This is marketing research on the bakery products industry and can include information on the background, market structure, definitions, competitors, trends and developments of bakery products and is related to other topics such as baking and food.

Table of Contents

1 Market Structure 
2 Market Metrics 
3 Industry Players 
4 Trends and Recent Developments 
5 Sources

Market Structure

The bakery products industry structure is divided into the following general segments:

• 50% - baked breads;
• 20% - muffins, bagels, rolls, croissants, etc;
• 10% - cakes - not ice cream;
• 20% - pastries, doughnuts, pies

According to the Wheat Foods Council, annual consumption of bread alone in the U.S. is about 60 pounds, and this figure does not vary much on an annual basis. Thus, the business is generally non-cyclical and recession resistant.

Market Metrics

In the U.S., bakery products industry revenues in 2006 were just over US $34 billion. Imports of baked goods was a fraction of this, at US $2.7 billion, mostly from Canada and Mexico. Baked goods are generally non-export driven - it's a local industry, although over 130 countries did some trade with the U.S. with baked goods - almost all specialty products.

Countries exporting to the U.S.:
 
Country        Imports           Percent

Canada     $1,394,605,000       (51.29%) 
Mexico       $355,520,000       (13.08%) 
Italy         $90,075,000        (3.31%) 
Germany       $87,603,000        (3.22%) 
Japan         $68,714,000        (2.53%)

The U.S. had imports from 100 countries and exports to 110 countries in 2006. The European bakery products market was valued at Euros 89 billion in 2005, with the 10 largest European manufacturers accounting for 25% of the total market in Europe.

Total shipments of all baked and related goods according to the US Census Bureau data are as follows:

• BREAD/CAKE

Value of shipments: $23.8 billion

Companies: 2,247

Plants: 2,616

Plants (20+ employees): 886

Capital expenditures: $666.3 million

Ingredient/material costs: $7.2 billion

• COOKIE/CRACKER

Value of shipments: $10.4 billion

Companies: 292

Plants: 351

Plants (20+ employees): 147

Capital expenditures: $220.1 million

Ingredient/material costs: $3.1 billion

• SNACK FOOD

Value of shipments: $12.2 billion

Companies: 265

Plants: 338

Plants (20+ employees): 167

Capital expenditures: $357.3 million

Ingredient/material costs: $3.6 billion

• FROZEN PIZZA*

Value of shipments: $1.6 billion

Companies: 24

Plants (20+ employees): 34

Partial statistics a result of Frozen Pizza’s inclusion

within Frozen Specialty Food manufacturing report

• BREAKFAST CEREAL

Value of shipments: $8.9 billion

Companies: 46

Plants: 66

Plants (20+ employees): 47

Capital expenditures: $253.2 million

Ingredient/material cost: $2.3 billion

• TORTILLA

Value of shipments: $1.5 billion

Companies: 271

Plants: 297

Plants (20+ employees): 111

Capital expenditures: $53.2 million

Ingredient/material costs: $550.5 million

• DRY PASTA

Value of shipments: $1.5 billion

Companies: 182

Plants: 193

Plants (20+ employees): 31

Capital expenditures: $51.3 million

Ingredient/material costs: $881.7 million

• CANDY/CONFECTIONERY

Value of shipments: $8.9 billion

Companies: 1010

Plants: 1084

Plants (20+ employees): 177

Capital expenditures: $242.4 million

Ingredient/material costs: $3.1 billion

• PREPARED FLOUR MIXES/DOUGH

Value of shipments: $4.3 billion

Companies: 180

Plants: 220

Plants (20+ employees): 113

Capital expenditures: $129.4 million

Ingredient/material costs: $2.1 billion

• FROZEN BAKERY PRODUCTS

Value of shipments: $4.2 billion

Companies: 226

Plants: 259

Plants (20+ employees): 162

Capital expenditures: $179.0 million

Ingredient/material costs: $2.0 billion

Industry Players

In 2005, the US bakery industry consists of

• 2,500 commercial baked goods manufacturers

• Annual revenues of about $25 billion

• 6,500 small retail bakeries

• Annual revenues of about $2 billion

At the high end, the 50 largest commercial baked goods manufacturers control about 75% of the U.S. market. At the low end, the retail bakery products industry is very fragmented.

Top global players in the bakery products include the following:

• Grupo Industrial Bimbo (Mexico)
• Interstate Bakeries Corporation
• Nabisco
• Nestle (Switzerland)
• Sara Lee Bakery Group
• United Biscuits
• Yamazaki Baking (Japan)
• Krogers
• PepsiCo (Frito-Lay)
• Kraft Foods
• Barilla (Italy)
• Gruma (Mexico)
• United Biscuits (UK)

Trends and Recent Developments

Recent increases in corn prices as a result of increased demand for ethanol negatively impacted profit margins for baked goods manufacturers early in 2008 as their raw materials costs increased. Those commodity prices have since decreased as of early 2009. In 2003, the worldwide bakery food market went up by about 8% to approximately US $270 billion.

Sources

US Census Bureau

Company websites