Leading snacks players maintained their positions in 2023. In a context of high inflation and cost-of-living challenges, their main strategies include widening the portfolio with more premium products; innovation in flavours and sizes to provide new experiences to the consumer; incorporation of healthy attributes like sugar reduction, higher content of protein, and plant-based products; and a continuous progression towards more sustainable practices.
This report comes in PPT.
There is an increase in M&A activities, especially in fast-growing categories, through the acquisition of established companies and brands. Examples include the acquisition of two popcorn plants by The Hershey Co, expanding into savoury snacks, the acquisition of luxury brands Hotel Chocolat and Trü Frü by Mars, and the acquisitions of Wells and Grupo CRM by Ferrero and Nestlé, respectively.
Innovation is back at the centre after a period of SKU rationalisation. Consumers seek an escape from daily stress and anxieties, and new sensory experiences provided by snacks can be a source of comfort. The main snacks players are launching new flavours, sizes, textures, and products thought for different occasions and moments of the day.
Consumers are paying more attention to the impact of food on their health. Global snacks players are launching products with healthy attributes that provide permissible indulgence. This includes reduced content of sugar, salt, fat and calories, added functional benefits for mental health and energy, higher content of protein and vitamins, and smaller sizes for portion control.
Despite the cost-of-living crisis, 64% of global consumers still say they are worried about climate change. Snacks players continue to have sustainability as a top priority, reaching milestones of their long-term goals every year. This includes reducing packaging waste, using natural resources more efficiently, stopping deforestation, and reducing carbon emissions.
With high inflation, consumers are shifting to cautious spending. However, premium snacks are still chosen as an affordable luxury and a source of indulgence. Many top players are increasing their presence in the premium space to increase their margins.
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