What Is the Bakery Business’s Market Segment?


A small firm, such as a local bakery, typically lacks the resources to conduct mass-marketing efforts. A small bakery can concentrate its resources on niches, like patisserie in Sydney, which big bakeries may not be targeting by segmenting the addressable market into smaller parts. Market segments should be quantifiable and significant enough to generate consistent revenues and justify marketing and other expenditures. In 2022, Australia’s Bakery Product Manufacturing industry will generate $3.7 billion in sales, and the market size is predicted to grow by 1.1 per cent. Therefore, one can imagine the demand for baked products that will grow in Sydney.

The bakery can estimate the number of possible consumers and plan its operations based on population estimates from the most recent census and data on the perfect competition from the local chamber of commerce. Furthermore, it may be able to provide custom cakes and other products to regions outside of its regular geographic area by setting up an online order-entry system and partnering with part-time delivery persons.

Demographic Segmentation

Age, gender, family status, and income are among the demographic segmentation factors. Families can stop by for bread and rolls, while younger guests can get pastries from a bakery. High-income households may place orders for layered cakes for birthdays and other special occasions. The geography and the competition would determine the product mix and price approach.

Lifestyle Segmentation

Consumer attitudes and opinions are among the lifestyle segmentation criteria. Some clients may believe that a gluten-free diet is essential, while others may merely be interested in high-fibre bread and rolls. Some people resort to cupcakes or crullers for solace during stress and uncertainty. Customers looking for particular things may be willing to pay a higher price, increasing the bakery’s revenues.

Other Segmentation

Other segmentation criteria include time and price. For example, if a bakery is in a business park, most of its clients are likely to be office employees looking for a morning muffin, lunch sandwiches, or pastries to take home. If the bakery has the spare capacity (hours during the day when the workforce is not busy serving clients), it can consider catering special events like weddings and anniversaries. Custom orders may have more significant price points and margins than regular items, a nett gain for the bottom line.

Why Baking Is a Rising Industry

The two most popular reasons are:

Baking Produces Wonderful Aroma

Is there something better than a house filled with the aroma of freshly baked chocolate chip cookies? It turns out that the aroma of freshly baked products isn’t just pleasant. It may be emotional. It was found that the fragrance of baked goods was the number-one aroma that made people nostalgic for their youth.

It’s Science, But It’s Also a Little Bit of Magic

Baking can feel a little like concocting a magical concoction. You mix a bunch of ingredients into a wet, sloppy batter, bake it, and VOILA!—you have a cake! Isn’t that amazing? This is insanely cool. And no matter how many times you do it, it never ceases to be excellent—having constant access to the sensation of being a wizard? That feeling never gets old for bakers.

Segments of the market should be definable and large enough to generate consistent revenue and justify marketing and other expenses. Thus, the above-mentioned information gives you a clear idea of the bakery’s market segmentation. This concept can be applied in the case of desserts like patisserie in Sydney. Also, it depicts the two most common reasons for the rise in bakeries.


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