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

Share Article

Tough conditions are expected to reverse in the next five years as disposable income will increase quickly, leading to further increases in demand from retailers such as supermarkets, grocery stores and restaurants. For these reasons, industry research firm IBISWorld has updated a report on the Bread Production in Canada industry in its growing industry report collection.

News Image
A spike in the price of key inputs has hurt profit margins for industry operators

The Bread Production industry has grown slightly in the past five years. Disposable income has grown, pushing up demand for bread from consumers at grocery stores and food service establishments. In turn, these sectors demanded more bread from industry bread producers, leading to an increase in revenue. IBISWorld estimates that revenue has increased in the five years to 2015.

Although revenue has grown in the Bread Production industry, profit margins have shrunk. Profit is determined largely by the price of inputs such as wheat and sugar, which affect overall purchase costs. Industry operators typically have a hard time passing on price increases to customers, and therefore, the rise or fall of input prices often determines industry profit margins. IBISWorld Economic Analyst Antal Neville says in the updated report "as global demand for grain crops has increased in the past five years, wheat prices have grown and, as a result, industry profit margins have shrunk, further hurting companies in the industry." As a result of declining profit margins, many companies have opted to exit the industry. Consolidation has been a significant trend during the past five years. For example, Mexican bakery giant Grupo Bimbo purchased industry major player Canada Bread Company in an effort to generate cost savings by creating economies of scale.

These tough conditions are expected to reverse in the next five years. "Disposable income will increase more quickly, leading to further increases in demand from retailers such as supermarkets and grocery stores, as well as from restaurants," Neville says in the updated report. In addition, industry operators are expected to provide products that cater to the increasing number of consumers who have switched to gluten-free options. This dietary trend has boomed in recent years, and it shows no sign of waning. More companies will develop product lines that include gluten-free options, resulting in industry revenue growth in the five years to 2020. Increasing import penetration, however, especially from the United States, is expected to temper revenue growth.

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

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

This industry manufactures bread and bakery products, such as cakes, muffins, croissants, pies and other similar baked goods. These 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 and Canadian 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.

Share article on socal media or email:

View article via:

Pdf Print

Contact Author

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