Banking on biscuits: Rising demand opens up new opportunities for food manufacturers
You might call it a global demand for small treats: the market demand for biscuits and savoury crackers is on the rise, creating opportunities for food manufacturers to develop and strengthen their brands.
According to Global Industry Analysts, the global bakery market is projected to reach US$410 billion in annual revenue by 2015, with the biggest growth for crackers and plain biscuits. From a packaging standpoint, the growth in this market is boosting the demand for fully automated systems that increase efficiency and enable more hygienic processing. In addition, flexible equipment and tailored solutions, backed by expert support, will help manufacturers leverage the market opportunity in baked goods and meet ever-changing and diverse consumer needs.
Nowhere is the growing demand for biscuits more evident than in Asia, where savoury crackers are expected to be the biggest growth item in the baked goods market, followed by plain biscuits. Value-added products like cookies and sandwich biscuits are also gaining in popularity among Asian consumers.
Some at-a-glance figures provide perspective on the market opportunity in Asia. According to Euromonitor International, the projected compound annual growth rate (CAGR) of the biscuit market from 2012 to 2017 is 2.9% globally. However, growth in China is projected at 22.5%, and in India it will skyrocket to 34.7%. Clearly, there is a strong demand for baked goods as these markets continue to develop.
Key mission: automation and flexibility
A high degree of reliable and flexible packaging automation will be important for manufacturers to meet the growing demand for biscuits. Equipment needs to be designed for high-quality output to meet current and future requirements; at the same time, it needs to be easy to use and service. In addition, high overall equipment effectiveness continues to be an important factor in purchasing decisions.
For a commodity like biscuits, efficient automated technologies with high-capacity process lines can compensate for low profit margins. In manufacturing facilities, where space is also a premium, high-speed automated lines enable greater productivity within an overall reduced footprint. With no two manufacturers having the same needs, it’s crucial to work with a supplier capable of providing a packaging system custom-made to meet specific needs.
Labour costs in some markets have nearly doubled in the past five years and, as a general trend, salaries are rising as emerging markets become more mature. Training is another cost driver, as it is difficult to find skilled personnel. As a rule, automated packaging lines need fewer operators compared to semi-automated lines. It reduces the cost of labour and allows manufacturers to redirect workers to other important tasks as skills become more refined.
New automated lines also come with an advanced human machine interface (HMI) that is easy and intuitive to use, reducing the time required for training.
As manufacturers often need to process different products on the same line, packaging systems flexibility is key to handling different pack styles and configurations for biscuits. Currently, 75% of biscuits are packed in flexible packages. Typically, pile packaging is used for formats less than 50 g, and both pile and slug formats are used for packages between 51 and 100 g. For packages over 100 g, the vast majority are packaged into slugs.
With such growth predicted for emerging markets, consumer tastes are also becoming more versatile. Therefore, incorporating automated packaging technology designed for maximum flexibility enables manufacturers to make quick and easy adjustments to respond rapidly to consumer demands.
Flexible equipment lets manufacturers rapidly modify production to suit various levels of product protection and product characteristics, such as from pile to slug packs, with little downtime. For instance, packages can be produced airtight, gas-proof or including corrugated cardboard around the biscuits to prevent mechanical shocks.
In addition, there is a range of sealing technologies to accommodate various film qualities. To help improve production and enhance brands, biscuit manufacturers and brand managers should take expertise and consultation into consideration when purchasing equipment to make sure that the most efficient and appropriate system is purchased.
Demand is rising for single-serve packs
One example of shifting consumer demands is the trend towards single-serve packaging. Along with emerging market consumers’ preference for smaller packaging, there is a rising demand for single-serve biscuit pile packs. For many consumers, single-serve options convey product freshness since it is meant to be eaten all at once. Additionally, the pack price is more affordable than for bigger packs. Single-serve packaging also adds convenience for busy consumers, such as urban professionals or individuals seeking portion control or a snack that can be eaten on the go. As a result, single-serve packs are becoming a preferred format for secondary packaging displays at point of purchase in urban BRIC areas.
Focus on hygiene
Globally, concerns about food safety are rising, creating new regulations and tightening the ones already in existence. Indeed, these regulations are also affecting emerging markets and food manufacturers need to adopt certain hygienic practices. New automated lines have been designed with hygiene in mind. For example, steel frames are used and streamlined designs prevent trapping product crumbs in holes and crevices. Automation is also inherently more hygienic than semi-automatic operations because fewer workers come into contact with food, thus reducing the potential for contamination.
Greening for the future
Food manufacturers are also exploring new ‘green’ options to reduce scrap and CO2 emissions. This includes biodegradable films and reducing the weight of packaging by using thinner foils and fewer materials. Not only are these options environmentally friendlier, they help decrease overall costs without sacrificing quality.
Some packaging equipment manufacturers are also developing a new generation of multilayer ‘functional’ films that incorporate up to seven layers, compared to the current standard of three layers. Despite the additional layers, these films are actually thinner due to new extrusion technology. This new multilayer film technology can improve barrier properties that help protect products from ultraviolet deterioration, humidity and flavour degradation.
As food manufacturers attempt to meet the increasing demand in emerging markets and beyond for biscuits of all types, incorporating automated packaging technologies will be crucial for success. Above all, manufacturers need packaging suppliers able to act as consultants to help manufacturers find the best solution for their requirements.
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