Frozen Cake and Pastry Manufacturing in Australia Industry Market Research Report Now Available from IBISWorld

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Over the five years through 2012-13, the Frozen Cake and Pastry Manufacturing industry has defied challenges posed by the global economic downturn, a shift towards value conscious spending and a high level of market saturation. For these reasons, industry research firm IBISWorld has added a report on the Frozen Cake and Pastry Manufacturing industry in Australia to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

The industry has been buoyed by strong brand loyalty commanded by the major companies

Over the five years through 2012-13, the Frozen Cake and Pastry Manufacturing industry has performed remarkably well. According to IBISWorld Industry analyst Suzannah Rowley, “it has defied challenges posed by the global economic downturn, a shift towards value conscious spending and a high level of market saturation”. The industry has been buoyed by the strong brand loyalty commanded by the industry's major companies and its ability to accommodate dramatic shifts in consumers spending by catering to different markets. These factors combined have contributed to the 2.4% annualised revenue growth over the past five years. These factors are also expected to boost revenue 3.0% in 2012-13 to total $582.5 million. The main obstacles to industry performance have been the rise of supermarket private labels and the increase in purchase costs over the past five years. Volatile spikes in prices of key inputs, such as wheat and sugar, were due to supply disruption on the domestic and global markets.

Industry revenue is expected to grow over the next five years. “Overall demand is expected to rise for the industry due to an improvement in economic conditions, rising disposable incomes and positive consumer sentiment”, says Rowley. Sales to non-traditional retail markets such as petrol stations, convenience stores and food service operators are also expected to grow alongside the increasing demand for convenience and the gradual increase in expenditure on cafes, restaurants and hotels. Some of the more lucrative opportunities supporting profit growth over the next five years will include an expansion of niche category products such as organic low-fat frozen pastries or cakes, and the growth of export markets. The main constrains to growth over this period will be the ongoing increase in the market share of private label products sold in supermarkets and increases in production costs owing to unfavourable movements in commodity prices.

The Frozen Cake and Pastry Manufacturing industry in Australia has a high level of market share concentration. While the industry does have a number of small and medium-size players, the majority of the industry's revenue is made by Patties Foods, Sara Lee and Mrs Mac's. The industry has consolidated over the past decade as all major players have expanded through acquisition and product development. Patties Foods in particular has strengthened its position within the market through the acquisition of the Four'N Twenty and Nanna's brands in 2003. Aggressive marketing has also entrenched the market-leading position of many top brands.

For more information, visit IBISWorld’s Frozen Cake and Pastry Manufacturing report in Australia industry page.

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IBISWorld industry Report Key Topics

Businesses in this industry manufacture an array of frozen bakery products, such as frozen cakes and pies.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
International Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Industry Globalisation
Major Companies
Operating Conditions
Capital Intensity
Technology & Systems
Revenue Volatility
Regulation & Policy
Industry Assistance
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.

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Gavin Smith
IBISWorld
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