The UK Biscuits and Cakes Market Increased by an Estimated 3.1% to Reach £2.81bn

The UK Biscuits and Cakes Market Increased by an Estimated 3.1% to Reach £2.81bn



Research and Markets (researchandmarkets. com/reports/c36044) has announced the addition of Biscuits and Cakes Market Report Plus 2006 to their offering.



Dublin (PRWEB) April 26, 2006



Research and Markets (http://www. researchandmarkets. com/reports/c36044 (http://www. researchandmarkets. com/reports/c36044)) has announced the addition of Biscuits and Cakes Market Report Plus 2006 to their offering.



This Market Report Plus examines the UK market for biscuits and ambient cakes, which form part of a strong food industry. It is estimated that, in 2005, the total UK biscuits and cakes market was worth £2.81bn at retail selling prices (rsp), a rise of 3.1% on 2004. Since 2001, the market has grown ahead of the food market as a whole, as well as total expenditure on sugar and sweet products.



The two main market sectors are biscuits and cakes. Biscuits have experienced strong activity on the part of suppliers in recent years, and the development of more portable and single-serve, portioned products has given way to a greater concentration on brand development. Indulgence and health have been the top criteria for innovation, with other activity tending to be restricted to brand extension through new flavours and variants.



The cakes sector has also seen strong growth, primarily driven by small cakes and products for individuals. The eat-now market of single-wrapped products has developed, bringing with it a range of new outlets for cakes allowing them to compete head on with sectors such as confectionery and savoury snacks. The development of cross-branding from sectors such as confectionery has also had an impact.



The two main drivers of growth in the biscuits and cakes market are indulgence and health. Premium products targeting the adult market have experienced considerable development to gain higher spending on treats. In addition, a focus on health issues in the food market overall has also benefited sales of better-for-you brands of cakes and biscuits.



Branding is a significant feature of both sectors. Major players in the biscuits sector include United Biscuits, Burton's Foods and Northern Foods, and all of these companies have a strong portfolio of brands and sub-brands. However, smaller brands, such as Bahlsen, are also significant in certain areas. Cake suppliers are led by Manor Bakeries, which supplies the Mr Kipling and Cadbury brands, and suppliers such as Finsbury Food Group and Inter Link Foods offer products targeted at the retailer own-label market. As with other food sectors, niche brands in areas such as organic, free-from and Fairtrade are also making progress.



Both biscuits and cakes enjoy a high level of penetration across UK consumer groups. As a result, growth tends to be driven by higher spending among existing users rather than drawing new buyers into the market. Encouraging consumers to trade up to premium products or opt to pay for reduced-calorie options have added value to the market.



Sales of biscuits and cakes have managed growth in real terms since 2001, and much of this success has been attributable to the flexibility of suppliers in responding to and creating demand for relevant products. This will also be the basis for future growth in the sector. It is forecast that, over the next 5 years (to 2010), the total UK biscuits and cakes market will rise by between 2.1% and 3.1% year on year.



For more information visit http://www. researchandmarkets. com/reports/c36044 (http://www. researchandmarkets. com/reports/c36044)



Laura Wood



Senior Manager



Research and Markets



Fax: +353 1 4100 980



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