Sweet Biscuits and Snack Bars - UK - March 2020

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Value sales of sweet biscuits and cereal bars keep growing
Figure 1: Best- and worst-case forecast of total UK retail value sales of sweet biscuits, breakfast biscuits and cereal/snack bars, 2014-24
Consumers continuing to snack on sweet biscuits
Figure 2: UK retail value sales of sweet biscuits and cereal/snack bars, by segment, 2018 and 2019
Lack of progress on sugar reduction in biscuits
Snacking culture drives eating of biscuits
Companies and brands
McVitie’s strengthens lead in sweet biscuits
Figure 3: Leading brands’ shares in the sweet biscuits market, by value, 2018/19*
Own-label makes gains in chocolate biscuit bars
Figure 4: Leading brands’ shares in the chocolate biscuit bars market, by value, 2018/19*
Belvita increases sales through healthier focus
Figure 5: Leading brands’ shares in the breakfast biscuits and cereal/snack bars market, by value, 2019/20*
Limited L/N/R sugar activity
New flavour twists a continuing feature of NPD
Increase in healthy claims in cereal/snack bars
The consumer
Nine in 10 Brits eat sweet biscuits
Figure 6: Frequency of eating sweet biscuits and cereal/snack bars, December 2019
Targeting out-of-home eating important
Taste and price most important purchase drivers
Figure 7: Purchase drivers when choosing sweet biscuits and cereal/snack bars, January 2020
Familiar favourites tick the right boxes
Plenty of interest in healthier biscuits
Figure 8: Attributes most sought in the perfect sweet biscuit, January 2020
Chocolate confectionery extensions have strong appeal
A quarter interested in cookie dough for snacking or baking
Figure 9: Interest in different product features in sweet biscuits and cereal/snack bars, December 2019
Daily sweet biscuits permissible for seven in 10 eaters
Replacing biscuits with cereal/snack bars seen as an easy healthy swap
Figure 10: Attitudes towards sweet biscuits and cereal/snack bars, January 2020
Me-time and sharing occasions deserve limelight in marketing
Figure 11: Behaviours related to eating sweet biscuits, January 2020
What we think
ISSUES AND INSIGHTS
Opportunity for healthier products and portion-sized packs
The facts
The implications
Texture and flavour development needs to be central to NPD
The facts
The implications
Promote cereal/snack bars as an easy healthy swap
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Value sales of sweet biscuits and cereal bars keep growing
Snacking culture will keep people spending
Sweet biscuits benefit from treating and sharing occasions
Sweet biscuits to pass £1.99 billion in 2024
Slowdown in growth for cereal bars
Lack of progress on sugar reduction in biscuits
Sugar a big concern for consumers
Snacking culture drives eating of biscuits
Projected decline in number of young adults
Ageing population unlikely to benefit sales
MARKET SIZE AND FORECAST
Value sales of sweet biscuits and cereal bars keep growing
Figure 12: Total UK retail value sales of sweet biscuits, breakfast biscuits and cereal/snack bars, 2014-24
Snacking culture will keep people spending
Figure 13: Best- and worst-case forecast of total UK retail value sales of sweet biscuits, breakfast biscuits and cereal/snack bars, 2014-24
Forecast methodology
MARKET SEGMENTATION
Sweet biscuits benefit from treating and sharing occasions
Figure 14: Total UK retail value sales of sweet biscuits, 2014-24
Regular sweet biscuits are the segment’s growth engine
Figure 15: UK retail value and volume sales of sweet biscuits, by biscuits and chocolate biscuit bars, 2017-19
Segment to pass £1.99 billion in 2024
Figure 16: Best- and worst-case forecast of total UK retail value sales of sweet biscuits, 2014-24
Slowdown in growth for cereal bars
Figure 17: Total UK retail value sales of breakfast biscuits and cereal/snack bars, 2014-24
Segment to reach £771 million by 2024
Figure 18: Best- and worst-case forecast of total UK retail value sales of breakfast biscuits and cereal/snack bars, 2014-24
MARKET DRIVERS
Lack of progress on sugar reduction in biscuits
Sugar a big concern for consumers
Figure 19: Concerns about selected ingredients in food and non-alcoholic drinks, June 2019
Snacking culture drives eating of biscuits
Figure 20: Reasons for snacking, March 2019
Projected decline in number of young adults is bad news for the market
Figure 21: Trends in the age structure of the UK population, 2014-24
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
McVitie’s strengthens lead in sweet biscuits
Own-label makes gains in chocolate biscuit bars
Belvita increases sales through healthier focus
Limited L/N/R sugar activity
New flavour twists a continuing feature of NPD
Increase in healthy claims in cereal/snack bars
Cereal/snack bars entice shoppers with appealing flavours
Mondelēz is the biggest advertiser on sweet biscuits
McVitie’s and Cadbury Biscuits the most trusted brands
MARKET SHARE
McVitie’s strengthens lead in sweet biscuits
Figure 22: Leading brands’ sales in the sweet biscuits market, by value and volume, 2017/18 and 2018/19
Own-label makes gains in chocolate biscuit bars
Figure 23: Leading brands’ sales in the chocolate biscuit bars market, by value and volume, 2017/18 and 2018/19
Belvita increases sales through healthier focus
Figure 24: Leading brands’ sales in the breakfast biscuits and cereal/snack bars market, by value and volume, 2018/19 and 2019/20
LAUNCH ACTIVITY AND INNOVATION
Limited L/N/R sugar activity
Figure 25: Examples of new launches in sweet biscuits making L/N/R sugar claims, 2019/20
Healthier biscuits still have a small presence
Figure 26: Examples of new launches of healthier biscuits, 2019/20
New flavour twists a continuing feature of NPD
Figure 27: Examples of new launches in sweet biscuits with new flavour twists, 2019/20
New texture and flavour combinations adding to variety
Figure 28: Examples of new launches in sweet biscuits with different texture combinations, 2019
Soft bakes see more launch activity
Figure 29: Examples of new launches of soft bake products in sweet biscuits, 2019
Growing premium focus on NPD in own-label products
Figure 30: Examples of premium and luxury launches in sweet biscuits /cookies, 2019
Increase in healthy claims in cereal/snack bars
Figure 31: Healthier claims in new launches in the UK retail snack/cereal/energy bars market, 2015-19
Cereal/snack bars entice shoppers with appealing flavours
Tempt them with chocolate
Figure 32: Examples of new launches in snack/cereal/energy bars with a focus on chocolate, 2019/20
Nuts feature in more launches
Figure 33: Examples of new launches in snack/cereal/energy bars with peanuts or peanut butter, 2019/20
Bakery and dessert flavours add differentiation
Figure 34: Examples of new launches in snack/cereal/energy bars with bakery or dessert flavours, 2019/20
ADVERTISING AND MARKETING ACTIVITY
Adspend is split equally between biscuits and cereal bars/breakfast biscuits
Figure 35: Total above-the line, online display and direct mail advertising expenditure on sweet biscuits, shortbread, cereal bars and breakfast biscuits, by media type, 2016-19
Mondelēz is the biggest advertiser on sweet biscuits
Figure 36: Total above-the line, online display and direct mail advertising expenditure on sweet biscuits/ shortbread, by advertiser, 2019
Figure 37: Total above-the line, online display and direct mail advertising expenditure on sweet biscuits/ shortbread, by top brands, 2019
Cadbury Fingers highlights the kindness of sharing
Bahlsen launches ‘A Little Bit Fancy’ campaign
Lotus Biscoff focuses on link with coffee
McVitie’s ‘Let’s Talk’ campaign supports mental health
Belvita biggest advertiser in cereal bars and breakfast biscuits
Figure 38: Total above-the line, online display and direct mail advertising expenditure on cereal bars/breakfast biscuits, by advertiser, 2019
Figure 39: Figure 40: Total above-the line, online display and direct mail advertising expenditure on cereal bars/breakfast biscuits, by top brands, 2019
Nakd launches first TV campaign
Nestlé runs TV campaign for Yes! snack bars
Kellogg’s Rice Krispies Squares targets parents of teens
Nature Valley looks to get people outdoors
Nielsen Ad Intel coverage
BRAND RESEARCH
Brand map
Figure 41: Attitudes towards and usage of selected brands, February 2020
Key brand metrics
Figure 42: Key metrics for selected brands, February 2020
Brand attitudes: Cadbury seen most widely as worth paying more for
Figure 43: Attitudes, by brand, February 2020
Brand personality: McVitie’s the most accessible brand
Figure 44: Brand personality – macro image, February 2020
McVitie’s seen as the most traditional brand
Figure 45: Brand personality – micro image, February 2020
Brand analysis
McVitie’s seen as offering good value
Figure 46: User profile of McVitie’s, February 2020
Cadbury Biscuits seen as most delicious and indulgent
Figure 47: User profile of Cadbury Biscuits, February 2020
Fox’s is most strongly a traditional and family brand
Figure 48: User profile of Fox’s, February 2020
Indulgence is Bahlsen’s biggest strength
Figure 49: User profile of Bahlsen, February 2020
Good value a key strength for Maryland
Figure 50: User profile of Maryland, February 2020
Oreo has least traditional image
Figure 51: User profile of Oreo, February 2020
THE CONSUMER – WHAT YOU NEED TO KNOW
Nine in 10 Brits eat sweet biscuits
Targeting out-of-home eating important
Taste and price most important purchase drivers
Familiar favourites tick the right boxes
Plenty of interest in healthier biscuits
Chocolate confectionery extensions have strong appeal
A quarter interested in cookie dough for snacking or baking
Daily sweet biscuits permissible for seven in 10 eaters
Replacing biscuits with cereal/snack bars seen as an easy healthy swap
Me-time and sharing occasions deserve limelight in marketing
EATING OF SWEET BISCUITS AND CEREAL/SNACK BARS
Nine in 10 Brits eat sweet biscuits
Figure 52: Types of sweet biscuits and cereal/snack bars eaten in the last 3 months, December 2019
More than half of people eat sweet biscuits at least once a week
Figure 53: Frequency of eating sweet biscuits and cereal/snack bars, December 2019
WHERE AND HOW SWEET BISCUITS AND CEREAL/SNACK BARS EATEN
Targeting out-of-home eating important for biscuits and cereal bars
Figure 54: Where sweet biscuits and cereal/snack bars were eaten in the last 3 months, December 2019
Six in 10 eat sweet biscuits with a hot drink
Figure 55: How sweet biscuits and cereal/snack bars eaten in the last 3 months, January 2020
PURCHASE DRIVERS
Taste and price most important purchase drivers
Convenience and healthiness offer best scope for differentiation
Figure 56: Purchase drivers when choosing sweet biscuits and cereal/snack bars, January 2020
SWEET BISCUIT PREFERENCES
Familiar favourites tick the right boxes
Crunchiness matters to three in ten
Figure 57: Attributes most sought in the perfect sweet biscuit, January 2020
Plenty of interest in healthier biscuits
Not everyone likes biscuits too sweet
INTEREST IN PRODUCT FEATURES
Chocolate confectionery extensions have strong appeal
Figure 58: Interest in different product features in sweet biscuits and cereal/snack bars, December 2019
Texture development offers a way of adding differentiation
A quarter interested in cookie dough for snacking or baking
Figure 59: Global examples of new launches of cookie dough for snacking, 2019/20
ATTITUDES TOWARDS SWEET BISCUITS AND CEREAL/SNACK BARS
Daily sweet biscuits permissible for seven in 10 eaters
Figure 60: Attitudes towards sweet biscuits and cereal/snack bars, January 2020
Replacing biscuits with cereal/snack bars seen as an easy healthy swap
Strong demand for a wider range of healthier biscuits
BEHAVIOURS RELATED TO EATING SWEET BISCUITS
‘Me’ time and sharing occasions deserve limelight in marketing
Figure 61: Behaviours related to eating sweet biscuits, January 2020
Seasonal ranges offer a boost to biscuit sales
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Figure 62: Total UK retail volume sales of sweet biscuits, breakfast biscuits and cereal/snack bars, 2014-24
Forecast methodology
Figure 63: Best- and worst-case forecast of total UK retail value sales of sweet biscuits, breakfast biscuits and cereal/snack bars, 2019-24
APPENDIX – MARKET SEGMENTATION
Figure 64: Total UK retail volume sales of sweet biscuits, 2014-24
Figure 65: Best- and worst-case forecast of total UK retail value sales of sweet biscuits, 2019-24
Figure 66: Total UK retail volume sales of breakfast biscuits and cereal/snack bars, 2014-24
Figure 67: Best- and worst-case forecast of total UK retail value sales of breakfast biscuits and cereal/snack bars, 2019-24
APPENDIX – MARKET SHARE
Figure 68: Leading manufacturers’ sales in the sweet biscuits market, by value and volume, 2017/18 and 2018/19
Figure 69: Leading manufacturers’ sales in the chocolate biscuit bars market, by value and volume, 2017/18 and 2018/19
Figure 70: Leading manufacturers’ sales in the breakfast biscuits and cereal/snack bars market, by value and volume, 2018/19 and 2019/20
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 71: Top claims in new launches in the UK retail sweet biscuits/cookies market, 2015-19
Figure 72: Top companies in new launches in the UK retail sweet biscuits/cookies market, 2015-19
Figure 73: Top claims in new launches in the UK retail snack/cereal/energy bars market, 2015-19
Figure 74: Top companies in new launches in the UK retail snack/cereal/energy market, 2015-19
Figure 75: New launches in the UK retail sweet biscuits/cookies and snack/cereal/energy market, by sub-category, 2015-19
Figure 76: New launches in the UK retail snack/cereal/energy market, by flavour component sub-group, 2015-19