Biscuits, Cookies and Crackers - UK - March 2013

INTRODUCTION
Definition
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: Total UK retail sales and forecast of sweet and savoury biscuits and crackers, by value, 2007-17
Segment performance
Sweet biscuits
Savoury biscuits and crackers
Market factors
Ageing population to benefit biscuits
Savvy shoppers on the hunt for special offers
Healthy appetite for diet/light foods
Companies, brands and innovation
Market share – sweet biscuits
Figure 2: UK retail sales of sweet biscuit brands, by value share, 2012*
Market share – savoury biscuits and crackers
Figure 3: UK retail sales of savoury biscuits and crackers brands, by value and volume share, 2012*
NPD activity reaches a five-year high in 2012
Adspend rises by 6% in 2012
The consumer
Types of sweet and savoury biscuits and crackers eaten
Figure 4: Types of biscuits eaten, December 2012
Occasions for eating sweet biscuits
Figure 5: Usage occasions for eating sweet biscuits, December 2012
Factors influencing purchase of sweet biscuits
Figure 6: Important factors when choosing sweet biscuits, December 2012
Attitudes towards sweet biscuits
Figure 7: Attitudes towards sweet biscuits, December 2012
Attitudes towards sweet and savoury biscuits and crackers
Figure 8: Attitudes towards sweet and savoury biscuits, December 2012
What we think
ISSUES IN THE MARKET
How can manufacturers polish the value positioning of chocolate biscuit bars to revive growth in the sector?
What NPD areas offer potential in healthy biscuits?
How can packaging add value in this price-sensitive market?
Is there scope for flavour innovation to drive interest in savoury biscuits?
TREND APPLICATION
Trend: Simple Balance for Health
Trend: Transumers
Mintel Futures: Old Gold
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
MARKET DRIVERS
Key points
Biscuits’ strength (and weakness) is its retired user base
Figure 9: Usage of sweet biscuits, by selected lifestage, 2012
Ageing population bodes well for biscuits
Figure 10: Projected trends in population growth, by age, 2012-17
Frugal spending habits continue to take their toll on biscuits
Figure 11: Monthly consumer confidence index, January 2008-December 2012
Figure 12: Agreement with selected lifestyle statements, 2007-12
Raw material costs under pressure
Figure 13: Average monthly UK prices of wheat, January 2008-November 2012
Healthy biscuit sector remains niche…despite encouraging growth in 2012
Health vs indulgence
Figure 14: Agreement with selected lifestyle statements, 2007-12
Obesity crisis continues
Figure 15: Trends in Body Mass Index segments, % point change, 2007-12 and 2011-12
Salt reduction targets stalled
WHO’S INNOVATING?
Key points
New product launch activity reaches a five-year high
Figure 16: Share of new launches in sweet and savoury biscuits/crackers of the total launches in UK food market, 2009-12
Sweet biscuits dominate new product launch activity
Figure 17: Share of sweet and savoury biscuits/crackers NPD, by sector, 2009-12
Figure 18: Share of biscuits, cookies and crackers NPD, by own-label and brand, 2008-12
Figure 19: Share of product launches within the UK biscuits, cookies and crackers market, by ultimate company, 2009-12
NPD in children’s sweet biscuit sector heats up in 2013
Seasonal events provide inspiration for brands
Christmas stocking fillers and beyond
Seasonal and economy claims grow in sweet biscuits
Figure 20: Top ten claims among new launches in the UK sweet biscuit market, 2011 and 2012
Quantifying calorie content helps consumers with portion control
Savoury biscuits seek to capitalise on health attributes
Figure 21: Top ten claims among new launches in the UK savoury biscuit and crackers market, 2011 and 2012
Packaging claims
Figure 22: Resealable launches as % of sweet biscuits NPD, UK, 2008-12
New trends in global innovation
MARKET SIZE AND FORECAST
Key points
Value growth reduced as biscuit/cracker volumes see further decline in 2012
Figure 23: UK retail sales and forecast of sweet and savoury biscuits and crackers, by value and volume, 2007-17
Lack of demand for premium and indulgent treats impacts on sweet biscuit performance
Figure 24: UK retail sales and forecast of sweet biscuits, by value and volume, 2007-17
Savoury sector bears the brunt of price inflation
Figure 25: UK retail sales and forecast of savoury biscuits and crackers, by value and volume, 2007-17
Market outlook
Market forecasts
Sweet biscuits
Figure 26: UK retail sales and forecast of sweet biscuits, by volume, 2007-17
Figure 27: UK retail sales and forecast of sweet biscuits, by value, 2007-17
Savoury biscuits and crackers
Figure 28: UK retail sales and forecast of savoury biscuits and crackers, by volume, 2007-17
Figure 29: UK retail sales and forecast of savoury biscuits and crackers, by value, 2007-17
Market total
Figure 30: Total UK retail sales and forecast of sweet and savoury biscuits and crackers, by volume, 2007-17
Figure 31: Total UK retail sales and forecast of sweet and savoury biscuits and crackers, by value, 2007-17
Forecast methodology
SEGMENT PERFORMANCE
Key points
Little evidence of volume growth
Figure 32: UK retail value and volume sales of sweet and savoury biscuits/crackers, by sector, % change 2011-12
Sweet biscuits by sector
Figure 33: UK retail value sales of sweet biscuits, by sector, 2010-12
Figure 34: UK retail volume sales of sweet biscuits, by sector, 2010-12
Everyday sector overtakes chocolate biscuit bars as consumers cut back
Children’s and seasonal sales struggle to resonate
Healthier biscuits show progress in 2012
Savoury biscuits/crackers by sector
Figure 35: UK retail value and volume sales of savoury biscuits and crackers, by sector, 2010-12
Savoury biscuits reinvigorated by new brand activity
MARKET SHARE
Key points
Brand shares remain steady in sweet biscuits despite some standout performances
Own-label picks up pace in 2012 in a fragmented sector
Figure 36: UK retail sales of sweet biscuit brands, by value and volume share, 2012*
Figure 37: UK retail sales of leading brands in sweet biscuits, by value and volume share, 2011 and 2012
Brand extensions and seasonal NPD at Burton’s
Mixed performances from United Biscuits portfolio
Fair trade KitKat loses out to competitors
Fast-growing Oreo recruits new users across category
Savoury biscuits and crackers
Figure 38: UK retail sales of savoury biscuits and crackers brands, by value and volume share, 2012*
Figure 39: UK retail sales of leading brands in savoury biscuits and crackers, by value and volume share, 2011 and 2012
New venture brand from Tesco
COMPANIES AND PRODUCTS
Figure 40: Leading brands in the sweet and savoury biscuits and crackers market, 2012
Associated British Foods
Background
Product range and innovation
Recent activity and promotion
Burton’s Biscuit Company
Background
Product range
Product innovation
Recent activity and promotion
Kallo Foods
Company background
Product range
Recent activity and promotion
Mondelēz International (formerly Kraft)
Background
Product range and innovation
Recent activity and promotion
Nestlé
Company background
Product range
Recent activity and promotion
United Biscuits (UBUK)
Background
Product range and innovation
Recent activity and promotion
2 Sisters Food Group
Background
Product range and innovation
Product innovation
Recent activity and promotion
BRAND COMMUNICATION AND PROMOTION
Key points
Brands invest more heavily in marketing spend
Figure 41: Main monitored media advertising expenditure in the sweet and savoury biscuits and crackers market, 2009-12
Figure 42: Main monitored media advertising expenditure in the sweet and savoury biscuits and crackers market, 2009-12
UBUK usurps Burton’s as the second-highest spender, while Kraft continues to dominate
Figure 43: Advertising expenditure in the biscuit, cookies and crackers market, by highest-spending brands, 2009-12
Quirks and Oddities target young people with online and cinema activity
Burton’s Wagon Wheels relaunched
Ryvita teams up with Weight Watchers in 2012
Fox’s goes pink for charity
Mobile gains interest
CHANNELS TO MARKET
Key points
Major multiples maintain their market dominance
Figure 44: Estimated retail distribution of sweet and savoury biscuits and crackers, 2010-12
Independents suffer while discounters benefit from competitive prices
CONSUMER – TRENDS IN USAGE
Key points
Sweet biscuit usage displays encouraging recovery trends
Figure 45: Usage of sweet biscuits, 2007-12
Figure 46: Trends in frequency of using sweet biscuits, 2007-12 and 2011-12
Exploring new occasions brings growth opportunities
Figure 47: Times of snacking, by selected types of snacks eaten, 2012
Usage peaks among those likely to be spending more time at home
Figure 48: Usage of sweet biscuits, by selected demographics showing high VII, 2012
Climbing savoury biscuit usage stalls in 2012
Figure 49: Usage of savoury biscuits, crispbread, crackers and rice cakes, 2007-12
Weekly usage higher than sweet, but declines evident in 2012
Figure 50: Trends in frequency of using savoury biscuits, crispbread, crackers and rice cakes, 2007-12 and 2011-12
Figure 51: Usage of savoury biscuits, crispbread, crackers and rice cakes, by selected demographics, by VII, 2012
CONSUMER – TYPES OF BISCUITS AND CRACKERS EATEN
Key points
Everyday and chocolate biscuits prove most popular
Figure 52: Types of biscuits eaten, December 2012
Men veer away from crackers, crispbreads and healthy biscuit options
Engaging younger adults presents a challenge to savoury biscuit brands
Figure 53: Types of biscuits eaten, by age, December 2012
Impact of children in household on type of biscuits eaten
Figure 54: Types of biscuits eaten – oatcakes, by age, December 2012
Enthusiasm for eating different types of biscuits and crackers
Figure 55: Repertoire of types of biscuits eaten, December 2012
CONSUMER – OCCASIONS FOR EATING SWEET BISCUITS
Key points
Biscuit occasions
Figure 56: Usage occasions for eating sweet biscuits, December 2012
Sweet biscuits strike an emotional chord
Under-35s more likely to recognise the versatility of biscuits as a snack
Figure 57: Usage occasions for eating sweet biscuits, by 16-24 and 25-34 age groups, December 2012
Women look to biscuits for a treat and to keep them going throughout the day
Figure 58: Usage occasions for eating sweet biscuits, by gender, December 2012
Figure 59: Usage occasions for eating sweet biscuits, according to above-average response by demographics and by type of biscuit eaten, December 2012
CONSUMER – FACTORS INFLUENCING PURCHASE OF SWEET BISCUITS
Key points
Appetite for promotions outweighs flavour and brand preference
Figure 60: Important factors when choosing sweet biscuits, December 2012
Figure 61: Important factors when choosing sweet biscuits, by presence of children or teenagers in the household, December 2012
Women guided by healthy options
Health credentials struggle to resonate with biscuit shoppers
Figure 62: Important health-related factors when choosing sweet biscuits, by gender and age, December 2012
Biscuit brand loyalty increases with age
Animal welfare and provenance matter slightly more to savoury biscuit users
Figure 63: Important factors when buying food and non-alcoholic drink, by type of biscuits eaten, December 2012
CONSUMER – ATTITUDES TOWARDS SWEET BISCUITS
Key points
Value and variety are key strengths of the sweet biscuit category
Figure 64: Attitudes towards eating sweet biscuits, December 2012
Enthusiasm for new varieties/concepts/flavours
Over-65s prove loyal but challenging
Figure 65: Attitudes towards eating sweet biscuits, by over-65s age group, % point difference to average, December 2012
Biscuits are viewed as an affordable treat
High level of acceptance of own-label biscuits
High level of interest in healthier biscuits
Scope for biscuits as a more substantial snack
Figure 66: Agreement with the statement ‘I’d like to see more biscuits with energy-giving ingredients (eg glucose)’, by age, December 2012
Enthusiasm for home baking
CONSUMER – PERCEPTIONS OF SWEET BISCUIT TYPES
Key points
Word associations with sweet biscuits
Figure 67: Correspondence analysis relating to sweet biscuits, December 2012
Figure 68: Qualities associated with sweet biscuits, December 2012
Digestives
Shortbread
Chocolate chip cookies
Sandwich-type biscuits
CONSUMER – ATTITUDES TOWARDS SWEET AND SAVOURY BISCUITS AND CRACKERS
Key points
Resealability is in demand
Figure 69: Attitudes towards sweet and savoury biscuits, December 2012
Crackers as a healthy alternative to bread or crisps
Figure 70: Selected attitudes towards sweet and savoury biscuits, by age, December 2012
Parents of toddlers want more suitable biscuit options
Figure 71: Agreement with the statements ‘I’d like to see more healthy sweet biscuits for children’ and ‘I’d like to see more savoury biscuits for children’, by presence of children, December 2012
Demand for more ‘filling’ NPD in savoury biscuits
One in five look for the ‘dunk factor’
CONSUMER – TARGET GROUPS
Key points
Four target groups
Figure 72: Target groups, December 2012
Laid-Back Snackers (21%)
Occasional Treaters (26%)
New Product Enthusiasts (32%)
Waist-Watchers (21%)
APPENDIX – MARKET DRIVERS
Figure 73: Trends and projections in the UK population (‘000s), by age group, 2007-17
Figure 74: Forecast adult population trends, by socio-economic group, 2007-17
Figure 75: Agreement with selected lifestyle statements, 2007-12
Figure 76: Agreement with selected lifestyle statements, by demographics, 2012
Figure 77: Agreement with selected lifestyle statements, by demographics, 2012
Figure 78: Trends in Body Mass Index segments, 2007-12
Figure 79: Trends in Body Mass Index segments, by demographics, 2012
Figure 80: GDP, PDI, consumer expenditure and savings, at constant 2007 prices, 2007-17
APPENDIX – MARKET FORECAST
Sweet and savoury biscuits/crackers
Figure 81: Forecast of UK retail sales of sweet and savoury biscuits/crackers, best- and worst-case forecast, by value, 2012-17
Figure 82: Forecast of UK retail sales of sweet and savoury biscuits/crackers, best- and worst-case forecast, by volume, 2012-17
Sweet biscuits
Figure 83: Forecast of UK retail sales of sweet biscuits, best- and worst-case forecast, by value, 2012-17
Figure 84: Forecast of UK retail sales of sweet biscuits, best- and worst-case forecast, by volume, 2012-17
Savoury biscuits and crackers
Figure 85: Forecast of UK retail sales of savoury biscuits/crackers, best- and worst-case forecast, by value, 2012-17
Figure 86: Forecast of UK retail sales of savoury biscuits/crackers, best- and worst-case forecast, by volume, 2012-17
APPENDIX – CONSUMER – TRENDS IN USAGE
Figure 87: Frequency of using sweet biscuits, by demographics, 2012
Figure 88: Frequency of using savoury biscuits, crispbread, crackers and rice cakes, by demographics, 2012
APPENDIX – CONSUMER – TYPES OF BISCUITS AND CRACKERS EATEN
Figure 89: Types of biscuits eaten, December 2012
Figure 90: Most popular types of biscuits eaten, by demographics, December 2012
Figure 91: Next most popular types of biscuits eaten, by demographics, December 2012
Repertoire analysis
Figure 92: Repertoire of types of sweet biscuits eaten, December 2012
Figure 93: Repertoire of types of sweet biscuits eaten, by demographics, December 2012
Figure 94: Types of biscuits eaten, by repertoire of types sweet biscuits eaten, December 2012
Figure 95: Repertoire of types of savoury biscuits and crackers eaten, December 2012
Figure 96: Repertoire of types of savoury biscuits and crackers eaten, by demographics, December 2012
Figure 97: Types of biscuits eaten, by repertoire of types savoury biscuits and crackers eaten, December 2012
Figure 98: Important factors when buying food and non-alcoholic drink, by most popular types of biscuits eaten, December 2012
Figure 99: Important factors when buying food and non-alcoholic drink, by next most popular types of biscuits eaten, December 2012
APPENDIX – CONSUMER – OCCASIONS FOR EATING SWEET BISCUITS
Figure 100: Most popular usage occasions for eating sweet biscuits, by demographics, December 2012
Figure 101: Next most popular usage occasions for eating sweet biscuits, by demographics, December 2012
Figure 102: Usage occasions for eating sweet biscuits, by most popular types of biscuits eaten, December 2012
Figure 103: Usage occasions for eating sweet biscuits, by next most popular types of biscuits eaten, December 2012
Figure 104: Usage occasions for eating sweet biscuits, by important factors when choosing sweet biscuits, December 2012
Figure 105: Types of biscuits eaten, by most popular usage occasions for eating sweet biscuits, December 2012
Figure 106: Types of biscuits eaten, by next most popular usage occasions for eating sweet biscuits, December 2012
APPENDIX – CONSUMER – FACTORS INFLUENCING PURCHASE OF SWEET BISCUITS
Figure 107: Important factors when choosing sweet biscuits, by demographics, December 2012
Figure 108: Types of biscuits eaten, by important factors when choosing sweet biscuits, December 2012
Figure 109: Important factors when choosing sweet biscuits, by most popular types of biscuits eaten, December 2012
Figure 110: Important factors when choosing sweet biscuits, by next most popular types of biscuits eaten, December 2012
Figure 111: Sweets biscuits purchasing, December 2012
Figure 112: Sweets biscuits purchasing, by demographics, December 2012
APPENDIX – CONSUMER – ATTITUDES TOWARDS SWEET BISCUITS
Figure 113: Attitudes towards eating sweet biscuits, December 2012
Figure 114: Agreement with the statements ‘Biscuits are a good value snack’ and ‘I enjoy trying new types of biscuits’, by demographics, December 2012
Figure 115: Agreement with the statements ‘It’s important to pay attention to the calorie content of biscuits’ and ‘I’d like to see more biscuits with different flavoured fillings’, by demographics, December 2012
Figure 116: Agreement with the statements ‘Own-label biscuits are just as good as branded varieties’ and ‘I would eat biscuits more often if I was sure they weren’t bad for me’, by demographics, December 2012
Figure 117: Agreement with the statements ‘Biscuits are a less filling snack than chocolate/cereal bars’ and ‘I’d like to see more biscuits with added health benefits (eg omega 3, high fibre)’, by demographics, December 2012
Figure 118: Agreement with the statements ‘I’d like to see more biscuits with energy-giving ingredients’ and ‘I’d be keen to bake my own biscuits from a pre-mix recipe’, by demographics, December 2012
Figure 119: Attitudes towards eating sweet biscuits, by most popular types of biscuits eaten, December 2012
Figure 120: Attitudes towards eating sweet biscuits, by next most popular types of biscuits eaten, December 2012
APPENDIX – CONSUMER – PERCEPTIONS OF SWEET BISCUIT TYPES
Figure 121: Perceptions of sweet biscuit types, December 2012
Figure 122: Most popular perceptions of digestives, by demographics, December 2012
Figure 123: Next most popular perceptions of digestives, by demographics, December 2012
Figure 124: Most popular perceptions of shortbread, by demographics, December 2012
Figure 125: Next most popular perceptions of shortbread, by demographics, December 2012
Figure 126: Most popular perceptions of chocolate chip cookies, by demographics, December 2012
Figure 127: Next most popular perceptions of chocolate chip cookies, by demographics, December 2012
Figure 128: Most popular perceptions of sandwich-type biscuits, by demographics, December 2012
Figure 129: Next most popular perceptions of sandwich-type biscuits, by demographics, December 2012
APPENDIX – CONSUMER – ATTITUDES TOWARDS SWEET AND SAVOURY BISCUITS AND CRACKERS
Figure 130: Attitudes towards sweet and savoury biscuits, December 2012
Figure 131: Most popular attitudes towards sweet and savoury biscuits, by demographics, December 2012
Figure 132: Next most popular attitudes towards sweet and savoury biscuits, by demographics, December 2012
Figure 133: Attitudes towards sweet and savoury biscuits, by most popular types of biscuits eaten, December 2012
Figure 134: Attitudes towards sweet and savoury biscuits, by next most popular types of biscuits eaten, December 2012
APPENDIX – TARGET GROUPS
Figure 135: Target groups, by demographics, December 2012
Figure 136: Types of biscuits eaten, by target groups, December 2012
Figure 137: Important factors when choosing sweet biscuits, by target groups, December 2012
Figure 138: Usage occasions for eating sweet biscuits, by target groups, December 2012
Figure 139: Attitudes towards eating sweet biscuits, by target groups, December 2012
Figure 140: Perceptions of sweet biscuit types, by target groups, December 2012
Figure 141: Attitudes towards sweet and savoury biscuits, by target groups, December 2012
Figure 142: Attitudes towards health and healthy lifestyle statements, by target groups, December 2012