Biscuits & Cakes

UK Market 2007 - 2008

Publication Date	March 2008
Publisher	Keynote
Product Type	Report
Pages	87
ISBN Number	not applicable
Product Code	KEY00003

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Summary

The UK biscuits and cakes market was estimated to be worth 2.95bn at retail selling prices (rsp) in 2007, an increase of 13.6% since 2003. The products enjoy a high level of popularity among UK consumers, with biscuits being consumed by more than 90% of people and cakes by more than 60% in 2007.

Biscuits account for the largest sector of the market in terms of sales. In 2007, sales of healthier-eating biscuits (including reduced-fat and reduced-calorie options and cereal bars) overtook sales of chocolate biscuit bars to represent the largest subsector of the biscuits sector. This has been driven by consumers seeking permissible treats - those who are looking to maintain their sweet eating habits without feeling guilty. There has been a considerable amount of product activity in the chocolate biscuit bars subsector, with major brands such as KitKat, Twix and Rocky all having a high profile. However, this subsector has been adversely affected by a high level of price-based promotional activity, as well as by the development of similar products that are more cheaply priced.

Biscuit suppliers have been developing their product offers in order to address a wider range of eating occasions. Bagged, single-serve packs have been introduced by brands such as Ryvita, while McVitie's has also been extending its range in this category. An additional motivation has been to get brands into new retail arenas, such as impulse outlets (including petrol station forecourts and confectioners, tobacconists and newsagents [CTNs]), where they can compete more directly with products such as confectionery.

Individual cakes, cake bars, pies and tarts - including multipacks and individually wrapped items - gained a greater proportion of the cakes sector in 2007, whereas occasions for large, whole cakes, pies and tarts declined. This trend can be attributed to a number of factors, including the growing number of smaller households, more staggered eating times and the tendency to eat `on the go'. Product development has successfully targeted the demand for sweet, instant snacks with convenient individual packing to enable the product to be retailed individually or as part of a multipack.

Another aspect of healthy eating that has been targeted by suppliers is a shift towards `wholesome' food. This encompasses a range of activities, from the removal of hydrogenated fats and artificial additives to the inclusion of natural sugars and wholemeal and wholegrain ingredients. The introduction of more organic brands and the use of more Fairtrade ingredients are other areas of development.

Despite their continued popularity with consumers, there has been a slight decline in penetration among consumers for both biscuits and cakes in the face of pressure from alternatives such as fruit and savoury snacks. This has adversely affected market volume, but added-value activity has maintained value growth.

Between 2008 and 2012, the biscuits and cakes market is likely to see a further rise in value, although this may be largely driven by a rise in input costs. However, ongoing development of premium and healthy-eating brands will ensure real growth in some categories.

Content

Executive Summary
1. Market Definition
- Report Coverage
- Market Sectors
  - Biscuits
  - Cakes
- Market Trends
  - Reduced-Fat, Reduced-Calorie Products
  - Wholesome Options
  - Eating Occasions
- Economic Trends
  - Gross Domestic Product
  - Table 1: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (m), 2002-2006
  - Household Disposable Income
  - Table 2: UK Household Disposable Income per Capita (), 2002-2006
  - Inflation
  - Table 3: UK Rate of Inflation (%), 2002-2006
- Market Position
  - The UK
  - Table 4: Index of UK Expenditure on Food and on Sugar and Sweet Products (2003=100), 2003-2007
  - 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), 2003-2007
  - Figure 1: The Total UK Biscuits and Cakes Market by Sector by Value at Current Prices (m at Rsp), 2003-2007
  - by Market Sector
  - Biscuits
  - Table 6: The UK Biscuits Sector by Value at Current Prices (m at Rsp and %), 2003-2007
  - Table 7: The Estimated UK Biscuits Sector by Subsector by Value at Current Prices (m at Rsp and %), 2007
  - Figure 2: The Estimated UK Biscuits Sector by Subsector by Value at Current Prices (%), 2007
  - Healthier Biscuits
  - Chocolate Biscuit Bars
  - Crackers and Crispbreads
  - Everyday Treats and Biscuits
  - Special Treats and Seasonal Biscuits
  - Savoury Biscuits
  - Children's Biscuits
  - Cakes
  - Table 8: The UK Ambient Cakes Sector by Value at Current Prices (m at Rsp and %), 2003-2007
  - Table 9: The Estimated UK Ambient Cakes Sector by Subsector by Value at Current Prices (m at Rsp and %), 2007
  - Figure 3: The Estimated UK Ambient Cakes Sector by Subsector by Value at Current Prices (%), 2007
  - Small Cakes, Cake Bars, Pies and Tarts
  - Large, Whole Cakes, Pies and Tarts
- Overseas Trade
  - Table 10: Imports and Exports of Biscuits and Cakes by Value (000), 2006
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 %), 2007
  - 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 %), 2007
  - Regional Variations in The Marketplace
  - Distribution
  - Figure 4: Retail Distribution of Biscuits and Ambient Cakes by Value (%), 2007
- How Robust Is The Market?
- Legislation
- Trade Associations
  - Food and Drink Federation
  - Association of The Chocolate, Biscuit & Confectionery Industries of The Eu
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
  - Nestl UK Ltd
  - Company Structure
  - Current and Future Developments
  - Financial Results
  - Northern Foods Grocery Group Ltd
  - Company Structure
  - Current and Future Developments
  - Financial Results
  - Premier Foods 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
  - Bahlsen Ltd
  - Duchy Originals Ltd
  - The Fabulous Bakin' Boys Ltd
  - Greencore Group Plc
  - W Jordan (Cereals) Ltd
  - Kellogg Company
  - Mars UK Ltd
  - Park Cakes Bakeries 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 2006 and 2007
  - Figure 5: Main Media Advertising Expenditure on Biscuits and Cakes (000), Years Ending September 2006 and 2007
  - Exhibitions
5. Brand Strategy
- Introduction
- Companies' Brands
  - Bahlsen Ltd
  - Bon Bon Buddies Ltd
  - Booker Group Plc
  - Burton's Foods Ltd
  - Bertolli
  - The Edinburgh Bakery
  - Green & Black's
  - Jammie Dodgers
  - Maryland Cookies
  - Co-Operative Group Ltd
  - The Fabulous Bakin' Boys Ltd
  - Finsbury Food Group
  - Kellogg Company
  - Mars UK Ltd
  - Nestl UK Ltd
  - Northern Foods Grocery Group Ltd
  - Paterson Arran Ltd
  - Premier Foods Plc
  - Cadbury Cakes
  - The Ryvita Company Ltd
  - Taylors of Harrogate
  - United Biscuits (UK) Ltd
  - Go Ahead!
  - Jacob's
  - Mcvitie's
  - Mcvitie's Cake Company
  - Mini Cheddars
  - The Village Bakery
  - Weetabix
  - Brand Advertising
  - Table 14: Main Media Advertising Expenditure on Biscuits and Cakes by Brand (000), Year Ending September 2007
  - Burton's Foods
  - Duchy Originals
  - Kellogg Company
  - Northern Foods Grocery Group
  - Premier Foods
  - The Ryvita Company
  - Taylors of Harrogate
  - United Biscuits (UK)
  - Weightwatchers
6. Strengths, Weaknesses, Opportunities and Threats
- Strengths
- Weaknesses
- Opportunities
- Threats
7. Buying Behaviour
- Consumer Penetration
  - Table 15: Consumption of Biscuits and Cakes (% of Adults), 2002, 2004, 2006 and 2007
  - by Sex
  - Table 16: Consumption of Biscuits and Cakes by Sex (% of Adults), 2007
  - by Age
  - Table 17: Consumption of Biscuits and Cakes by Age (% of Adults), 2007
  - by Social Grade
  - Table 18: Consumption of Biscuits and Cakes by Social Grade (% of Adults), 2007
8. Current Issues
- Brand Activity
  - Heaven's Kitchen
  - Sugar Plum
  - Whole Earth
  - Yorkshire Tea
- Company Activity
  - Zetar and Brittania Biscuits
  - Csm and Kate's Cakes
  - Lees Foods and Patisserie UK
  - Adverse Additives
  - Advertising and Children
  - Bakery Products and Mandatory Fortification with Folic Acid
  - Environmental Targets
  - Sustainability Programme
9. The Global Market
- Global Trends
  - Table 19: per Capita Consumption of Biscuits and Wafers (Kilograms), 2003, 2004 and 2005
- Global Marketplace Developments
  - Britannia Industries (Middle East)
  - Cookie Man and Freedom Foods (Australia)
  - Furniss Biscuits (UK and Russia)
  - Kh Floods and George Weston Foods (Australia)
  - Kraft and Groupe Danone (Global)
  - Lion Capital and Vaasan & Vaasan (Scandinavia)
10. Forecasts
- Introduction
  - The Economy
  - Gross Domestic Product
  - Table 20: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2007-2011
  - Inflation
  - Table 21: Forecast UK Rate of Inflation (%), 2007-2011
  - Population
  - Table 22: Projected UK Population by Age (000), 2006, 2008, 2010 and 2012
  - Forecasts 2008 to 2012
  - Table 23: The Forecast Total UK Biscuits and Cakes Market by Sector by Value at Current Prices (m at Rsp), 2008-2012
  - Market Growth
  - Figure 6: Growth in The Total UK Biscuits and Cakes Market by Value at Current Prices (m at Rsp), 2003-2012
  - Future Trends
11. Company Profiles
- Burton's Foods Ltd
- Finsbury Food Group Plc
- Nestl UK Ltd
- Northern Foods Grocery Group Ltd
- Premier Foods Plc
- The Ryvita Company Ltd
- United Biscuits (UK) Ltd
12. Company Financials
13. Further Sources
- Associations
- Publications
- General Sources
- Government Publications
- Other Sources
- Bisnode Sources