Bread and butter: Rising health consciousness and continued market saturation will temper growth

The Bread Production industry in Canada has grown moderately over the five years to 2018, with steadily growing export sales and strong demand for the industry's higher-end varieties partly offset by stagnating domestic consumption of wheat products. Despite major efforts to reinvigorate the bread market, the industry has endured decelerating domestic demand from several key downstream markets during the previous five-year period mainly due to the recent health trends discouraging consumption of bread. Over the five years to 2023, shifts in health consciousness and consumer preferences are likely to continue affecting the industry's product mix, as operators increasingly focus on expanding their portfolio of nutritious, specialty and artisanal more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Shifts in health consciousness and consumer preferences are likely to continue affecting the industry’s product mix
  • Wheat prices have collapsed, lowering purchase costs and helping profit margins rebound
  • Healthy eating trends will continue to drive bakeries to market artisanal and specialty items
  • Industry Report - Industry Key Buyers Chapter

    The Bread Production industry in Canada is characterized by a medium level of concentration, in which the two largest operators are expected to generate an estimated 58.3% of industry revenue. Only two operators, Grupo Bimbo (Canada Bread Co.) and George Weston Ltd., have a national presence, while the remaining 2,558 companies operate on a regional or local level. Most of these smaller companies are retail bakeries with only one location and less than four employees. Indeed, an estimated 50.6% of industry establishments have a workforce of fewer than 10 employees, while commercial bakeries with more than 20 employees account for just 26.5% of industry operators, despite generating majority of industry revenue...purchase to read more.

    Additional Insights for the Bread Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bread Production Industry are

  • Ability to pass on cost increases
  • Supply contracts in place for key inputs
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and grocery stores and Demand from food services and drinking places in the Bread Production industry impact industry performance..

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    What's in this report

    What is the Bread Production Industry?

    This industry manufactures bread and bakery products, such as cakes, muffins, croissants, pies and other similar baked goods. Operators sell these products to downstream supermarkets, convenience stores and food service providers. Many bakeries also sell their products directly to the public.

    Industry Products
  • Classic packaged bread
  • Specialty and premium bread
  • Buns, bagels and rolls
  • Fresh and frozen baked desserts
  • Industry Activities
  • Manufacturing rolls, bagels, buns
  • Manufacturing doughnuts
  • Making bread for distribution or resale
  • Manufacturing nonfrozen cakes, pastries and pies
  • Manufacturing other pastries
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets and grocery stores
  • Demand from food services and drinking places
  • World price of wheat
  • Canadian effective exchange rate index
  • Per capita disposable income

  • Current Performance
  • Global influences
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Improving profit
  • Consumer trends
  • Table: Bread Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bread Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Supermarkets & Grocery Stores in Canada
  • Convenience Stores in Canada
  • Specialty Food Stores in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Canned Fruit & Vegetable Processing in Canada
  • Chocolate Production in Canada
  • Flour Milling in Canada
  • Syrup & Flavouring Production in Canada

  • Products & Services
  • Classic packaged bread
  • Fresh and frozen baked desserts
  • Buns, bagels and rolls
  • Specialty and premium bread
  • Other
  • Chart: Bread Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Total retail
  • Foodservice and institutional
  • Exports
  • Chart: Major Market Segmentation for the Bread Production 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 Bread Production

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bread Production Industry

  • Industry Globalization
    Canada Bread Company Ltd., George Weston Ltd.,
  • Table: Canada Bread Company Ltd. - financial performance
  • Table: George Weston Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Bread Production 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 Bread Production Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Per Capita Disposable Income (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ancient Grains
  • A group of edible cereal grains that were commonly cultivated prior to the industrial revolution but have since become obscure. Ancient grains do not include wheat, corn, barley, rice or oats.
  • Celiac
  • An autoimmune disorder of the small intestine that renders the body incapable of processing gluten, a protein found in wheat.
  • Commercial Bakery
  • A larger industry establishment that generally produces fresh or frozen bread products in bulk for sale to intermediary wholesalers, retail outlets and foodservice establishments.
  • Gluten
  • A protein found in wheat that gives bread its elasticity, enabling it to rise during fermentation and baking.
  • Leavening Agent
  • Leavening or raising agents are ingredients that give bread a soft, spongy texture. The most common agents are baker's yeast and baking soda.
  • Parbaking
  • A cooking technique whereby a baked good is baked most of the way through then frozen, permitting them to be cooked the remaining duration later for a fresh taste.
  • Retail Bakery
  • A small industry establishment that primarily or exclusively bakes fresh bread products for direct sale to the general public.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Bread Production market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    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 Bread Production:
    • 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 of 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 Bread Production 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 Bread Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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