Bread Production in New Zealand - Industry Market Research Report

Late Riser: Likely Return to Growth Despite Competitive Pressures Slicing into the Industry's Crust

Operators in the Bread Production industry have faced numerous challenges over the past five years. Many consumers have shifted towards unpackaged, freshly baked breads, such as sourdough and rye bread, instead of traditional packaged white bread loaves. Therefore, factory-based bread manufacturers have not only contended with a smaller market for bread, but they have also lost market share to competing bread producers, such as hot bread shops, specialty artisanal bakers and the growing number of instore supermarket bakeries. Overall, industry revenue is expected to decline at an annualised 4.2% over the five years through 2022-23, to $805.2 million. Meanwhile, many industry operators have introduced new bread offerings (e.g. gluten-free breads and specialty or artisanal bread products) to retain consumer interest, and to better compete against rival fresh bakers. These products have supported profit margins, with many consumers willing to pay a premium for value-added breads.

Companies in the industry are mainly engaged in manufacturing leavened and unleavened bread from factory premises. Companies that produce bread dough (fresh or frozen), breadcrumbs or par-baked bread are also included. The industry excludes companies that manufacture bread and sell directly to consumers from the same premises.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.