Inflationary pressures for salty and sweet snacks are a challenge

Inflationary pressures for salty and sweet snacks are a challenge

The standard biscuits, croissants and savory snacks sectors are currently facing major challenges due to inflationary pressures, according to a recent industry study by ICAP CRIF. Nevertheless, based on the data, in 2022 the domestic consumption of the products in question is estimated to increase by 2%.

According to ICAP CRIF, the onset of the Covid-19 pandemic, which also affected the Greek territory from March 2020, did not negatively affect the domestic market of standard biscuits and salty snacks, in contrast to the market of croissants, which showed a decline. The degree of concentration in the three sub-markets (biscuits-croissants-savory snacks) is particularly high, as a few large companies occupy most of the consumption. These companies have organized distribution networks, which cover the entire territory. The examined products are available on the market both from the FOOD channel (supermarkets, grocery stores, etc.), and from the CTN channel (kiosks, convenience stores, etc.).

As part of the study, a financial analysis was carried out for the three individual markets based on selected indicators and a five-year consolidated balance sheet (2016-2020) was drawn up based on a sample of representative productive enterprises of the specific sectors. From the analysis of the consolidated balance sheet, the following emerges: In relation to the market of standardized biscuits, the total turnover of the 6 companies in the sample followed an upward trend in the 5-year period 2016-2020, showing a cumulative increase of 22.9% in 2020/2016 . Gross profits followed a similar course, registering a corresponding increase of 24.9%. Both the operating and the net result were positive throughout the five years, noting a significant increase in the period under review. Profits (before income tax) more than doubled in 2020 compared to 2016. Regarding the standard croissant market, the total sales of the 5 companies in the sample showed upward trends in the 2-year period 2017-2018, while in the period 2019-2020 they showed downward trend (-6.2% in 2020/2016). Gross profits showed an increase in the three years 2017-2019, while in 2020 they decreased recording a cumulative increase of 10.4% in the examined five years. Both the operating and the net result were positive throughout the five years, recording, however, significant annual fluctuations. Regarding the salty snacks industry, the total turnover of the 5 companies in the sample showed an annual increase in the 5-year period 2016-2020 (cumulative increase of 31.7% in 2020/2016). Gross profits also followed an upward trend, registering a cumulative increase of 28.7% in the five years under review. Both the operating and the net result were positive all years, registering significant annual increases in the last three years.