Biscuits and cookies emerged as most popular snacking choices for shoppers throughout the lockdown final 12 months. According to knowledge from Kantar, the phase grew 10% in March-December 2020, as in comparison with the similar interval final 12 months, and registered 8.6% development throughout the whole 12 months. The development in 2019 over 2018, in the meantime, was 4.2%. Notably, milk biscuits and marie witnessed a 22% and 17% improve in gross sales, respectively.
Companies which have a smaller share in the biscuit phase are actually ramping up their plans by consolidating their distribution and launching merchandise. Mondelez India, identified for its manufacturers Cadbury, Bournvita and Oreo, expanded its biscuit portfolio in 2020 by launching Bournvita Crunchy and Cadbury Chocobakes Choc-filled Cookies; whereas Bonn Group added new variants beneath its Americana model. Mrs Bector’s Food Specialties, which sells merchandise beneath the Cremica model, expanded its presence in 90,000 extra shops since March 2020, and plans to launch new biscuit variants.
According to Alvarez & Marsal, the general biscuit market in India is valued at $5-5.5 billion; in worth phrases, cookies (like Britannia’s Good Day) command a 35-40% share in it. Plain biscuits, which embrace marie and milk biscuits, have a 25% share, whereas cream biscuits and crackers command 15% share every. As per analysts, Parle Products and Britannia command 70% share of the biscuit market in India.
Adding extra crunch
For Mondelez India, the biscuit enterprise flourished whereas the chocolate enterprise — its mainstay — confronted headwinds. To faucet this development, the firm has launched new variants and expanded distribution to about two lakh shops in 2020, half of that are in rural India. To enchantment to the lower-tier cities and rural areas, the firm has launched low-priced packs.
“As per our strategy, Rs 30 packs are meant to go deep in traditional trade, while multi-packs will be sold in e-commerce and modern trade,” says Sudhanshu Nagpal, affiliate director, advertising and marketing (biscuits), Mondelez India. The firm earns about 12-13% of its income in India from the biscuits phase.
Apart from its biscuit model Cremica, Mrs Bector’s Food Specialties provides buns to QSR chains and sells bakery merchandise beneath the English Oven model. The firm earned about 37% of its income from the biscuit class in FY2020. Although its QSR facet of the enterprise suffered final 12 months as a result of the decline in out-of-home consumption, the biscuit class registered development — it claims to have a 4.5% share in North India presently. More merchandise, together with a “blend of biscuit and snack”, and extra shops are on the anvil. “Earlier, we had three products stocked in stores on average; we have now increased it to five,” says Anoop Bector, MD, Mrs Bector’s Food Specialties.
Like different meals classes, the biscuit market, too, is using on the well being development. Bonn Group, which will get about 35-40% of its gross sales from the biscuit class, launched “healthy” variants beneath its Americana model akin to Digestive biscuits and Chia & Quinoa Thins. The firm has launched low-unit packs, with an eye fixed on the rural market.
“It is a premium product available at Rs 100-200, but since we want to reach out to the masses, we have kept the prices accessible at Rs 10 and Rs 20,” says Amrinder Singh, director, Bonn Group.
Loads on their plate
While the class has registered development on the again of the pandemic, may the cookie crumble as the tide turns? According to Ok Ramakrishnan, MD, South Asia, Kantar Worldpanel, the greatest problem for biscuit manufacturers can be to maintain the momentum of at-home consumption going as out-of-home recovers totally.
For corporations eyeing a big share of the market, distribution stays key. Biscuits are bought out of eight million shops in India, and Parle Products is current in six million retail shops, whereas Britannia in 2.2 million. “To gain ground in this market, companies need to have a wider portfolio and also wide reach,” says Subhendu Roy, accomplice, client and retail industries, Kearney.
Furthermore, the success of wholesome variants will rely on a model’s means to take it to the plenty. “Although health consciousness is on the rise, it remains a concern to only a certain set of people,” says Rishav Jain, senior director and lead – client and retail sector, Alvarez & Marsal.