Going stale: Rising competition from supermarkets is hurting industry performance

Operators in the industry bake and sell bread and other bakery products, such as cakes and pastries, on the same premises. Most industry enterprises are small-scale operators such as the family-run bakeries and local hot bread shops found in small towns throughout New Zealand. Because many New Zealanders purchase pre-packaged bread and baked goods from supermarkets, the industry effectively competes with the large-scale plant bakeries that supply the national supermarket chains.The performance of the Bakery Product Manufacturing industry has been mixed over the past five years. While the falling cost of wheat reduced input costs over the period, this was largely offset by rising wage costs...read more.

Industry Statistics & Market Size
Revenue
$507m
Annual Growth 13-18
-1.5%
Forecast Growth 18-23
Profit
Employment
5,310
Businesses
1,240
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • The growing popularity of artisanal baked goods has affected the industry's performance
  • External and internal competition are constraining the industry's performance
  • Changing grain consumption trends and intensifying competitive pressures will continue to affect the industry
  • Industry Report - Industry Investment Chapter

    The industry has a low level of capital intensity, reflecting the existence of a sizeable number of small bakeries and hot bread shops and the labour-intensive nature of manufacturing hand-crafted bread and gourmet bakery products. IBISWorld estimates that for every dollar invested in capital, $14.64 is spent on labour. This ratio is double that of the rival Bread Production industry, reflecting the higher skill base and labour intensity required to produce premium breads like hand-made, slow-fermented sourdough breads. Some bakeries in the industry use premixes and concentrates to lower labour costs.The capital costs involved in setting up small craft bakeries are relatively low. Cap...purchase to read more.

    Additional Insights for the Bakery Product Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bakery Product Manufacturing Industry are

  • Supply contracts in place for key inputs
  • Ability to pass on cost increases
  • Production of premium goods/services
  • IBISWorld analysts also discuss how external factors such as Domestic price of wheat and Demand from bread production in the Bakery Product Manufacturing industry impact industry performance..

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    What's in this report

    What is the Bakery Product Manufacturing in New Zealand Industry?

    Firms in the industry primarily bake and sell bread and other bakery products, such as cakes and pastries, on the same premises. The industry does not include bread and other baked products made in factories. The industry also excludes cafe-style operations where food is served for on-premises consumption.

    Industry Products
  • Breads
  • Cakes
  • Pastries and pies
  • Other bakery products
  • Industry Activities
  • Manufacture and sale of bread from the same premises
  • Manufacture and sale of other bakery products from the same premises, including cakes, pastries and pies
  • 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 bread production
  • Real household disposable income
  • Demand from supermarkets, grocery stores and convenience stores
  • Health consciousness

  • Current Performance
  • Changing consumption trends
  • External competitive threats
  • Low profitability
  • Chart: Revenue Growth

  • Industry Outlook
  • Fight for survival
  • Changing product offerings
  • Table: Bakery Product Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bakery Product Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Cafes and Restaurants in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Cereal, Pasta and Baking Mix Manufacturing in New Zealand
  • Fruit and Vegetable Processing in New Zealand
  • Grain Growing in New Zealand
  • Tea, Coffee and Other Food Manufacturing in New Zealand

  • Products & Services
  • Breads
  • Cakes
  • Pastries and pies
  • Other bakery products
  • Chart: Bakery Product Manufacturing 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 Bakery Product 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 Bakery Product Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bakery Product Manufacturing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Bakery Product 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 Bakery Product Manufacturing Industry
    Includes:
  • 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
    Artisan Bread
  • Specialty bread manufactured using traditional methods and recipes.
  • Fortified Bread
  • Bread with ingredients added to increase its nutritional value. Added nutrients can include iron, omega-3 or folate.
  • Plant Bakery
  • Bread production facilities where bread is manufactured on an industrial scale.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Bakery Product Manufacturing in New Zealand 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 Bakery Product Manufacturing in New Zealand:
    • 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 Bakery Product Manufacturing in New Zealand 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 Bakery Product Manufacturing in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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