Bread & Bakery Goods Production in the UK Industry Market Research Report Now Updated by IBISWorld

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After a long period of declining consumption, the Bread & Bakery Goods Production industry is now one of the most dynamic industries in the food manufacturing sector as changes in consumer lifestyles and increased awareness of health and nutrition brought changes to the industry’s production landscape. Over the next five years, the industry is forecast to remain robust as busy lifestyles and health and convenience concerns drive new product introductions.

IBISWorld industry market research
Continuing product innovation is keeping baked goods in high demand

After a long period of declining consumption, the Bread & Bakery Goods Production industry is now one of the most dynamic industries in the food manufacturing sector. Despite minor impediments caused by low-carbohydrate fad diets such as the Atkins Diet, bread remains firmly entrenched in about 99% of UK households as a staple grocery. However, changes in consumer lifestyles and increased awareness of health and nutrition brought changes to the industry's production landscape. According to IBISWorld industry analyst Patrick Ross, “the emphasis on healthy eating has caused a move away from traditional sliced white bread to wholegrain and seeded varieties that have less sodium and higher fibre”. Unprecedented volatility in the price of wheat has affected the prices received by producers and dampened profitability. Despite the challenges from in-store bakeries and own brands, the market leaders have managed to perform well and realise consistent sales growth by innovating carefully. In the five years through 2012-13, industry revenue is expected to increase at a compound annual rate of 4.8% to £6.8 billion. Revenue is anticipated to grow by a negligible 0.1% in the current year.
Over the next five years, the industry is forecast to remain robust, thanks to the introduction of new products. Producers will be preoccupied with raising enough money to allow them to invest in product research and development. Ross adds, “busy lifestyles, health and convenience concerns will continue to determine new product introductions and the type of strategy producers follow”. The economy is forecast to improve, leading to a resurgence of consumer confidence and spending. This will bode well for sales of branded goods and gourmet pies, organic bread and fortified bakery foods. Own-brand products and healthy alternatives will continue to present a threat. Commodity prices are expected to show less volatility over the next five years, although the price of wheat is expected to increase overall. This is expected to weigh on profitability during the period. Over the five years through 2017-18, industry revenue is expected to continue to grow but at a lesser rate than in the previous five years.
The Bread & Bakery Goods Production industry is estimated to have a medium level of market share concentration, with the top four players generating 60.1% of industry revenue. The UK market is dominated by industrial or plant-manufactured products that are expected to account for more than three-quarters of all bakery products sold in the country. Major companies include Associated British Foods, Premier Foods and Warburtons.

For more information on the Bread & Bakery Goods Production industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

This industry includes companies that make bakery products such as bread, rolls, pastry, cakes, pies, tarts, pancakes and waffles. It excludes the production of dry bakery products, pastas and the heating of bakery items for immediate consumption.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & 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
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 many UK industries. 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 London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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Gavin Smith
IBISWorld
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