Biscuit Market: Overcoming Threats from Price Wars and Health Trends

The biscuit market faces several notable threats that could hinder its growth and profitability in the future. One of the primary challenges is the increasing cost of raw materials such as wheat, sugar, and fats. These rising costs can squeeze profit margins for manufacturers and lead to higher prices for consumers, potentially reducing demand for biscuits. The volatility of commodity prices is a persistent issue, impacting companies that rely heavily on these ingredients.

In addition to cost concerns, health-conscious trends pose a significant threat to traditional biscuit products. As consumers become more aware of the health risks associated with high-sugar and high-fat foods, demand for healthier alternatives is rising. Biscuits that are high in sugar, calories, and preservatives are facing declining sales as consumers shift toward cleaner, more nutritious options. This trend pushes manufacturers to reformulate their products or face losing market share to healthier snack alternatives.

The biscuit market is also increasingly competitive, with numerous brands and new entrants vying for consumer attention. This intensifying competition leads to price wars, which can erode profitability. Smaller players may struggle to compete with well-established brands that benefit from strong distribution networks and brand loyalty, further consolidating market share among the biggest players.

Environmental concerns also present a threat to the market. Consumers and regulators alike are placing more emphasis on sustainability, particularly in packaging. The growing demand for eco-friendly and recyclable packaging materials puts pressure on manufacturers to adopt greener practices, which may require costly investments in new technology and production processes .

In summary, the biscuit market faces multiple threats, from rising production costs and health-conscious trends to increasing competition and sustainability demands. Addressing these challenges will require adaptation and innovation from industry players.