From small scale businesses running in local communities to big brands selling baked goods at every nook and corner, the biscuit business is spread across the world. But like every other industry, this business is also not fail-proof and could take any direction in the long run. However, as per a market research report, the global market for biscuits is set to witness steady growth in the coming years. Although there will be some challenges which could severely affect the market in the long run and could affect the growth projection.
To new entrants, selling biscuits seems easy and the business appears to be lucrative on all fronts. However, analysts suggest that new entrants in the biscuit market need to be cautious because it’s not always as amazing as it looks.
Why biscuits businesses fail
In business, poor shelf-life of products is one of the major problems that businesses in the market are going to face. Biscuits with higher shelf life may find their way to stores located in remote areas however, the same can’t be said about the ones with poor shelf-life. That’s the major setback for companies keeping their operations limited.
Time and labor intensive nature of business
Selling in large batches seems reasonable only if companies are able to manage the labor cost and also maximize on profit in terms of time the process takes. The process of making and selling biscuits is time intensive which makes it unprofitable in the long run for many businesses considering the cost of labor and time spent on the manufacturing, marketing and selling.
What does the future hold
The future of the biscuit industry in 2021 is less than promising. However, if you were to start a new biscuit company that could provide an alternative flavor or make that would appeal to those who have dietary restrictions, then you may be successful in this future market. For example, gluten-free biscuits will likely become more popular as the number of people with Celiacs Disease increases every year due to the prevalence of gluten intolerance. If your company can provide tasty and healthy snacks for those with certain dietary restrictions, then your business may do well in 2021 and beyond.
Picking the right market segment
According to analysts, the biscuits industry has suffered from a decline in sales since 2015. This loss in sales has been attributed to a lack of competition and consumer fears over food safety. The industry as a whole is also suffering due to the ever increasing price of ingredients, including wheat flour and corn meal. As mentioned previously, if you were starting a new company that made gluten-free or other types of dietary biscuits, then you may have an advantage when it comes to success in this market. Since many people who are sensitive to certain foods follow strict diets, your new company would be able to cater specifically for them.
Also, if you are one of the few companies that is willing to produce a product that satisfies those with other dietary restrictions without removing too much of the nutrition from the product, you may be able to become a leader in these markets. If your business can create biscuits that taste as good as or better than what is currently being produced by other companies, then you may be able to take on obesity and diabetes. Currently, many people are gaining weight from consuming sugary snacks such as donuts and sweets instead of healthy biscuits. If your company can find a way to give them the same sensation by using something like butterscotch chips, then they would likely become some of your most popular products.