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

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Changing consumer preference and new product development will lift revenue slightly. For this reason, industry research firm IBISWorld has updated a report on the Bread Production industry in its growing industry report collection.

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Health consciousness and changing consumer tastes are expected to boost revenue slightly

Dynamic health trends, changing consumer tastes and falling demand have hampered growth in the Bread Production industry over the past five years. Popular diets have caused consumers to moderate their consumption of a variety of industry goods while growing consumer preferences for premium varieties shrunk the market for white loaf bread and other conventional bread products. Successful operators proactively responded by introducing more nutritious products to attract health-conscious consumers, as others extended product offerings to include specialty varieties that command a premium price.

According to IBISWorld Industry Analyst Ibrahim Yucel, “Growing health-consciousness and decreased disposable income at the beginning of the five-year period to 2014 has nonetheless curbed demand for industry goods from grocery retailers, the foodservice sector and other key downstream markets.” While this decline in demand was somewhat mitigated since bread is a staple of the American diet, many consumers still traded down to private label products in order to save money due to lower levels of discretionary income. Since private label products are less profitable, the entire industry suffered from 2009 to 2010. In the past three years, however, growing demand for premium products and rapid gains in exports have helped boost industry performance. Industry revenue is expected to increase an annualized 0.2% to reach $39.1 billion in the five years to 2014.

Along with frugal consumer spending, producers have had to contend with America's diverse and ever-changing palate. Some manufacturers developed products to cater to the growing demand for multigrain and gluten-free products. For example, major player Bimbo Bakeries USA introduced Thomas' Bagel thins, while Flowers Foods expanded its Cobblestone specialty breads selection. In addition to product innovations that have reignited demand, prices for several key inputs such as wheat and sugar are expected to stabilize in 2014. Therefore, IBISWorld anticipates industry revenue to grow 1.1% over this year.

“These trends in health consciousness and changing consumer tastes are expected to continue in the next five years as companies continue to expand their portfolio of nutritious and specialty products,” says Yucel. Similar developments in neighboring countries like Mexico and Canada will also drive growth in exports, helping boost the performance of domestic industry participants. As a result, revenue is projected to increase in the five years to 2019.

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

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IBISWorld industry Report Key Topics

Operators in the Bread Production industry manufacture fresh and frozen bread and other baked goods that include cakes, muffins and croissants, but exclude cookies and crackers. Retail and commercial establishments then 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 http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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