The multi-billion greenback snack market is projected to develop 3%-4% in 2021 in line with SNAC International; nonetheless a powerful quantity after the hovering development of 2020, when the pandemic had households in lock-down and snacking at dwelling elevated gross sales by double-digits in some classes.
David Walsh, VP of Membership and Communications at SNAC Worldwide, shared insights on the PACK EXPO Las Vegas Innovation Stage in regards to the State of Snacking. SNAC additionally launched their annual State of the Trade report, which was shared on the present.
COVID-19 Introduced Large Adjustments
Through the pandemic, shoppers turned to snacking for consolation, usually buying family-size or multi-pack snacks on-line. Of explicit focus throughout this time was holistic well being and wellness targets. Throughout 2020, 10-16 oz, and 4.5-8 oz. sizes noticed essentially the most dramatic improve in gross sales. The SNAC report talked about that 2020 resulted in slowed new product growth because of the pandemic, however that ought to reverse within the second half of 2021 and into 2022.
Tendencies At the moment
Walsh stated that there’s much less “on the go” consumption, however shoppers are nonetheless snacking extra occasions per day. Holistic and well being immunity are high of thoughts, making practical snacks extra essential with components corresponding to: excessive fiber, protein, entire grains, calcium fortified, nutritional vitamins, minerals, antioxidants, probiotics, and collagen.
Millennials and Gen-Z shoppers snack extra regularly and are extra possible to make use of snacks as a meal alternative. (92% report changing a minimum of one meal per week with a snack.)
Wholesome choices and sustainability are two client traits
Customers are demanding sustainability, and well being is essential, however style continues to be the driving issue, as are worth, packaging, loyalty, and attain.
On-line snack gross sales and advertising and marketing are actually essential. Nevertheless, since snacks are sometimes an impulse buy, “producers want to interact shoppers in another way to maximise on-line gross sales.” Social media and on-line initiatives corresponding to offering recipes that use snacks as components are key to reaching and interesting with shoppers.
The Market At the moment
In line with the particular report, 2022 will convey challenges to the business from continued provide chain and labor challenges, in addition to rising costs for commodities and oil. This may require firms to be revolutionary all through their total chain of operations, to extend effectivity.
Product diversification is essential, and development drivers are taste, packaging, and sustainability. Walsh provides that to adapt to the evolving surroundings, producers should stability worth, high quality, and wellness, and take note of pack measurement and selection, whereas additionally constructing for on-line gross sales. Leveraging focused media to achieve shoppers at-home, and making the most of extra in-home celebrations, is essential.
Some rising traits are the addition of probiotics, practical late-night snacks, and lab-grown or plant-based protein, and collagen.
Key Class Insights:
Tremendous-hot and spicy paired with candy flavors
Sizzling with added nuance
Candy flavors corresponding to fruit, chocolate, maple, and nut butters
Worldwide flavors corresponding to Latin American, Asian, Center Jap
- Savory snacks are up 8.2% from Could 2020 to Could 2021.
- “Different” Savory Snacks are up 14.8%, with $4.8 billion in gross sales. The ‘different’ class options many ‘better-for-you’ snacks and consists of examples corresponding to Veggie Straws, Veggie Crisps, or Inexperienced Pea Snack Crisps. Fruit chips general are up 7.1%, and apple chips are up 18%. This class additionally sees the expansion of incubators and start-up firms which are supported by co-manufacturers throughout the U.S.
- Tortilla chips have been up 6.3% to $4.9 billion, and are available in new shapes, sizes, and flavors. Widespread selections embody chips made with peas, carrots, plantains, and have spicy flavors, or protein-added components.
- Protein was well-liked in different areas too, with meat snacks/jerky up 24% to this point in 2021, and 17% in 2020. Class improvements embody meat and cheese combos, and “clear” merchandise with no added components or sugar. Corporations are touting environmental friendliness with sustainable sourcing and free-roaming herds.
- Pork rinds have been up 11% in 2020 and are up 7% to this point in 2021, with some producers seeing double-digit development. A well-liked possibility for Keto diets, new flavors corresponding to dill pickle, hatch chile, and apple cinnamon have come to market.
- Cheese snacks are up 8.2% to $2.2 billion, with new spicy flavors, and codecs corresponding to parmesan cheese crisps or pepper jack crisps in demand. One other class that’s Keto-friendly, some producers additionally noticed double-digit development from Could 2020 to Could 2021.
- Prepared-to-eat popcorn was among the many top-selling snack in 2020, up 10.3% to $1.4 billion. By 2023 this class is anticipated to develop 8.3%, making it the quickest rising snack.
- Pretzels are up 7.3% to $1.2 billion, and profit from a “better-for-you” notion as codecs corresponding to protein-filled or grain-free. Widespread various components embody cassava, sorghum, and root greens.
SNAC’s David Walsh speaks at PACK EXPO Las Vegas
