BISCUIT INDUSTRY

[Name of Instructor]

Abstract

This research is about biscuit industry of United States and different factors and characteristics are discussed in it. Market pattern, future outlook, financials, potentials, growth pattern and competition are analyzed. And strategic analyses for different participant are given.

Table of Contents

Introduction3

Market definition3

Market analysis4

Discussion4

Market value & Volume4

Market Segmentation5

Market Share5

Market distribution5

Roles of Food Packaging5

Market Outlook5

Conclusion8

References9

Introduction

Usually markets are of three major types. Monopolies, a market where there is one and only seller is present for a particular product. Oligopolies are those markets where few companies are present to for a similar products or services. Competitive markets are those in which several sellers and buyers are present to offer similar products or services. Competitive market is favorable for society because there are more choices and alternatives are available and buyer can find a product at a competitive cost or with a differentiated feature. In competitive market seller has little influence over price because there are several seller of almost same product or service and consumer purchase in a small volume as compare to available market size.

A company's goal is to increase profits (total revenues minus total cost). In order to determine increment in profit companies needs to identify marginal revenues and marginal cost per unit. If the marginal revenue is greater than the marginal cost, each extra unit produced will increase profit. Competitive companies determine their output in this way. A competitive market give easy access and easy entry and help keeping price level of similar goods nominal

Market definition

American biscuit industry consist of butter cookies, cream filled cookies, chocolate cookies, assortment cookies, plain cookies, American cookies, wafer cookies, egg based cookies, bakery cookies, and artisanal cookies. Market value is determined by retail selling price which include all applicable taxes.

Market analysis

Growth of U.S. Biscuit industry in during 2006 to 2010 was slow, and lower growth in sales for all categories of biscuits. It is expected that market growth will increase in coming five years. Biscuit industry grew with CAGR of 0.9% during 2006 - 2010 and generated revenues of $7.1 billion during 2010. While Asian and European market showed a growth of 7.3% and 2.8% resp. for the same year.

During the period of 5 years (2006 to 2010), consumption of product declined with 0.1% and record a sale of 1.1 billion kg in 2010. And the expected volume for 2015 is 1.1 billion kg with a negative growth of 0.3% for the period of 2010 to 2015. In 2010 chocolate cookies were the most profitable product of the industry that generated revenues of $1.7 billion, which is 24.2% of the total biscuit market, while $1.3 billion was generated by butter based cookies in 2010. This was 18.4% of total market revenues. Market performance is expected to grow with a predictable CAGR of 2% for the period of 2010 to 2015 that can lead the market to $7.9 billion by 2015. And Asian Pacific and European market are expected to grow 9.8% and 3% resp., in the identical period, in order to attain respective ...