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Business Research – The U.S. Bread Production Industry And Its Current Position In The Market

  • By admin
  • May 10, 2016

The bread production industry in U.S. market is the industry which specializes in the production of bread, rolls, croissants, cakes and miscellaneous other products. It further comprises of doughnuts, buns and cakes but do not comprise of cookies and biscuits.

Industry And Entrants:

This industry possesses low barriers to entry such that entry is easy. However, the new entrants face a possible threat against the industry leaders according to Outsource business research India. This is because the leaders possess brand awareness and have massive brand loyalty, apart from that, these companies work on customer relationships and invest heavily in advertisement. Therefore, the sum total of all possible diversified brands is produced by the market leaders. Thus, the new entrants have no scope for diversification or innovation. This hampers the chances for a new entrant to make a name for itself in the market.

Reaction Of The Consumer:

According to research conducted by Market Quotient, Research company India, it was found that the consumer behavior toward this particular product has undergone a decline in the past five years. The sales in this industry has continued to drop, this is primarily due to two reasons:

  • The changing tastes of the consumer and the accompanying preferences which maybe lifestyle or cultural changes.
  • A health conscious generation which opts for a better lifestyle and healthy living.

How To Remedy The Drop In Sale?

Bread being a staple food of the United States, comes in a number of varieties such as:

  1. Brown Bread.
  2. White Bread.
  3. Whole Wheat Bread
  4. Fruit Bread, & etc.

According to outsource web research India, this diversification is good as diversification has often been found to augment sales. The primary focus of this industry should be to develop healthier varieties of food with appropriate nutritional content which would push this industry towards growth in the coming years.

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