Carb up: The continued development of healthier bread will aid industry performance

Changing consumer tastes and declining sales volumes for the industry's key product segments have hampered growth for the Bread Production industry over the past five years. Though bread has long been a staple of the American diet, recent health trends have caused consumers to moderate their consumption of industry goods. Moreover, a shift in consumer preferences toward premium varieties of bread has narrowed the market for conventional bread products. Over the five years to 2022, these trends in health-consciousness and consumer preferences are expected to continue changing the industry's product mix, as operators increasingly focus on expanding their portfolio of nutritious and specialty breads...purchase to read more.

Industry Statistics & Market Size
Revenue
$42bn
Annual Growth 12-17
0.9%
Forecast Growth 17-22
Profit
Employment
189,591
Businesses
22,101

Industry Threats & Opportunities

  • Despite major efforts to reinvigorate the bread market, the industry has encountered decelerating demand from several markets
  • Significant merger and acquisition activity has increased market concentration
  • Sales for white loaf bread and dinner rolls have fallen significantly over the past few years
  • 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, $0.19 will be spent on capital in 2017, a slight increase from $0.15 in 2012. 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. Sma...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

  • Ability to pass on cost increases
  • Supply contracts in place for key inputs
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Per capita wheat flour consumption and Healthy eating index in the Bread Production industry impact industry performance..

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    What's in this report

    What is the Bread Production Industry?

    Operators in this industry manufacture fresh and frozen bread and other baked goods that include cakes, muffins and croissants but exclude cookies and crackers. Retail and commercial establishments then sell these products to downstream supermarkets, convenience stores and food-service providers. Many bakeries also sell their products directly to consumers.

    Industry Products
  • White loaf bread
  • Wheat and specialty grain loaves
  • Rolls, bagels and croissants
  • Fresh baked desserts
  • Frozen cakes, pies and other frozen desserts
  • Industry Activities
  • Manufacturing bread for distribution or sale
  • Manufacturing rolls, buns, bagels
  • Manufacturing doughnuts
  • Manufacturing cakes (except frozen), pies and pastries
  • Manufacturing other pastries made from wheat
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita wheat flour consumption
  • Healthy eating index
  • Per capita disposable income
  • Trade-weighted index
  • World price of wheat

  • Current Performance
  • Fluctuating input prices
  • Changing industry structure
  • Health trends and shifting consumer tastes
  • Chart: Revenue Growth

  • Industry Outlook
  • Consumer trends
  • Changing industry structure
  • 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
  • Supermarkets & Grocery Stores
  • Convenience Stores
  • Specialty Food Stores
  • Food Service Contractors
  • Street Vendors
  • Consumers

  • Key Selling Industries
  • Baking Mix & Prepared Food Production
  • Canned Fruit & Vegetable Processing
  • Dairy Product Production
  • Flour Milling
  • Margarine & Cooking Oil Processing
  • Sugar Processing

  • Products & Services
  • Rolls, bagels and croissants
  • Other
  • Wheat and specialty grain loaves
  • Fresh baked desserts
  • Frozen cakes, pies and other frozen desserts
  • White loaf bread
  • Chart: Bread Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Supermarkets and grocery stores
  • Foodservice and institutional customers
  • Local bakeries (direct to consumer)
  • Convenience stores
  • Exports
  • Other
  • 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
  • Profit
  • Purchases
  • Wages
  • Transportation and distribution costs
  • Depreciation
  • Marketing
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Bread Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bread Production Industry

  • Industry Globalization
    Grupo Bimbo SA, Flowers Foods Inc.,
  • Table: Grupo Bimbo SA - financial performance
  • Table: Flowers Foods Inc. - 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 (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)
  • Per Capita Wheat Flour Consumption (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Ancient Grains
  • A group of edible cereal grains that were commonly cultivated prior to the industrial revolution but have since become obscure. Ancient grains do not include wheat, corn, barley, rice or oats.
  • Celiac Disease
  • An autoimmune disorder of the small intestine that renders the body incapable of processing gluten.
  • Gluten
  • A protein found naturally in wheat that gives bread its elasticity, enabling it to rise during fermentation and baking.
  • Leavening Agent
  • Ingredients that give bread a soft, spongy texture. The most common agents are baker's yeast and baking soda.
  • Parbaking
  • A cooking technique in which a baked good is partially cooked through then frozen, allowing consumers to finish cooking the product at home for a fresher product.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Bread Production Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.

    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:
    • 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 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, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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