III. Industry Analysis
[Company Name] directly or indirectly competes with all foodservice providers nearby our store that offer similar products, mainly breakfast foods, breads, desserts, sandwiches and salads. Competition will come from supermarkets, restaurants, coffee shops, bakeries and other retail establishments. Direct competition will come from companies offering 100% natural, organic products like [Company Name].
Industry Statistics & Trends
The following industry statistics bode well for [Company Name].
According to the recent report entitled, “Retail Bakeries Industry in the U.S.” by Supplier Relations US, LLC, the retail bakery industry’s annual revenue is approximately $3.6 billion, with an estimated gross profit of 25.52%.
According to a recent report by Modern Baking, the median annual sales of retail bakery stores surveyed were $333,000 while the median store sizes was 2,120 sq. ft, and the average bakery sale per customer was $12.51.
According to a recent study by the IDDBA (International Dairy·Deli·Bakery Association):
- Health is strengthening as a food purchase mega factor, ranking third after taste and price, and above convenience.
- Frequent bakery shoppers tend to be less health-conscious than the rest of the population, but they are still health-conscious.
- Shoppers say they are buying more reduced-fat milk (+30%), whole-grain bakery products (+29%), and yogurt (+19%).
- More than half of shoppers are trying to avoid trans fat, total fat and saturated fat. Frequent dairy, deli, and bakery shoppers are more concerned about trans fat than the average shopper, but less concerned about a reduced-fat claim on products.
- More than a third of shoppers say that the calorie content of foods is very important to them when they shop in the dairy, deli, and bakery departments. Frequent deli shoppers are the most concerned, with about 40% of full-service and a similar portion of self-service customers indicating they place great importance on calories.
- Frequent shoppers in the self-service deli and self-service fresh bakery are more likely to buy organic and natural foods.
- Seven in ten consumers tried to increase their consumption of whole grains last year.
- About half of frequent deli and bakery shoppers say it’s important for products in these departments to contain added nutrients, such as vitamins or fiber. Added nutrition is ranked even more important by frequent shoppers in the dairy and full-service deli departments.
A recent study by Modern Baking found the following:
- In-store bakery (e.g., bakeries in supermarkets) annual sales increased to $20 billion.
- Cake and bread are the top two products contributing to sales.
- Sales of bread products have been positively affected by the demise of the low carb trend, growth of whole grains and an increased interest in crusty bread products.
- There has been growth in the cookie sales. Declines were reported for bagels, pies and donuts.