Whether it is sweet or salty, plain, with filling or glazed, whether it is crunchy and loose or dense and creamy, the biscuit is the accessible product, easy to procure and store, appreciated worldwide by all categories of consumers, for satiety and its discreet aroma.
A biscuit can enrich breakfast, together with a cup of coffee, milk or tea, it can be a quick snack between meals or even a reward after a hard day.
The biscuit market is extremely dynamic, overpopulated and very fragmented.
Manufacturers continuously impose new products in the field, so the rate of replacement of products on the shelf is fast.
Forecasts show that the global biscuit market will have a positive evolution, and this trend is dictated by several factors:
• increasing consumer incomes, urbanization and improving the standard of living among the middle class population;
• increasing consumer awareness of ingredients and their health benefits, which leads to increased interest in the range of biscuits with seeds and wholemeal flours;
• the interest given to innovative food products in terms of aroma, shape and taste, especially among young people.
On the other hand, labor shortage and rising tax rate are expected to temper market development.
Biscuits - In the world
Globally, the biscuit market was valued at approximately $100 billion in 2018, slightly higher than the previous year, and is projected to grow at a compound annual rate (CAGR) of 5% so that reach $135 billion by 2023, according to Insight Survey Mk. Research.
Sweet biscuits covered three-quarters of the total value of sales in this market, while the salty biscuit segment was limited to about 26 billion dollars last year, the study specifies.
Europe dominated the global biscuit market in terms of retail sales during 2018, followed by Asia Pacific and North America. For the year 2019, the average consumption per capita is estimated at 5,9 kg and an average annual growth rate (CAGR) of 2,2% is expected between 2019 and 2023, according to Statista.
Rising incomes of the population, interest in snacks "health", as well as the existence of a wide range of products, favors the development of the biscuit market in Europe.
Eastern Europe – growth in the packaged sweet biscuits category
In Eastern Europe, a much more dynamic evolution of this market segment is expected, which will have the highest average annual growth rate on the continent, of 4% (CAGR in the period 2019-2023), although it is estimated that the revenues from the biscuit segment will only reach 4,7 billion dollars in 2019. However, the average consumption per capita is estimated at 4,3 kg in 2019 and, according to Euromonitor analysts, by 2023, it will be similar to that of Western Europe, about 5,2 kg.
A remarkable evolution has been observed in the last five years in the segment of sweet, packaged biscuits. While global per capita consumption increased by only 100g, in Eastern Europe it advanced by 500g, according to Euromonitor International. The impressive development is mainly due to the accelerated increases in volumes recorded in Russia and Romania.
If in our country the evolution of the market was fueled by consumption policies, such as the reduction of VAT on food products, wage increases in the public sector and the level of the minimum wage, in Russia, the growth was influenced by the depreciation of the local currency, which determined consumers to look for cheaper consumer alternatives such as biscuits.
Generous growth potential
In Romania, the biscuit market is considered one of the most dynamic in the bakery industry, being the segment with the most accelerated development, +12,5% in the period 2016-2017, according to ROMPAN statements.
For 2019, the average consumption per capita is estimated at 5,9 kg/year, and revenues from this segment are expected to reach 309 million dollars, according to Statista analysts. For the period 2019-2023, an average annual income growth rate of 1,7% is expected.
Regarding the category of packaged biscuits, Euromonitor analysts are optimistic, estimating that in Romania and Bulgaria the annual growth rate will exceed 3%. Thus, the consumption, still low, recorded in these countries, offers a generous potential for growth.
It is expected that the expansion of modern trade, the increased visibility on the shelf and the diversification of the product range will boost demand, especially in Romania, points out Euromonitor.
Conversely, population decline will have a negative impact on growth in the aforementioned markets.
Biscuits - Trends
The success of players in the global biscuit market will depend on managing the balance between launching new products and sustaining demand for traditional offerings, Transparency Market Research points out.
Almost one-third of the total revenue in the global sweet biscuit market comes from the plain biscuit segment, amounting to $25 million, which explains the importance of this segment.
Interest in health and comfort is one of the trends that Euromonitor International has highlighted as having a significant impact in the next decade in the FMCG categories. Globally, 42% of Euromonitor survey respondents reported that they regularly track what they eat to manage their weight and maintain health. In the case of sweet biscuits, consumers pay attention to the amount of sugar and the presence of gluten.
Therefore, the orientation of consumer perception from conventional food to a nutritious snack will lead to an increase in the demand for natural products, containing whole grains, seeds, types of nuts and dried fruits, organic products and those labeled "cleanse".
The Czech Republic and Romania enjoy the most promising prospects in this market segment, with much faster growth than in the basic categories being estimated.
Diversity and competition will drive the segment "healthy products" which is expected to flourish and move from the classic "with reduced contentof sugar or fat, to more complex formulas such as ancient grains, natural sugar substitutes and reduced processing.
The exuberance of Millennials dictates the products of the future
The young public is attracted by innovative and non-conformist trends. So sophisticated or luxurious ingredients stimulate Millennials' taste buds, and their attention is easily captured by exotic aspects and bold aromas, which satisfy their exuberance. Consequently, manufacturers willing to propose biscuits with new textures and bold flavors will appeal to consumers of the new generation.
Biscuits – Premium range
Biscuits can be a luxury product. Here is a solution by which premium biscuits, prepared for the purpose of gifting on various occasions such as Christmas, Valentine's Day or other events, generate new sales vectors at the international level.
For example, a company in Turkey offers premium biscuits with various fillings such as dark chocolate, milk chocolate, caramel and coffee. Its premium biscuits in luxury packaging are a delight for the higher income consumer groups.
The online retail segment happily combines product features, easy to store and transport, with the convenience requirements of the modern consumer, such as home delivery, thus generating a generous potential for business growth.
Packaged products and especially those in lighter packages, of the "on-the-go" type, create new development possibilities.
Alternative packaging solutions will be an ongoing challenge for industry players at a time when sustainability has become a necessity.
Cecilia Florescu, Nova Pan marketing specialist
