Snac World - Official State of the Industry 2023 - 9

INNOVATION,
FLAVORS
AND FUN
A thoughtful
return to product
innovation will
help the snack
industry flourish.
by Beth Day
A
As life moves beyond the pandemic, consumers are
choosing snacks perceived to not only boost health
and wellness but also meet their needs for indulgence,
excitement and great taste. With economic
uncertainty constraining food budgets, people are
seeking comfort from familiar brands while craving
the new and different. Balancing traditional products
with innovation at a lower price shapes the
path to growth for producers, according to Mintel's
2023 Salty Snack report.
" Consumers are gravitating toward indulgence
as a way to reward themselves after a rough day, "
said Sally Lyons Wyatt, executive vice president
and practice leader, client insights, IRI. " Life is tough
right now, and indulgent salty snacks are an affordable
treat despite the fact that prices were high
across snacking, which is part of the story. "
The overall salty snack category posted 15.6%
growth with more than $28 billion in dollar sales
for the 52 weeks ending Jan. 8, 2023, according
to IRI's quarterly report of the retail sales performance
of key sectors in the US snacking market.
Purchase, NY-based PepsiCo's Frito-Lay brands
showed significant increases within categories with
products appealing to consumers seeking a familiar,
crunchy snack to satisfy indulgent snack cravings.
" We have such a wide variety of snacks and
amazing brands that deliver on needs across the
snacking spectrum, " said Jared Johnson, vice
president of marketing, innovation, Frito-Lay North
America, Plano, Texas. " Our growth comes from
a number of factors. First, consumers' evolving
lifestyles have led to an increase in overall snacking.
Also, the desire to get together more often in
real life post-pandemic has led to increased social
snacking as has the desire for brands that meet
consumer needs across fun, comfort and better
choices. "
Snack frequency is increasing with consumers
choosing options that are familiar favorites but also
feature alternative ingredients, new flavors or a
dynamic twist. The recent Mintel report found that
more than a quarter of consumers report eating
more salty snacks this year, compared with last
year, with increases across the board.
" Snacking is not going
away, and it's been increasing
significantly over time, "
said Lynn Dornblaser, director
of innovation and insight,
Mintel. " Our data shows that
in the early 2000s, the most
frequent snackers snacked
several times a week. More
recently, we've found that
about 25% of consumers say
they snack every afternoon with
another 25% saying they snack
every evening, and that is every
single day. "
Mintel forecasts that the salty
snack market will reach $38.2
billion by 2027. However,
Mintel's Global New Products
Database shows that new
product introductions were
down in 2020 and 2022,
across all types of salty
Kettle Foods
2023 SNAC WORLD
9
Snac World - Official State of the Industry 2023

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