Snac World -- State of the Industry 2019 - 14

STATE OF THE INDUSTRY

77%

of consumers
say price is
the No. 1 factor in snack
purchasing decisions. IRI
dients like probiotics increased by 27% from 20162018, especially in the bars, crackers and cookies
categories, according to Innova Market Insights.
Protein is still one of the biggest drivers for better-for-you (BFY) snacks, but plant-based protein is
taking the market by storm. Several studies show
that consumers prefer more snacks made with plant
vs. animal protein, and producers are innovating by
swapping perceived less healthy ingredients for more
nutritious alternatives.
Clean labels with simple, organic, "real food" ingredients and no preservatives also appeal to health-conscious consumers. Free-from products with no gluten,
reduced sugar and sodium, and fewer carbs support
popular commercial diets and self-imposed healthy
eating habits.
Healthy eating is influencing other snacks as well.
Early on, Rudolph Foods, Lima, OH, vowed never
to change its pork rind recipe. However, times have
changed.
"We understand that our customers want a BFY
pork rind, so we lowered the salt and fat and created
our signature black bags highlighting our claims," said
Mark Singleton, vice-president of sales and marketing,
Rudolph Foods.
All generations want snacks claiming health benefits
beyond basic nutrition, but there are differences between age groups. Innovation should appeal to different age demographics.
"Producers must recognize preferential differences
among generations when it comes to specific product
attributes and ensure targeted messaging when marketing to these age groups within channels," said Sally
Lyons Wyatt, executive vice-president and practice
leader, client insights, IRI.

CRAVING PERMISSIBLE INDULGENCES
While healthier options specifically entice younger
generations, indulgent offerings are still important
across the board. Offering thin snack formats or
smaller portions of less healthy snacks can create a
guilt-free indulgence.
"There's no one-size-fits-all when it comes to
snacking as consumers don't always select one

SNAC WORLD 2019

snack for all occasions. Snacking is all about balancing snack choices, and at Frito-Lay, we strive to
provide consumers multiple snack choices," said
Jared Johnson, vice-president of insights, analytics
and category management, Frito-Lay, Plano, TX, a
subsidiary of PepsiCo.
Indulgent flavors combined with more permissible
ingredients influence snack choice. Consumer preference for birthday cake-flavored snacks exploded with
64% growth over the past year, according to IRI. Bitter
and butter flavors are an emerging trend, and peanut
butter re-appeared in more snacks this year.
"Consumers are increasingly 'snacking on air.'
Snack companies are keen to create chips and puffed
snacks with a thin, airy texture," Mr. Vierhile said.
"Innovation with hybrid snacks like clusters and poppers provide novel textures."
Snack producers offer consumers the best of both
worlds by developing indulgent snacks in innovative
new formats.

CHANGING CHANNELS
Purchasing and consumption behaviors have shifted.
Consumers are adding to the ways they shop for
food. They are increasingly looking for snacks online,
or through click-and-collect and delivery services.
Understanding these behaviors can help drive growth.
"In the past, there were two ways consumers
purchased and consumed snacks, 'planned' and 'impulse.' We have now identified two additional factors,
'on-demand' and 'experiential,' " Ms. Lyons Wyatt
said. "Producers must consider all four factors when
innovating and marketing products."
Getting snacks in the hands of consumers is vital. Producers must reach them in the places they
frequent such as airports and gyms. "Snacks are
even showing up in the back of Ubers. Using your
smart phone, passengers can purchase snacks in
the tray and fulfill their craving while they ride," said
Jared Koerten, industry manager, food and nutrition,
Euromonitor International.
Pop-up dining experiences offer a culinary adventure, engaging the consumer and increasing brand
awareness. Similarly, snack availability generates
more snacking occasions, increasing opportunity
for more experiential snacking, which excites consumers and drives consumption. Limited-time offers
and specialty branding can effectively create this
experience.
"Last year, Utz was proud to become the Official
Salty Snack of Major League Baseball, opening up
a number of new and exciting co-branded product
offerings," said Kevin Brick, senior vice-president,

STATE OF THE INDUSTRY

Snac World -- State of the Industry 2019

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