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Growth in baking fats fuelled by new products, presented by BMi Research

Mar 22nd 2012, 08:38

22 March 2012

Growth in baking fats fuelled by new products, presented by BMi Research

The baking fat category saw good volume increases in 2009 and 2010, with growth rates of 7.6% and 4.6% recorded for these two years respectively.

Much of this growth resulted from increased market activity and competition as players entered the category and new products were launched. Baking fats are becoming increasingly specialised with products available for very specific baking applications, such as pies or light pastries. The extended repertoire of products available to the market served to bolster category volumes for 2010.

However, the changing format of product offerings has brought with it a new challenge. The level of product specificity is making it more difficult for new players to enter the market without first building up a level of expertise and a viable product range. This can best be accomplished by players already active in the oils sector who possess a level of expertise, sufficient raw materials and a brand that can transfer to the category. This barrier to entry may hamper potential volume growth in future.

The growth is expected to taper off in the medium term as the market stabilises.

Find out more the margarine and baking fats category in the BMi Annual Market Quantification (December 2011)

Learn more about BMi Research

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