Abstract
The instability which is sensed nowadays in the French biscuits and cakes market is mainly a consequence of the economical context. The current crisis carried a strong recession and its impacts are difficult to foresee.
We noted from 2005 to 2007 a period of rising prices concerning the biscuit market: a rise of 5.5% of the alimental products' prices in Europe has been conceded by a rising price concerning all the raw materials, with for example a jump of 142% of the global wheat in 2007.
In 2008 and 2009, consumption is likely to lower, and the wheat harvests of these two years are excellent. This explains why we assist to a stability of the prices in the biscuit market for the short and middle term. However, this won't be enough to thwart the increased demand, which is indivisible of the increased demography.
The production costs won't be deeply affected by the crisis, as only a substitution of the fixed capital could carry high spending for the biscuit and cakes' firms. The main problem concerns the distribution of these products. Indeed, in these times, distributors are not very confident with expensive products, which they think are not easily effusable. Moreover, distributors' brands and hard-discount are likely to gain market shares.
Many elements make us think that this business line is deeply touched by the current crisis. Though, in spite of this difficult economical context, the biscuit and cakes market remains stable thanks to a better penetration of the products, more precisely towards the consumers who eat biscuits occasionally, and those who don't consume biscuits at all. This business line is composed of some very innovative firms which try by many ways to entice the potential-consumers. The biscuits and cakes manufacturers launch on average, 70 new references per year, even - or rather mostly - during a crisis period. In fact, consumers need to feel that the biscuit and cakes brands are innovative, and that they can bring an easy pleasure to them during these hard days.
