The biscuit market faces several challenges that could hinder its growth in the near future. One of the primary issues is the rising costs of raw materials, such as wheat, sugar, and fats, which could significantly impact production costs for manufacturers. Additionally, the increasing tax burden on the food industry is a concern, affecting the profitability of biscuit companies. A shortage of essential ingredients and labor further complicates the situation, making it difficult to meet rising demand while maintaining product quality and supply chain efficiency.
Another restraint for the market is the shift in consumer preferences toward healthier options. Traditional biscuits, often high in sugar, fats, and calories, are increasingly perceived as unhealthy by consumers who are becoming more health-conscious. This trend challenges manufacturers to innovate with healthier alternatives like gluten-free, low-sugar, or high-fiber biscuits, which may require significant investment and reformulation of recipes.
Moreover, the competition within the market is intense, with numerous brands vying for consumer attention. Price wars and margin pressures are common as companies strive to maintain or increase market share in a saturated marketplace. The rise of alternative snack options, such as protein bars, fruit snacks, and other on-the-go foods, also diverts consumer interest away from biscuits.
Despite these restraints, the market still holds potential for growth, particularly as manufacturers work to adapt to changing consumer demands and rising production costs.
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