Top Trends in Snacking from Around the Globe Melanie Felgate Food & Drink Analyst Bord Bia Insights Session on Snacking March 3, 2014 Agenda About Datamonitor Consumer snacking insights Top innovation trends in snacks Summary Datamonitor: consumer and innovation experts Consumer Insight Innovation Tracking Market Assessment Real insight on real consumers Uncover new trends in products and packaging Identify new hot spots in the marketplace Agenda About Datamonitor Consumer snacking insights Top innovation trends in snacks Summary There is an “unhealthy” stigma attached to snacking 47% of consumers believe snacking in-between meals is unhealthy 18-34 45% 35-54 45% 45-64 65+ Source: Datamonitor’s Consumer Survey 2013 49% 54% Snacking plays a role in weight management Top 5 things consumers are doing to…. Lose weight Gain weight Exercising more 60% Eating larger portions 41% Eating smaller portions 52% Eating more meals 41% Healthier meal plan 52% Snacking more 35% Snacking less 50% Specific dietary plan (e.g. high fat) 27% Eating natural/ less processed foods 27% Gym-based body building regime 26% Source: Datamonitor’s Consumer Survey 2013; Data shows the top 5 things consumers are doing to either lose or gain weight. Consumers are trying to snack more healthily Consumers who choose healthy snacks in-between meals most or all of the time 48% Top 3 markets India 68% 43% 39% UAE 59% Canada 58% Japan 16% Source: Datamonitor’s Consumer Survey 2013 50% Females are more likely to snack healthily High income Low income …. and high earners Healthy snacks by subscription Graze currently ships an estimated 300,000 snack boxes each week in the UK Graze combines guilt-free snacking with convenience Agenda About Datamonitor Consumer snacking insights Top innovation trends in snacks Summary Top Trends in Snacks 1. Wake Up! 2. Pop go the chips 3. Drinkable snacks 4. Alterna-Chips 5. Novelty 6. Man Up! #1: Wake Up! WHAT? • Caffeine and other energizing ingredients are being added to snacks, confectionary & gum WHY? • Broaden the energy market beyond drinks. • More portable than drinks. TAKEOUT? • Potential to “mainstream” energy enhancement beyond core users of energy drinks Energizing snacks appeal to the mid-afternoon slump Consumers who snack to boost energy, by day part (Australia only) Morning 38% Source: Datamonitor’s Australia Survey 2011 Afternoon 39% Evening 17% Energizing Snacks Snacks positioned as a coffee alternative Awake bar – "Same amount of coffee as a cup o' Joe or 250ml energy drink." Source: awakebar.com; buzzstrong.com; energems.net Buzz Strong's "real coffee" cookie – "1 Cookie = 1 cup of coffee." Energems – "3 gems = 1 cup of coffee." Health concerns pose a barrier to caffeinated snacks Wrigley launched Alert Energy Caffeine Gum in April 2013 1 stick of gum equivalent to caffeine in ½ cup coffee Pulled from shelves weeks later amid safety-concerns #2: Pop go the Chips! WHAT? • Air popped potato chips offering a healthier alternative to fried or baked crisps WHY? • Popped chips have the crunch of fried crisps, with fewer calories and fat. TAKETakeOUT? Out • Air popping is revolutionising snacking from potato chips to tortilla chips & beyond PopChips: the brand that started it “Less guilt, more pleasure” Applied rice cake manufacturing process to potatoes Less than half the fat of fried crisps Over $93m sales in 2012 Brands are capitalizing on PopChips success 11% of savory snacks launched globally in 2013 were “popped” Popping is moving beyond potato chips Poptillas popped tortilla chips Gourmet Basics Pop Rings PopCorners Popped Wholegrain Chips #3: Drinkable Snacks WHAT? • Snacks you can drink instead of eat WHY? • Portable and convenient snacking format – combines drink and food in one TAKEOUT? • Adding ingredients and textures to beverages can turn them into a snack Consumers who find the concept of a “drinkable snack” appealing China 74% Italy 52% US 46% - - - - - - - - - - - - - - - - - Global average 45% Spain 43% UK 38 % Germany 25% “[PepsiCo has a] whole range of products… Drivers in the pipeline that are valueadded products that can be snacks made into beverages... A way to grow the beverage business is to take foods and drinkify them.” Source: Brandchannel.com Indra Nooyi, CEO of PepsiCo at Beverage Digest’s Future Smarts conference in New York, December 2012 Adding textures can transform juice into a snack Mamma Chia Squeeze Vitality Snack combines fruit & veg juices with chia seeds Sunmagic Fruit 2 Day suspends real fruit pieces in fruit juice Drinks are replacing traditional breakfast foods Drinks are replacing traditional breakfast foods #4: Alterna-Chips WHAT? • Beyond the potato • Chips are now being made from beans, fruit & veg, seaweed and eggs WHY? • Alternative chips are being developed in pursuit of a healthier substitute for potatoes TAKEOUT? • As pressure mounts on “junk food” to lend a hand in curbing obesity, expect growing innovation from unconventional chips. Health & Wellness trend is driving “Alterna-Chips” 88% of consumers agree a healthy diet can lower the risk of disease in later life Source: Datamonitor’s Consumer Survey 2011 and 2013 70% of consumers are making conscious attempts to eat more healthily 39% of consumers are willing to sacrifice taste for healthier foods Taste still dominates the consumer choices US: Consumers who consider the following to have a great impact on their decision to buy food and beverages 27 point gap Source: International Food Information Council Foundation, 2013 Food & Health Survey. 25 point gap Fruit & Veg Chips Tyrells Apple Crisps “a sweet, yet crisp eating experience.” Brad’s Raw Chips range includes kale and beetroot chips Protein Chips Capitalizing on the protein trend (7g protein per serving) Made from egg whites and corn 20% of consumers prioritize “high protein” claims when choosing food & drink Intelligent Protein Snacks Egg White Chips Other “alterna-chip” ingredients Chickpeas Pita bread Ancient grains Wellaby’s Hummus Chips Stacy’s Pita Chips Udi’s Ancient Grain Crisps #5: Novelty WHAT? • A novel approach to snacks in flavor or format WHY? • To appeal to consumers desire for fun and experimentation TAKEOUT? • Keep consumers excited about snacks through continued flavor and format innovation Younger snackers will be most attracted by novelty Consumers who find the concept of a product with a new and exotic flavour appealing, by age Source: Datamonitor’s Consumer Survey 2013 Novelty flavors Guiness Rich Beef Chilli Crisps Pringles seasonal flavors Pepsi X Frito Lay Pepsi Cola flavor Unique combinations: chips & chocolate Potato chips dipped in chocolate Merging two snacks into one “sweet & salty” combo Unique pairing generated media buzz around the world Taking inspiration from other categories Pizza snack on a stick mimics ice-cream format Can be eaten cold or heated Available in savoury and sweet flavors including chocolate hazelnut “Most Innovative Product” at Anuga 2013 #6: Man Up! WHAT? • Long taken for granted by supermarkets and CPG sellers, men are finally getting noticed WHY? • Supermarkets tend to be tailored to women and children, but more men are shopping today as household tasks are shared more equally TAKEOUT? • As more men become the primary shoppers, products will have to be designed with the needs of men in mind Men are taking a greater role in grocery shopping 37% of men globally are “completely responsible” for their household’s grocery shopping In the US, 55% of men claim to be “completely responsible” for grocery shopping This compares to just 14% in 1985 Sources: Datamonitor’s Consumer Survey 2013; "Supermarket Bromance: More Men Are Shopping," October 31, 2013 Meat snacks hold more appeal with men Which best describes your daily diet? Sources: Datamonitor’s Consumer Survey 2013 Targeting men with a sports nutrition positioning McCoy’s: Man Crisps McCoy’s “Man Crisps” campaign specifically targets the male gender Meaty flavors and on-pack Darts competition appeal to men Yogurt for Men Danone for Men High protein yogurts for men Powerful Yogurt Promotes Greek yogurt as sports snack for men “Find your inner abs!” Agenda About Datamonitor Consumer snacking insights Top innovation trends in snacks Summary Summary 1. Wake Up! 2. Pop go the chips 3. Drinkable snacks 4. Alterna-Chips 5. Novelty 6. Man Up! Any questions? Melanie Felgate mfelgate@datamonitor.com Follow me on twitter: @consumer_mel