Table of Contents
Executive Summary
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- The market
- Retail sales of major snack categories to remain robust growth
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- Figure 1: Best and worst case forecast for retail value of major snack categories, China, 2015-25
- Meal supplement categories benefit during COVID-19 outbreak
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- Figure 2: Retail sales value of major snack categories by segment, China, 2015-20
- Companies and brands
- Leading companies compete to take over children’s snack market
- Better-for-you claims become more specific
- The consumer
- Consumers increase snacking frequency during the “new normal”
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- Figure 3: Consumption frequency, November 2020
- Opportunities to target post-meal dessert occasions
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- Figure 4: Consumption occasion, November 2020
- Short video platforms have become an influential channel
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- Figure 5: Information channels, November 2020
- Consumers want healthy snacking without a compromise on lifestyle
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- Figure 6: Attitudes towards snacks, November 2020
- Consumers prefer healthy upgrades over reducing negatives
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- Figure 7: Interest in premium features, November 2020
- Trust in favourable taste of chips leads to interest in all ingredients
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- Figure 8: Alternative ingredients in chips, November 2020
- What we think
Issues and Insights
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- Snacks as part of a meal solution have potential to grow
- The facts
- The implications
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- Figure 9: Zenb vegetable snacks
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- Figure 10: Boohee product examples, China 2020
- Grow traditionally indulgent snacks in lower tier cities
- The facts
- The implications
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- Figure 11: Novel chip ingredient product examples, China, 2021
- Figure 12: Bao Bao Chan Le Shrimp Chips
- Utilize short-video platforms to educate consumers on healthy snacking
- The facts
- The implications
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- Figure 13: Screenshot of popular snack review video
The Market – What You Need to Know
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- Major snack categories forecasted to remain robust growth
- Light meal replacements and indulgent categories see strong growth
- Growing scope of snack categories lead to more specialization
Market Size and Forecast
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- Stable growth in snack spending
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- Figure 14: Retail sales of major snack categories, China, 2015-20
- Increasing growth rate as snack plays more active role in daily diet
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- Figure 15: Best and worst case forecast for retail value of major snack categories, China, 2015-25
Market Factors
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- Permissible indulgence at home
- Clarifying regulations on children’s snacks
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- Figure 16: New product launches features “Children (5-12)” claim, China, 2016-20
- Higher priority of healthy eating in the long run leads to specialized needs
Market Segmentation
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- Meal supplement categories benefited from COVID-19 outbreak
- Demand for small treats during stressful time drove ice cream sales
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- Figure 17: Retail sales value and growth rate of major snack categories, by segment, China, 2015-20
Key Players – What You Need to Know
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- Targeting children with specialized products
- Emerging brands are targeting previously untapped sub-categories
- Start-ups are deep-diving on health claims of snacks
Competitive Strategies
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- Growing specialization for children’s snacks
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- Figure 18: Product examples of children’s snacks, China 2020-21
- Figure 19: Bao Bao Chan Le product examples, China, 2021
- Co-authoring regulatory guidelines to establish authoritative image
- Bring healthiness without taste compromise
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- Figure 20: CHOCDAY dark milk product infographic, China, 2021
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- Figure 21: NOC ice cream product examples, China, 2020
- Reversing the flavour profile stereotypes
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- Figure 22: Examples of sweet Lay’s flavours, China, 2020
- Figure 23: spicy Oreo advertisement, China, 2020
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- Figure 24: Ffit8 beef flavoured fitness protein bar, China, 2020
Who’s Innovating?
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- Snack producers replace natural claims with more specific nutrient exclusions and inclusions
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- Figure 25: Changing claim categories in new snack product launches, China, 2016-20
- Figure 26: Changing claims in new snack product launches, China, 2016-20
- Giving familiar formats a healthy makeover
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- Figure 27: Shi Yan Shi Yi Pian Yu Ye (fish crisps) and Yu Rou Shu Pian (fish chips), China, 2020
- Sugar and chocolate confectionary go beyond simple indulgence
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- Figure 28: Rising claims in new sugar and chocolate confectionary product launches, China, 2016-20
- Start-ups target occasion-based functional claims
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- Figure 29: BUFFX product examples, China 2021
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- Figure 30: Olly product examples, China, 2020
- Edible beauty comes in snackable formats
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- Figure 31: Hyalur product examples
- Figure 32: Examples of products with beauty benefit claims, Japan and Korea 2020
The Consumer – What You Need to Know
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- Snacking frequency increased but category ranking remains largely consistent
- Opportunities to target post-meal dessert occasions
- Short video platforms have become important information channel for new products
- Consumers prefer healthy upgrades over reducing negatives
- High interest in chips made from different ingredients
Consumption Frequency
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- Snacking frequency rose during the “next normal”
- Ranking of popularity largely remains the same
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- Figure 33: Consumption frequency, November 2020
- High household income consumers succumb to nutritious branding
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- Figure 34: Consumption frequency, by household income, November 2020
Consumption Occasion
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- Opportunities in targeting post-meal dessert occasion
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- Figure 35: Consumption occasion, November 2020
- Improve the go-the-go experience
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- Figure 36: Glico Ice No Mi Rich Muscat Ice Cream Ball, Japan, 2020
- Females more likely to associate snacks with meals
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- Figure 37: Consumption occasion – Select occasions, by gender, November 2020
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- Figure 38: GoMuc Grilled-Rolled Squid
- Snacks for exercise occasions should reflect lifestyle choices
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- Figure 39: Food and drink purchase and consumption behaviour, by consumption occasions, November 2020
Information Channels
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- Short video platforms already rank third as information source
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- Figure 40: Information channels, November 2020
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- Figure 41: Screenshots from Douyin of snack reviews, China 2021
- Females more likely to be swayed by those they trust
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- Figure 42: Selected information channels, by gender, November 2020
- Highly educated consumers prefer channels which provide more details
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- Figure 43: Selected information channels, by education level, November 2020
Attitudes towards Snacks
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- Different views towards healthy snacking
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- Figure 44: Attitudes towards snacks, November 2020
- Consumers are curious yet conservative
- Convince older consumer to include snacks in daily routine
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- Figure 45: Attitudes towards snacks – Select statements, by age group, November 2020
Interest in Premium Features
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- Healthier upgrades have replaced focus on reducing additives
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- Figure 46: Interest in premium features, November 2020
- Opportunity to upgrade packaging for mass market products
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- Figure 47: Interest in premium features – Select features, by household income, November 2020
- Individual and assorted packaging help with portion control
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- Figure 48: Interest in premium features, by agreement with “I would rather eat fewer snacks that I like than to switch to a healthier snack that is not tasty”, November 2020
Alternative Ingredients in Chips
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- Chips is a beloved format for all ingredients
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- Figure 49: Alternative ingredients in chips, November 2020
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- Figure 50: New “chip”, “chips” and “crisps” product launches, by sub-category, China, 2016-20
- Potential in lower tier city expansion
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- Figure 51: Alternative ingredients in chips – Select ingredients, by city tier, November 2020
Appendix – Market Size and Forecast
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- Figure 52: Forecast for retail sales value of major snack categories, China, 2015-25
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Appendix – Methodology and Abbreviations
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- Methodology
- Abbreviations
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