Sweet Biscuits, Snack Bars and Fruit Snacks in Cameroon

PROSPECTS

Slower growth expected to be seen due to maturity and shifting demand trends

Although sales growth in sweet biscuits, snack bars and fruit snacks is expected to remain positive over the forecast period, growth rates are expected to be considerably slower than the review period in both volume and value terms at constant 2018 prices. This can be attributed to the competition that the category is facing from other snacks categories as well as declining demand for snacks generally as an increasingly sophisticated consumer base switches to healthier alternatives such as fresh fruit.

More aggressive marketing set to define sweet biscuits, snack bars and fruit snacks

During the forecast period, it is anticipated that the marketing strategies of the leading companies in the category will become more aggressive as players seek to expand their retail shelf presence and protect and expand their value shares. In addition, different pack sizes are expected to be offered as consumers seek to tap into the much larger base of low-income consumers, many of whom are increasingly inclined to purchase sweet biscuits in smaller pack sizes.

Health and wellness trends expected to remain a major influence on sales

Although no identifiable health and wellness trend has yet emerged in Cameroon, it is expected that the shift towards healthier types of snack will be one of the key trends in sweet biscuits, snack bars and fruit snacks over the forecast period. This is likely to result in the launch of new types of sweet biscuits with lower salt, sugar and fat content, while other ingredients which are perceived as unhealthy are likely to be excluded as well.

COMPETITIVE LANDSCAPE

Local players remain in the leading positions

Sweet biscuits, snack bars and fruit snacks is one of the few packaged food categories in Cameroon in which local players are prominent among the leading companies. Leading domestic companies in the category include Parlite Foods and OK Foods and these players have successfully defended their positions and value shares by distinguishing themselves from international players and targeting the country’s significant lower-income consumer base.

International brands continue to compete strongly

Nevertheless, international brands continue to perform relatively well in sweet biscuits and, in particular, snack bars. While local players are very dominant in plain biscuits, international players are gaining ground in other sweet biscuits categories while dominating sales in snack bars.

Heightened marketing activity expected to be seen during the forecast period

As sweet biscuits, snack bars and fruit snacks becomes more competitive, incumbents are expected to increase their marketing activities by rebranding products in more attractive packaging, launching aggressive advertising campaigns and offering discounted sales. OK Foods is one company which uses this strategy with its Rio biscuits advertising campaign.

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