As a widely affordable treat, biscuits have been one of the few categories where shoppers have readily kept spending.
Shoppers continue to turn to brands they know and trust to deliver on a great tasting biscuit.
For some of us, money is tighter than ever, and suppliers want to ensure when people buy biscuits, they deliver on the expected taste and quality.
“Shoppers often turn to the brands they know and love, especially when money is tighter,” comments Colin Taylor, Trade Marketing Director at Fox’s Burton’s Companies UK. “Brands such as Fox’s, Maryland and Jammie Dodgers are therefore at the forefront of consumers’ minds as trusted, well-known brands and as such have grown value sales faster than the market (NIQ).”
FBC UK has seen continuous growth across its portfolio of Sweet Biscuits, particularly some of its core household brands such as Fox’s (volume +10% 52we YoY) and Maryland (volume +2% YoY, NIQ). “Whilst we recognise the economic challenges, it is great to see our brands maintaining a leading position,” adds Taylor.
In fact, within Premium Treats “Big Cookies” are up 23% to £74m, driven by Fox’s Cookies +67% to £31m in the 52 weeks to 09 09 23 (NIQ). “Special Treats” are the other key sector in Premium Treats worth £186m and +20% year on year, driven by indulgent offerings like Fox’s Chocolatey +27% (NIQ). FBC UK has a strong portfolio within the ‘Premium Treats’ segment, made up of ‘Special Treats’ and ‘Big Cookies’. The ‘Special Treats’ segment includes fully coated chocolate biscuits like Fox’s Fabulous Chocolatey Rounds and indulgent recipes like the nutty, caramelised Thomas Fudge’s Florentines and buttery, chocolate-dipped Fox’s Fabulous Viennese Fingers.
“Some brands have actively benefitted from the HFSS display ban as it has levelled the playing field in the biscuit aisle. “For example, many shoppers have rediscovered Rocky and it is now in double digit growth across 2023 (NIQ). The brand has also been helped by a third Orange variant and a range-wide reduction in calories to below 100kcal per bar. We would expect to see more HFSS compliant SKUs in the future which may lead to a resurgence in growth for the Healthier Sweet Biscuits category overall, including FBC UK’s Skinny Cookie Company brand,” says Taylor.
“Our responsible approach is important as a manufacturer of leading treat brands. We will continue to offer a variety of products in a range of formats that help our consumers make responsible choices and enable them to enjoy treats as part of a balanced diet. We believe that a focus on portion control and responsible treating is the best approach.”
Data has shown us that shoppers have reduced the number of packs they buy per trip (-2% to 2.2 packs on average, Kantar) and are also opting for smaller packs year on year (-2% to 223g per pack on average, NIQ). The strongest growth in biscuits has been in more affordable sectors like ‘Everyday Treats’ (£5.57 per kg vs an average of £5.80, NIQ).
FBC UK has a very strong range of smaller packs at affordable price points, particularly in the ‘Everyday Treat’ segment of ‘Sweet Biscuits’. Fox’s Favourites Crunch Creams are a £14.3m brand, growing 22% year on year, Paterson’s is Britain’s Favourite shortbread brand worth £12.4m and growing 17%, Fox’s Favourites Viennese at £11.2m, growing at 13% and Fox’s Favourites Jam n’ Cream at £2.7m, growing at 29.8% (NIQ).
The Sweet Biscuit category is performing well with value sales growing at an impressive rate of 21.3% over the last year (NIQ).
As the largest segment within Sweet Biscuits, Everyday Treats is outperforming the category with 29% growth YOY (NIQ).
In convenience, Everyday Treats are also growing by 27.4% in the last year and is now worth £36.8 million (NIQ). Galaxy Cookies fall within this category and value sales are growing by 10.9% in convenience (NIQ).
Since launching last year, Galaxy Digestives are strong contenders in the Premium Treats category and now contribute £3.9 million (NIQ).
Michelle Frost, General Manager at Mars Chocolate Drinks and Treats, says: “With the Galaxy brand being bought by 50% of households in the UK (Kantar), consumers are looking to enjoy affordable treats with a premium taste.
“The strength of our brands and premium quality attract shoppers looking to enjoy those familiar flavours in a delicious biscuit format.”
The Mars portfolio has existing products spanning across multiple subcategories including Maltesers Biscuits, Galaxy Cookies and Twix Cookies.
The total cake market has grown by 9.7% and driven by take home cakes (Kantar).
Maltesers Cake Bars are the second-best selling cake bar and have retail sales value of £3.3 million per year (Nielsen).
Susan Nash, Trade Communications Manager at Mondelez International, comments: “Over the past year, shopper dynamics have changed, and Mondelez International has continued its strong track record of offering a wide range of iconic snacks that cater to these new developments and evolving trends.”
Increasing levels of impulsive on-the-go purchases have resulted in double digit growth for some of Mondelez’ healthier brands like belVita, with sales increasing as we get back to “new normal” consumption patterns. With a need to keep hunger at bay throughout the day for on-the-go shoppers, belVita delivers a quick and easy way to get additional nourishment.
“Additionally, we’re expecting to see an increase in ‘Big Night In’ sharing occasions during these colder, winter months,” adds Nash. “Families can turn to our well-loved shareable biscuits, such as the Cadbury biscuits range, including Cadbury Cookies, Cadbury Crunchy Melts and Cadbury Roundies.”
As a nod to this sharing trend, Cadbury Fingers, the shareable biscuit brand loved by families, has recently launched a new campaign focused on the importance of sharing. ‘Sign with Fingers Big and Small’ encourages people across the nation to learn some British Sign Language (BSL) to help people come together. Cadbury Fingers identified that many in the deaf community report feelings of isolation and exclusion in the kinds of shared moments that Fingers are made for. ‘Sign with Fingers Big and Small’ aims to get consumers started with little lessons to learn some everyday phrases and conversation starters in BSL, to truly help everybody come together.
Though shoppers continue to feel the pinch of pennies, treats remain a ‘must’ that consumers do not wish to compromise on. Moments of indulgence continue to be important, particularly for younger adult consumers (Mintel), as a way of de-stressing, while many consumers associate snacks with connecting with others (Mintel). Mondelez’s research supports this, finding that the ‘special treat’ category in particular has seen strong growth of 15% from 2022 to 2023 (Nielsen).
Consumers turn to OREO as an ‘everyday’ treat they can enjoy at any time, whether for a special occasion or simply “just because”. The brand is growing at 18.9% (Nielsen) and continues to progress with several exciting launches, promotions and engaging partnerships that build further on the brand’s equity of playfulness (Nielsen).
“Health is absolutely a key trend; we are already seeing consumers looking for more health and well-being options across the broader snacking category and we anticipate this trend continuing over the longer term,” says Nash. “In fact, our data shows that Healthier Biscuits are the biggest value driver (Nielsen) in the category and are growing at 20% (Nielsen), proving just how important this part of the market is as the category evolves with broader trends. We know that consumers look for ‘healthier’ ingredients such as oats and other wholegrains but will not compromise on taste.”
Consumer demand for healthier options is more prominent in the mornings, when they seek out more functional benefits and attributes, and look for treats to keep them going. belVita is growing ahead of the category in both volume and value sales and in penetration (Nielsen), frequency and repeat purchase levels (Nielsen).
“With the ongoing cost-of-living challenges, we’re noticing a growing demand for budget-friendly indulgences,” says Asl? Özen Turhan, Chief Marketing Officer at pladis UK&I. “As consumers shift spend away from pricier options, biscuits and cakes are becoming the go-to treats.”
Biscuits is a booming business. Last year, the category surpassed the £3bn mark for the first time and it’s a crucial segment for retailers to nail, valued at £273M in convenience alone (Kantar). McVitie’s is the leading biscuit brand in the UK, and pladis biscuits are a staple in over three-quarters of UK households (77%, Kantar).
“The same success can be seen in Cakes,” adds Turhan. “Our Everyday Cake Bars portfolio dominates the segment, commanding over a third of market share (39.5%, Nielsen). This is thanks to the mass appeal of our trusted, time-tested brands. Products like McVitie’s Jaffa Cake Bars and McVitie’s Digestives Caramel Millionaire Slices are experiencing strong growth in the channel, up +5.6% and 48.3%, respectively (Nielsen).”
In the world of snacking, taste is king. A large proportion of shoppers are jumping on bold, adventurous flavours, and McVitie’s Jaffa Cakes flavours over the years – including Pineapple, Cherry, Passion Fruit, and Lemon & Lime – have played a major role in this, bringing in an extra £10.5M in sales since 2021 (Nielsen). Expanding on that success, the brand recently rolled out Jaffa Cakes Rockin’ Raspberry, a fresh twist on the classic with a tangy raspberry centre.
“But we’re not stopping the flavour train there,” says Turhan. “This summer, we made consumers’ long-held wish come true with the launch of McVitie’s White Chocolate Digestives. A smooth, creamy take on the nation’s favourite biscuit that, in just a few months on the shelves, has racked up sales over £5.3M (Nielsen IQ).”
Another major trend is the surge in popularity of premium treats, currently driving solid category growth (+4.6%, Nielsen IQ). Shoppers are willingly spending more on premium biscuit gifts, boosting biscuit gifting sales to an impressive £42M, marking a 25% YOY growth (Nielsen IQ).
To keep up with this demand, pladis expanded its McVitie’s Seasonal gifting range beyond Christmas, making sure the brand is ready for year-round gifting occasions. The latest additions include McVitie’s Victoria Chocolate Orange Dreams, a twist on a favourite from the McVitie’s Victoria assortment.
And for those who love a touch of luxury, pladis’ most premium assortment is now available in a mini version – the McVitie’s Victoria Chocolate Creations Gifting Pack. Packed with velvety milk, dark, and white chocolate biscuits with the perfect crunch, complete with various gifting messages this assortment is set to satisfy the demand for unique flavours and thoughtful, indulgent gifts.
Looking at the cake aisles, pladis has also stirred up some excitement this year with its latest creation – BN Popping Candy Cake Bars. In two classic flavours – Chocolate and Strawberry – McVitie’s BN Popping Candy Cake Bars are helping retailers encourage impulse purchases.
“Contrary to expectations, even with rising costs, the love for biscuits and cakes among shoppers is unwavering. When looking to save, Brits are cutting back on out-of-home spending, as they aim to make their evenings a bit more special – and nothing says cosy evening in quite like indulging in a tasty treat or two,” continues Turhan.
“This is obviously great news for treat-led categories like biscuits and cakes, which are gaining immense popularity thanks to their offer of affordable indulgences at great value.”
In Biscuits, Everyday Treats and Special Treats are on a roll, experiencing remarkable growth (up 25.1% and +17.7%, respectively, Kantar). Enter McVitie’s Blissfuls – with sales surpassing £7.8M and still climbing, it’s a key favourite and is showing no sign of slowing down with an increase of 15.1% (Nielsen). Meanwhile, McVitie’s White Chocolate Digestives hit £2.2M in sales after just 10 weeks on store shelves (Nielsen). With the demand steadily rising, pladis is anticipating these segments – along with their top performers – to drive the entire category forward.
“We’ve been in the biscuit game for over 180 years – and the ongoing love for our brands and treats, backed by hefty marketing support, plus our award-winning lineup of new creations, proves we’re hitting the sweet spot,” adds Turhan.
“We’re proud that McVitie’s products make up five of the top 10 bestsellers in convenience, featuring classics like McVitie’s Milk Chocolate Digestives, McVitie’s Jaffa Cakes, McVitie’s Milk Chocolate Hobnobs, McVitie’s Original Digestives, and McVitie’s Rich Tea. With £1 out of every £4 spent on a Top 10 brand, retailers who aren’t keeping up with the hottest products might be passing up on a major sales opportunity.”
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