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        Bakery Product Manufacturing Industry Profile

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        Excerpt from Bakery Product Manufacturing Industry Profile

        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's largest trading partner for both imports and exports of bakery products, followed by Mexico.

        The US bakery products industry includes about 3,000 commercial bakeries with combined annual revenue of about $32 billion, along with about 6,900 retail bakeries with annual revenue of about $4 billion.

        COMPETITIVE LANDSCAPE

        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 75% of revenue. The retail side of the industry is highly fragmented: the 50 largest companies generate about ...

         
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