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- Chips, Pretzels and Corn Snacks - US - January 2012
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With a household penetration rate of 97.1%, the salty snacks category is one of the most popular among U.S. households. In 2011, U.S. sales of potato chips, tortilla chips, pretzels and corn snacks amounted to $13.6 billion, illustrating the relative recession-resistance of these snack segments. As such, they are critically important to manufacturers and retailers alike, as they represent a fairly reliable revenue stream.
Salty snacks have a relatively affordable price point. However, this is not to say that the segments featured in this report are entirely immune to economic pressures. As they are a snacking extra, they may be cut from grocery lists depending on just how tight the household food budget is. In addition to financial concerns, media coverage regarding the country’s growing obesity problem is no doubt capturing the attention of Americans. Parents in particular may be reluctant to buy as many snacks for their children as they have in the past.
During such an important period for the snacking industry, this report takes an in-depth look at some of the major segments within the salty snacks category. As such, Mintel has developed this report to help guide the future strategic direction of manufacturers and retailers alike by providing insights on the following topics:
- The snacking industry’s performance to date, and a forecast on what future sales may look like
- The impact of key market drivers and an ever-increasing competitive marketplace on manufacturers’ and retailers’ ability to maximize sales and profit margins
- The snacking industry’s efforts with regard to developing and marketing products that meet consumers’ desire for fun and taste, while balancing this against a growing interest in eating better
- Product attributes that matter most to snack consumers, and how the snacking industry is responding in terms of product development and marketing to connect with key audiences
- The role that household income, gender, race/Hispanic origin and other demographic factors play in determining the fortunes of snack segments in general, and specifically individual companies and brands
- The snacking industry’s approach, particularly on the retailing side, to the wide variety of store formats that sell snacks and how the unique attributes of each channel play a role in determining success or failure
Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
Executive Summary
Sales of potato chips, tortilla chips, pretzels, corn snacks flat from 2010-11
Market factors helping/hurting snacking market
Salty snacks face competition on a variety of fronts
Potato chips fastest-growing segment
Supermarkets are the format of choice for snack consumers
Frito-Lay dominates snacking marketplace
Social media a key component of snack marketing
Who is the snack consumer?
Insights and Opportunities
Develop cross-promotional opportunities with movie providers
Develop branded snack shops
Continue to blur snack type distinctions
Inspire Insights
Trend: Make it Mine
Trend: Greenfluencers
Market Size and Forecast
Key points
Potato chips, tortilla chips, pretzels, and corn snacks market down from 2010 record level
Figure 1: Total U.S. retail sales and forecast of potato chips, tortilla chips, pretzels, and corn snacks, at current prices, 2006-16
Figure 2: Total U.S. retail sales and forecast of potato chips, tortilla chips, pretzels, and corn snacks, at inflation-adjusted prices, 2006-16
Fan chart forecast
Figure 3: Total U.S. retail sales and fan chart forecast of potato chips, tortilla chips, pretzels, and corn snacks, at current prices, 2006-16
Walmart sales
Market Drivers
Key points
Asian population growth favors snacks
Figure 4: Population, by race and Hispanic origin, 2006-16
Decrease in households with children could lower target market and purchase occasions
Figure 5: Households, by presence of children, 1999-2009
Population trends may slow adoption of BFY chips but increase brand loyalty
Figure 6: U.S. Population, by age, 2006-16
Snack market susceptible to higher corn prices
Food labeling health scores could boost BFY snack sales opportunities
Competitive Context
Key points
Fresh fruit/vegetables considered healthy alternative to salty snacks
Bars and nuts segments more innovative than salty snacks
Figure 7: Number of snack launches, by type, 2005-10
Specialty retailers eat into usage occasions but also raise awareness
QSR value menus offer an appealing snacking option
Will America follow other countries’ lead regarding “fat taxes”?
Segment Performance
Key points
Potato chips growing faster than tortilla chips, pretzels, and corn snacks
Figure 8: Total U.S. sales of market, segmented by type, 2009 and 2011
Segment Performance—Potato Chips
Key points
Potato chips segment continues posting sales gains
Figure 9: Total U.S. sales and forecast of potato chips, at current prices, 2006-16
Segment Performance—Tortilla Chips
Key points
Tortilla chips rebound slightly in 2011
Figure 10: Total U.S. sales and forecast of tortilla chips, at current prices, 2006-16
Segment Performance—Pretzels
Key points
Lack of innovation and health concerns may be hampering pretzels segment
Figure 11: Total U.S. sales and forecast of pretzels, at current prices, 2006-16
Segment Performance—Corn Snacks
Key points
Corn snacks’ rollercoaster sales ride continues in 2011
Figure 12: Total U.S. sales and forecast of corn snacks, at current prices, 2006-16
Retail Channels
Key points
Supermarkets ringing up biggest share of sales
Figure 13: Sales of potato chips, tortilla chips, pretzels, and corn snacks, by channel, 2009 and 2011
Retail Channels—Supermarkets
Key points
Supermarket sales posting new highs but lack of major growth a concern
Figure 14: Supermarket sales of potato chips, tortilla chips, pretzels, and corn snacks, at current prices, 2006-11
Retail Channels—Supercenters and Warehouse Clubs
Key points
Warehouse clubs not top of mind with snack consumers
Figure 15: Supercenters and warehouse clubs sales of potato chips, tortilla chips, pretzels, and corn snacks, at current prices, 2006-11
Retail Channels—Convenience Stores
Key points
Convenience stores particularly vulnerable to recent snack sales decline
Figure 16: Convenience stores sales of potato chips, tortilla chips, pretzels, and corn snacks, at current prices, 2006-11
Retail Channels—Other Channels
Key point
Dollar stores forcing “other” channels to buck up
Figure 17: Other channels sales of potato chips, tortilla chips, pretzels, and corn snacks, at current prices, 2006-11
Retail Channels—Drug Stores
Key points
Drug stores finding prescription for growth
Figure 18: Drug stores sales of potato chips, tortilla chips, pretzels, and corn snacks, at current prices, 2006-11
Retail Channels—Natural Supermarkets
Key points
Product innovation drives growth in natural marketplace
Sales of chips, pretzels, and snacks in the natural channel
Figure 19: Natural supermarket sales of chips, pretzels, and snacks, at current prices, 2009-11
Figure 20: Natural supermarket sales of chips, pretzels, and snacks, at inflation-adjusted prices, 2009-11
Natural channel sales by segment
Figure 21: Natural supermarket sales of chips, pretzels, and snacks, by segment, 2009 and 2011
Leading brands
Natural channel sales by organic content
Figure 22: Natural supermarket sales of chips, pretzels, and snacks, by organic content, 2008 and 2010*
Natural channel sales of gluten-free pretzels
Figure 23: Natural supermarket sales of pretzels, by gluten-free, 2008 and 2010*
Purchase Locations
Key points
Supermarkets format of choice for snack buyers
Figure 24: Summary of purchase locations, October 2011
While supermarkets remain channel of choice, demographic differences emerge
Figure 25: Regular purchase locations, by gender, October 2011
Figure 26: Regular purchase locations, by age, October 2011
Figure 27: Regular purchase locations, by household income, October 2011
Figure 28: Regular purchase locations, by region, October 2011
Figure 29: Regular purchase locations, by presence of children in the household, October 2011
Leading Companies
Key points
Name brands outsell private label by a wide margin
Procter & Gamble’s announced sale of Pringles may be in jeopardy
Frito-Lay a big part of PepsiCo’s push toward healthier products
Figure 30: Manufacturer FDMx sales of potato chips, tortilla chips, pretzels, and corn snacks, 2010-11
Brand Share—Potato Chips
Key points
Frito-Lay brands among the largest but not best performing
Private label fastest growing potato chip brand
Brand sales of potato chips
Figure 31: Selected FDMx brand sales of potato chips, 2010-11
Lay’s most bought potato chip brand
Figure 32: Brands of chips consumed, by household income, April 2010-June 2011
Households with children bigger supporters of popular name brands
Figure 33: Brands of chips consumed, by presence of children in HH, April 2010-June 2011
Brand Share—Tortilla Chips
Key points
Doritos a powerhouse tortilla chip brand; private label growing
Brand sales of tortilla chips
Figure 34: Selected FDMx brand sales of tortilla chips, 2010-11
Brand Share—Pretzels
Key points
Snyder’s-Lance Inc. brands lead the segment despite sales declines
Brand sales of pretzels
Figure 35: Selected FDMx brand sales of pretzels, 2010-11
Rold Gold most bought brand
Figure 36: Brands of pretzels consumed, by household income, April 2010-June 2011
Private label buying activity more prevalent in households with children
Figure 37: Store brand pretzel consumption, by presence of children in the HH, April 2010-June 2011
Brand Share—Corn Snacks
Key points
Frito-Lay’s brands sales unchanged but continue segment dominance
Brand sales of corn snacks
Figure 38: Selected FDMx brand sales of corn snacks, 2010-11
Innovations and Innovators
Key points
Product innovations
Private label
BFY
Unique flavor
Marketing Strategies
Key points
Frito-Lay CFBAI’s presence gives snacking industry a powerful voice
Frito-Lay brands active in social media
Snyder’s of Hanover uses website to connect with consumers
Frito-Lay’s YouTube channel features new web series
Television advertising
Doritos
Figure 39: Frito-Lay/Doritos, February 2011
Tostitos, Lay’s, SunChips
Figure 40: Frito-Lay/Doritos, January 2011
Snyder’s of Hanover Pretzels
Figure 41: Snyder’s of Hanover/sourdough pretzels, May 2011
popchips
Figure 42: popchips, February 2011
Snack Consumption
Key points
Consumers prefer indulgent snack experience
Figure 43: Household snack consumption, by snack type, October 2011
Asians favor healthier chip options
Figure 44: Types of chips consumed, by race/Hispanic origin, April 2010-June 2011
Figure 45: Types of chips consumed, by presence of children in HH, April 2010-June 2011
Snack fans see nothing wrong with being plain
Figure 46: Flavors of chips consumed, by race/Hispanic origin, April 2010-June 2011
Figure 47: Flavors of chips consumed, by presence of children in HH, April 2010-June 2011
Men prefer heartier chips, women opt for healthier
Figure 48: Personal snack consumption, by gender, October 2011
Interest in healthier chips higher among higher-income households
Figure 49: Personal snack consumption, by household income, October 2011
Where Snacks are Consumed
Key points
Home is where the snacking is
Figure 50: Summary of snack consumption locations, October 2011
Figure 51: Summary of snack consumption locations, by age, October 2011
Figure 52: Snack consumption locations, by age, October 2011
Frequency
Key points
Regular snacking has no age limits
Figure 53: Chip/pretzel/corn snack frequency of consumption, by age, October 2011
Households with children more likely to be regular snackers
Figure 54: Chip/pretzel/corn snack frequency of consumption, by presence of children in household, October 2011
Brand Selection
Key points
Name brands resonate with snack consumers
Figure 55: Summary of snack brand selection, October 2011
Potato chips
Figure 56: Potato chip brand selection, by gender, October 2011
Figure 57: Potato chip brand selection, by age, October 2011
Figure 58: Potato chip brand selection, by household income, October 2011
Tortilla chips
Figure 59: Tortilla chip brand selection, by gender, October 2011
Figure 60: Tortilla chip brand selection, by age, October 2011
Pretzels
Figure 61: Pretzel brand selection, by age, October 2011
Figure 62: Pretzel brand selection, by household income, October 2011
Corn snacks
Figure 63: Corn snack brand selection, by gender, October 2011
Figure 64: Corn snack brand selection, by age, October 2011
Figure 65: Corn snack brand selection, by presence of children in the household, October 2011
Importance Factors
Key points
Taste experience offered by trusted brands most important to snack consumers
Figure 66: Summary of importance of product factors when selecting chips, pretzels, or corn snacks, October 2011
Flavor and fun key for younger consumers
Figure 67: Important factors when selecting chips, pretzels, or corn snacks, by age, October 2011
Importance of price and brand trust high among lower-income consumers
Figure 68: Important factors when selecting chips, pretzels, or corn snacks, by household income, October 2011
Product Selection
Key points
Snack consumers fairly content but willing to look elsewhere
Figure 69: Product selection, by gender, October 2011
Opportunities to connect with younger consumers
Figure 70: Product selection, by age, October 2011
Lower-income consumers reluctant to try new products
Figure 71: Product selection, by household income, October 2011
Respondents with children in household offer market potential for new product introductions
Figure 72: Product selection, by presence of children in the household, October 2011
Ranking Favorites
Key points
Regular potato chips clear number one among snack consumers
Figure 73: Ranking favorite snack types, October 2011
Figure 74: Top two ranking of favorite snack types, by age, October 2011
Figure 75: Top two ranking of favorite snack types, by household income, October 2011
Impact of Race/Hispanic Origin
Key points
Race/ethnicity influences favored snack types
Figure 76: Personal snack consumption, by race/Hispanic origin, October 2011
Asians most frequent snackers
Figure 77: Chip/pretzel/corn snack frequency of consumption, by race/Hispanic origin, October 2011
Regular potato chips among top two snack types by race/ethnicity
Figure 78: Top two ranking of favorite snack types, by race/Hispanic origin, October 2011
Custom Consumer Groups
Key points
BFY chips least appealing to older men and women
Figure 79: Personal snack consumption, by gender and age, October 2011
Younger men and women tuning into non-supermarket channels
Figure 80: Regular purchase locations, by gender and age, October 2011
Older women most likely to pay attention to product attributes
Figure 81: Important factors when selecting chips, pretzels, or corn snacks, by gender and age, October 2011
Younger men most likely to be open to new products
Figure 82: Product selection, by gender and age, October 2011
BFY chips emerging among younger male and female snack consumers
Figure 83: Top two ranking of favorite snack types, by gender and age, October 2011
IRI/Builders—Key Household Purchase Measures
Overview of salty snacks
Potato chips
Consumer insights on key purchase measures
Brand map
Figure 84: Brand map, selected brands of potato chips buying rate, by household penetration, 52 weeks ending June 26, 2011
Brand leader characteristics
Key purchase measures
Figure 85: Key purchase measures for the top brands of potato chips, by household penetration, 52 weeks ending June 26, 2011
Tortilla chips
Consumer insights on key purchase measures
Brand map
Figure 86: Brand map, selected brands of tortilla chips buying rate, by household penetration, 52 weeks ending June 26, 2011
Brand leader characteristics
Key purchase measures
Figure 87: Key purchase measures for the top brands of tortilla chips, by household penetration, 52 weeks ending June 26, 2011
Pretzels
Consumer insights on key purchase measures
Brand map
Figure 88: Brand map, selected brands of pretzels buying rate, by household penetration, 52 weeks ending June 26, 2011
Brand leader characteristics
Key purchase measures
Figure 89: Key purchase measures for the top brands of pretzels, by household penetration, 52 weeks ending June 26, 2011
Corn snacks
Consumer insights on key purchase measures
Brand map
Figure 90: Brand map, selected brands of corn snacks buying rate, by household penetration, 52 weeks ending June 26, 2011
Brand leader characteristics
Key purchase measures
Figure 91: Key purchase measures for the top brands of corn snacks, by household penetration, 52 weeks ending June 26, 2011
Appendix: Other Useful Consumer Tables
Snacking frequency
Figure 92: Chip/pretzel/corn snack frequency of consumption, by gender, October 2011
Figure 93: Chip/pretzel/corn snack frequency of consumption, by household income, October 2011
Purchase locations
Figure 94: Regular purchase locations, by race/Hispanic origin, October 2011
Potato chip brand selection
Figure 95: Potato chip brand selection, by presence of children in the household, October 2011
Figure 96: Potato chip brand selection, by race/Hispanic origin, October 2011
Tortilla chip brand selection
Figure 97: Tortilla chip brand selection, by household income, October 2011
Figure 98: Tortilla chip brand selection, by presence of children in the household, October 2011
Figure 99: Tortilla chip brand selection, by race/Hispanic origin, October 2011
Pretzel brand selection
Figure 100: Pretzel brand selection, by gender, October 2011
Figure 101: Pretzel brand selection, by presence of children in the household, October 2011
Figure 102: Pretzel brand selection, by race/Hispanic origin, October 2011
Corn snack brand selection
Figure 103: Corn snack brand selection, by household income, October 2011
Figure 104: Corn snack brand selection, by race/Hispanic origin, October 2011
Importance factors
Figure 105: Important factors when selecting chips, pretzels, or corn snacks, by gender, October 2011
Product selection
Figure 106: Product selection, by race/Hispanic origin, October 2011
Ranking favorites
Figure 107: Top two ranking of favorite snack types, by gender, October 2011
Figure 108: Top two ranking of favorite snack types, by presence of children in the household, October 2011
Appendix—SymphonyIRI Builders Panel Data Definitions
SymphonyIRI Consumer Network Metrics
Appendix: Trade Associations
- Diamond Foods, Inc.
- Frito-Lay, Inc
- General Mills Inc
- J & J Snack Foods Corp.
- PepsiCo Inc
- Private Label Manufacturers Association (PLMA)
- Procter & Gamble Company (The)
- Procter & Gamble USA
- Safeway Inc
- Snyder's of Hanover
- Utz Quality Foods Inc.
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