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The country’s bread and biscuit market is growing by 15-20 per cent annually, thanks to economic growth, a thriving middle class, and changes in their consumption habits.
Bangladesh Auto Biscuit and Bread Manufacturers Association says most businesses suffered severely during the coronavirus pandemic but the biscuit market doubled during the crisis compared to the pre-Covid period.
The bread and biscuit market is worth about Tk 7,000 crore and nearly five lakh tonnes of biscuits are produced each year, which is gradually increasing, according to the association.
Olympic is the market leader while five companies, including it, hold more than 60 per cent of the market share. Other popular companies include Pran, Haque, Danish, Nabisco, Bangas, Ifad, Cocola, Banoful, Dekko, Globe, Fu-Wang, Kishowan, Al-Amin, Thai Food, Gold Mark, New Olympia, Pinnacle, Kakoli, and Bengal.
Sellers have said products that have high demand are special toast, dry cake, sweet toast, cream milk cookie, coconut cookie, low-sugar biscuit, chocolate biscuit, buttermilk biscuit, tea-time cookie, nut biscuit, and cheesy cookie.
More than five conglomerates, including Bashundhara, Meghna, and Akij, entered the market recently. Meghna and Akij are focusing on the biscuit market.
“We have nearly 100 bakery items, including bread and biscuit. We are the leader in the branded bread market,” said Kamruzzaman Kamal, director (marketing) of PRAN-RFL Group.
He said his company holds nearly 15-20 per cent of the packaged biscuit market share with a yearly growth of 20 per cent.
“We have nearly 50 types of biscuits and our annual growth is nearly 15-20 per cent. Our Marie biscuit sales are good,” said Md Shahidul Islam, managing director of Banoful.
“When the prices of bakery ingredients increased, we lagged behind in the market. Our production has gradually decreased,” said SM Mahmud Alam, deputy general manager of marketing at Nabisco Biscuit and Bread Factory.
“We hold around 40 per cent of the brand biscuit market share and have nearly 15 per cent annual growth,” said a top Olympic Industries official.
According to the 2021 Olympic Industries annual report, the company sold around 1.17 lakh tonnes of biscuits and snacks as well as confectionery and bakery products, which was 15.22 per cent more than the previous year.
Big potential
“As the population is increasing, so is the bread and biscuit market. There is a huge potential in both local and foreign markets,” said PRAN’s Kamruzzaman.
He also said conglomerates are increasingly entering the market considering its growth.
“Biscuits are in high demand in the country and also abroad. Our toasts and cookies are available in the market. We are also planning to introduce new biscuits,” Syed Alamgir, managing director and chief executive officer of Akij Venture, said.
Md Shofikur Rahaman, general manager of Fresh brand’s bread and bun line, a concern of Meghna Group, said the demand for bread and biscuit has increased as economic growth has changed the lifestyles and eating habits of consumers.
That is why most conglomerates are paying attention to this market, he said.
Bangladesh Auto Biscuit and Bread Manufacturers Association President Md Shafiqur Rahman Bhuiyan said more than five conglomerates, including Meghna and Akij, are focusing on the biscuit market now because of its high potential.
Abdul Hamid, who owns a shop in the Jatrabari wholesale market, has been selling biscuits and confectionery items for 10 years.
“I used to sell biscuits of five to six companies. The number has grown to more than 20 now and sales are very good,” he said. According to Hamid, despite Covid-19 pandemic and ongoing rocketing inflation sales of biscuits keep going up and up.
Most customers buy biscuits of popular brands, but many also purchase handmade bread and biscuits.
Ali Hossain has been selling bread and biscuits for 12 years in the capital’s Lalbagh area. He told The Business Post the demand for branded and packaged bread and biscuits is higher.
