Biscuits And Cakes 2007

The UK market for biscuits and cakes was valued at an estimated £2.87bn at retail selling prices (rsp) in 2006, a rise of 2.3% on 2005. This increase followed slightly higher year-on-year rises from 2002.

Biscuits, including sweet, non-sweet and savoury products, account for the largest share of sales in the market. The strongest-performing sectors are the extremes of healthier biscuits, with reduced fat and calorie levels, and more indulgent premium recipes. To an extent, both have been driven by the better-for-you market: while consumers are being urged to cut back on high-fat and sugar products, some are choosing to balance less healthy treat products, such as biscuits and confectionery, with cutbacks in other foods.

In the cakes sector, growth is being driven by individual and small cakes rather than by sales of large whole products. The success of portioned and individually wrapped products in the impulse sector for eating on the go and snacking, as well as in lunchboxes, has been important in this success. In the large whole cakes subsector, celebration cakes are taking a greater market share.

Increased sales of both biscuits and cakes are being driven by added value rather than by volume. Consumer spending on food continues to show year-on-year rises in current terms and, while spending on sweet products has tended to fall behind, with sales of better-for-you, convenient and premium brands rising ahead of everyday products, the average spend per product is likely to be rising.

There has been a substantial shakeout in the supply of biscuits and cakes in 2006. United Biscuits, the major supplier in the market, changed hands. RHM, owner of the Mr Kipling brand, also gained a new owner in Premier Foods. In addition, there has been some consolidation, with both Burton's and Northern Foods selling off non-core activities during the year.

Biscuits and cakes enjoy a very high level of household penetration, with 92.5% of adults consuming packets of biscuits and crackers, and 65.4% of adults consuming fresh/packeted cakes, in the last 12 months. The levels of penetration are fairly similar across different age groups and income levels, which is evidence of the popularity of the products as well as the diversity of the range available.

The biggest challenge to the biscuits and cakes market is posed by healthy eating. The need for consumers to cut back on higher-fat, higher-calorie foods, as well as a focus on other aspects, such as sugar and salt levels, point a spotlight on this market. Suppliers have been proactive in providing some solutions; however, whether this will be enough to ensure longer-term growth in the market is less assured. SHOW LESS READ MORE >

1. Market Definition

REPORT COVERAGE

MARKET SECTORS

MARKET TRENDS

New Trend in Better For You

Labelling Issues

Still a Treat

Packaging Convenience

ECONOMIC TRENDS

Gross Domestic Product

Table 1: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005

Household Disposable Income

Table 2: UK Household Disposable Income Per Capita (£), 2001-2005

Inflation

Table 3: UK Rate of Inflation (%), 2001-2005

MARKET POSITION

The UK

Table 4: UK Expenditure on Food, and Sugar and Sweet Products (index 2002=100), 2002-2006

Figure 1: UK Expenditure on Food, and Sugar and Sweet Products (index 2002=100), 2002-2006

Overseas

2. Market Size

THE TOTAL MARKET

Table 5: The Total UK Biscuits and Cakes Market by Sector by Value at Current Prices (£m at rsp), 2002-2006

Figure 2: The Total UK Biscuits and Cakes Market by Sector by Value at Current Prices (£m at rsp), 2002-2006

Health

Discounting

External Factors

BY MARKET SECTOR

Biscuits

Table 6: The UK Biscuits Sector by Value at Current Prices (£m at rsp and %), 2002-2006

Table 7: The UK Biscuits Sector by Subsector by Value at Current Prices (£m at rsp and %), 2006

Figure 3: The UK Biscuits Sector by Subsector by Value at Current Prices (%), 2006

Chocolate Biscuit Bars

Healthier Biscuits

Crackers and Crispbreads

Everyday Biscuits and Treats

Seasonal Biscuits and Special Treats

Savoury Biscuits

Children's Biscuits

Cakes

Table 8: The UK Ambient Cakes Sector by Value at Current Prices (£m at rsp and %), 2002-2006

Table 9: The UK Ambient Cakes Sector by Subsector by Value at Current Prices (£m at rsp and %), 2006

Figure 4: The UK Ambient Cakes Sector by Subsector by Value at Current Prices (%), 2006

Small Cakes, Cake Bars, Pies and Tarts

Large/Whole Cakes, Pies and Tarts

OVERSEAS TRADE

Table 10: Imports and Exports of Rusks, Biscuits, Preserved Pastry Goods and Cakes (£000), 2003 and 2005

3. Industry Background

RECENT HISTORY

NUMBER OF COMPANIES

Table 11: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Biscuits, Rusks, Preserved Pastry Goods and Cakes by Turnover Sizeband (number and %), 2006

EMPLOYMENT

Table 12: Number of UK VAT-Based Enterprises Engaged in the Manufacture of Biscuits, Rusks, Preserved Pastry Goods and Cakes by Employment Sizeband (number and %), 2006

REGIONAL VARIATIONS IN THE MARKETPLACE

DISTRIBUTION

Figure 5: Retail Distribution of Biscuits and Cakes by Value (%), 2005

HOW ROBUST IS THE MARKET?

LEGISLATION

KEY TRADE ASSOCIATIONS

Association of the Chocolate, Biscuit & Confectionery Industries of the EU

Biscuit Cake Chocolate & Confectionery Association

4. Competitor Analysis

THE MARKETPLACE

MARKET LEADERS

Burton's Foods Ltd

Company Structure

Current and Future Developments

Financial Results

Finsbury Food Group PLC

Company Structure

Current and Future Developments

Financial Results

Inter Link Foods PLC

Company Structure

Current and Future Developments

Financial Results

Nestlé UK Ltd

Company Structure

Current and Future Developments

Financial Results

Northern Foods Grocery Group Ltd

Company Structure

Current and Future Developments

Financial Results

RHM PLC

Company Structure

Current and Future Developments

Financial Results

The Ryvita Company Ltd

Company Structure

Current and Future Developments

Financial Results

United Biscuits (UK) Ltd

Company Structure

Current and Future Developments

Financial Results

Other Companies

Anthony Alan Foods Ltd

Bahlsen Ltd

Duchy Originals Ltd

The Fabulous Bakin' Boys Ltd

Greencore Group PLC

W Jordan (Cereals) Ltd

Kellogg

Lightbody Celebration Cakes Ltd

Mars UK Ltd

Paterson Arran Ltd

The Snack Food Group PLC

Stiletto Foods (UK) Ltd

Thomas Tunnock Ltd

Walkers Shortbread Ltd

OUTSIDE SUPPLIERS

MARKETING ACTIVITY

Main Media Advertising Expenditure

Table 13: Main Media Advertising Expenditure on Biscuits and Cakes (£000), Years Ending September 2005 and 2006

Figure 6: Main Media Advertising Expenditure on Biscuits and Cakes (£000), Years Ending September 2005 and 2006

Exhibitions

5. Brand Strategy

INTRODUCTION

COMPANIES' BRANDS

Anthony Alan Foods Ltd

Bonne Maman

Burton's Foods Ltd

Cadbury

Jammie Dodgers

Maryland Specials

Doves Farm

Elisabeth the Chef Ltd

The Fabulous Bakin' Boys Ltd

Jordans

Kallo Foods Ltd

Kellogg

Kraft Foods UK Ltd

Lyme Regis Foods

Northern Foods Grocery Group Ltd

Quaker

RHM PLC

Mr Kipling

The Ryvita Company Ltd

Simmers of Edinburgh Ltd

Tesco

United Biscuits (UK) Ltd

Carr's

Christmas 2006

Fruitsters

Go Ahead!

HobNobs

Jacob's

Jaffa Cakes

McVitie's Cake Company

McVitie's Minis

Mini Cheddars

Moments

Walkers Shortbread Ltd

Weetabix Ltd

BRAND ADVERTISING

Table 14: Main Media Advertising Expenditure on Biscuits and Cakes by Brand (£000), Year Ending September 2006

Bahlsen Ltd

Fox's Biscuits

Jordans

Kraft

United Biscuits (UK) Ltd

6. Strengths, Weaknesses, Opportunities and Threats

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

7. Buying Behaviour

CONSUMPTION OF BISCUITS AND CAKES

Table 15: Consumption of Biscuits and Cakes (% of adults), 2002, 2004 and 2006

By Sex

Table 16: Consumption of Biscuits and Cakes by Sex (% of adults), 2006

By Age

Table 17: Consumption of Biscuits and Cakes by Age (% of adults), 2006

By Social Grade

Table 18: Consumption of Biscuits and Cakes by Social Grade (% of adults), 2006

PURCHASING OF BISCUITS AND CAKES

Table 19: Purchasing of Chocolate Biscuit Bars, Cereal Bars and Cake Bars by Sex, Age, Social Grade and Region (% of respondents), 2006

Healthy Attitudes

Table 20: Consumer Attitudes Towards Buying Less Chocolate Bars Because of Their Fat and Sugar Content, and Buying Low-Fat Cereal Bars by Sex, Age, Social Grade and Region (% of respondents), 2006

8. Current Issues

BRAND ACTIVITY

Aunt Bessie's

Bon Bon Buddies

Harvest Crunch Brand Acquisition

Kalibio

Oatrition

Primula

9. The Global Market

GLOBAL TRENDS

Table 21: Per Capita Consumption of Biscuits and Wafers (kilograms), 2003 and 2004

Figure 7: Per Capita Consumption of Biscuits and Wafers (kilograms), 2004

GLOBAL MARKETPLACE DEVELOPMENTS

American Harvest and The Classic Cake Company (US)

Ceylon Biscuit (Sri Lanka and India)

Danone and Sugar Reduction (France)

Kraft & United Biscuits (Spain and Portugal)

Morina Baie Biscuits and Bahlsen Saint Michel (France)

Paradise Foods and Archer Capital (Australia)

Saputo and Rondeau (Canada)

10. Forecasts

INTRODUCTION

The Economy

Gross Domestic Product

Table 22: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010

Inflation

Table 23: Forecast UK Rate of Inflation (%), 2006-2010

FORECASTS 2007 TO 2011

Table 24: The Forecast Total UK Biscuits and Cakes Market by Sector by Value at Current Prices (£m at rsp), 2007-2011

Figure 8: The Forecast Total UK Biscuits and Cakes Market by Sector by Value at Current Prices (£m at rsp), 2007-2011

MARKET GROWTH

Figure 9: The Total UK Biscuits and Cakes Market by Value at Current Prices (£m at rsp), 2002-2011

FUTURE TRENDS

Demographics

Table 25: Projected UK Population (000), 2004, 2006, 2008 and 2010

Product Development

Healthy Eating

Single-Serve Options

Trans Fats

11. Company Profiles

Burton's Foods Ltd

Finsbury Food Group Plc

Inter Link Foods Plc

Nestlé Uk Ltd

Northern Foods Grocery Group Ltd

Rhm Plc

The Ryvita Company Ltd

United Biscuits (uk) Ltd

12. Company Financials

13. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

Confidence Slips Slightly

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006

Significantly More Adults Are Willing to Borrow

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), November 2005-2006

SPENDING FROM SAVINGS

Little Change in Spending from Savings

Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006

Saving Grows in Relative Importance

Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), November 2005-2006

14. Further Sources

Associations

Publications

General Sources

Government Publications

Other Sources

Bisnode Sources

- Anthony Alan Foods Ltd
- Bahlsen Ltd
- Bonne Maman
- Burton's Foods Ltd
- Cadbury
- Doves Farm
- Duchy Originals Ltd
- Elisabeth the Chef Ltd
- Finsbury Food Group Plc
- Greencore Group PLC
- Inter Link Foods Plc
- Kallo Foods Ltd
- Kellogg
- Kraft Foods UK Ltd
- Lightbody Celebration Cakes Ltd
- Mars UK Ltd
- McVitie's Cake Company
- Nestlé UK Ltd
- Northern Foods Grocery Group Ltd
- Quaker
- Paterson Arran Ltd
- Rhm Plc
- Stiletto Foods (UK) Ltd
- The Fabulous Bakin' Boys Ltd
- The Ryvita Company Ltd
- Simmers of Edinburgh Ltd
- Tesco
- The Snack Food Group PLC
- Thomas Tunnock Ltd
- United Biscuits (UK) Ltd
- W Jordan (Cereals) Ltd
- Walkers Shortbread Ltd