Biscuits Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Biscuits Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The biscuits market was valued at USD 106,232.78 million in 2020, and it is projected to reach an estimated CAGR of 4.97% during the forecast period, 2021-2026.

The biscuits market witnessed both positive as well as negative impacts due to the COVID-19 pandemic. The negative impact on the market was due to disruption of global supply chains leading to companies shutting down their factories or working with limited staff in yielding low production. Moreover, consumers stacking long shelf-life items, including biscuits, resulted in lesser product availability in the market. Nonetheless, consumers opting for convenient, healthy snacking options drove the demand for nutritious oat-based and nut-based biscuits.

The market is driven by the rising demand for convenience snacking paired with healthy ingredients among consumers. Also, since food-on-the-go is the most recent ongoing trend and is one of the fundamental considerations for consumers while purchasing food products, it has become a prominent factor for driving the market.

In addition, frequent launches with new formulations in the basic product such as low fat, gluten-free, low carbo, organic, and high fiber biscuits to attract consumers further fueled the market growth. On the segmentation font by type, sweet biscuits are the fastest-growing sector owing to their taste and healthy ingredients.

Other than focusing on new product development and marketing communications, the companies are also engaging in various in-store promotions. These in-store promotions are likely to center on money-off promotions, such as extra value packs or buy-one-get-one-free. Also, in terms of distribution channels, online store sales for healthy snack foods are growing at a faster rate, attracting many vertical specialists like Amazon, Walmart, Carrefour, etc., who are riding on increasing e-retailing growth and vying for a significant pie in online biscuit space.

Key Market TrendsGluten-free Biscuits Capturing Larger Consumer Base

The demand for gluten-free processed food products, such as bread, crackers, and biscuits, has risen considerably in recent years, across the global market, predominantly in Asia-Pacific. India has the largest population affected by celiac disease across the world. However, the amount of gluten-free food products available in India falls far short. Hence, gluten-free food products have a huge potential, including gluten-free biscuits, in the Indian market. Whereas, in the global market, the major companies are extensively making efforts to bring gluten-free cookies to the retail shelves. An independent research study has stated that an increasing number of American people are turning their backs on food products containing gluten, despite the fact that the prevalence of celiac disease has remained flat in recent years. This is providing opportunities to the bakery manufacturers to launch gluten-free sweet biscuits in the market. In this regard, in 2018, Biscuit International, a private label manufacturer, acquired Northumbrian Fine Foods (NFF) from CriSeren Foods to extend its product offerings and global reach and become Europe's largest producer of gluten and milk-free private label biscuit manufacturer. NFF is the United Kingdom’s largest gluten and milk-free sweet biscuits manufacturer.

Europe is the Largest Market

The market is driven by the rising demand for convenient snacking paired with healthy ingredients among European consumers. Also, consumers across the United Kingdom and Germany are driven by indulgence, depending on the type of biscuit and size of the pack. A diverse range of new products are continually being introduced, including healthy biscuits, ‘thins’, free-from options, and breakfast biscuits. Thus, this is boosting the demand for healthy biscuits in the region. Furthermore, as part of targeting the premium biscuits category in the United Kingdom, Mondelez International rolled out a Cadbury branded biscuit with the option of consuming the product warm, out of the microwave. The move comes along with understanding the altering consumer preferences, where the country’s demand for traditional regular biscuits kept falling, with a significant rise in the requirement of “premium experiences”, on the other hand.

Competitive Landscape

Competition is very high in the market, with virtually no entry barriers due to almost 100% penetration of the product. A lot of premium, functional biscuits have hit the market, giving the market leaders a run for their money. Major players are focusing on introducing new product offerings in the market to cater to the interests as per the ongoing tastes and preferences of the consumers. Since sweet biscuits have a significant role in the bakery and snacks market, top companies are engaged in delivering a variety of flavors and variants of biscuits to satisfy consumers' taste demands. For instance, in January 2018, MONDELEZ International brought together Cadbury chocolate and Oreo for two new sharing products in the United Kingdom.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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