Australia is a country located in the Asia-Pacific region as the world's largest island and smallest continental country. With a population of 25.7 million, Australia is a developed country that attaches importance to stability with its policy of establishing bilateral, regional and multilateral relations on the basis of values guided by strategic, economic and political interests. Australia is considered the country with the second highest standard of living in the world, following Norway in the context of OECD living standards index data. Australia's economic and trade policies are highly liberal, highly resilient against international crises and extraordinary natural events.
Australia the market size, measured by revenue, of the Bread Production industry is $2.8bn in 2022. The market size of the Bread Production industry is expected to increase 2.3% in 2022. The market size of the Bread Production industry in Australia has grown 0.2% per year on average between 2017 and 2022.
How has the Bread Production industryperformed compared with other Australian industries over the past five years? The market size of the Bread Production industry in Australia grown slower than the economy overall.
How has the Bread Production industry in Australia performed compared with the Manufacturing sector in Australia? The market size of the Bread Production industry in Australia grew slower than the Manufacturing sector overall.
The Bread Production industry in Australia is the 50th ranked Manufacturing industry by market size and the 303rd largest in Australia.
What factors affect growth of the Bread Production industry in Australia? The primary negative factor affecting this industry is high competition, while the primary positive factor is low imports.
There are great opportunities for growth in the Bread Production industry in Australia. A growing proportion of the industry's products is being sold to food-service companies. Caterers, hotels, restaurants and cafes use products, such as freshly baked breads, premium breads, muffins, frozen dough and breadcrumbs. Due to strong competitive pressures in the supermarket segment, bread manufacturers are refocusing on the food-service sector through a growing array of chilled, par-baked and artisan bakery products. This has provided an opportunity for revenue growth. Demand from catering services is expected to decrease in 2020-21 following the outbreak of COVID-19 in 2019-20.
The industry produces leavened and unleavened bread from factory-based premises. Companies that produce bread dough (fresh or frozen), breadcrumbs or par-baked bread are also included. Businesses that bake and sell bread from the same premises are not included in the industry.
The initial outbreak of COVID-19 encouraged many Australian consumers to stockpile pantry and freezer supplies, possibly causing a short-term spike in demand for industry products that can be stored in the freezer, including par-baked bread products.
Industry operators that predominantly service the hospitality industry have been adversely affected by a fall in demand as cafes and restaurants temporarily closed or were limited to takeaway service during national or regional COVID-19 lockdowns.
A renewed interest in home cooking and baking among house-bound consumers has seen many consumers turn to home-baked bread, including sour-dough breads, which may place downward pressure on demand for factory-produced bread.
The companies holding the largest market share in the Bread Production in Australia industry include Goodman Fielder Pty Limited and Food Investments Pty Limited.
Bread Production in Australia trends
Operators in the Bread Production industry have faced numerous challenges over the past five years, similar to other high-carbohydrate food-related industries. Increased availability of substitute foods and changing dietary and lifestyle trends have posed significant threats to industry sales and revenue growth. Fluctuating commodity prices have placed additional pressure on production costs and constrained manufacturers' profit margins. In addition, ongoing price wars between the major supermarkets have increased industry competition over the period. Supermarkets have also rolled out more instore bakeries, bringing extra competition and adding to downward price and volume pressures for industry operators.
Bread Production in Australia industry outlook
The Bread Production industry's performance over the next five years will likely be strongly linked to industry operators providing innovative products that cater to changing consumer tastes and growing demand for healthier options. Increasing health consciousness is forecast to drive product innovation, with industry operators anticipated to release a growing range of multigrain- and wholegrain-based breads. Industry firms will also likely introduce more low-carbohydrate breads positioned as healthier alternatives to traditional breads. Other premium and health-targeted products, such as fortified breads, gluten-free, keto or paleo loaves, low calorie and high protein breads, are also forecast to help drive revenue growth over the period.