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Biscuits & Cakes Market Report Plus 2011
Key Note Publications Ltd, March 2011, Pages: 126
This Market Report Plus analyses the UK retail market for ambient cakes and biscuits. The market has seen consistent growth during the 5-year review period, and market value peaked at £3.46bn in 2010. Demand for food will always be consistent and, therefore, in times of economic instability the food market generally outperforms other sectors. However, the cost of ingredients for biscuits and cakes has increased dramatically since 2008, with valuable commodities, such as wheat, sugar and cocoa, soaring in price in late 2009 and early 2010. Inevitably, these increases have gradually been passed down to the consumer.
As with most markets during the recession, price was paramount in attracting customers. This led to a wave of discounting in 2009, particularly on branded biscuits, as well as the introduction of numerous value and tertiary supermarket brands, which appealed to cash-strapped consumers. As a result, volume sales increased, while value growth remained relatively weak. However, in 2010, rising commodity prices which were being absorbed by manufacturers began to trickle down to retail level, making heavy discounting and promotional activity no longer possible. These increases in retail pricing led to a rise in value sales, while volume sales decreased, as consumers reigned in their expenditure on non-essential food items.
Manufacturers have been tapping into emerging markets in order to boost volume sales. For example, many companies now produce ‘on-the-go’ snack products — miniature, bagged versions of existing products that can be eaten ‘on-the-go’ or as part of a lunchbox. Larger versions of these ‘bagged’ products, called ‘sharing packs’, have also grown in popularity.
Increased demand for healthier products has been the most capitalised on trend, with an explosion of healthy-eating products being introduced to the market in recent years. Weight Watchers and Go Ahead! are among the most well-known brands, both of which now offer a wide range of products which have expanded rapidly. Tertiary brands have also cashed-in on the success of healthy eating snack products and now offer a variety of similar food items. Some manufacturers have also begun to remove unhealthy ingredients from their recipes in order to appeal to a more health-conscious public.
In the future, the authors predict further increases in market value, as well as a recovery in volume sales, thanks, in part, to the rapidly-expanding healthy eating ranges, along with the solid, steady performance of chocolate biscuit bars, which have remained a consumer favourite.
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