and other bakery products
  • Bread
  • Mixes
  • Chart: Bread and Cake Retailing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Highest household income quintile
  • Fourth household income quintile
  • Third household income quintile
  • Second household income quintile
  • Lowest household income quintile
  • Chart: Major Market Segmentation for the Bread and Cake Retailing 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 Bread and Cake Retailing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bread and Cake Retailing Industry

  • Industry Globalization
    Retail Food Group Limited, Breadtop Pty Ltd,
  • Table: Retail Food Group Limited - financial performance
  • Table: Breadtop Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Bread and Cake Retailing 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 and Cake Retailing Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • Handmade, individually shaped bread that is free from chemicals or additives.
  • Gluten-Free
  • Products that do not contain gluten, which is a protein composite found in wheat, barley and rye.
  • Pastries
  • Sweet or savoury products made using pastry as a major ingredient, such as meat pies or sweet tarts.
  • What Our Customers Say

    Why buy this report?

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

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