Sweet Biscuits, Snack Bars and Fruit Snacks in the United Kingdom

PROSPECTS

Health trend boosts value sales, with mainstream players moving into this space

Sweet biscuits, snack bars and fruit snacks continued to see strong retail current value growth in 2019, although retail volume growth was negligible. The strong difference in the two growth rates was partly attributable to price rises for dried fruit, due to shortages.

Indulgence continues for sharing occasions; small biscuits proving particularly popular

Nevertheless, indulgent biscuits are also in demand. Shoppers tend to consume healthy snacks on weekdays, but treat themselves to more indulgent snacks at the weekend.

Protein/energy bars performs well as people move away from calorie-counting

With declining volumes in confectionery, due to the war on sugar, snack bars suddenly looks a far more positive prospect. However, there are lot of mixed messages in this category, with consumers becoming confused about whether such products are healthy or not, whether gluten is good or bad, and whether they should be consuming more protein.

COMPETITIVE LANDSCAPE

United Biscuits retains its lead, but is challenged by smaller companies with a unique offer

Although United Biscuits maintained its lead in sweet biscuits, snack bars and fruit snacks in value terms in 2019, its value share was negatively affected by the strong performance of smaller, more premium brands. The shares of its famous brands, such as McVitie's, Jaffa Cakes and Go Ahead! declined due to competition from brands such as Graze snack bars, Bounce energy balls and Fulfil bars.

Striking a balance between health and indulgence is key as consumers want the best of both

The health and wellness halo is key to success in sweet biscuits, snack bars and fruit snacks, which is shown by the strong performance of the fruit snacks brand Fruit Bowl, which engages with health-conscious consumers through its fruit flakes, which are low in fat, contain only natural colours and flavours and, more importantly, no added sugar. Health trends are also perceived in brands positioned through their natural ingredients, such as Nature Valley, Nakd and Eat Natural snack bars, which will be increasingly sought by those looking for more holistic nutrition.

Consumption occasions reshape brand positioning

Breakfast was a key area of focus for many players in sweet biscuits and snack bars over the review period, but diversification of consumption occasions is creating opportunities to target other times of the day, such as the afternoon commute, or whilst unwinding in the evening, leading to more potential for growth. In addition, it is difficult to stand out in terms of breakfast products in categories within sweet biscuits, in which Belvita is the clear winner.

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