October 02, 2014 - Blog
The competitive landscape in the snacking industry is fierce with annual global snack food sales increasing 2 percent to $374 billion in 2014, according to the just-released “Nielsen Global Survey of Snacking" report.
“Demand is driven primarily by taste and health considerations and consumers are not willing to compromise on either. The right balance is ultimately decided by the consumer at the point of purchase. Understanding the ‘why before the buy’ provides the foresight necessary to deliver the right product to the right consumer at the right time," said Susan Dunn, executive vice president, Global Professional Services, Nielsen.
According to the report, while Europe and North America make up the majority of global snack sales—$167 billion and $124 billion, respectively—annual snack sales are growing faster in the largely developing regions, including Asia-Pacific ($46 billion), Latin America ($30 billion) and Middle East/Africa ($7 billion).
For the report, more than 30,000 online consumers in 60 countries were polled to identify which snacks are most popular around the world and which health, taste and texture attributes are most important in the selection criteria. Here’s what they found.
Confectionery comprises the biggest sales contribution to the overall snacks category in Europe ($46.5 billion) and the Middle East/Africa ($1.9B). Salty snacks contribute more than one-fifth of snack sales in North America ($27.7B), refrigerated snacks comprise almost one-third of snacks in Asia-Pacific ($13.7 billion), and cookies and snack cakes make up more than one-fourth of total snacks in Latin America ($8.6B).
But what are the fastest-growing snack categories? Sales of savory snacks increased 21 percent in the last year in Latin America. Meat snacks grew 25 percent in the Middle East/Africa and 15 percent in North America. Refrigerated snacks rose 6.4 percent in Asia-Pacific, while dips and spreads increased 6.8 percent in Europe.
“Non-sugary snacks closely aligned with meal-replacement foods are showing strong growth, which signals a shift in a consumer mindset to one focused on health," Dunn said. “While conventional cookies, cakes and confections categories still hold the majority of snack sales, more innovation in the healthy snacking and portable food space is necessary to adjust to this changing dynamic."
With that brings a massive untapped opportunity to gain market share in the nutritious, portable and easy-to-eat meal alternative market that snack manufacturers could fill. Seventy-six percent of global respondents eat snacks often or sometimes to satisfy their hunger between meals or to satisfy a craving, and 45 percent consume snacks as a meal alternative—52 percent for breakfast, 43 percent for lunch and 40 percent for dinner.
When it comes to overall favorite snacks, fresh fruit and chocolate reign supreme. According to the report, global respondents say that fresh fruit (18 percent) is the one snack they would choose above all others from a list of 47 different snacking options, followed by chocolate (15 percent). Over a span of 30 days, however, global respondents say they ate a wide variety of snacks, including chocolate (64 percent), fresh fruit (62 percent), vegetables (52 percent), cookies (51 percent), bread/sandwich (50 percent) and yogurt (50 percent). Forty-six percent consumed cheese, potato chips/tortilla chips/crisps (44 percent) and nuts/seeds (41 percent). One-third chewed gum (33 percent) and ate ice cream/gelato (33 percent), while about one-fourth consumed popcorn (29 percent), crackers (28 percent) and cereal (27 percent). Softer offerings like dumplings (26 percent) and instant noodles (26 percent) were also popular with a quarter of global respondents.
Taste preferences for snack options are noticeably different around the world. Exceeding the global averages, large percentages of respondents snack on vegetables in Asia-Pacific (57 percent), cheese in Europe (58 percent), ice cream/gelato in Latin America (63 percent) and potato chips/tortilla chips in North America (63 percent).
“In the dichotomy of snacking, consumers want healthy, but yet indulgent options are still going strong," Dunn said. “A better understanding of consumer demand and the need states that drive demographic profile preferences will help manufacturers crack the code on the right portfolio balance between indulgence and healthy. It will also increase the odds of success in this ultra-competitive landscape."
In May, thousands of new confectionery and snack foods debuted this week during the 2014 Sweets & Snacks Expo in Chicago that featured the hottest new products and innovations from 650 companies. Broader food industry trends, including ancient grains, power foods, herbs and spices, and a resurgence of classic flavors like peanut butter and coconut abound in the candy and snack industries this year. Click here to find out more about the 2014 Sweets & Snack Trends from the National Confectioner’s Association.
The competitive landscape in the snacking industry is fierce with annual global snack food sales increasing 2 percent to $374 billion in 2014, according to the just-released “Nielsen Global Survey of Snacking" report.
“Demand is driven primarily by taste and health considerations and consumers are not willing to compromise on either. The right balance is ultimately decided by the consumer at the point of purchase. Understanding the ‘why before the buy’ provides the foresight necessary to deliver the right product to the right consumer at the right time," said Susan Dunn, executive vice president, Global Professional Services, Nielsen.
According to the report, while Europe and North America make up the majority of global snack sales—$167 billion and $124 billion, respectively—annual snack sales are growing faster in the largely developing regions, including Asia-Pacific ($46 billion), Latin America ($30 billion) and Middle East/Africa ($7 billion).
For the report, more than 30,000 online consumers in 60 countries were polled to identify which snacks are most popular around the world and which health, taste and texture attributes are most important in the selection criteria. Here’s what they found.
Confectionery comprises the biggest sales contribution to the overall snacks category in Europe ($46.5 billion) and the Middle East/Africa ($1.9B). Salty snacks contribute more than one-fifth of snack sales in North America ($27.7B), refrigerated snacks comprise almost one-third of snacks in Asia-Pacific ($13.7 billion), and cookies and snack cakes make up more than one-fourth of total snacks in Latin America ($8.6B).
But what are the fastest-growing snack categories? Sales of savory snacks increased 21 percent in the last year in Latin America. Meat snacks grew 25 percent in the Middle East/Africa and 15 percent in North America. Refrigerated snacks rose 6.4 percent in Asia-Pacific, while dips and spreads increased 6.8 percent in Europe.
“Non-sugary snacks closely aligned with meal-replacement foods are showing strong growth, which signals a shift in a consumer mindset to one focused on health," Dunn said. “While conventional cookies, cakes and confections categories still hold the majority of snack sales, more innovation in the healthy snacking and portable food space is necessary to adjust to this changing dynamic."
With that brings a massive untapped opportunity to gain market share in the nutritious, portable and easy-to-eat meal alternative market that snack manufacturers could fill. Seventy-six percent of global respondents eat snacks often or sometimes to satisfy their hunger between meals or to satisfy a craving, and 45 percent consume snacks as a meal alternative—52 percent for breakfast, 43 percent for lunch and 40 percent for dinner.
When it comes to overall favorite snacks, fresh fruit and chocolate reign supreme. According to the report, global respondents say that fresh fruit (18 percent) is the one snack they would choose above all others from a list of 47 different snacking options, followed by chocolate (15 percent). Over a span of 30 days, however, global respondents say they ate a wide variety of snacks, including chocolate (64 percent), fresh fruit (62 percent), vegetables (52 percent), cookies (51 percent), bread/sandwich (50 percent) and yogurt (50 percent). Forty-six percent consumed cheese, potato chips/tortilla chips/crisps (44 percent) and nuts/seeds (41 percent). One-third chewed gum (33 percent) and ate ice cream/gelato (33 percent), while about one-fourth consumed popcorn (29 percent), crackers (28 percent) and cereal (27 percent). Softer offerings like dumplings (26 percent) and instant noodles (26 percent) were also popular with a quarter of global respondents.
Taste preferences for snack options are noticeably different around the world. Exceeding the global averages, large percentages of respondents snack on vegetables in Asia-Pacific (57 percent), cheese in Europe (58 percent), ice cream/gelato in Latin America (63 percent) and potato chips/tortilla chips in North America (63 percent).
“In the dichotomy of snacking, consumers want healthy, but yet indulgent options are still going strong," Dunn said. “A better understanding of consumer demand and the need states that drive demographic profile preferences will help manufacturers crack the code on the right portfolio balance between indulgence and healthy. It will also increase the odds of success in this ultra-competitive landscape."
In May, thousands of new confectionery and snack foods debuted this week during the 2014 Sweets & Snacks Expo in Chicago that featured the hottest new products and innovations from 650 companies. Broader food industry trends, including ancient grains, power foods, herbs and spices, and a resurgence of classic flavors like peanut butter and coconut abound in the candy and snack industries this year. Click here to find out more about the 2014 Sweets & Snack Trends from the National Confectioner’s Association.
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