The introduction of new products will ensure the baking industry remains robust, over the next five years, according to a new report from IBISWorld.
It said that despite a long period of declining consumption, the production of bread and baked goods is now one of the most dynamic industries in the food manufacturing sector.
IBISWorld put this turnaround down to the response from the baking industry to changes in consumer lifestyles and increased awareness of health and nutrition.
Despite challenges in the form of wheat market volatility, for example, the bakery market leaders have managed to perform well and achieve consistent sales growth, noted the report.
Patrick Ross, IBISWorld industry analyst, said: “The emphasis on healthy eating has caused a move away from traditional sliced white bread to wholegrain and seeded varieties that have less sodium and higher fibre.
“Busy lifestyles, health and convenience concerns will continue to determine new product introductions and the type of strategy producers follow,” he added.
The report also predicted that an improving economy would likely bode well for sales of branded goods, gourmet pies, organic bread and fortified bakery foods.