Cutting off the crust: Changing food consumption patterns have led to revenue declines

The Bread Production industry has faced numerous challenges over the past five years, which have dragged down its performance. Changing dietary and food consumption patterns have significantly affected the industry, as many consumers have reduced their grain or carbohydrate consumption, including breads. Moreover, among the consumers that continue to purchase bread, there is now a growing preference for unpackaged, freshly baked artisanal bread, rather than the traditional factory-baked packaged loaf of sliced white bread. Therefore, not only are factory-based bread manufacturers contending with a smaller market for bread, they are also losing market share to rival bread producers...read more.

Industry Statistics & Market Size
Revenue
$695m
Annual Growth 13-18
-4.8%
Forecast Growth 18-23
Profit
Employment
4,570
Businesses
70

Industry Threats & Opportunities

  • Consumers have been moving away from factory-baked white bread over the past five years
  • Instore supermarket bakeries have contributed to downward price and volume pressures
  • Innovation and ongoing product development are expected to be crucial to the industry’s survival
  • Industry Report - Starting a New Business Chapter

    Entry barriers for the Bread Production industry are low. While the industry’s capital costs are high, with a new plant bakery typically costing more than $10 million, they are not prohibitive. Niche markets for specialty breads, combined with the existence of under-represented regional geographic markets, serve to lower entry barriers. The entry of three new players in both 2014-15 and 2015-16 suggests entry barriers are not insurmountable.Nonetheless, potential new entrants can face barriers stemming from the entrenched positions of the industry’s major players, Goodman Fielder and George Weston. These companies have strong product portfolios comprising some of New Zealand’s best-known bread brands, including Tip Top, Quality Bakers and Vogel’s. As ...purchase to read more.

    Additional Insights for the Bread Production Industry

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

  • Control of distribution arrangements
  • 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, grocery stores and convenience stores in the Bread Production industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Bread Production in New Zealand Industry?

    Firms in the industry are engaged in manufacturing leavened and unleavened bread from factory premises. Companies that produce bread dough (fresh or frozen), breadcrumbs or par-baked bread are also included. The industry excludes companies that manufacture bread and sell directly to consumers from the same premises.

    Industry Products
  • White bread and rolls
  • Other bread and rolls
  • Flat and savoury breads
  • Muffins, crumpets and sweet breads
  • Bread dough and other products
  • Industry Activities
  • Bread production (leavened or unleavened)
  • Bread roll production
  • Breadcrumbs production
  • Bread dough production (fresh or frozen)
  • Fruit loaf production
  • English muffin, panini, bagels and pita bread production
  • 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, grocery stores and convenience stores
  • Demand from catering services
  • Health consciousness

  • Current Performance
  • Profit pressures
  • Intensifying competitive forces
  • New product range
  • Chart: Revenue Growth

  • Industry Outlook
  • Innovation for survival
  • Table: Bread Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bread Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • General Line Grocery Wholesaling in New Zealand
  • Supermarkets, Grocery Stores and Convenience Stores in New Zealand
  • Cafes and Restaurants in New Zealand
  • Catering Services in New Zealand

  • Key Selling Industries
  • Cereal, Pasta and Baking Mix Manufacturing in New Zealand
  • Fruit and Vegetable Processing in New Zealand

  • Products & Services
  • Other bread and rolls
  • White bread and rolls
  • Flat and savoury breads
  • Bread dough and other products
  • Muffins, crumpets and sweet breads
  • Chart: Bread Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and grocery stores
  • Food service industries
  • Exports
  • Route trade
  • Chart: Major Market Segmentation for the Bread Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profitability
  • Purchases
  • Wages
  • Warehousing and distribution costs
  • Selling and marketing expenses
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Bread Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bread Production Industry

  • Industry Globalization
    Goodman Fielder New Zealand Limited, Allied Foods (NZ) Limited,
  • Table: Goodman Fielder New Zealand Limited - financial performance
  • Table: Allied Foods (NZ) Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Bread Production 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 Production Industry
    Includes:
  • 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
    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 Bread Production in New Zealand market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Production 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 Bread Production 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 Bread Production in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

    Contact Us

    Want to speak to a representative? Call us.

    clear