Frozen Cake & Pastry Manufacturing in the US Industry Market Research Report Now Available from IBISWorld

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Though the industry performed well during the recession thanks to its products' relatively cheap prices, sales melted away once consumer spending returned and freshly made products regained their competitive edge; however, operators are responding by expanding their portfolios to include healthy options with high-quality ingredients, setting the stage for strong growth over the next five years. For these reasons, industry research firm IBISWorld has added a report on the Frozen Cake & Pastry Manufacturing industry to its growing industry report collection.

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Operators have responded to competition by introducing healthier, higher-quality products

The Frozen Cake and Pastry Manufacturing industry experienced a variety of flavors over the past five years. Industry revenue grew strongly in 2008 and 2009 as the recession and the dip in disposable incomes spurred customers to opt for inexpensive comfort foods instead of eating out. However, as unemployment fell and disposable incomes rebounded, challenges surfaced. Sales of frozen cakes and pastries began to melt away as consumers loosened up their purse strings, splurging on pricier fruits and freshly baked cakes instead. This trend contributed to an average revenue decline of 0.8% per year to total $5.1 billion in 2013. According to IBISWorld industry analyst Agiimaa Kruchkin, “To counter the difficulties, operators responded to shifting consumer preferences via product innovation, focusing on the use of higher quality, healthier ingredients.” Consequently, in 2013, industry revenue is expected to rebound 4.5%, especially because frozen cakes and pastry products will remain an attractive indulgence to time-poor individuals.

Profit margins also grew during the recession, especially as the price of wheat, a key input, plummeted. However, industry profit suffered once revenue started to decline and commodity prices returned to growth. Complicating the matter, operators were unable to pass on the full increase in input cost through higher prices because consumers remained price-sensitive. With profitability on the decline, some players were forced to exit the industry, allowing major players like Schwan and ConAgra to expand their market share. “With the economy showing more stability, though, disposable income has increased and quality has become a larger demand factor, giving companies more leverage to raise prices on premium frozen cakes and pastries because consumers are willing to pay more for high-quality products,” says Kruchkin. Therefore, profit is estimated to expand in 2013 and over the next five years, encouraging new players to enter the Frozen Cake and Pastry Manufacturing industry and, in turn, keeping market share concentration low.

During the five years to 2018, consumers are expected to benefit from a recovering economy and growing disposable income, which will enable them to indulge in premium-priced organic fruits and fresh cakes. This competition will hurt demand for frozen cakes and pastries and, therefore, dampen revenue growth. At the same time, though, the improving economic conditions will drive demand for premium-priced frozen cake and pastry products as well, which will be a major growth segment. Furthermore, as more Americans return to work and have less time to bake desserts, they will opt for the convenience of frozen cakes and pastries, buoying revenue. For more information, visit IBISWorld’s Frozen Cake & Pastry Manufacturing in the US industry report page.

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IBISWorld industry Report Key Topics

This industry manufactures an array of frozen bakery products, such as cakes, doughnuts and pies. Frozen bakery products like bread an cookies are excluded from this industry.

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.

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Gavin Smith
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