Glucose Biscuits Looses Out To Cream Biscuits & Cookies

There  is a significant   shift in consumer buying habits  for   biscuits in India . Marketing  push for cream and cookies at  low price tags have paid  for , tier -2  cities and rural consumers have  now  shown interest in premium biscuit categories  like cream  and cookies .Parle -G  remains the largest glucose brands but with  low market share  as compared to previous years .We can see the biscuit manufacturers coming out with numerous  cream varieties. Britannia is aggressively marketing low cost  Tiger cream brand .Glucose biscuit market share  for entire biscuit segment  is  estimated to be 28% but is gradually losing out  to premium cream and cookies biscuit .

We  can  place  following cream biscuits brands in three level  on price  comparison

Top premium cream biscuits

Pure  magic ( Britannia )   Dark Fantasy ( ITC )  Choco Kiss ( Unibic )


Middle  level cream biscuits

Oreo ( Kraft ) , Orange cream ( Mcvities ) , Bourbon ( Britannia ) , Bourbon ( Parle & ITC )

Bottom level

Kremes ( Parle )  , Treats (  Britannia ) , Tiger creams ( Britannia ) , Creams (ITC ) , Creams ( Priya gold )

With small packs  cream biscuits  are now available for rural markets  and people are buying out  these in large number instead of popular biscuits such as glucose biscuits .

This sales fig are  for  months  Apr -Sept  sales ( Nielsen data )  shows  the drop  in glucose biscuit sale
 

source - ET

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US Bakery Market Is Worth $ 30 Billion

US  is the largest bakery product manufacturer in the world  with China  and India  ranked 2nd & 3rd respectively .Bakery market revenue is estimated to $ 30 Billion  per year .Average consumption of bakery products by Americans is about 25.4 kg per capita .


A  report 

The US bakery industry includes about 2,800 commercial bakeries with combined annual revenue of about $30 billion, along with about 6,000 retail bakeries with combined annual revenue of about $3 billion. Major companies include Hostess Brands, Flowers Foods, and Bimbo Bakeries USA (the US operations of Mexico's Grupo Bimbo). The commercial side of the industry is concentrated: the 50 largest companies generate 75 percent of revenue. The retail side of the industry is highly fragmented: the 50 largest companies generate about 15 percent of revenue, and the typical company operates just one facility.

Demand is driven by consumer preferences and by the extent to which grocery stores choose to operate their own bakeries rather than buy from commercial bakeries. Profitability for individual companies is determined by efficiency of operations. Large companies have scale advantages in procurement, production, and distribution. Small companies can compete by offering specialty goods or superior local distribution services. Retail bakeries are labor-intensive: average annual revenue per worker is about $45,000.

Major products include baked breads, mainly white, wheat and rye, which account for 40 percent of commercial bakery sales. About 20 percent of sales come from rolls, buns, muffins, bagels and croissants; 10 percent from soft cakes; and the rest from pies, pastries, donuts and a variety of sweet goods.

source  - www.researchandmarkets.com