Sweet Biscuits, Snack Bars and Fruit Snacks in Kenya

PROSPECTS

Plain sweet biscuits continue to dominate sales but consumers are seeking more variety

Snack bars and fruit snacks remained negligible categories in Kenya in 2019, with sweet biscuits thus continuing to account for all sales. In retail volume terms, plain biscuits remained the largest category in sweet biscuits thanks to their affordability and widespread availability in a number of retail channels, both formal and informal.

Manufacturers continue to focus on packaging to align with new regulations and cater for increasing on-the-go consumption

The huge problem of plastic pollution led to the Kenyan government introducing a ban on the use of plastic bags in the country in 2017. Although some businesses are struggling to find affordable alternatives, others have started to move away from the use of cellophane wrappers and other plastic packaging towards formats such as paper-based folding cartons, often in appealing colours.

Local companies impacted by ongoing trade war with Tanzania

Uganda, Tanzania and Kenya are all Member States of the East Africa Community (EAC), which means that in principle exports from Kenya to its two neighbouring trading partners should not attract import duty. However, in 2018, both Uganda and Tanzania imposed a 25% import levy on various Kenyan-manufactured packaged food products, including sweet biscuits, claiming this was due to the use of imported industrial sugar in the production of these goods.

COMPETITIVE LANDSCAPE

Manji Foods Industries continues to lead the fragmented sweet biscuits competitive landscape

Sweet biscuits remained a fragmented category in 2019 but continued to be led by local company Manji Foods Industries. This can be mainly attributed to the company’s affordable prices but also its very wide range of products.

Manufacturers expand their ranges to offer consumers both healthier and more sophisticated products

With rising disposable incomes and consumers’ tastes becoming more sophisticated, many local players are focusing on expanding their product ranges, paying more attention to categories such as chocolate-coated biscuits, cookies and filled biscuits. Within cookies, for example, Manji has introduced Manji Fairland Chocolate Chip Cookies, with these largely being targeted at children due to their love of chocolate biscuits.

Government seeks to eradicate misleading advertising to help consumers make more informed purchasing decisions

During the review period the local company Mjengo was ordered by the Ministry of Health to stop advertising its NuVita Biscuits on the premise that these cookies form part of a balanced diet. At the same time, the Food, Drugs and Chemical Substance Act prohibited any form of misleading advertising for food products.

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