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Biscuits Market - Global Industry Analysis, Size, Share, Growth, Trends | 2024

Press Release   •   Aug 18, 2017 03:27 EDT

The Switzerland biscuits market features a fragmented marketplace, with the presence of a large number of large, small, and unorganized vendors owing to low entry barriers, states TMR in a recent report. The rising costs of raw materials is expected to intensify the price wars in the market among key players in the next few years.

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To appeal to the shifting choices of consumers from high-fat and high-sugar content products to healthier ones, the focus on production of product varieties such as digestive biscuits, dietary biscuits for weight loss, and protein-enabled biscuits has substantially increased. Production of biscuits containing high levels of fiber and reduced levels of sugar is also gaining prominence among key vendors as a way of appealing to the rising population of health conscious consumers. Some of the key vendors operating in the Switzerland biscuits market are Kägi Söhne AG., Kambly SA, HUGAG, Lefèvre-Utile, Barilla G.e R. Fratelli S.p.A, Walkers Shortbread Ltd, Läckerli Huus Ag, Wernli AG, and Nestle S.A.

Thriving Tourism Industry Aiding Rise in Consumption of Swiss Biscuits

The continuous rise in the number of tourists in the country in the past has had a huge impact on the overall sales of local made confectionary and bakery products. The number of tourists arriving in the country in 2014 reached a record 9,158,000 in 2014 from 8,967,000 in 2013. The number of domestic and international tourists in the country is expected to rise at a steady pace in the next few years as well. Owing to this, the tourism sector will emerge as a high-impact driver for the overall development of the Switzerland biscuits market in the next few years.

Apart from this, sales of biscuits in Switzerland are also expected to benefit from the steady rise in retail sales post the economic depression of 2008. To benefit from the promising growth prospects of the retail sector in the country, confectionary and bakery product manufacturers are adopting the course of engaging in organized retailing, marketing, and effective branding strategies.

Rising Raw Material Costs to Intensify Price-war Among Key Vendors

The minimum selling prices of essential raw materials required for the production of a variety of biscuits have witnessed price rise of in the range of 25-30% over the past few years. While trying to hold on to prices of their products in the intensely competitive market, most biscuit manufacturers have tried ways of reducing production costs. On an average, biscuit companies have profit margins between 3% and 5%

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Apart from the rising prices of raw materials, a rise in labor and packaging costs have resulted in a substantial rise in input costs. Thus the growth in these profit margins has remained stagnant in the past few years. High input prices are expected to remain one of the most significant factors impacting the overall development of the Switzerland biscuits market in the next few years.

Nevertheless, the rising demand for easy to consume and healthy snacks and the overall appeal of Swiss confectionaries among tourists will enable the market to tread along a sustained growth path in the next few years. Transparency Market Research estimates that the Switzerland biscuits market, which held an opportunity worth US$973.3 mn in 2015, is expected to rise at a CAGR of 1.7% from 2016 through 2024 and rise to US$1,125.7 mn by 2024. The market is expected to expand at a 1.2% CAGR in terms of volume over the said period.

The segment of chocolate coated biscuits held the largest share in terms of revenue in the market in 2015, an estimated 36.9% of the overall market revenue that year. The age group of 20-30 years emerged as the leading contributor to market’s overall sales in the same year.

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