Snac World - Official State of the Industry 2024 - 10

STATE OF THE INDUSTRY
in dollar sales and a 10.5%
increase in units. Pretzels grew
8.7% in dollar sales; kernel popcorn
has seen both dollar and unit
growth as well.
" Innovation with corn snacks
resulted in unit and dollar increases,
as well as for pretzels, "
Lyons Wyatt said. " There were
also volume increases with kernel
popcorn, likely due to its affordability
and ease of customization
at home. There may have been
some social media influencesr
demonstrating the addition
of tasty and interesting toppings
and seasonings to fresh
popped popcorn. A do-it-yourself
trend is also at play here. "
BACK TO INNOVATING
Over the past few years, challenges
with inflation and supply
chain hindered innovation
with producers sticking with
core products, but things are
changing. A resurgence of
snack innovation is expected
at some level this year.
" When you think about the
lack of innovation in recent
Top: Spicy
flavors remain
a draw for
snackers,
especially in
the tortilla chip
category.
Bottom:
Campbell's
Snacks
expanded its
Goldfish brand
into a new
category with
its multi-texture
potato-based
Goldfish Crisps.
Campbell's Snacks
years and slight declines in snacking volumes, it
speaks to the holding power of snacks, " Lyons
Wyatt said. " Adding back innovation that drives
excitement will allow producers to address all recent
consumer shifts, and there will be a growth
momentum. "
Worth noting is that potato chips led the salty
snack category with $8.6 billion in sales, but tortilla
chip sales increased by 9.5% and saw unit increases
as well.
" Salty snacks have bucked the trends with continued
growth driven by tortilla chips, " Lyons Wyatt
said. " The taste, texture and versatility of tortilla
chips appeal, and they are a favorite of the younger
generations due to tremendous innovation with
products. "
Exciting innovation is driving growth for FritoLay's
Doritos brand, which earned almost $2.7 billion
in sales with 11.8% dollar growth and 3.3% unit
increases, according to Circana. Doritos' new line
extension, Doritos Dinamita, featuring rolled chips,
debuted at Super Bowl LVIII. Flavors include Chile
10
SNAC WORLD 2024
Limón, Flamin' Hot Queso, Smoky Chile Queso,
Fiery Lime and Hot Honey Mustard.
Overall, snack producers are hot on the spicy
snack trail.
" Spicy continues to be a growing flavor profile
along with different formats or carriers like rolled
tortilla chips, " said Brian Smenos, vice president of
marketing, Snak King, City of Industry, Calif. " While
we see growth in all major categories, we are also
seeing significant growth in subsegments like rolled
tortilla chips. "
Unique Snacks, Reading, Pa., has been working
to create other new and innovative products to disrupt
the snack space. The company's Puffzels are a
crunchy, seasoned, extruded corn snack looking to
bring new flavors to the category.
To leverage this
momentum, producers must
get innovation back on track
because it has been the
backbone of snacks. "
Sally Lyons Wyatt, Circana
" We are hoping for great distribution expansion
within retailers in 2024, " said Justin Spannuth, vice
president and chief operating officer at Unique
Snacks and current SNAC International chairman.
" We are also seeing nice growth in our regular
pretzel items as we continue to bring brand awareness
to consumers. Due to our size, we are able to
keep pushing ahead to gain new distribution and
customers through either new products or product
awareness via marketing. "
Balancing familiarity with new, exciting products
appeals to consumers. Mintel's 2024 Salty Snacks
report found that 37% of salty snack consumers
overall, and 44% of millennials, enjoy trying new
types of salty snacks. For example, Camden, NJbased
Campbell's Snacks' Goldfish brand recently
introduced its first product innovation made from
potatoes, Goldfish Crisps. Combining the familiar
Goldfish shape with the attributes of a chip, the
crisps are larger and available in Sour Cream &
Onion, Cheddar, and Salt & Vinegar.
" Trends we are seeing include higher expectations
on multi-sensorial experiences, meaning going
beyond just taste, smell and appearance, " said
Chris Foley, executive vice president, Campbell's
Snac World - Official State of the Industry 2024

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