United Kingdom biscuits market: £2.5 billion industry by 2017

Press Release   •   Feb 19, 2013 17:08 GMT

United Biscuits (UK) Ltd continued to lead the United Kingdom biscuits market with a 26% value share in 2012. The company benefits from iconic brands such as McVitie's Digestive, Jacob's, Mini Cheddars and McVitie's Hob Nobs amongst others, as well as the healthier Go Ahead! Brand. The spread of brands between different categories within biscuits in the UK helps the company maintain its overall position in the country, although its actual share fell by one percentage point in 2012 as some consumers opted for lower cost private label options. McVitie's Digestive has the largest brand share in value terms (6%) amongst all biscuits brands in the UK.

The biscuits category benefited from the greater volume decline in cakes, a category in which products are the more expensive, and less healthy, alternative. Biscuits have much stronger brand presence and market penetration, and can attract fierce loyalty among some consumers. This, combined with aggressive price promotions, helped to maintain sales.

The biscuits category is expected to grow at a CAGR of 2% in constant value terms over the forecast period. This represents a marked improvement on the performance seen during the review period in constant value terms. Stronger growth is expected to be due in part to premiumisation, thanks to the dual impact of the indulgence trend and the health and wellness trend. Consumers will be encouraged to seek out more indulgent flavours or healthier biscuits. This will also lead to a 1% volume CAGR over the forecast period.

Key Headlines

- The biscuits category grows by 6% in value terms to reach £2.3 billion in 2012
- The paradox of recessionary indulgence pushes value growth in biscuits
- The savoury biscuits and crackers category sees the highest current value growth of 8% in 2012
- A significant increase of 6% in unit prices sees them reach £3.48 in 2012
- United Biscuits (UK) Ltd continues to lead the biscuits category with a 26% share in 2012
- The biscuits category is expected to grow at a CAGR of 2% in constant value terms, to reach £2.5billion in 2017

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