SNAC World - Official State of the Industry 2020 - 34

NUTS & SEEDS

STATE OF THE INDUSTRY

Positioned for

GROWTH

Food categorie
categories like nuts and seeds, which are associated more with on-the-go or convenience, did
during the initial coronavirus (COVID-19)
not do well du
lockdown. The two subcategories, however, were
lockd
differently by the pandemic. Consumers did
impacted diffe
impac
eat nuts as an at-home snack, but the demand for
seeds as a snack declined.
"The seed subcategory fell victim to declines in
on-the-go snacking with reductions in dollar, unit and
volume sales since COVID-19 began," said Sally Lyons
Wyatt, executive vice president and practice leader,
Client Insights, IRI.
The need for on-the-go solutions has been minimized as most Americans are still working at home
and group activities and sports are limited. Consumers
enjoy seeds in recipes and salads at home, but there
were not enough in-home occasions to offset the loss
of snacking away from home.
"The good news for snack nuts is they were a goto food during COVID lockdowns," Ms. Lyons Wyatt
said. "The snack nut category was able to increase
sales during the initial eightweek COVID period (March
8 to April 26-4/26) realizing
4.8% in dollar growth. This
category has continued to
drive dollar sales as restrictions began to lift between
March 3 and July 5, with the
same growth rate."
While consumers are
eating snack nuts at home,
sales are impacted by package sizes. The category has

GOOD SENSE
Dollar sales this 52-weeks compared to
the same period last year ($mil)
An increase of

SNAC WORLD 2020

2018-2019 2019-2020

$9.8

$11.6
17.6%

not kept pace with 2019 averages for the convenient
grab-and-go sizes.
"Convenience saw declines during the lockdown and
is still trying to get back to 2019 averages for some
categories, so nut sales within this channel have been
compromised,"
Ms. Lyons Wyatt said. "In addition, there were supply
constraints for nuts that also hindered sales."
There is an exception to every rule, and for nut
trends, it is private label. Private label nuts and seeds
showed strong growth trends for 2019, which continued into 2020 and remains through COVID-19.
"The pack sizes for private label nuts are predominantly take-home; therefore, they were not hurt from
the drop in on-the-go," Ms. Lyons Wyatt said.
To increase sales, nut producers can position products that appeal to consumers looking for nutrition
and wellness attributes, especially in light of concerns
around COVID-19.
"Consumers have widened their online searches for
holistic health and wellbeing foods and beverages with
functional benefits, like immunity support, anxiety support, obesity support and vitamin D, among others,"
Ms. Lyons Wyatt said. "Nuts and seeds have inherent
benefits that need to be highlighted on packaging and
in communications and/or within innovation."
Los Angeles-based Ashapops' Popped Water Lily
Seeds are featured as a plant-based superfood snack,
according to an analysis of new product launches
from the Innova Database. Water lily seeds are a good
source of Vitamins B6 and B12 and packed with plant
protein and antioxidants, and the magnesium in them
may help with relaxation and improve sleep.
"We have also seen interest in foods and beverages
that provide Vitamins C and D and magnesium, as well
as antioxidants," Ms. Lyons Wyatt said. "These have all
been noted to contribute to a healthy immune system."
A combination of functional product attributes, innovative messaging, and a balanced mix of price, size
and value are good strategies for snack nut and seed
producers. Promoting at-home consumption ideas and
exciting options for versatile foods may engage consumers. Communication across channels is key.
"Leveraging personalized, addressable media to get
relevant messages to consumers and increasing focus

SNAC World - Official State of the Industry 2020

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