Write an overview of Frozen Cake and Pastry Manufacturing in Australia focusing on sales trends in recent years and what factors might have led to this trend, and the industry outlook.

Write an overview of Frozen Cake and Pastry Manufacturing in Australia focusing on sales trends in recent years and what factors might have led to this trend, and the industry outlook. (200 words)

Provide a company background of Mrs Mac’s (a specific brand appeared on page 46 of the report) (100 words)

According to IBIS statistics, it can be seen that Mrs Mac’s has been stagnant in recent years; do some research (use at least 3 references) to evaluate and provide evidence to justify why Mrs Mac’s products are in a stagnant growth market or exhibiting stagnant growth (300 words)

Requirements:

Instructions

Use the IBIS World report as a reference,

Write an overview of Frozen Cake and Pastry Manufacturing in Australia focusing on sales trends in recent years and what led to this trend, and the industry outlook. (200 words)

Provide a company background of Mrs Mac’s (a specific brand appeared on page 46 of the report) (100 words)

According to IBIS statistics, it can be seen that Mrs Mac’s has been stagnant in recent years; do some research (use at least 3 references) to evaluate and provide evidence to justify why Mrs Mac’s products are in a stagnant growth market or exhibiting stagnant growth (300 words)

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep20231INDUSTRYREPORTFrozenCakeandPastryManufacturinginAustraliaSep2023

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep20233TableOfContents1.About…………………………………………………………………..5Definition…………………………………………………………….5What’sIncluded…………………………………………………5What’sNotIncluded…………………………………………5Companies………………………………………………………….5RelatedIndustries………………………………………………62.Performance……………………………………………………….8Highlights……………………………………………………………8KeyTakeaways……………………………………………………8ExecutiveSummary……………………………………………9PerformanceSnapshot…………………………………..10Volatility…………………………………………………………….16Outlook……………………………………………………………..19LifeCycle…………………………………………………………..203.ProductsandMarkets…………………………………….22Highlights………………………………………………………….22KeyTakeaways…………………………………………………22ProductsandServices…………………………………….23MajorMarkets………………………………………………….26InternationalTrade………………………………………….28Imports………………………………………………………………30Exports………………………………………………………………314.GeographicBreakdown………………………………….33KeyTakeaways…………………………………………………33BusinessLocations…………………………………………..345.CompetitiveForces…………………………………………37Highlights………………………………………………………….37KeyTakeaways…………………………………………………37Concentration…………………………………………………..38BarrierstoEntry……………………………………………….40Substitutes………………………………………………………..42Buyer&SupplierPower…………………………………436.Companies………………………………………………………..47KeyTakeaways…………………………………………………47MarketShare……………………………………………………47Companies………………………………………………………..497.ExternalEnvironment……………………………………..51Highlights………………………………………………………….51KeyTakeaways…………………………………………………51ExternalDrivers………………………………………………..51Regulation&Policy………………………………………..55Assistance…………………………………………………………568.FinancialBenchmarks……………………………………..58Highlights………………………………………………………….58KeyTakeaways…………………………………………………58CostStructure…………………………………………………..59KeyRatios…………………………………………………………629.KeyStatistics…………………………………………………….65IndustryData……………………………………………………65

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep20234AboutAquickdefinitionoftheindustry,itsproductsandservices,majorcompaniesandotherkeyidentifiershelpyouconfirmyou’reintherightplace.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202351.Abouthttps://my.ibisworld.com/au/en/industry/OD5097/aboutANZSIC20061172DefinitionIndustryfirmsmanufacturefrozenbakeryproducts,includingfrozencakesandpies,alongsidefrozenpastry.What’sIncludedxFrozendessertsxFrozensavouriesxFrozenpastryWhat’sNotIncludedxChocolatexSweetbiscuitsxSavourypastriesxPremiumtake-hometubsxSavourybiscuitsandsnacksxTake-hometubsxCakesxSweetpastriesxChocolatebiscuitsxCocoaproductsxTake-homemulti-packsxUnpackagedscoop-and-serveproductsxConfectioneryxOtherproductsxIndividuallypackagedproductsCompaniesxPattiesFoodsxMrsMac’s

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep20236xSaraLeexSargentsPtyLtdxReadyBakePtyLtdRelatedIndustriesIndustriesintheSameSectorxCompetitors:oCakeandPastryManufacturinginAustraliaxComplementors:oIceCreamManufacturinginAustraliaoBiscuitManufacturinginAustraliaoChocolateandConfectioneryManufacturinginAustraliaInternationalIndustriesxGlobalBakeryGoodsManufacturingxFrozenCake&PastryManufacturingintheUSxBread&BakeryGoodsProductionintheUK

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep20237PerformanceTrackhistorical,currentandforward-lookingtrendsinrevenue,profitandotherperformanceindicatorsthatmakeorbreakanindustry.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202382.Performancehttps://my.ibisworld.com/au/en/industry/OD5097/performanceHighlightsRevenue$868.5m2019-24CAGR↑0.4%2024-29CAGR↑0.9%Employees2,5242019-24CAGR↓1.7%2024-29CAGR↓0.7%Businesses2202019-24CAGR0.0%2024-29CAGR↑0.2%Profit$33.0m2019-24CAGR↓8.1%ProfitMargin3.8%2019-24CAGR↓2.1ppKeyTakeawaysxPrivatelabelpressures,competitionfromfresh-baked,unpackagedpies,andrisinghealthconsciousnessamongconsumershaveconstrainedindustrygrowthinrecentyears.Inresponse,frozencakeandpastrymanufacturershaverolledoutinnovativeproductrangestocapitaliseonshiftingconsumerpreferences.xGoingforward,industrymanufacturerswillfocusonhigher-pricedgourmetofferings,newhigher-marginmarketchannelsandongoingmovestoautomateproductionfacilitiesinlinewithimprovementstrategies.However,increasingcompetition,particularlyfromexternalsources,willconstraingrowthopportunities.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep20239ExecutiveSummaryFrozencakeandpastrymanufacturershavefacednumerouschallengesinrecentyears.Changingconsumerdietaryandlifestyletrendshaveworkedagainsttheindustry,assomeconsumershavecutbackonhigh-caloriefoodssuchascakesandpastriesinfavourofhealthiersnackanddessertalternatives.Otherconsumershavemovedawayfromfactory-producedfrozenpiesandpastriesinfavouroffresh,unpackagedproducts.Inaddition,thegrowingpopularityofprivate-labelproducts,whichareprevalentacrossmanyfoodmanufacturingindustries,representsamajorthreattotheindustry.Thistrendhasnegativelyaffectedindustryprofitmarginsovertheperiod,asbusinesseswithbrandedproductshavehadtolowerpricestoremaincompetitive,despiterisinginputcosts.TheCOVID-19pandemichasalsoaffectedtheindustry’sperformance,influencingbothdemandandsupplypatterns.<br/>Inviewofthesechallenges,growthinindustryrevenueisexpectedtobeasoft0.4%annualisedoverthefiveyearsthrough2023-24,tototal$868.5million.Ongoingproductinnovations,includingnew,premiumproductofferingsandnewdistributionchannels,havesupportedthisgrowth.Industryrevenueisexpectedtoclimbby1.2%in2023-24,pushedupbyhigherprices.<br/>Theindustry’sabilitytocatertoconsumers’changingeatingpatternswilldetermineitsperformanceinthecomingyears.Forexample,frozencakeandpastrymanufacturersaresettointroducemoregluten-freeandveganproductofferingstobettercaterfordifferentdietaryrequirements.Businessesareprojectedtofocusonlucrativenichemarketstogenerateadditionalrevenue,withanincreasingrangeofspecialtyfrozenbakedgoodsthattargetthefoodservicesector,includingready-to-bakeandready-to-thawproducts.Ongoingproductinnovationwillbecrucialtocounterintensifyingindustrycompetitionandexternalpressurefromartisanalandin-storesupermarketbakeriesthatofferfresh,gourmetsubstitutes.Despitecompetitivepressures,industryrevenueisforecasttoedgeupwardsbyanannualised0.9%overthefiveyearsto2028-29,tototal$906.7million.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202310PerformanceSnapshot↑2019-24RevenueCAGR+0.4%Revenue:Revenue$868.5m’19-’24↑0.4%’24-’29↑0.9%2024RevenueCAGR↑1.2%RevenueVolatility↑Low

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202311Employees:Employees2,524’19-’24↓1.7%’24-’29↓0.7%EmployeesperBusiness11’19-’24↓1.7%’24-’29↓0.8%RevenueperEmployee$344k’19-’24↑2.1%’24-’29↑1.5%

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202312Businesses:Businesses220’19-’240.0%’24-’29↑0.2%EmployeesperBusiness11’19-’24↓1.7%’24-’29↓0.8%RevenueperBusiness$3.9m’19-’24↑0.4%’24-’29↑0.7%

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202313Profit:TotalProfit$33.0m’19-’24↓8.1%ProfitMargin3.8%’19-’24↓2.1ppProfitperBusiness$150.0k’19-’24↓8.1%

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202314PerformanceSnapshotWhat’sdrivingcurrentindustryperformance?COVID-19exacerbatedalreadychallengingtradingconditionsxChallengingtradingconditionshavecharacterisedtheindustryinrecentyears.Privatelabelpressures,competitionfromfresh-baked,unpackagedpiesandrisinghealthconsciousnessamongconsumershaveconstrainedindustrygrowthovertheperiod.xTheCOVID-19pandemicaddedtotheindustry’schallenges,withthetemporaryclosureoffoodserviceoutletsduringlockdownperiodsleadingtoadramaticdropindemandfromthismarket.xWhileachangeinfoodconsumptionpatternsfromcafesandrestaurantstohomekitchensledtoariseinready-to-thawandready-to-bakefrozenproducts,ashouseboundconsumersstockedtheirfreezerswithnon-perishablefoodsupplies,otherconsumerstookadvantageoftheiradditionaltimeathometobakefreshcakes.PrivatelabelandimportpressuresaddtocompetitivepressuresxIndustrymanufacturershavecontendedwithseveralsupplychainchallengesinrecentyears,whichhaveconstrainedgrowthandaddedtoprofitmarginpressures.xTheincreasingdominanceofAustralia’stwolargestsupermarketshasbeenparticularlydifficultforindustrymanufacturers,withColesandWoolworthsestablishingprivatelabelproductsacrossmanyestablishedcategories,includingfrozencakes,dessertsandpastrysheets.Thesesupermarketshaverecentlyextendedtheserangestoincludegluten-freeoptions.xPrivatelabelproductsaregenerallycheaperthanbrandedproducts,fuellingpricecompetitionandadverselyaffectingprofitmarginsforindustrymanufacturers.xImportedproductsarealsogainingmarketshare,addingtocompetitivepressures.Importsareexpectedtosatisfyover40%ofdomesticdemandin2023-24.InnovativeproductrangesintroducedtowetconsumerappetitesxInresponse,frozenbakerymanufacturersarerollingoutinnovativeproductrangestocapitaliseonshiftingconsumerpreferences,includingcateringtoconsumerswhohavebecomemoreinclinedtocookandeatathome.xSomeindustrymanufacturershaveintroducedsingle-serveormulti-packsnackoptionstomeetchangingconsumerpreferencesandrisinghealthconsciousness.xOthershavelookedtoencourageconsumerpurchaseswithhigh-qualityingredients,includingWagyubeef,slow-cookedpulledpork,RSPCA-approvedchickenandpremiumofferingslikesaltedcaramelpuddings,appleandstickytoffeecrumbles,andminifilledchurros.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202315xOtherfrozenbakerymanufacturershaveintroducedgluten-freeoptions,alongsidemeat-freeandsoy-freesausagerolls.ChannelchangesimplementedtooffsetsaturatedmarketxTheindustry’sdistributionbasecontinuetomovebeyonditstraditionalrelianceonsupermarketfreezerspace,whichhashelptosupportindustrygrowth.xFrozencakeandpastrymanufacturershavefocusedonfoodserviceindustriesinrecentyears,whereinprivatelabelanddeflationarypricingpressuresarelowerrelativetothesupermarketsector.xOthershavetargetedexportmarkets,althoughexportsremainnegligibleasaproportionofindustryrevenue,astransportinglow-valuefrozenproductsoverlongdistancesrequiressignificanteconomiesofscale.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202316VolatilityWhatinfluencesindustryvolatility?ArelianceonseveralchannelshelpslowerdemandvolatilityxTheindustry’sabilitytoaccommodateshiftsinmacroeconomicconditionsandconsumerspendingbehaviourhasbeenvitalinrecentyears.Theindustryproducesarangeoffoodfordifferentmarkets,enablingfrozencakeandpastrymanufacturerstomaintainsalesdespitechangesinconsumersentiment,employmentandincome.xForexample,duringperiodsofweakeconomicgrowth,peopleoftencookathomeratherthaneatout.Thistrendheightensdemandfortheindustry’sfrozenproducts,whicharegenerallyeatenathome.Manyoftheseproductsareconsideredeitherstaplehouseholdfooditemsoranaffordableluxury,makingthemaconvenientandcost-effectivemealoption.VolatilesupplyconditionscontributetoindustryvolatilityxFluctuationsinthecostofrawmaterialsandenergyandoilpricesmaycreatevolatilesupplyconditions.Commoditieslikecerealgrains,flour,sugar,flavourings,processedmeats,vegetablesandvegetableoilsareprimaryinputsintheproductionprocessandanymarkedpricechangesimpactindustrysupply.xThesecommodities’priceshavefluctuateddramaticallyinrecentyears.Inparticular,thepriceofwheathasbeenhighlyvolatile.xWhileindustrymanufacturersmayseektoraisepricestocoverhigherinputcosts,thehighlycompetitivepricingenvironmentcharacterisingtheindustrymeansthatthisdoesnotalwaysoccur.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202317

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202318Howdosuccessfulbusinessesovercomevolatility?PassoncostincreasesFrozenbakerymanufacturersmustbeabletopassonanysustainedrisinginputpricestoremaincompetitive.Volatilepricesforinputssuchassugar,flourandmeatcansubstantiallyaffectprofitmargins.EstablishsupplycontractsforkeyinputsManufacturersmustlockincontractswithsupplierstominimisevolatilityduetoupstreampriceshifts.Firmsmustavoidsupplychainissuestoguaranteeproductiondeadlines.SecureeconomiesofscaleSuccessfulfrozenbakerymanufacturershaveexpensiveandsophisticatedproductionsystemsthatdrivelabourproductivityandreduceper-unitproductioncosts.Large-scaleindustrymanufacturershavesignificantcostadvantagescomparedwithsmallercompetitors.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202319OutlookWhat’sdrivingtheindustryoutlook?FavourablegrowthdriverswillsupportgrowthxSoftgrowthisforecastfortheindustry,supportedbythecontinuingpopularityoffrozenpastrystaples,especiallyasthehumblemeatpiehasnowbeenreinventedtoincludewine-infusedingredientsandplant-basedfillings.xOpportunitiesinnichemarketsandthecontinuedrolloutofgourmetproductofferingswilldriveindustrygrowth.Astheseproductsareoftensoldatapremium,thistrendwillbolsterindustryprofitabilityandhelpfirmsrecovermarketsharethattheyhavelosttoprivate-labelproducts.xModestgrowthinrealhouseholddisposableincomeoverthenextfiveyearswillsupportdemandforfrozenpastriesandcakes,particularlyproductspurchasedastakeawayitems.Growingconsumerdemandforconvenienceandincreasingrelianceonon-the-gomealswillalsosupportthistrend.ExternalthreatswillconstraingrowthopportunitiesxExternalcompetitionfromartisancakemakers,franchisedbakerychains,hotbreadshopsandin-storesupermarketbakerieswillconstrainindustryrevenuegrowth.xTheserivalswillincreasinglycatertoconsumersseekingfresh-bakedandartisanal-stylegoods,insteadofindustriallyproducedfrozenproducts.xAtthesametime,private-labelfrozenpastryandcakeproductsaresettoundercutbrandedproductsanderodebrandloyalty,minimisinggrowthopportunitiesformanyoftheindustry’slargerplayers.xImportsarealsoforecasttogainfurthermarketshare.ProductlineextensionstoenticeconsumersxIndustrymanufacturersaresettoextendproductlinestocounterintensifyingcompetitivepressures.Higher-qualityandgourmetingredientswillhelpdifferentiatebrandedproductsfromlower-qualitygenericproductsandfreshlybakedgoods.xManufacturerswillalsorolloutanincreasingrangeofsingle-serveorbite-sizeproductstoenticehealth-consciousconsumers.Othersaresettocatertobusyconsumers,asadvancesinpackagingallowforagrowingrangeofmicrowaveableorinstantsingle-servemeals,treatsorsnacks.xIncreasinghealthconsciousnesswillencouragenewlow-fat,reducedsaltandcholesterol-freeproducts,oruseall-natural,organicorplant-basedingredients.Theincreasingpopularityofgluten-freeandfunctionalfoodswillhelpcreatenichemarkets.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202320LifeCycleWhyistheindustrymature?ContributiontoGDPTheFrozenCakeandPastryManufacturingindustryisinamaturelifecyclephase,demonstratedbyitsweakgrowthinindustryvalueadded,whichislaggingthatofthebroadereconomy.MarketSaturationTheindustryischaracterisedbyitsmatureandsaturatedmarketandthewholeheartedacceptanceofitsproductsbyconsumers.ProductslikeFour’NTwentypiesandSaraLeecheesecakesarestaplesinmanyAustralianhomes.InnovationSeveralindustrymanufacturersareundertakingproductinnovationandproductlineextensionstocompetewithprivatelabels,growbrandloyaltyandcatertochangingconsumerpreferences.Nichemarkets,includinglow-fat,premiumgourmetandfortifiedfoodranges,representnewgrowthopportunities.ConsolidationConsolidationtrendscurrentlycharacterisetheindustry,witheventheindustry’smajorplayerschanginghands.FollowingMcCainFoods’recentdivestmentofSaraLeeHoldingstoNewZealand-basedprivateequity,PattiesFoodsPtyLimitedhasbeensoldbyitsprivateequityowner.Technology&SystemsInnovationsinfreezingtechnology,whichallowsproductstoretaintheirfreshnessandpremium-qualitycharacteristics,areenablingnewrangesofready-to-eatpastryitemstargetedatconsumers,alongsidenewready-to-thawandready-to-bakefrozenproductsgearedtowardsvariousfoodserviceindustries.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202321ProductsandMarketsFindoutwhattheindustryoffers,wheretradeismostconcentratedandwhichmarketsarebuyingandwhy.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep2023223.ProductsandMarketshttps://my.ibisworld.com/au/en/industry/OD5097/products-and-marketsHighlightsLargestMarket$553.2mFrozensavouriesProductInnovationModerateKeyTakeawaysxTheportionofindustryrevenuederivedfromeachproductcategoryischanginginlinewithchangingdietsandfoodconsumptionpatterns.Changingdistributionchannelsarealsoinfluencingtherelativeimportanceofeachproductsegment.xTheindustryhasmovedtowardsawiderdistributionbaseoverthepastdecade.Thishasoccurredasfrozencakeandpastrymanufacturershavegraduallymovedawayfromtheirtraditionalrelianceonthegrocerychannel,infavourofnewhigher-marginmarkets.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202323ProductsandServicesHowaretheindustry’sproductsandservicesperforming?FrozensavouriesgoupmarketxProductsinthefrozensavouriessegmentincludemeatpies,pasties,sausagerolls,quichesandothersavouryfingerfoods.Manyoftheseproductsareconsideredstaplefoodsandcontinuetoperformwell,despiteconsumerpreferencesshiftingtowardshealthierandmorepremiumoptions.xThissegmenthasgrownasaproportionofrevenueovertheperiod,asfrozenpastrymanufacturerscontinuetodevelopnewproductstokeeppacewithconsumerpreferences.Forexample,meatpieshavebecomemoregourmet,withoptionsincludingWagyubeefandThairedcurry.xRobustsalesgrowthofsingle-serveportionshasalsocontributedtothefrozensavouriessegmentexpandingasashareofrevenue.Frozendessertsarere-positionedasindulgentsnacksxFrozendessertsincludecakes,fruitpies,Danishes,strudels,cheesecakesandtarts.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202324xPremiumfrozendessertshaveperformedbetterthanmid-marketproductsinrecentyears,ascompetitionfromsupermarketprivate-labelproductshasbeenlessdetrimental.xManyfrozencakemanufacturersareexpandingtheirrangeoffrozencakesandpastriestomeetdemandfromtheCafesandCoffeeShopsindustryandtheRestaurantsindustry.xOthersarerepackagingandrepositioningdessertsasindulgentsnacks,tohelpcounterconsumersseekingtorestricttheirintakeofhigh-caloriefoods.FrozenpastrybenefitsfromrenewedinterestinhomecookingxFrozenpastryproductsincludefrozensheetpastryandfrozenpastryshellslikequichebases.Productsinthissegmentdifferfromothersegments,astheyaresoldasarecipeingredientratherthanasready-to-eat.xThismeansfrozenpastrycanbesubjecttoconsumerhomecookingtrends,whichhaveundergonearesurgenceinrecentyears,particularlyduringCOVID-19-relatedlockdowns.xFrozenpastrymanufacturershavealsotargetedthefoodservicesectorwitharangeofbakedandunbakedpastryshellsandcupsanddispenser-readyrolledpastry.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202325Whatareinnovationsinindustryproductsandservices?PremiumproductsaredrivinggrowthxWhilethemarketisgenerallysaturated,somegrowthopportunitiesexistforfrozenbakerymanufacturers,especiallyinnichemarkets,includinglow-fat,premiumgourmetandfortifiedfoodranges.xIndustrymanufacturersareinvestingconsiderableresourcestoconvinceconsumerstochoosehealthiersnackoptionsortradeuptoupgradedmeatpies,likethosethatincorporateslow-cookedAngusbeeforaremadewithlocallysourcedcraftbeerorredwine.xOthersarerollingoutanewrangeofplant-basedandgluten-freeofferingstocaterforconsumerswithdifferentdietaryrequirements.Newrangesofspecialtypastryproductsmadewithpremium-qualityingredientsarealsobeingrolledouttofoodserviceoperators.AutomationisallowingformoreefficientproductionprocessesxSeveralofthelargerplayershaveworld-standardtechnologyandsystemsinplace.Severalaspectsofthesupplychain,frombakingtopacking,arenowautomatedandrequirefarlesslabourperproductproducedcomparedwithadecadeago.Thisautomationenablesindustrymanufacturerstoworkatproductivecapacityforupto24hoursperday.xPackagingefficiencyhasimprovedasmanufacturershaveinvestedinnewpackagingequipment,includingcollators,conveyors,spiralchutes,cartondropsandautomatedcasepackers.PattiesFoodshasrecentlyinstalledanewsingle-boxpackingmachine,inlinewiththestronggrowthofsingle-servepiescateringforthegrowingnumberofconsumerseatingonthego.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202326MajorMarketsWhat’sinfluencingdemandfromtheindustry’smarkets?SupermarketsandgrocerystoreshavebeenthetraditionalfocusofindustrymanufacturersxTheindustrymakesmostofitssalesthroughsupermarketsandgrocerystores,whichincludegrocerywholesalersthatonselltosupermarketsandothergrocers,anddirectsales.Supermarketsarethemaindistributionchannelforfrozencakeandpastryproducts.xColesandWoolworthsaretheindustry’slargestcustomersbyrevenue,andhavesignificantnegotiatingpower.ThesesupermarketsarealsopurchasinganincreasingamountofprivatelabelproductsfromAustralianmanufacturers.xThismarket’sshareofrevenuehasfallenovertheperiod,asmanufacturershavefocusedongrowinghigher-marginsalesinalternativedistributionchannels.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202327FoodservicesprovidersrepresentagrowingmarketxFrozenproductsdesignedfortakeawayconsumptionaresoldtocaterers,cafesandrestaurants,accommodationproviders,corporateclientsandgovernmentorganisations.xThismarketisasmallpartoftheindustry,butanimportantandgrowingmarketfornichecakeandpastrymanufacturersthatmakespecialtypastryanddessertproducts.SaraLees’Foodservicedivisionsellstoarangeoffoodserviceproviders,providingquickandconvenientfoodoptionsforcustomers.xThismarkethasexpandedasashareofindustryrevenueovertheperiod.ConveniencestoresandpetrolstationslosegroundxConveniencestoresandpetrolstationsinclude7-Eleven,CaltexStarMart,BPandColesExpress,alongwithcornerstoresandmilkbars.xOn-the-gofoodconsumptiontrendshaveledtomorepetrolstationsandconveniencestorespurchasingfrozenpiestosellasready-to-eatpiesinfoodwarmersovertheperiod.xSomeconveniencestoresalsosellfrozenproductsthatareeatenathome,butdemandfortheseproductsfromconveniencestoreshasdroppedaway.xFallingsalesintheConvenienceStoresindustryhastranslatedintoadropinthismarket’srevenuecontributionoverthepastfiveyears.HouseholdnamebrandsdominatesalestosportsstadiumsandfacilitiesxSeveraloftheindustry’sparticipantssupplyfrozentakeawayproductsatsportsgroundsinAustralia.xForexample,PattiesFoodshasexclusivesupplyrightsatallmajorEastCoastfootballstadiums,includingtheMelbourneCricketGround,Gabba,SydneyCricketGroundandSuncorpStadium.ThesedealsprovidebrandslikeFour’NTwentywithconsiderableexposure.xSalestothismarketsegmenthaverecentlyrecovered,followingasharpdownturnduringCOVID-19lockdowns.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202328InternationalTradeTotalImports$664.0m’19-’24↑3.9%’24-’29↑2.5%TotalExports$19.5m’19-’24↓5.6%’24-’29↑1.2%TradeBalanceNetImporter↓Deficit:$-644.5m

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202329InternationalTrade

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202330ImportsHighIncreasingWhataretheindustry’simporttrends?Importpenetrationratesaretrendingupwards,addingtotheindustry’scompetitivepressuresxIncontrasttotheweakperformancepostedbyindustryexports,industryimportshaveriseninrecentyearswithimportsincreasinginbothabsoluteandrelativeterms.xImportsareexpectedtosatisfynearly45%ofdomesticdemandin2023-24,followingariseinimportpenetrationrates.xThistrendhasaddedtothecompetitivepressuresfacingindustrymanufacturersandfuelledpricecompetition.Keytradingpartnersarescattered,representingamixofoldandnewxAswithexports,importsareoftensourcedfromnearbyregionalmarkets.KeyregionaltradingpartnersincludeNewZealand,MalaysiaandThailand.xProductsarealsosourcedfromAustralia’straditionaltradingpartners,includingtheUK,FranceandtheUS.ThismixofmarketsreflectsthewideandchangingtastesofAustralianswithregardtotheirconsumptionpreferencesforcakesandpastries.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202331ExportsLowDecreasingWhataretheindustry’sexporttrends?TheneedforeconomiesofscalelimitsexportsxWhilefrozencakesandpastriesarelessperishablethantheirfreshcounterparts,firmsrequireeconomiesofscaletotransportlow-valuefrozenproductsoverlongdistances.Thisrequirementhashistoricallylimitedtheextenttowhichfrozencakeandpastrymanufacturersundertakeexportactivities.xNonetheless,industrymanufacturershavebeenattemptingtoovercomeincreasinglocalmarketsaturationandprivatelabeltrendsbyestablishingtheirbrandsabroad.MajorcompanieslikeMrsMac’sPtyLtd,SaraLeeHoldingsPtyLtdandPattiesFoodsarenowexportinglimitedoutputvolumes.xThelowvalueoftheindustry’sproductsmeansexportmarketsareoftenlocatedclosebyandincludeNewZealand,HongKongandSingapore.ExportsfailtogaingroundxDespiteeffortsbythelargerplayerstotargetnearbymarkets,exportshavetrendeddownwardsoverthepastfewyears.xIn2023-24,exportsareexpectedtobenegligible,generatinglessthan3.0%ofindustryrevenue.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202332GeographicBreakdownDiscoverwherebusinessactivityismostconcentratedinthisindustryandwhat’sdrivingthesetrends.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep2023334.GeographicBreakdownhttps://my.ibisworld.com/au/en/industry/OD5097/geographic-breakdownKeyTakeawaysxSimilartotheCakeandPastryManufacturingindustry,frozencakeandpastryproductionisconcentratedalongtheeasternseaboard.NewSouthWales,VictoriaandQueenslandaccountforthemajorityofindustryactivity.xTheneedforeconomiesofscaleinfluencestheindustry’sgeographicspread.ThishelpsexplainthelimitednumberofindustryestablishmentsinTasmania,theAustralianCapitalTerritoryandtheNorthernTerritory.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202334BusinessLocationsLGAEstablishments%Population%NSW36.732.6VIC26.224.8QLD17.420.0WA9.610.1SA7.17.5TAS1.62.3ACT1.01.6NT0.41.0

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202335Whereareindustrybusinesseslocated?Theeasternseaboarddominatestheindustry’sgeographicspreadinlinewithitspopulationsharexSimilartotheCakeandPastryManufacturingindustry,frozencakeandpastryproductionisconcentratedalongtheeasternseaboard.xNewSouthWales,VictoriaandQueenslandaccountforthemajorityofindustryactivity.xThedistributionoffrozencakeandpastrymanufacturerslargelycorrelateswiththatofAustralia’spopulation,withthesethreestateshometothree-quartersofAustralia’spopulation.xThissuggeststhatfrozencakeandpastrymanufacturersopttobeclosetotheirdownstreamcustomerbase.RegionalareasareoftenfavouredtosavecostsxSeveralofthemajorplayers’manufacturingfacilitiesarelocatedinregionalareas,insteadofmajororstatecapitalcities.Forexample,PattiesFoodsislocatedinBairnsdale,VIC.SaraLee’smanufacturingplantisbasedinGosford,NSW,whichisalsoaregionalarea.xRegionalareasrepresentsignificantcostadvantagesforfrozencakeandpastrymanufacturers,astheycanavoidpayingwagepremiumsandhavemoreflexibilitytomakecapitalinvestmentsthroughcheaperlandandconstructioncosts.xProximitytomajormarketsislesscrucialformanufacturersoffrozenproductsrelativetoperishablebakedproducts,asthesecanbetransportedgreaterdistances.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep202336CompetitiveForcesUncoverchallengesandbenefitsintheoperatingenvironment,diggingintomarketshare,buyerandsupplierpowerandkeysuccessfactorsforoperators.

IBISWorld|FrozenCakeandPastryManufacturinginAustraliaSep2023375.CompetitiveForceshttps://my.ibisworld.com/au/en/industry/OD5097/competitive-forcesHighlightsConcentrationModerateCompetiti

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