Crumbling away: Growing health concerns have restricted demand and eaten into revenue

The Biscuit Production industry produces a range of grain-based snack products. Its main products are sweet biscuits, which are estimated to generate 36.1% of revenue in 2018-19. Operators also produce crackers, preserved cakes and pastries, and snack foods produced from grain. Demand for biscuits is predominantly driven by demand from supermarkets, grocery wholesalers and bakery retailers, all of which is underpinned by consumer demand. The industry is fairly fragmented, with only three companies holding market shares of more than 5%. These companies are United Biscuits, with brands such as McVitie's and Jacob's; Burton's Foods, owner of Maryland Cookies, Jammie Dodgers and Wagon Wheels; and Walkers Shortbread, producer of the traditional, tartan-packaged Scottish more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Firms have responded to health concerns with product innovations and aggressive marketing
  • Smaller operators have been particularly affected by pricing pressures from supermarkets
  • Product development is expected to focus on appealing to health-conscious consumers
  • Industry Report - Starting a New Business Chapter

    The barriers to entry in the Biscuit Production industry are at a medium level, although the level of initial capital investment required may be prohibitive for smaller entrants. The biggest threat to new entrants is the entrenched position of the industry's major players. The biggest downstream markets for biscuit manufacturers are supermarkets and wholesalers. Tapping into these markets can prove difficult for smaller producers, as they are not able to exploit economies of scale to the extent that major players can. The combination of bulk buying and fierce price-negotiating tactics that supermarkets employ makes it difficult for small producers to compete on the same terms as their larger counterparts...purchase to read more.

    Additional Insights for the Biscuit Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Biscuit Production Industry are

  • Ensuring pricing policy is appropriate
  • Effective quality control
  • Development of new products
  • IBISWorld analysts also discuss how external factors such as Demand from supermarkets and World price of wheat in the Biscuit Production industry impact industry performance..

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    What's in this report

    What is the Biscuit Production Industry?

    This industry includes the manufacture of biscuits, rusks and other dry bakery products. It also includes the production of bakers’ wares, such as preserved pastries, cakes and non-potato snack products.

    Industry Products
  • Sweet biscuits without chocolate covering
  • Sweet biscuits with chocolate covering
  • Savoury biscuits
  • Savoury snacks
  • Bakers’ wares
  • Industry Activities
  • Manufacturing biscuits
  • Manufacturing rusks
  • Manufacturing crackers
  • Manufacturing preserved cake and pastry goods
  • Manufacturing pretzels
  • Manufacturing savoury snacks
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from supermarkets
  • World price of wheat
  • Health consciousness
  • Demand from bakery product retailing

  • Current Performance
  • Healthy snacking
  • Savoury snacks
  • Crunching profit
  • Biscuit shortage
  • Chart: Revenue Growth

  • Industry Outlook
  • Structural shift
  • Consumer concerns
  • Regulation
  • Funding
  • Table: Biscuit Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Biscuit Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Grocery Wholesaling
  • Supermarkets
  • Full-Service Restaurants
  • Pubs & Bars

  • Key Selling Industries
  • Butter & Cheese Production
  • Chocolate & Confectionery Production
  • Grain Milling
  • Oil & Fat Production
  • Sugar Production

  • Products & Services
  • Bakers’ wares
  • Sweet biscuits with chocolate covering
  • Sweet biscuits without chocolate covering
  • Savoury biscuits
  • Savoury snacks
  • Other
  • Chart: Biscuit Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retail traders
  • Grocery wholesalers
  • Speciality stores
  • Food-service sector
  • Chart: Major Market Segmentation for the Biscuit Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Biscuit Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Biscuit Production Industry

  • Industry Globalization
    United Biscuits (UK) Ltd, Burton's Foods Ltd, Walkers Shortbread Ltd,
  • Table: United Biscuits (UK) Ltd - financial performance
  • Table: Burton's Foods Ltd - financial performance
  • Table: Walkers Shortbread Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Biscuit Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Biscuit Production Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A flat a cracker, containing mostly rye flour.
  • Premiumisation
  • The trend of consumers becoming more interested in buying small quantities of high-quality products than large amounts of low-quality ones.
  • Rusk
  • A dry biscuit or twice-baked bread. Rusks are more popular as a general food item in other parts of Europe. They are also a teething food for babies and an ingredient in sausages.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Biscuit Production market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Biscuit Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Biscuit Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Biscuit Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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