Analyst predicts continuing growth for category
Many Britons eat biscuits every day and that has led to biscuits recording almost twice as much annual sales value as cakes, according to figures in the latest Key Note market report on biscuits and cakes.
But, the report points out, although cakes do not enjoy the same level of market penetration, they are popular – with individual cakes used as home or lunchbox treats and whole cakes consumed at events.
The research found that the market continues to grow year on year and recorded an increase in value of 1.8% in 2014.
The report divides biscuits into nine sub-categories: healthier biscuits, chocolate biscuit bars, crackers and crispbreads, everyday treats, everyday biscuits, seasonal biscuits, special treats, savoury biscuits and children’s biscuits.
It splits cakes into two types: individual cakes, cake bars, pies and tarts, and large/whole cakes, pies and tarts.The market’s key drivers are price, convenience and health. “Government initiatives and media attention have helped to raise awareness regarding the negative implications of an unhealthy diet. Defra’s Food Statistics Pocketbook 2014 indicates that 9% and 11% of consumers listed health as their primary or secondary consideration when food shopping, compared with 8% and 10% in the 2012 edition,” the report says. And it identifies the big trends in biscuit consumption as towards sweet biscuits, excluding chocolate, and to cereal bars.
It also stresses the importance of new products, saying: “Investment in NPD and marketing is required to maintain performance.”
It values the biscuits sector at an estimated £2.61bn in 2014, with growth of 2% from the previous year and 19.2% from 2010. Cakes sales were worth approximately £1.37bn in 2014, growing 1.5% from the previous year and 8.1% from 2010.
It concludes that the market is highly robust and predicts that the demand for premium biscuits and cakes will rise over the next few years.
The report says: “The UK market for biscuits and cakes will be worth approximately £4.39bn by 2019, representing growth of 9.3% from 2015 and 27% from 2010.
“Throughout this time frame growth is likely to be primarily attributable to inflated retail prices rather than increased volume sales.”
For biscuits, it forecasts a value of £2.89bn by 2019 and it estimates that cakes will be worth around £1.5bn.
Key Note – Biscuits and Cakes Market Report. £575