Biscuits & Cakes Market Report Plus 2006

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This Market Report Plus examines the UK market for biscuits and ambient cakes, which form part of a strong food industry.
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April 14, 2007 (Press Release) -- This Market Report Plus examines the UK market for biscuits and ambient cakes, which form part of a strong food industry. It is estimated that, in 2005, the total UK biscuits and cakes market was worth £2.81bn at retail selling prices (rsp), a rise of 3.1% on 2004. Since 2001, the market has grown ahead of the food market as a whole, as well as total expenditure on sugar and sweet products.

The two main market sectors are biscuits and cakes. Biscuits have experienced strong activity on the part of suppliers in recent years, and the development of more portable and single-serve, portioned products has given way to a greater concentration on brand development. Indulgence and health have been the top criteria for innovation, with other activity tending to be restricted to brand extension through new flavours and variants.

The cakes sector has also seen strong growth, primarily driven by small cakes and products for individuals. The eat-now market of single-wrapped products has developed, bringing with it a range of new outlets for cakes allowing them to compete head on with sectors such as confectionery and savoury snacks. The development of cross-branding from sectors such as confectionery has also had an impact.

The two main drivers of growth in the biscuits and cakes market are indulgence and health. Premium products targeting the adult market have experienced considerable development to gain higher spending on treats. In addition, a focus on health issues in the food market overall has also benefited sales of better-for-you brands of cakes and biscuits.

Branding is a significant feature of both sectors. Major players in the biscuits sector include United Biscuits, Burton's Foods and Northern Foods, and all of these companies have a strong portfolio of brands and sub-brands. However, smaller brands, such as Bahlsen, are also significant in certain areas. Cake suppliers are led by Manor Bakeries, which supplies the Mr Kipling and Cadbury brands, and suppliers such as Finsbury Food Group and Inter Link Foods offer products targeted at the retailer own-label market. As with other food sectors, niche brands in areas such as organic, free-from and Fairtrade are also making progress.

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