Revisiting the Fundamentals of Snackification

Delivery

This report comes in PPT.

Key Findings

Consumer journeys are expanding and are accompanying new nutrition  needs that snacks can fulfil

As activities out of the home revive, compared to previous years of home seclusions, channel opportunities are re-awakening and nutrient needs are expanding. Impulse habits are expected to slightly benefit from more mobile consumers, given the growing opportunities to intercept consumers beyond the home; however, financial pressures are altering how impulses are acted upon.

Intuitive snacking behaviours are set to grow supported by personalised health and marketing/claim confusion

The line drawn between a completely healthy or indulgent snack is expected to blur further as nutrition/health priorities pervade newer innovations and consumers continue acting on their personal standards of health. But as marketing and regulated claims and features create confusion around health, consumers are expected to rely more on their intuition to guide them to what looks, feels, and tastes good. All in all, amidst the growth of more nutritional snacking, taste will continue to be a priority for all food choices, supporting the growth of permissibly indulgent formulations and features that enable healthy snacks to be seen and felt as desirable.

Consumer price scrutiny is elevating and a range of strategies to mitigate concerns are needed

Even considering the resilience of snacks sales growth amidst prices hikes, manufacturers should expect that consumers are facing tougher decisions in their purchasing. More considered/pre-planned purchases and less inclination towards impulses will challenge manufacturers’ agility in executing on point of purchase. And consumers’ inflated perception of good value will challenge how manufacturers market cost-worthy benefits. Snack players should be focused on lowering value hurdles by innovatively promoting benefits and utility.