According to research reports, the size of the worldwide biscuit and wafer market reached $85 billion at the end of 2019. According to reports, the biscuit and wafer market size is expected to exceed 110 billion dollars by 2025. According to the same report, the world biscuit market is expected to sustain a strong CAGR (Compound Annual Growth Rate) of 4.7 percent until 2025.
Wafers remain one of the most popular varieties of sweet biscuit eaten across the world. Their heritage dates back a few centuries at least, with accounts of their being eaten in parts of medieval Europe, such as France. In keeping with broader trends in the food industry, manufacturers of wafers and wafer biscuits have also been experimenting with healthier versions to address consumer dietary concerns. Wafer-style biscuits remain popular with children and the younger age groups.
The increasing demand for healthy snacks and the rise in per capita food consumption in developing countries keep the global biscuit and wafer market alive. The sector is expected to grow further in the forthcoming years, particularly with the increased sensitivity to hygiene after Covid-19 experience, its easy accessibility, packaging, and the preference of young people. Wafer is a multi-layered dessert with various creams depending on its type. It is a type of dry, crispy, and thin biscuit sold in different shapes, sizes, and packages. It can be covered with chocolate or it can be plain either. It is a widely used product in the chocolate industry. In gastronomy, wafers are usually sweet, very thin, flat, and dry biscuits often used to decorate ice cream and also as a garniture in some sweet dishes. Wafers can also be made with biscuits with a cream flavor in between. They usually have a waffle surface pattern, but can be patterned with the food manufacturer's emblem or be patternless. Some chocolate bars, such as Kit Kat and Coffee Crisp, are actually chocolate-covered wafers.
According to research reports, the size of the worldwide biscuit and wafer market reached $85 billion at the end of 2019. According to reports, the biscuit and wafer market size is expected to exceed 110 billion dollars by 2025. According to the same report, the world biscuit market is expected to sustain a strong CAGR (Compound Annual Growth Rate) of 4.7 percent until 2025. Increasing urbanization, changing consumer lifestyles, and increasing consumer purchasing power drive the growth of the global wafer biscuit market.
A 55-BILLION-DOLLAR MARKET
The global wafer market is expected to sustain a CAGR of 5.12 percent over the time span until 2025. According to market research analysts, the global wafer market will reach $55 billion by 2025. This size corresponds to 50 percent of the global biscuit and wafer market. Innovation is key to gaining market share in this industry. For this reason, most manufacturers are constantly renewing their products. The European region holds the largest global market share in both the wafer and the biscuit market. Europe has a 31 percent share in the global wafer biscuit market. Experts state high living standards and the presence of many suppliers in the region as a reason. North America, together with the leaders of the USA in the region, is the second-largest market for wafer biscuits.
However, due to the increasing health concerns among consumers, the increase in consumption of wafer biscuits is decreasing in this region. The Asia-Pacific region is expected to be the fastest-growing market in the forecast period attributable to a shift in consumer choice and increased disposable incomes. China and India shine out as the main markets in this region.
COVID-19 WILL HAVE A POSITIVE IMPACT
The trend towards healthy options continues in the developing biscuit and wafer market. Today, there is increasing consumer demand for natural and non-GMO products in the biscuit market. Due to increasing health awareness and food safety concerns, more consumers are heading towards natural foods. In addition, improved lifestyles, increased convenience, and the popularity of new shopping methods such as virtual supermarkets, and mobile shopping keep the industry alive. Increasing online retailing is the driving force of biscuit producers as it has products that are suitable for e-commerce and easily preserved. COVID-19 is expected to positively affect this market directly. On the other hand, the increasing concern about the sugar content in wafers is driving consumers to buy organic and gluten-free wafer biscuits.
The factors that accelerate the growth of the global biscuit market share are rapid urbanization, growth in disposable income, and sedentary lifestyles. The market bears witness to the prevalence of supermarkets and shopping centers that provide the general visibility of various biscuits in different flavors and shapes. Television ads are becoming promotional strategies as part of marketing for the industry. Marketing techniques and strategies also bolster market growth. This is why biscuit producers are constantly trying new ideas and combinations that attract consumer interest. However, there is concern that heavy competition and high costs of raw materials may hamper growth in the market.
QUARANTINE INCREASES DEMANDS
The global market for sweet wafer-style biscuits is mature and heavily saturated. Nevertheless, demand during 2020 is believed to have benefited from the lockdown measures introduced throughout the world to curb the spread of Covid-19. The fact that more people are working from home on a regular basis is thought to have boosted sales of sweet biscuits such as wafer-style products in many western markets such as the UK, since they represent a popular accompaniment to hot drinks, as well as the lack of opportunity to socialize outside the home. Outside the west, in emerging economies, growth within the sweet biscuits market has been aided by greater levels of urbanization of the working population, as well as more westernized diets and higher disposable income levels.
In keeping with broader trends in the food industry, manufacturers of wafers and wafer biscuits have also been experimenting with healthier versions to address consumer dietary concerns. Some attempts have been made at nutritional reformulation (e.g. lowering of sugar levels of calories), as well as developing products suitable for specific diets such as gluten-free. As is the case elsewhere in the bakery industry, ancient grains such as buckwheat and millet now feature as ingredients in parts of the world. Protein is also being used in wafer manufacture to a greater degree.
PROFIT MARGINS DECLINE
Analysts claim that increased competition among key players in the market has led to a decline in the profit margin for biscuit producers. The current level of competition in the sector intensifies with price wars between the leading players of the market. Therefore, its players are expected to increase efficiency in logistics, distribution, marketing, and exports.
The biscuit industry is today a well-organized and growing market both at home and abroad. The leading European Union countries in the world biscuit production are also the most important exporting countries in the world biscuit export. It is seen that the growth in the cookie product group, which was examined in the biscuit sector report of the Ministry of Economy, has shrunk recently.
EU countries (particularly the UK, Germany, Belgium, Italy, France, Spain, and the Netherlands) and Canada take the lead in biscuit production and export in the world. Among the EU countries, Germany holds the highest production amount. Germany is followed by Italy, England, Spain, and France. At the same time, Germany, the Netherlands, Belgium, the UK, and Mexico are the most important exporting countries. On a value basis, more than 30 percent of the total biscuit exports are realized by these countries.