Thinning down: Demand for healthy products has grown, but competition has dented revenue

Operators in the Bakery Product Retailing industry sell goods such as bread, cakes, rolls, pies and pasties. Confectioners that sell chocolate, toffee, fudge and other sugary items are also included in the industry. The industry has faced difficult conditions over the past five years as the result of changing consumer preferences and increasing competitive pressures from supermarkets, convenience stores and coffee shops. This caused revenue to decline throughout the period. However, higher demand for ready-to-eat meals has driven the sale of sandwiches and bakery snacks such as rolls and scones. Over the five years through 2018-19, industry revenue is expected to decrease at a compound annual rate of 3% to £2.1 billion, including a 1.9% decline in the current more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Despite resilient demand for industry products, external competition has caused revenue to fall
  • Longer work hours have prompted demand for convenient snacks
  • Increasing collaborations between larger retailers and supermarkets are likely to threaten the industry
  • Industry Report - Industry Key Buyers Chapter

    The Bakery Product Retailing industry has a moderate level of market share concentration. IBISWorld estimates the four largest players, Greggs, Patisserie Holdings, Thorntons and Krispy Kreme, to account for 46.4% of industry revenue in 2018-19. Of these, Greggs is by far the largest, with a market share of 36.4% and a store count of approximately 1,850.However, despite the dominance of Greggs in particular, the industry is still fragmented. This is evident in the distribution of enterprises by revenue and employment size. According to the Office for National Statistics, 77.5% of enterprises employed fewer than 10 people in 2017...purchase to read more.

    Additional Insights for the Bakery Product Retailing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bakery Product Retailing Industry are

  • Ability to pass on cost increases
  • Production of goods currently favoured by the market
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Demand from supermarkets in the Bakery Product Retailing industry impact industry performance..

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    What's in this report

    What is the Bakery Product Retailing Industry?

    This industry includes the retail sale of bread and bakery products including rolls, baps and cakes. It also includes the sale of sugar confectionery such as chocolates and sweets in specialised stores. In most instances, bakery product retailers also manufacture their products on the premises. The industry does not include bakery products sold in supermarkets (IBISWorld report G47.110).

    Industry Products
  • Bread and sandwiches
  • Savoury bakery products
  • Rolls and baps
  • Sweet bakery products
  • Speciality and ethnic products
  • Confectionery
  • Industry Activities
  • Bread, roll and bap retailing
  • Sweet and savoury bakery product retailing
  • Sugar confectionery, cake and cookie retailing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Demand from supermarkets
  • Health consciousness
  • Average weekly hours of work
  • World price of wheat

  • Current Performance
  • Changing consumer tastes
  • Competitive pressure
  • Strategies for growth
  • Profit pressures, challenges and smaller operators
  • Volatile input costs and pricing pressures
  • Confectioners
  • Market structure
  • Chart: Revenue Growth

  • Industry Outlook
  • External competition
  • Ready to rise
  • Technology and marketing
  • Market structure and profit
  • Table: Bakery Product Retailing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bakery Product Retailing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Bread & Bakery Goods Production
  • Chocolate & Confectionery Production
  • Dairy Product, Egg & Edible Oil Wholesaling

  • Products & Services
  • Bread and sandwiches
  • Savoury bakery products
  • Sweet bakery products
  • Confectionery
  • Rolls and baps
  • Speciality and ethnic products
  • Chart: Bakery Product Retailing Industry Products and Services Segmentation

  • Demand Determinants
  • Demographics and lifestyles
  • Health consciousness
  • Complementary goods and services
  • Substitutes and pricing

  • Major Markets
  • Consumers aged between 18 and 35
  • Consumers aged between 36 and 50
  • Consumers aged over 50
  • Consumers aged under 18
  • Chart: Major Market Segmentation for the Bakery Product Retailing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Bakery Product Retailing

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bakery Product Retailing Industry

  • Industry Globalization
    Greggs plc,
  • Table: Greggs plc - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Bakery Product Retailing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Bakery Product Retailing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Artisanal Bakery
  • A bakery specialising in hand-made products produced by a skilled craftsman.
  • Confectioner
  • A shop that specialises in sweet products such as chocolate and toffee items.
  • Own-Label
  • A product packaged and marketed under the name of a particular retailer e.g. a supermarket chain.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Bakery Product Retailing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Bakery Product Retailing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Bakery Product Retailing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Bakery Product Retailing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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