Bread and Cake Retailing in Australia Industry Market Research Report Now Updated by IBISWorld

Share Article

Bread and cake retailers worked hard for their dough over the past five years due to intense competition. Retail sales have been affected by fluctuations in real household disposable income, consumer sentiment, interest rates and the high price of wheat. Demand has been driven by changing consumer tastes and preferences across a number of bread and cake categories, along with the rising popularity of products that meet dietary requirements, like gluten-free products. For these reasons, industry research firm IBISWorld has updated its report on the Bread and Cake Retailing industry in Australia.

IBISWorld Market Research

IBISWorld Market Research

Independent bread and cake retailers worked hard for their dough over the past five years

The Bread and Cake Retailing industry has faced intense competition over the past five years. This has been due to new entrants like supermarkets, convenience stores and milk bars attempting to boost their share of this market. Competitive trading conditions led to modest annualised growth in industry revenue of 2.3% over the five years through 2012-13. According to IBISWorld industry analyst Claudia Burgio-Ficca, “retail sales during this period were affected by fluctuations in real household disposable income, consumer sentiment, interest rates and the high price of wheat”. Demand was also driven by changing consumer tastes and preferences across a number of bread and cake categories, along with the rising popularity of products that meet dietary requirements, like gluten-free products. Industry revenue is expected to increase by 1.7% to $5.84 billion in 2012-13. The stable rise in sales will be driven by overall growth in consumption. Growth in product availability has been fuelled to some extent by the introduction of instore bakeries across the major supermarket chains, along with increasing consumer awareness about the benefits of eating multigrain bread as opposed to traditional white bread.

Historically, bread and cake retailing was a fragmented industry comprising numerous small-sized, independent operators catering to the local needs of their community. However, concentration levels have undergone considerable change over the past decade. Burgio-Ficca adds, “the entry of supermarkets into bread and cake retailing through addition of instore bakeries altered the mix of players in this industry, with supermarkets effectively muscling-out independent bakeries and smaller franchise retailers”. Market share concentration is thus medium, and industry major players include Woolworths, Wesfarmers and Bakers Delight.

The Bread and Cake Retailing industry in Australia is expected to post modest growth over the next five years. Independent bakers and retailers are expected to combat the competition from supermarkets by introducing fresher, more innovative loaves. They will likely start investing in marketing and advertising campaigns to increase brand awareness by focusing on their points of differentiation such as artisan and specialty breads. Consumer demand during this period will be driven by steady income growth and continued education and social acceptance about the health benefits associated with eating more protein-rich bread varieties such as brown, multigrain and rye. The market is expected to remain highly competitive, with supermarkets looking to increase their share of the bread sector by expanding their product lines and stores, and through aggressive promotion.

For more information, visit IBISWorld’s Bread and Cake Retailing report in Australia industry page.

Follow IBISWorld on Twitter: http://twitter.com/#!/ibisworldau

IBISWorld industry Report Key Topics

Retailers in this industry sell bread, cakes, tarts and biscuits. These goods are either made on premises or they are purchased from wholesalers for resale to consumers.    

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.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
Visit website