Savoury Biscuit Market Analysis

Savory Biscuits Market (Global, 2023)

Introduction

Savory biscuits are a growing segment of the snack food industry, characterized by a wide range of products that cater to evolving consumer preferences and dietary trends. For consumers seeking a convenient and tasty snack, savory biscuits are gaining in popularity, appealing to both the traditional and the modern palate. These biscuits are gaining popularity due to a variety of factors, including the growing demand for convenient snacks, the rising awareness of healthy eating habits, and the increasing number of manufacturers developing new flavors and ingredients to attract a wider audience. These biscuits are also benefiting from the expansion of retail channels, including e-commerce, which has increased availability and facilitated brand loyalty. These biscuits are also benefiting from the trend towards snacking, as consumers seek convenient and tasty snacks. As the market continues to evolve, a clear understanding of the key drivers, challenges, and opportunities will be essential for companies wishing to succeed in the market.

PESTLE Analysis

Political

In 2023, the savory biscuit market is influenced by various political factors, including trade policy and the regulatory environment. For example, the European Union imposed import tariffs on agricultural products, which could have an impact on the cost of raw materials for biscuit manufacturers. In 2024, the European Union's Common Agricultural Policy, which allocated approximately 58 billion to support farmers, also affected the supply of raw materials such as wheat and oil used in savory biscuits. In addition, political stability in the main production countries is important because political turmoil can lead to supply shortages and price volatility.

Economic

In 2023 the economy of the biscuits market is influenced by the rate of inflation and the way consumers spend their money. The rate of inflation in the European Union is expected to be about 3.5% in 2024. This can have an effect on consumers' purchasing power and their preference for premium or economy products. However, the average annual household expenditure on snacks, including savoury biscuits, is estimated at € 1,200, which suggests a solid market for snacks, despite economic pressure. This spending trend is a growing trend towards convenience foods, which is good news for the savoury biscuits market.

Social

The savory biscuits market is very much affected by social trends in 2023, especially by the change in consumer preferences for healthier food. Surveys conducted in 2024 show that 65% of consumers are actively looking for snacks with lower sodium and no artificial preservatives. This shift in the demand for health has prompted the industry to reformulate and develop new products to meet these health-conscious demands. Also, the popularity of plant-based diets has led to the increase in the production of savory biscuits with alternative ingredients, thereby catering to the 30% of consumers who are flexitarians or vegetarians.

Technological

Savory biscuits are a relatively new product, and technological advances have played an important role in their development, especially in terms of improving productivity and product innovation. By 2024, about 40 per cent of biscuit makers will have adopted automation technology, which will boost their production capacity by 20 per cent. Further technological advances are enabling savory biscuits to be developed without gluten or with lower fat content. These products are increasingly popular with health-conscious consumers. Artificial intelligence is helping to optimize inventory levels and reduce waste.

Legal

Legal regulations apply to the market for savoury biscuits, in order to ensure food safety and labelling. The Food Safety and Standards Authority of India (FSSAI) has decreed that all packaged foods, including savoury biscuits, must bear a clear labelling of their nutritional value. This affects the way companies market their products. The implementation of these regulations requires investment in labelling technology and quality assurance, with an estimated cost of up to €500,000 for mid-sized manufacturers. Intellectual property laws are also important for the protection of proprietary recipes and formulations.

Environmental

The biscuit market is increasingly influenced by environment issues, especially in terms of sustainable sourcing and packaging. It is estimated that by 2024, about a quarter of biscuit manufacturers will have switched to using packaging made from materials that are entirely recyclable, in line with a growing demand for products that are more friendly to the environment. In addition, the carbon footprint of biscuit production is under scrutiny, with an average of 1.5 kilograms of CO2 per kilogram of biscuits produced. In order to reduce their impact on the environment, manufacturers are investing in renewable energy sources and sustainable agriculture.

Porter's Five Forces

Threat of New Entrants

The savoury biscuit market has a medium degree of protection, including considerable investment in plant and machinery and distribution. However, the growing demand for new flavours and healthy snacks may draw new players to the market and increase competition.

Bargaining Power of Suppliers

Low - The suppliers of raw materials for savory biscuits, such as flour, spices, and flavorings, are numerous and diverse. This abundance allows manufacturers to switch suppliers easily, reducing the bargaining power of suppliers in the market.

Bargaining Power of Buyers

When it comes to savoury biscuits, consumers have a wide choice, so they have high bargaining power. Brands and varieties are so plentiful that they can easily switch to other brands if they are dissatisfied with price or quality, which means companies are under pressure to keep prices down.

Threat of Substitutes

There are many snacks that can replace biscuits, such as potato chips and crackers. But biscuits have their own special taste and texture. The availability of healthier alternatives, however, poses a small threat to the biscuits of old.

Competitive Rivalry

The savoury biscuit market is characterised by intense competition between the established brands and new entrants. Brands are constantly innovating in order to gain market share by offering new flavours and healthier options. This results in aggressive marketing strategies and price competition.

SWOT Analysis

Strengths

• Diverse flavor offerings catering to various consumer preferences.
• Strong brand loyalty among established players in the market.
• Growing demand for convenient snack options among busy consumers.

Weaknesses

• High competition leading to price wars and reduced profit margins.
• Perception of savory biscuits as unhealthy due to high sodium and fat content.
• Limited shelf life compared to other snack options.

Opportunities

• Increasing trend towards healthier snack alternatives, including low-calorie and organic options.
• Expansion into emerging markets with rising disposable incomes.
• Potential for innovative packaging solutions to enhance product appeal.

Threats

• Fluctuating raw material prices impacting production costs.
• Changing consumer preferences towards healthier and fresher snack options.
• Regulatory challenges regarding food safety and labeling requirements.

Summary

Among the salted biscuits in 2023, brand loyalty and the diversity of flavours are the most important strengths. There are, however, such challenges as competition and negative health associations. Opportunities include the growing demand for healthier snacks and the expansion of the market, and threats are rising material costs and changing consumer tastes. To seize the opportunities and to reduce the challenges and weaknesses, the companies should focus on innovation and health-conscious product development.