Slow growth for baked goods market - BMi

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Market definitions

The baked foods industry is divided into four categories.

• Bread - This category is divided into white bread, brown bread and whole-wheat bread and includes production from plant bakeries as well as independent bakeries.
  
• Rolls - This category includes hamburger rolls, hotdog rolls and all other buns and rolls. No distinction is made between white and brown rolls.
  
• Speciality Breads - This is all speciality breads produced by the baking industry and incorporates products such as rye bread, pita breads, French loaves and the like.
  
• Baked Confectionery - This category consists of all baked goods other than bread. This includes the likes of muffins, cakes, pastries, biscuits, rusks and other types of confectionery such as doughnuts. All of these are considered sweet goods.

Market trends

Overall, the baked products market showed only limited growth during 2011 and looking further back, this market has been fairly stable. During the base year, there were raw material price increases that pushed the overall cost of product through to retail. This implied relatively high unit prices compared with previous years. Many producers cited this as the main reason for the slow growth in 2011.

• All distribution channels remained fairly stable. Regional distribution is driven predominantly by local production, with many smaller manufacturers in the smaller provinces closing down in recent years and not being replaced. However, the larger manufacturers grew during the base year, bolstering volumes especially within the larger provinces.
  
• The majority of baked products are packaged in plastic bags, while smaller boutique cafes use paper bags. Confectionery is packed primarily into boxes, foam trays and plastic dome trays. Paper usage is expected to grow over the next few years, as more people become environmentally aware and the upper end buyer looks to attractive presentation.

Baked Products Total Market Volume - 2011

Channel Distribution of Baked Products - 2011

Note: Industrial and export volumes are too low, to accurately represent. These channels have been absorbed into wholesale for this report.

Regional Distribution of Baked Products - 2011

Note: Excludes Exports

BMI Research: Consumer Division has the ability to draw on company's established experience in the retail and wholesale sectors, providing a unique and customized solution to understanding consumer behaviour.

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