Consumer Snacking - UK - January 2014

INTRODUCTION
Definitions
Abbreviations
EXECUTIVE SUMMARY
Market Factors
Consumer confidence and spending is on the rise
Health remains an issue
Demographic changes are set to impact the snacking market
Companies, brands and innovation
Own-label accounts for bulk of NPD
Figure 1: New product launches in the UK snack market, own-label vs branded, 2010-13
Mars dominates adspend
The consumer
Snacking is almost universal
Figure 2: Snacks eaten between meals, October 2013
Taste is the most important factor, noted by three in four snackers
Figure 3: Factors influencing purchasing of snacks, October 2013
Hunger is the main driver to snacking
Figure 4: Reasons for snacking, October 2013
Three in four see a place for moderate indulgence
Figure 5: Attitudes towards snacking, October 2013
What we think
ISSUES IN THE MARKET
Should manufacturers be adopting a two-pronged approach to health concerns?
Is there potential to position snacks as an energy boost?
How can snacks appeal to those looking to feel full?
How can operators provide value to consumers?
Can packaging help to facilitate snacking?
TREND APPLICATION
Trend: Play Ethic
Trend: Help Me Help Myself
Mintel futures: Old Gold
MARKET DRIVERS
Key points
Real consumer spending is predicted to gain momentum…
Figure 6: GDP, PDI, consumer expenditure and savings, at constant 2013 prices, 2008-18
… providing opportunities for premiumisation in snacks
Health remains a concern
Despite rising obesity, consumers adopt a relaxed approach to health
Figure 7: Agreement with the statement: ‘I eat what I like and don't worry too much about how healthy my diet is’, March 2012-October 2013
New on-pack nutrition labelling aims to help consumers to make informed decisions
Government’s Responsibility Deal invites industry to cut calories
Chocolate manufacturers reduce calorie content
Sugar confectioners fall behind
Free school dinners rollout set to impact lunchbox occasion
Opportunities via the after-school snacking occasion
Demographic changes pose opportunities and threats
Under-35s more likely than average to be snacking on the go
Figure 8: Trends in the age structure of the UK population, 2008-13 and 2013-18
Rise in older cohorts will potentially dampen growth
Packaging NPD could help to allay concerns among over-55s
Increase in larger households bodes well for driving frequency of snacking
Figure 9: UK households, by size, 2008-18
Drop in households in family lifestage could negatively impact snacking
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Definition
Variety/range extensions continue to see growth, overtaking new product launches
Figure 10: New product launches, by launch type, 2010-13
Own-label accounts for bulk of NPD
Figure 11: New product launches, own-label vs branded, 2010-13
Walkers looks to provenance claims…
… and targets young families
Asda pushes Chosen by You snacks range, including sharing formats
Savoury bites gain in popularity
Pocket-sized snacks would appeal to younger and on-the-go snackers
Slimming claim becomes more popular
Figure 12: Index of new product launches in snacks, by ’slimming’ and ‘low/no/reduced fat’ claims, 2010-13
Focusing on added benefits
High in fibre claim
Popcorn looks to high in fibre claim
High in protein claim remains niche in snacks, but is growing
Figure 13: New product launches in the snacking market, by high-protein claim, 2010-13
Danone yogurt pushes protein claim
Meat snacks push naturally high protein content
Original Egg Company launches ‘ready-to-eat’ egg
Retail could look to Pret’s Protein Pot examples
NPD should look to mine energy-boosting properties
COMPANIES AND PRODUCTS
Mars
Product range
Innovation
Recent activity
Nestlé
Product range
Product innovation
Recent activity
PepsiCo – Walkers, SunBites, Doritos
Product range
Product innovation
Recent activity
Mondelēz International
Product range
Product innovation
Recent activity
Kellogg's
Product range and innovation
Product innovation
Recent activity
Haribo
Product range and innovation
Innovation
Recent activity
Müller Dairy UK
Product range
Product innovation
Recent activity
Danone
Product range
Product innovation
Recent activity
United Biscuits
Product range
Product innovation
Recent activity
BRAND RESEARCH
Brand map
Figure 14: Attitudes towards and usage of brands in the snacks sector, January, May and November 2013
Correspondence analysis
Brand attitudes
Figure 15: Attitudes, by snacks brand, January, May and November 2013
Brand personality
Figure 16: Snacks brand personality – macro image, January, May and November 2013
Figure 17: Snacks brand personality – micro image, January, May and November 2013
Brand experience
Figure 18: Snacks brand usage, January, May and November 2013
Figure 19: Satisfaction with snacks brands, January, May and November 2013
Figure 20: Consideration of snacks brands, January, May and November 2013
Figure 21: Consumer perceptions of current snacks brand performance, January, May and November 2013
Brand index
Figure 22: Snacks brand index, January, May and November 2013
BRAND COMMUNICATION AND PROMOTION
Key points
Total adspend rises again in 2012
Figure 23: Total advertising expenditure in the snacking market, 2010-13
Chocolate dominates snacking adspend
Figure 24: Advertising expenditure on snacking products, by leading categories, 2011-13
Yogurt holds around a 20% share
Biscuits, crisps and sweets account for under 10% share
Mars monopolises adspend but cuts back in 2013
Figure 25: Total media advertising expenditure on snacking products, by top 10 advertisers, 2010-13
Cadbury ups spend in 2013
Mondelēz looks to social media
Mars holds eight in top 10 brands
Figure 26: Total media advertising expenditure on snacking products, by top 10 brands (sorted by total), 2010-13
THE CONSUMER – SNACKS EATEN
Key points
Snacking is almost universal
Figure 27: Snacks eaten between meals, October 2013
Healthy snacking prevails
There is still a role for indulgent snacks
Women are more likely to snack than men at home/work/place of study
Figure 28: Snacks eaten between meals at home, work or place of study, by gender, October 2013
Men opt for filling and savoury snacks when on the go
Figure 29: Selected snacks eaten between meals on the go, by gender, October 2013
Two thirds snack at least once a day
Figure 30: Frequency of snacking, October 2013
Figure 31: Snacking at least once a day, by presence of children and household size, October 2013
THE CONSUMER – WHEN DO THEY SNACK?
Key points
Bread snacks and fresh fruit/veg are the most popular morning snacks
Figure 32: Times when people snack, October 2013
Snackers attempt to keep up healthy snacking throughout the day
Confectionery is the most popular evening snack
THE CONSUMER – FACTORS INFLUENCING SNACK CHOICE
Key points
Taste is the most important factor, noted by three in four snackers
Figure 33: Factors influencing choice of snacks, October 2013
16-24s rate snacks that keep them full…
Figure 34: ‘Keeps me full’ as a factor influencing choice of snacks, by age, October 2013
… and that are easy to carry
Figure 35: ‘Easy to carry’ as a factor influencing choice of snacks, by age, October 2013
Easy-to-store snacks appeal to households with children
Healthy snacks appeal to a third
THE CONSUMER – REASONS TO SNACK
Key points
Hunger is the main driver to snacking
Figure 36: Reasons for snacking, October 2013
Three in 10 snack to treat themselves
Opportunities to market snacks’ energy proposition
Potential for fresh and dried fruit to be positioned as a wholesome alternative
Providing alternatives to other ‘energy’ categories
More than a quarter snack for ‘no particular reason’ or out of boredom
THE CONSUMER – OCCASIONS
Key points
Around two fifths snack when watching/streaming TV/a film at home
Figure 37: Occasions when people snack, October 2013
Snacking with a hot drink or when on a break appeals to a sizeable minority
‘Dunkability’ is a driver for eating biscuits with a hot drink
Snack brands could build associations with a particular time for snacking
Cross-category promotions should help to make more of an occasion out of snacking
Almost a quarter snack on the weekend
Partnering with TV shows could help to cement snack brands as part of the experience
THE CONSUMER – ATTITUDES TOWARDS SNACKING
Key points
Three in four admit to occasional indulgence
Figure 38: Attitudes towards snacking, October 2013
Healthier alternatives could stem reduction in snacking among weight-conscious
Energy provision offers a strong selling point for brands
Women feel both relaxed and guilty about snacking on indulgent treats
Figure 39: Agreement with statements on snacking, by gender, October 2013
Cost remains on people’s radar
Figure 40: Agreement with the statements ‘Rising prices have influenced which snacks I buy’ and ‘Healthy snacks are too expensive (eg fruit, veg)’, by socio-economic group and gross annual household income, October 2013
APPENDIX – MARKET DRIVERS
Figure 41: Finished Admission Episodes with a primary diagnosis of obesity in England, by gender, 2000/01-2011/12
Figure 42: Agreement with statements on eating fruit and vegetables, March 2012-October 2013
Figure 43: Forecast adult population trends, by lifestage, 2008-13 and 2013-18
APPENDIX – WHO’S INNOVATING?
Figure 44: New product launches in the snacking market, by health claim, 2010-13
APPENDIX – BRAND RESEARCH
Figure 45: Brand usage, November 2013
Figure 46: Brand usage, January 2013
Figure 47: Brand usage, May 2013
Figure 48: Brand commitment, January, May and November 2013
Figure 49: Brand momentum, January, May and November 2013
Figure 50: Brand diversity, January, May and November 2013
Figure 51: Brand satisfaction, January, May and November 2013
Figure 52: Brand attitude, January, May and November 2013
Figure 53: Brand image – macro image, January, May and November 2013
Figure 54: Brand image – micro image, January, May and November 2013
Brand index
Figure 55: Brand index, January, May and November 2013
APPENDIX – BRAND COMMUNICATION AND PROMOTION
Figure 56: Total media advertising expenditure on snacking, by media type, 2010-13
APPENDIX – THE CONSUMER – SNACKS EATEN
Figure 57: Snacks eaten between meals, October 2013
Figure 58: Snacks eaten between meals – Any, by demographics, October 2013
Figure 59: Snacks eaten between meals – Fresh fruit and vegetables, by demographics, October 2013
Figure 60: Snacks eaten between meals – Bread/toast/sandwiches, by demographics, October 2013
Figure 61: Snacks eaten between meals – Confectionery, by demographics, October 2013
Figure 62: Snacks eaten between meals – Crisps/nuts/bagged snacks, by demographics, October 2013
Figure 63: Snacks eaten between meals – Sweet biscuits/cake/pastries, by demographics, October 2013
Figure 64: Snacks eaten between meals – Dairy, by demographics, October 2013
Figure 65: Snacks eaten between meals – Savoury biscuits, by demographics, October 2013
Figure 66: Snacks eaten between meals – Cereal/cake bar/energy bars, by demographics, October 2013
Figure 67: Snacks eaten between meals – Pie/pasty/sausage rolls, by demographics, October 2013
Figure 68: Snacks eaten between meals – Seeds/Dried fruit, by demographics, October 2013
Figure 69: Frequency of snacking, by demographics, October 2013
APPENDIX – THE CONSUMER – WHEN DO THEY SNACK?
Figure 70: Times when people snack, October 2013
Figure 71: Times when people snack – fresh fruit and vegetables and confectionery (chocolate, sweets), by demographics, October 2013
Figure 72: Times when people snack – Crisps/nuts/bagged snacks (eg Mini Cheddars, KP Original Salted peanuts, meat snacks) and savoury biscuits (ie crackers), by demographics, October 2013
Figure 73: Times when people snack – Dairy (eg yogurt, cheese such as Babybel) and seeds/dried fruit, by demographics, October 2013
Figure 74: Times when people snack – Cereal/cake/energy bars and bread/toast/sandwiches, by demographics, October 2013
Figure 75: Times when people snack – Pie/pasty/sausage rolls and Sweet biscuits/cake/pastries (eg croissant/doughnut), by demographics, October 2013
APPENDIX – THE CONSUMER – FACTORS INFLUENCING CHOICE
Figure 76: Factors influencing purchasing of snacks, October 2013
Figure 77: Most popular factors influencing purchasing of snacks, by demographics, October 2013
Figure 78: Next most popular factors influencing purchasing of snacks, by demographics, October 2013
Figure 79: Other factors influencing purchasing of snacks, by demographics, October 2013
Figure 80: Attitudes towards protein and foods high in protein, by demographics, November 2012
APPENDIX – THE CONSUMER – REASONS TO SNACK
Figure 81: Reasons for snacking, October 2013
Figure 82: Most popular reasons for snacking, by demographics, October 2013
Figure 83: Next most popular reasons for snacking, by demographics, October 2013
APPENDIX – THE CONSUMER – OCCASIONS
Figure 84: Occasions when people snack, October 2013
Figure 85: Most popular occasions when people snack, by demographics, October 2013
Figure 86: Next most popular occasions when people snack, by demographics, October 2013
APPENDIX – THE CONSUMER – ATTITUDES TOWARDS SNACKING
Figure 87: Attitudes towards snacking, October 2013
Figure 88: Agreement with the statement ‘It’s okay to indulge in less healthy snacks sometimes’, by demographics, October 2013
Figure 89: Agreement with the statement ‘Cutting down on snacking is a good way to manage your weight’, by demographics, October 2013
Figure 90: Agreement with the statement ‘Snacking is a good way to get my recommended 5-a-day’, by demographics, October 2013
Figure 91: Agreement with the statement ‘Rising prices have influenced which snacks I buy’, by demographics, October 2013
Figure 92: Agreement with the statement ‘I prefer snacks which are healthier than those which are high in fat/sugar’, by demographics, October 2013
Figure 93: Agreement with the statement ‘It’s important to snack to keep energy levels up’, by demographics, October 2013
Figure 94: Agreement with the statement ‘I feel guilty if I eat indulgent snacks’, by demographics, October 2013
Figure 95: Agreement with the statement ‘I would like to see a wider variety of savoury snacks’, by demographics, October 2013
Figure 96: Agreement with the statement ‘Healthy snacks are too expensive’, by demographics, October 2013
Figure 97: Agreement with the statement ‘Healthier snacks don’t fill you up’, by demographics, October 2013
Figure 98: Agreement with the statement ‘Snacking affects my appetite for eating balanced meals’, by demographics, October 2013