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Cake and Pastry Manufacturing in Australia Industry Market Research Report Now Updated by IBISWorld
  • USA - English


News provided by

IBISWorld

Jan 24, 2014, 14:00 ET

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IBISWorld Market Research
IBISWorld Market Research

The entrenched position of the major players has enabled them to pass on cost increases during times of unsustainably high input costs.

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Melbourne, Australia (PRWEB) January 25, 2014 -- Changing consumer trends, volatile commodity prices and a saturated market are characteristics of the Cake and Pastry Manufacturing industry in Australia. In addition, rising input prices and intensifying external competitive pressures have posed some serious challenges to the industry over the past five years. However, according to IBISWorld industry analyst Arna Richardson, “the industry has remained resilient, tending to outperform the economy during recessionary years, despite waning consumer discretionary spending.” The entrenched position of the major players, coupled with enviable levels of brand and customer loyalty, has enabled them to pass on cost increases during times of unsustainably high input costs. Sweeping changes in consumption needs and preferences have led to innovation and new product introductions to stimulate demand in a mature and stagnant market.

In the five years through 2013-14, industry revenue is expected to increase at an annualised rate of 2.5% to total $1.6 billion. “However, the 2013-14 growth rate of 1.9% will be lower than in previous years, as heightened competitive pressures and restrained consumer discretionary expenditure takes its toll on the industry,” says Richardson. The industry is characterised by a low level of concentration, reflecting the existence of a large number of small-to-medium operators. Major players include Patties Foods Limited, Associated British Foods plc and McCain Foods (Aust) Pty Ltd.

Over the five years through 2018-19, the Cake and Pastry Manufacturing industry will slowly evolve in line with its changing operating environment. Over the period, companies are expected to promote a widening range of products on the basis of health, wellbeing and convenience. Consumers will be offered new products enriched with fibre, selenium, antioxidants and a growing range of other properties. A simultaneous development will be increasing competitive pressures from supermarkets as they extend their own private-label offerings, particularly in the bakery-goods segment. The move towards artisanal and gourmet foods is also expected to increase competition from retail bakeries, which have posed a threat to branded manufacturers in other parts of the baked goods sector. The growth of convenience stores as a preferred channel for purchases of pies and cakes will benefit industry profitability, given the consolidation of the convenience sector and its beneficial relationships with major players such as Patties.

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

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

IBISWorld industry Report Key Topics

This industry consists of companies engaged in the manufacturing of cakes, pastries and similar bakery products (including frozen products) from either a factory-based premises or home. It does not include those companies that produce and sell their products direct to consumers on the same premises, such as retail bakeries and supermarket instore bakeries.

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.

Gavin Smith, IBISWorld, +61 396553838, [email protected]

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