Bakery Product Manufacturing
Companies in this industry make fresh and frozen bread as well as cakes, pies, and doughnuts. Major companies include Dawn Foods, Flowers Foods, Franz Bakery, and McKee Foods (all based in the US), along with Allied Bakeries (UK), ARYZTA (Switzerland), Grupo Bimbo (Mexico), Weston Foods (Canada), and Yamazaki Baking (Japan).
Because of the perishable nature of bakery products, international trade does not play a major role in the industry. However, disruptions in grain production and trade can have significant effects on global supplies and prices of ingredients. Canada is by far the US' largest trading partner for both imports and exports of bakery products, followed by Mexico, according to IndexBox.
The US bakery products industry includes about 3,000 commercial bakeries with a combined annual revenue of over $30 billion, along with about 7,000 retail bakeries with an annual revenue of about $4 billion.
Demand is driven by consumer preferences and by the extent to which grocery stores choose to operate their own bakeries rather than buy from commercial bakeries. Profitability for individual companies is determined by efficiency of operations. Large companies have scale advantages in procurement, production, and distribution. Small companies can compete by offering specialty goods or superior local distribution services.
In the US, the commercial side of the industry is concentrated: the 50 largest companies generate about 70% of revenue. The retail side of the industry is highly fragmented: the 50 largest companies generate about 20% of revenue, and the typical company operates just one facility.
Products, Operations & Technology
Major products include baked breads, mainly white, wheat, and rye, together with rolls and other bread-types, which account for about 60% of industry revenue.
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms