The biscuits market is growing, ahead of the impulse sector and food overall.
Driven by sweet biscuits, biscuit value sales are +6.7% up in the latest 12 months (L12M) vs last year (LY) and although growth has slowed value sales remain up on last year in the latest 3 months (L3M), at +3.8% up.
Value sales growth is being driven by both units +2.2% and average unit price +4.4% in the L12M vs LY.
Price growth has slowed sharply with average unit price up just +1.3% up on last year in the L3M, driven by combination of price increases lapping with last year and a year-on-year (YOY) increase in promotional investment, up 2.2 percentage points (PPs).
With an 8.9% value share of biscuits, the symbols and independents channel under-trades in biscuits vs the channel’s share of food overall, meaning biscuits is a potential opportunity for growth. The symbols and independent channel is losing share in the biscuits market down -0.1PPs of value share in the L12M vs LY, however compared to the wider food market where the symbols and independent channel is down -0.3PPs vs last year, the channel is performing relatively well.
Major multiple grocer supermarkets have made some share gain in the biscuits market, but it is the major multiple grocer convenience channel which has made the most significant value share gains over the last 12 months, up +0.1PPs vs LY. Growth for the major multiple grocer convenience channel in biscuits means there is a role for biscuits in the convenience channel and symbol & independent retailers will need to compete more effectively with their major multiple grocer convenience channel counterparts to capitalise on the growth in the biscuit sector.
What’s next for the biscuits category?
The sweet biscuits category will hopefully be bolstered by the festive season, with people at home more and for last-minute gifting situations. The latter will be more of an opportunity for convenience retailers, as customers may be more likely to use their local store if it’s a distress purchase rather than planning ahead. To help make the most of this opportunity, retailers need to have a range of mid and premium tier lines for both shoppers deciding to treat themselves on a night in or if they’re on the way to someone else’s house and want to bring something extra.
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