Bread Production in the US Industry Market Research Report from IBISWorld Has Been Updated

Share Article

While revenue for the Bread Production slumped over the five years to 2013 due to low-carbohydrate diets, demand will return over the next five years as bread manufacturers are forced to accelerate innovation to keep up with changing consumer preferences. For these reasons, industry research firm IBISWorld has updated a report on the Bread Production industry in its growing industry report collection.

News Image
Demand for healthy and specialty breads will thrive, despite volatile commodity prices.

Changing consumer preferences regarding nutrition and falling demand during the recession have hampered growth in the Bread Production industry over the past five years. Popular diets, such as the Paleo and gluten-free diets, have caused consumers to moderate their consumption of this industry's products. Producers have responded by introducing more nutritious products to attract health-conscious consumers. During the recession, demand for bread products from key downstream markets, including supermarkets and convenience stores, declined as per capita disposable income eroded. While the decline was mitigated by the necessity of bread, many consumers traded down to private label products for cost savings. In addition to lower demand, this trade down caused industry revenue to fall at an average rate of 0.3% during the five years through 2013.

Along with changes in demand for bread during the recession, the Bread Production industry has had to keep up with America's diverse and ever-changing palate. According to IBISWorld Industry Analyst Hester Jeon, “Manufacturers have developed products to cater to consumers' growing demand for low-carbohydrate foods, whole grains and gluten-free products.” Companies have successfully attracted these health-conscious consumers by introducing products such as low-calorie “sandwich thins” and gluten-free products. IBISWorld estimates that the growth of premium products and higher per capita disposable income will boost revenue by 1.7% in 2013, to total $38.1 billion.

“The industry also faced rising input costs over the past five years; wheat and sugar prices have risen, resulting in tighter profit margins,” says Jeon. Skyrocketing input costs decreased profit margins for firms that were unable to charge higher prices to downstream markets in 2008. Furthermore, input costs are expected to increase in the next five years, eroding firms' profit margins.

In the five years through 2018, consumers will continue to become more health conscious. In response, companies will continue to innovate and introduce nutritious bread. Similarly, increasing health concerns in neighboring countries will drive growth of industry exports. Also, portable products will be designed to appeal to on-the-go consumers. As a result of meeting changing consumer trends, revenue is projected to grow in the five years to 2018. Despite increasing revenue,

For more information, visit IBISWorld’s Bread Production in the US industry report page.

Follow IBISWorld on Twitter:!/IBISWorld
Friend IBISWorld on Facebook:

IBISWorld industry Report Key Topics

Firms within this industry manufacture fresh and frozen bread and baked goods, including cakes, muffins and croissants but excluding cookies and crackers. Retail and commercial establishments sell these products to downstream supermarkets, convenience stores and food-service providers. Many bakeries also sell their products directly to the public.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.

Recognized 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 US 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 Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
+1 (310) 866-5042
Email >
Visit website