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Biscuit Production in the UK - Industry Market Research Report

United Kingdom biscuit production market: £5.2 billion industry by 2019

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2014-02-13 14:44:01 - Biscuit Production in the UK - Industry Market Research Report - a new market research report on

The United Kingdom biscuit production market has faced some onerous challenges over the past decade. The era of health, nutrition and convenience has ushered in new consumer tastes, lifestyles and dietary concerns, forcing producers to adapt. The emphasis on healthy eating and living has adversely affected demand for the industry´s products, especially for sugar-rich sweet biscuits. Further, the changing demographic composition of the average household and periods of unsustainably high input prices have caused volatility in industry revenue.

However, biscuit manufacturers have been able to withstand the general downturn in consumer spending since the onset of the global financial crisis because people have turned to biscuits as an affordable and indulgent comfort food. Value-conscious customers supported the growth in own-brand alternatives



to familiar biscuits, offering manufacturers a way to supplement their revenue. Branded produce has been the segment hardest hit by the recession, although many consumers have stuck by their favoured choices and will trade back to them under when their circumstances recover again. Commodity speculation and growing demand from developing countries caused the prices of raw inputs to fluctuate, and constrained profitability over the period. Over the five years through 2013-14, industry revenue is expected to grow at a compound annual rate of 2.2% to £4.8 billion. In the current year, industry revenue is expected to increase by 0.3%.

As the industry reforms its supply structure and its major markets evolve, some niche opportunities are expected to emerge. Children are big consumers of sweet biscuits, but manufacturers can appeal to more health-conscious adult consumers by including healthier ingredients such as fruits and nuts.

Aggressive marketing and promotional activity from the industry´s major players is also expected to stimulate demand over the next five years. Firms will use this approach to launch new products that take health consciousness, busy lifestyles and taste into consideration.

Profitability is likely to grow over the next five years, thanks to more stable commodity prices. In the five years through 2018-19, IBISWorld forecasts industry revenue to rise at a compound annual rate of 1.6% to £5.2 billion. The industry will start the period with 0.6% revenue growth in 2014-15 as operators adapt to meet slowly growing and changing demand.

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Mike King
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