2010 State of the Industry Report Presented at SNAXPO | Photos | Full SOI PDF
Battered by the nation’s troubled economy, consumers are tightening their spending habits when it comes to many food purchases, but although shoppers are seeking the best value and are more disciplined in their buying decisions, snack food products continue to do well.
According to Sally Lyons Wyatt, senior vice president at Information Resources, Inc., who presented the State of the Snack Food Industry Report here, 86 percent of buying decisions are made at home as shoppers prepare their lists, so she advised snack manufacturers to find ways to reach consumers there before they ever leave for the store.
“Eighty percent of consumers are looking for the best value when they buy snacks,” Wyatt said, but she emphasized that “value” involves more than price – although that is a dominant concern. It also includes such factors as trust in the brand, taste, and convenience.
While salty snack volume sales were flat during 2009, dollar sales grew by 7 percent as a result of price increases that were implemented by many companies. Meat snack dollar sales also grew 7 percent. The grocery channel increased its volume of snack sales by 0.6 percent, with revenue up by 3 percent. Grocery gained in 74 percent of the snack category, Wyatt reported, compared to a similar decline at Wal-mart.
When consumers shop for snacks, 66 percent look for their favorite brands, while 43 percent go after their favorite brands on sale. Private label has made gains, she said, as quality and marketing has improved in recent years to take advantage of consumers’ need to save, and that behavior is likely to remain in instances where shoppers have discovered private label products they like and that meet their needs.
Snacks are an important part of healthy eating plans for many consumers, as 32 percent consume snacks as mini-meals throughout the day. Still, 60 percent eat snacks purely for enjoyment.
Healthier snack products continue to well, Wyatt noted, increasing by 3 percent in 2009 over the previous year, and up by 8 percent since 2005. In fact, 83 percent of consumers eat snacks for their nutritional benefit and 40 percent seek benefits beyond basic nutrition. Eighty percent said they are trying to save on medical bills by staying healthy.
While many consumers seek products that have less sodium and are perceived as more healthy, taste is still king, Wyatt stressed. “If it doesn’t taste good, it is not going to win,” she said.