Industry Analysis & Industry Trends
The consumption of white loaf bread and other processed baked foods has declined drastically over the past five years, while increasing prices for key inputs such as wheat and sugar has placed downward pressure on demand for goods in the Bread Production industry. However, despite the challenges that operators in the industry encountered, revenue is expected to grow as the economy improves, per capita income increases and key input prices stabilize. Revenue growth will also be aided by increased production of healthier bread varieties and broader specialty product selections that address changing consumer tastes will also aid revenue growth... purchase to read more
Industry Report - Industry Investment Chapter
The Bread Production industry has a medium level of capital intensity. Using wages as a proxy for labor and depreciation as a proxy for capital, IBISWorld estimates that for every dollar spent on labor in the industry, $0.25 will be spent on capital in 2015, a significant increase from $0.17 in 2010. Capital investments have increased over the past five years as the top producers invested heavily in new machinery to produce a greater variety of products. Large bread manufacturers use machines and specialized equipment to mix ingredients and portion out dough. Conveyor belts are also used to transport products through each stage of the automated production process.
Most bread producers operate on a limited scale and serve local or regional areas... purchase to read more