Trends in the Consumption of Confectionery & Biscuits (Edexcel A Level Business): Revision Note

Defining confectionery and biscuits

• Making the distinction between confectionery and biscuits is important for Paper 3 because consumer behaviour, pricing and promotion can differ between the two markets

Confectionery

• Confectionery refers to sweet treats that are usually high in sugar

  • It includes chocolate (such as bars and boxed chocolates) and sugar confectionery (such as sweets, gummies and chewing gum)

• Confectionery is often bought as a treat, gift or impulse purchase rather than a daily essential

Biscuits

• Biscuits are baked cereal-based products made mainly from flour, sugar and fat

  • They include everyday biscuits (such as digestives and rich tea), indulgent biscuits (such as cookies and chocolate-coated biscuits) and snack biscuits

• Biscuits are more likely than confectionery to be eaten regularly, for example with tea or as a lunchbox snack

Key data

Confectionery market

• The UK confectionery market is worth around £16–17 billion

  • Chocolate accounts for the largest share of sales within confectionery

• Despite economic pressure, overall demand has remained relatively stable, showing that confectionery is seen as an affordable treat

Biscuits market

• The UK biscuits market is worth around £3 billion

  • Biscuits are one of the most frequently purchased grocery items in the UK

• Growth in biscuits has been supported by innovation, such as premium cookies and twists on classic products

  • Examples include Greggs' giant jammie dodgers and McVitie's salted caramel Club biscuit bars

Growth trends

• Value sales have increased faster than volume sales

  • This suggests that prices are rising and consumers are paying more per item rather than buying much more

• Inflation and higher ingredient costs (such as cocoa and wheat) have pushed up prices

Consumers still buy treats

• Confectionery and biscuits are widely seen as affordable treats rather than luxury goods

  • Even when consumers face higher living costs, many still allow themselves small indulgences

  • Instead of cutting out treats completely, people are more likely to reduce spending elsewhere or buy smaller quantities

• This has helped demand for confectionery and biscuits remain relatively strong, even during periods of high inflation and falling real incomes

  • For many consumers, a chocolate bar or a packet of biscuits is seen as a low-cost reward that provides comfort or enjoyment

• Industry commentators often describe this behaviour as treat-led resilience, where emotional value plays an important role in purchase decisions.

Data and examples

• The UK confectionery market is valued at around £16–17 billion, making it one of the largest food and drink categories in the country

  • Chocolate is the leading category and accounts for over 50% of confectionery sales by value, showing how central it is to UK consumer habits

• Despite rising prices caused by higher cocoa, energy and labour costs, overall consumption has not fallen sharply

  • This suggests demand is less price elastic than for many non-essential goods

• Well-known brands benefit most from this treat culture

  • Brands such as Cadbury, Mars and Galaxy retain strong sales across supermarkets, convenience stores and petrol stations

    • These brands are often linked with nostalgia, trust and reliability

  • Familiar branding reduces the perceived risk of purchase, especially when consumers are cautious with money

• This makes it difficult for smaller firms to compete on volume, although independents may still succeed by focusing on premium or niche products

Consumers look for value

• Although consumers are still buying confectionery and biscuits, they are now much more price conscious than in previous years

  • Rising living costs mean shoppers are paying closer attention to prices, promotions and pack sizes when making purchase decisions

• Rather than stopping consumption altogether, many consumers are adjusting their behaviour to manage spending

  • This includes switching brands, buying smaller packs, shopping in different retailers, or waiting for products to be on promotion

• This trend has become more noticeable during the cost-of-living crisis and has had a clear impact on how confectionery businesses price and market their products

Data and examples

• UK food price inflation peaked at over 19% in 2023, increasing pressure on household budgets

  • Rising input costs, such as cocoa, sugar, wheat and energy, have pushed up retail prices for confectionery and biscuits

• As a result, consumers are actively seeking better value for money

• Own-label biscuits have grown as consumers look for cheaper alternatives

  • These products allow retailers to compete strongly on price while maintaining acceptable quality

  • For value-focused shoppers, own-label digestives or chocolate biscuits are seen as close substitutes for branded versions

  • This increases competitive pressure on branded manufacturers, especially in the biscuits market where brand loyalty can be weaker

• Price-marked packs are increasingly common in convenience stores and independent retailers

  • These packs clearly show the price on the packaging, helping to reassure consumers that they are not being overcharged

• Multi-buy promotions, such as “2 for £1”, remain common on chocolate sharing bags and seasonal products

• Some brands have introduced smaller pack sizes to keep prices lower

  • This allows consumers to continue buying treats without feeling they are overspending

  • Single bars and smaller biscuit packs appeal to consumers managing budgets or buying for themselves rather than sharing

Some consumers trade up

• At the same time as many consumers look for value, others are willing to pay more for higher-quality confectionery and biscuits

  • This behaviour is often described as trading up

  • It means buying fewer items but choosing more indulgent or premium products

• As a result, the market has become polarised, with growth at both the value end and the premium end

  • Middle-of-the-market products can find it harder to stand out, as consumers either want the cheapest option or something that feels special

Data and examples

• Value sales in confectionery have risen faster than volume sales

  • This suggests consumers are paying more per item rather than buying more

  • This trend can increase profit margins, even if unit sales are lower

• Premium biscuits and cookies are a growing segment, particularly bakery-style and indulgent products

  • These products often focus on:

    • High-quality ingredients

    • Larger portion sizes

    • New or unusual flavours

  • Consumers may see these as a treat to replace eating out or buying more expensive desserts

• Retailers such as M&S and Waitrose focus heavily on premium chocolate and biscuit ranges

  • These products are often positioned as gifts or sharing treats

  • Premium own-label ranges allow retailers to:

    • Charge higher prices

    • Improve profit margins

    • Build a quality-focused brand image

• Premium products often use:

  • Sophisticated packaging

  • Storytelling about ingredients or production

  • Limited editions or seasonal flavours

• This helps justify higher prices and encourages impulse purchases

Health matters, but treats remain

• Health concerns are having a growing influence on how consumers buy and consume confectionery and biscuits

  • Many consumers are more aware of the health risks linked to high sugar intake, such as obesity and tooth decay

  • However, this has not led to a major fall in demand

• Instead of avoiding treats completely, most consumers are choosing moderation

  • This means eating smaller portions, buying treats less often, or selecting products that feel slightly healthier

Data and examples

• Sugar reduction policies and public health campaigns have raised awareness of sugar intake

  • The UK government introduced the Soft Drinks Industry Levy, raising awareness of sugar content across food and drink markets

• Although confectionery is not directly taxed in the same way, consumer expectations around sugar have shifted

  • Portion-controlled packs and individually wrapped biscuits have increased in availability

    • Smaller pack sizes allow consumers to enjoy treats while limiting sugar intake and helps businesses keep prices accessible despite rising costs

  • Products labelled as lower sugar, vegan or gluten-free have grown in shelf presence

  • Biscuits made with oats or marketed as lighter snacks appeal to health-conscious consumers

• Demand has grown for gluten-free, vegan and dairy-free confectionery and biscuits

  • These products often target consumers with dietary needs or lifestyle preferences

  • While still a small part of the market, they are growing faster than traditional ranges

  • This trend offers opportunities for smaller or specialist businesses to differentiate themselves.

Snacking is important

• Snacking plays a major role in how consumers buy and eat confectionery and biscuits

  • Busy lifestyles, longer commuting times and more flexible working patterns have increased demand for convenient, portable foods that can be eaten quickly and easily

  • Confectionery and biscuits fit well into this behaviour because they are easy to store, carry and consume, often without preparation

• This has helped maintain demand, particularly for individually packaged products.

Data and examples

• Biscuits are among the most frequently purchased grocery items in the UK

• Convenience stores account for a significant share of impulse confectionery sales, bought without prior planning

  • Individually wrapped biscuits and single chocolate bars perform well in travel locations, such as train stations, and petrol stations

• There is increased demand for single bars, snack packs and individually wrapped biscuits

  • For example, single chocolate bars sold at tills or in meal deals remain popular.

  • These products appeal to:

    • Commuters

    • Students

    • Workers buying snacks between meals

  • Smaller formats also help consumers manage both spending and calorie intake

• Many consumers regularly snack with tea or coffee

  • Biscuits, in particular, are linked to daily routines rather than special occasions

  • This makes demand for biscuits more consistent than for some types of confectionery

  • This helps explain why the biscuits market is more stable and less seasonal than confectionery

Brand familiarity and trust

• In the confectionery and biscuits market, strong, familiar brands perform particularly well, especially during times of economic uncertainty

  • When consumers are more cautious with their spending, they often prefer to buy products they recognise and trust, rather than experimenting with unknown brands

• Brand trust reduces the perceived risk of purchase

  • Shoppers feel more confident that they will enjoy the product and that it offers good value for money, even if it is slightly more expensive than alternatives.

Data and examples

• Well-known brands such as Cadbury, Galaxy, Mars and McVitie’s consistently rank among the most popular confectionery and biscuit brands in the UK

  • These brands dominate shelf space in major supermarkets and convenience stores

  • Smaller independents often compete by offering niche products or premium positioning

• Chocolate brands, in particular, benefit from strong emotional connections with consumers

• Brands like Cadbury are closely linked to:

  • Childhood memories

  • Gifting occasions

  • Seasonal traditions

• This emotional connection encourages repeat purchases and brand loyalty

• Large brands invest heavily in advertising, promotions and in-store displays

  • This keeps them highly visible and reinforces brand awareness

  • Seasonal marketing campaigns at Easter and Christmas further strengthen their position

  • Smaller businesses often lack the marketing budgets to match this level of exposure

• Consumers often associate established brands with consistent quality and safety

  • This is particularly important in food markets, where trust in ingredients and production standards matters

  • During periods of change, such as recipe reformulation or price rises, trusted brands are more likely to retain customers

  • This gives large firms a competitive advantage