2022
9
UK Consumer Snacking Market Report 2022
2022-07-29T04:06:52+01:00
OX1103163
2195
153733
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Report
en_GB
“With the rising cost of living shoppers will be focusing more closely on what they are buying, potentially putting discretionary items like snacks under scrutiny. However, as seen during COVID-19…

UK Consumer Snacking Market Report 2022

£ 2,195 (Excl.Tax)

Description

The UK Consumer Snacking Market Report identifies consumers’ snacking preferences, the frequency of snacking and the impact of the Government’s HFSS legislation on the snacking market. This report covers the snack market size, market forecast, market segmentation and industry trends for the UK snack market.

 

Current Market Landscape 

Ingredient, energy, transport and packaging costs have increased sharply due to rising VAT, the aftermath of COVID-19 and the ongoing conflict in Ukraine. When these financial challenges are combined with the cost of living crisis, it creates widespread financial concern that puts pressure on consumers’ willingness and ability to purchase snacks, with many consumers looking for ways to cut back on discretionary spending.

However, value sales growth for the snack food market is expected to keep pace with inflation, with only a small dip in sales in real terms. The snack market size is anticipated to remain stable as snacks are viewed as an affordable treat. Although, the upcoming HFSS restrictions on in-store product location will dampen the snack market volume sales from October.

 

Market Share and Key Industry Trends

Out-of-home impulse purchases of snacks will continue to regain ground, supporting higher average prices, although the long-term trend towards homeworking will support in-home snack formats. This underlines the enduring significant impact of in-store and online visibility for snack market products. For many snacks, this is under threat from the Government’s planned product location restrictions banning the merchandising of HFSS food and drink at store entrances, aisle ends and checkouts and their online equivalents coming into force in October 2022.

  • 86% of UK adults eat snacks at home.
  • 72% of UK snack eaters agree that a lower price would make them purchase a healthy snack over an unhealthy one.
  • 63% of UK snack eaters buy snacks on impulse.
  • 62% of UK consumers agree that having snacks in the evening is an affordable treat.

 

Future Trends in the UK Snacking Market

Propelled by the heightened focus on health during the pandemic, the proportion of people trying to eat healthily all or most of the time has increased. The snack market share will undergo a resizing, which will benefit the healthy snack market because of increased consumer effort to moderate their consumption of unhealthy snacks and the decline in volume growth of less healthy snacks due to reduced product visibility caused by the HFSS restrictions.

A return to real earnings growth in upcoming years and a ‘quality over quantity’ mindset will benefit the healthy snack market and sales of premium snacks.

Read on to discover more details or take a look at all of our UK Food and Drink Market Research.

 

Understand Quickly

  • Snacking habits following the easing of COVID-19 restrictions and expected impact of the cost-of-living crisis.
  • Types of snacks eaten and frequency of snacking.
  • New launch activity, including progress being made by brands on non-HFSS innovation.
  • Behaviours relating to buying snacks.
  • Attitudes towards snacking.
  • Attributes looked for from snacks at different times of the day.

 

Covered in this Report

Products: Crisps, popcorn, nuts, dried fruit, chocolate, ice cream/lollies/frozen yoghurt, sweet biscuits/shortbread, cakes, sweet baked goods, cereal bars/breakfast bars, yoghurt.

Brands:  Walkers (Baked, Doritos, Max Strong, Sensations, Wotsits), Pladis (McVitties’, Mini Cheddars, Twiglets), Kettle, Tayto Group (Golden Wonder, Tangy Toms, Spicy Biker), KP (KP Nuts, Tyrrells, Popchips, Hula Hoops, Penn State), Mars (Snickers, Bounty, Galaxy, Skittles), Nestlé (Nature Heart), Real Handful (Air Nuts), Premier Foods’ (Mr Kipling), Ferrero (Eat Natural, Raw, Nutella), Kind Protein, Lidl (Crownfield), General Mills (Nature Valley), Perkier, Kellogg (Pringles), Vive, Cadbury, Mondelēz (Dairylea), Nairn’s, Graze, Properchips, Native, The Skinny Cookie Co., Müller (Müllerlight), M&S (Plant Kitchen), Deliciously Ella, Plantastic, Morrisons (Plant Revolution!), Asda (Plant Based).

 

Expert Analysis from a Specialist in the Field

This report, written by Richard Caines, a leading senior analyst in the Food & Drink sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

With the rising cost of living shoppers will be focusing more closely on what they are buying, potentially putting discretionary items like snacks under scrutiny. However, as seen during COVID-19 lockdowns snacks could actually benefit from more evenings in given their perceived affordability as treats. Amidst upcoming HFSS restrictions on product location, boosting in-aisle visibility and launching non-HFSS snacks will be important in getting brands noticed and driving unplanned purchases.”

Richard Caines
Senior Food & Drink Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Market context
    • Products covered in this Report
  2. Executive Summary

    • The five-year outlook for snacking
      • Figure 1: Category outlook, 2022-27
    • The market
    • HFSS food and drink store location restrictions to come into place in 2022
    • Other HFSS restrictions delayed by a year
    • Big price increases already seen for some snack categories
    • Hybrid working will have long-term impact on snacking
    • Companies and brands
    • Progress on non-HFSS innovation
    • KP Snacks undertaking major reformulation
    • Non-HFSS launches in sweet snacks rarer
    • Flavour development remains a central part of NPD
    • New formats another prevalent theme in snack launches
    • Small increase in advertising spend in 2021
    • Future choice of media for advertising to be impacted by HFSS regulations
    • The consumer
    • Snacking almost universal
    • More than two thirds of snack eaters snack at least once a day
      • Figure 2: Frequency of snacking, 2020-22
    • Out-of-home snacking increases again
      • Figure 3: Where snacks are eaten, 2020 and 2022
    • Snack buying has planned and impulse elements
    • Price and promotions exert big influence on snack choices
    • Strong consumer interest in trying new products
      • Figure 4: Behaviours related to buying snacks, 2022
    • Six in 10 think that evening-in snacks are an affordable treat
    • Portion control a popular way for trying to be healthier
      • Figure 5: Attitudes towards snacking, 2022
    • Taste is the biggest driver of snack choice
    • Convenience is more important for snacks eaten earlier in the day
    • Healthier attributes a lower priority than taste and convenience
      • Figure 6: Attributes consumers would look for from a snack at different times of the day, 2022
  3. Issues and Insights

    • Snacks look in a good position to weather cost-of-living crisis
    • Big price increases already seen for some snack categories
    • Consumers will focus more closely on their spending
    • Three in five think that evening-in snacks are an affordable treat
    • Snack sales fared well in previous income squeeze
    • Better in-aisle visibility and non-HFSS launches will help snack sales
    • Eight in 10 snack buyers plan buying snacks as part of food shop
    • Product visibility is important for encouraging impulse buying
    • Those snacking out of home biggest impulse buyers
    • Non-HFSS snacks can still benefit from being on end of aisles
    • Brands need to keep tapping consumer appetite for innovation
    • Continuing pipeline of new products needed
    • Limited edition flavours offer untapped opportunities
    • New flavours massively more important to biggest snack eaters
  4. Market Drivers

    • Government emphasis on health intensifies
    • HFSS food and drink store location restrictions to come into place in 2022
    • Most snack categories fall within the scope of regulations
    • New rules on the advertising of HFSS food and drink delayed to 2024
    • New targets for salt and calorie reduction
    • Strong consumer interest in healthy eating
    • COVID-19 increases spotlight on health
    • Number of core younger users set to stagnate
      • Figure 7: Trends in the age structure of the UK population, 2016-26
    • The conflict in Ukraine will hurt the UK economy
    • Inflation is the key concern for 2022 for consumers, brands and the economy
    • Inflation expected to reach 10% by the end of 2022
    • Steep rise in energy prices
    • Consumers being affected by inflation
    • Recent decline in consumer confidence
      • Figure 8: Household financial wellbeing index, 2016-22
    • Big price increases already seen for some snack categories
      • Figure 9: CPI inflation for selected snack categories, % change over last 12 months, May 2021 and May 2022
    • Snack sales fared well in previous income squeeze
      • Figure 10: Performance of retail value sales for snack food categories, 2010-15
    • Hybrid working will have long-term impact on snacking
  5. Launch Activity and Innovation

    • Progress on non-HFSS innovation
    • Walkers launches 45% Less Salt crisps, plans half of sales from better-for-you snacks
      • Figure 11: Examples of non-HFSS launches in crisps and savoury snacks, 2022
    • Pladis forges non-HFSS presence
    • New non-HFSS products from Kettle and Golden Wonder
    • KP Snacks undertaking major reformulation
      • Figure 12: Examples of new launches in nuts, 2022
    • Nestlé looks to pulses and seeds
    • Non-HFSS launches in sweet snacks rarer
    • More launches tapping consumer interest in healthy snacks
    • Positive nutrition claims limited
      • Figure 13: Proportion of new launches in snacks* making high/added fibre, high/added protein and vitamin/mineral-fortified claims, 2017-22
    • Snack bars are a key category for fibre/protein claims
      • Figure 14: Examples of new snack bar launches highlighting being high/added fibre and high/added protein, 2021/22
    • Vitamin fortification features widely in snack bars
      • Figure 15: Examples of new snack launches highlighting being vitamin/mineral-fortified, 2021/22
    • Small number of launches highlight less sugar or fat
      • Figure 16: Proportion of new launches in snacks* making low/no/reduced fat, sugar and calorie claims, 2017-22
      • Figure 17: Examples of new snack launches highlighting containing less fat or sugar, 2021/22
    • Further launches highlight being less than 100 calories
      • Figure 18: Examples of new snack launches highlighting being less than 100 calories, 2021/22
    • Flavour development remains a central part of NPD
      • Figure 19: Examples of limited edition flavour launches in snack food categories, 2022
    • New launches mark Platinum Jubilee celebrations
      • Figure 20: Examples of Platinum Jubilee-themed launches, 20222
    • Brand extensions and new formats prevalent in snack launches
      • Figure 21: Examples of brands extending with new formats, 2022
      • Figure 22: Examples of brands extending with new categories/formats, 2022
    • Vegan and plant-based ranges continue to be a focus of NPD
      • Figure 23: Proportion of new launches in snacks* making vegetarian, vegan/no animal ingredients and plant-based claims, 2017-22
      • Figure 24: Examples of plant-based launches in snack food categories, 2021/22
  6. Advertising and Marketing Activity

    • Small increase in advertising spend in 2021
      • Figure 25: Total above-the-line, online display and direct mail advertising expenditure on snacks, 2019-22
    • TV behind increase in advertising spending
      • Figure 26: Total above-the-line, online display and direct mail advertising expenditure on snacks, by media type, 2018-22
    • Biggest food manufacturers dominate snack advertising
      • Figure 27: Total above-the-line, online display and direct mail advertising expenditure on snacks, top 30 by advertisers, 2019-22
    • Brands focus on getting people talking
    • Cadbury tackles young people’s self-doubt
      • Figure 28: Cadbury Dairy Milk Milk Chocolate repackaging for the Give A Doubt Campaign in partnership with The Prince’s Trust, 2022
    • Maltesers focus on ups and downs of new mums
    • Walkers encourages talking and sharing problems
    • Mars’ Kind calls on people to make kinder choices
    • Brands looking to champion healthier products
    • Graze launches campaign to guide healthier choices
    • New campaign for Tyrrells Lentil Crisps
    • Walkers highlights range of 100-calorie or less snacks
    • Fibre One runs ‘Crave Club’ TV advert
    • Müller invests in gut health yogurt range
    • Flavour and taste feature as key messages in advertising
    • McVitie’s Blissful focuses on creating a treat
    • Kettle highlights flavour variety
    • ‘No need to compromise on taste’ message from Danone Light & Free
    • Nielsen Ad Intel coverage
  7. Types of Snacks Eaten

    • Snacking almost universal
      • Figure 29: Any eating of snacks, by age, 2022
    • Chocolate is the most widely eaten sweet snack
      • Figure 30: Types of sweet snacks eaten, 2021 and 2022
    • Six in 10 people snack on crisps/crisp-style snacks
      • Figure 31: Types of savoury snacks eaten, 2021 and 2022
    • Fresh fruit eaten by as many people as crisps
      • Figure 32: Types of other snacks eaten, 2021 and 2022
    • Most people eat a wide range of snacks
  8. Frequency of Snacking

    • More than two thirds of snack eaters snack at least once a day
      • Figure 33: Frequency of snacking, 2020-22
    • Younger people snack most frequently
      • Figure 34: Frequency of snacking, by age, 2022
  9. Where Snacks Are Eaten

    • Out-of-home snacking increases again
      • Figure 35: Where snacks are eaten, 2020 and 2022
    • Younger people more likely to snack out of home
  10. Behaviours Relating to Buying Snacks

    • Snack buying has planned and impulse elements
    • Eight in 10 snack buyers plan buying snacks as part of food shop
      • Figure 36: Behaviours related to buying snacks, 2022
    • Product visibility is important for encouraging impulse buying
    • Price and promotions exert big influence on snack choices
    • Cheaper prices give consumers more reason to buy healthier snacks
    • Buying snacks on promotion an ingrained shopping habit
    • Strong consumer interest in trying new products
    • Continuing pipeline of new products needed
    • Limited edition flavours offer untapped opportunities
  11. Attitudes towards Snacking

    • Six in 10 think that evening-in snacks are an affordable treat
      • Figure 37: Attitudes towards snacking, 2022
    • Portion control a popular way for trying to be healthier
    • Single-serve packs helping people to control snacking
    • 100-calorie small indulgences an opportunity
  12. Attributes Consumers Look for from a Snack at Different Times of the Day

    • Taste is the biggest driver of snack choice
      • Figure 38: Attributes consumers would look for from a snack, any time of day (nets), 2022
      • Figure 39: Attributes consumers would look for from a snack at different times of the day, 2022
    • Convenience is more important for snacks eaten earlier in the day
    • Healthier attributes a lower priority than taste and convenience
  13. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology
  14. Appendix – Launch Activity and Innovation

      • Figure 40: New launches in snack categories*, by claim, 2017-22
      • Figure 41: New launches in snack categories*, by claim, 2017-22
      • Figure 42: Proportion of new launches in snack categories* that are 100 calories (kcal) or less per serving, 2017-22

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