Table of Contents
Executive Summary
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- The market
- Falling birth rates present a challenge to the market
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- Figure 1: Trends in the age structure of the UK population, 2014-19 and 2019-24
- Government takes action on children’s health
- Plastic packaging tax due in 2022
- Companies and brands
- Kids’ snacks make up a small share of snack launches
- ‘Plus’ and no added sugar claims gain share of NPD
- Children’s snack adverts highlight the importance of imaginative play and outdoor adventures
- The consumer
- Buying of snacks for children is near-universal
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- Figure 2: Foods typically bought for children to snack on, by type, April 2020
- The afternoon is the most popular time for kids to snack
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- Figure 3: When children snack, April 2020
- No added sugar, 5-a-day claims and nutritional benefits are leading influences on snack buying
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- Figure 4: Factors influencing choice when buying snacks for children, April 2020
- Children’s preferences have strong influence on parents’ buying habits
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- Figure 5: Behaviours related to kids’ snacking, April 2020
- Healthier versions of children’s snacks appeal to many
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- Figure 6: Attitudes towards kids’ snacking, April 2020
- What we think
Impact of COVID-19 on Kids’ Snacking
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- Short, medium and long-term impact on the industry
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- Figure 7: Expected impact of COVID-19 on kids’ snacking, short, medium and long-term, 4 June 2020
- Opportunities and Threats
- Lockdown boosts at-home snacking…
- …but curtails impulse occasions
- School closures cut off lunchbox occasions
- Growth in online retail set to continue
- Health officials raise concerns about effects of lockdown on children’s health
- Healthier options have the chance to benefit
- Shifts in consumer behaviour
- Consumers’ health focus in aftermath of the pandemic should give a boost to functional foods
- Need to quickly catch shoppers’ attention in-store as they look to limit browsing time
- Impact on key consumer segments
- Pandemic could provide a one-off boost to the birth rate…
- …but in general is likely to accelerate the decline
- How a COVID-19 recession will reshape the market
- Space remains for treats, but squeezed incomes could lead to trading down
- Established brands could fare better than newcomers
- Cutbacks on going out should support retail sales of snacks
- Impact on the marketing mix
- Sparking emotional associations should benefit companies
- …as should evoking community spirit
- Online advice on entertaining children will be welcome to many parents
- COVID-19: Market context
Issues and Insights
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- Functional foods are set to fly in the aftermath of the pandemic
- The facts
- The implications
- Target snacks towards morning and after-school occasions
- The facts
- The implications
- Plant-based snacks for children are an underutilised opportunity
- The facts
- The implications
The Market – What You Need to Know
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- Falling birth rates present a challenge to the market
- Government takes action on children’s health
- Plastic packaging tax due in 2022
Market Drivers
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- Growth in teens but decline in under 10s projected
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- Figure 8: Trends in the age structure of the UK population, 2014-19 and 2019-24
- Almost three in 10 children are overweight or obese
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- Figure 9: Prevalence of being overweight or obese among children, by gender, 2018/19
- Scope for further development in ‘school approved’ snacks
- Just 18% of kids hit their 5-a day
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- Figure 10: Proportion of children aged 5-15 eating five portions or more of fruit and vegetables a day, 2008-18*
- Peas Please initiative results in 90 million veg portions being eaten, according to report
- Government initiatives to tackle obesity
- Sugar reduction targets
- 9pm watershed for junk food advertising mooted
- PHE calls off January blitz
- Many parents are in favour of taxation on sugary foods
- Calls for a public transport snacking ban
- Plastic packaging tax due in 2022
Companies and Brands – What You Need to Know
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- Kids’ snacks make up a small share of snack launches
- ‘Plus’ and no added sugar claims gain share of NPD
- Children’s snack adverts highlight the importance of imaginative play and outdoor adventures
Launch Activity and Innovation
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- Definition
- Kids’ snacks make up a small share of snack launches
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- Figure 11: Share of new launches assigned children (aged 5-12) claim in snack categories, 2016-20
- Fruit snacks lead NPD
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- Figure 12: Share of new launches assigned children (aged 5-12) claim in snack categories, by top ten sub-categories, 2016-20
- Bear ups the fun factor by enclosing new card game in its packs …
- … and taps into the added veg trend
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- Figure 13: Fruit snack launches by Bear, 2019/20
- Tesco relaunches its Slurpers range with a stronger health focus
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- Figure 14: Tesco Tropical Fruit Slurpers, before and after
- Fruit ice lolly brands innovate with shapes and ingredients
- Rowntree’s offers ‘stacked’ multi-fruit lolly
- Twister unveils new triple-flavour design
- Pip Organic launches lollies with hidden veg
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- Figure 15: Examples of fruit ice lollies launches, 2019/20
- Competition heats up in chocolate-with-surprise-toy formats
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- Figure 16: Examples of chocolate-with-toy formats, 2019
- Some snack launches target particular occasions
- Lunchbox snacks provide a shortcut for parents …
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- Figure 17: Examples of lunchbox snacks, 2019/20
- … but not all eligible products take this positioning
- Scope for more ‘school approved’ snacks
- Fruit Bowl targets the school snack occasion
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- Figure 18: Fruit Bowl launches School Bars, 2019
- Speciality bread brands launch after-school snacks
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- Figure 19: After-school snacks, 2019
- ‘Plus’ claims gain share of NPD
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- Figure 20: Share of new product launches with plus claims in the UK kids’ snacking market, by claim, 2016-20
- Fibre takes the lead
- Fruit snack brands make multiple health claims
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- Figure 21: Fruit snacks launches with high/added fibre and other health claims, 2019
- Rise in vegan claims slower for children’s than for general products
- Meat-free foods brands extend into children’s products
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- Figure 22: Examples of meat-free snacks for children, 2019/20
- No added sugar claims rise in 2019
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- Figure 23: Example of Arla Explorers Swirl children’s yogurts range, 2019
- Low/reduced sugar claims remain static
- Cadbury unveils Dairy Milk bar with 30% less sugar
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- Figure 24: Cadbury launches Dairy Milk with 30% less sugar, 2019
- Companies must ensure that reduced-sugar chocolate continues to deliver on taste
- Arla introduces reduced-sugar yogurts with ‘bubbles’
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- Figure 25: Example of Arla Explorers Bubble children’s yogurts range, 2019
- Kefir trend extends into children’s products
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- Figure 26: Examples of children’s kefir products, 2019
- Ethical and environmental claims enter the mainstream
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- Figure 27: Share of new launches assigned children (5-12) claim in snack categories, carrying an ethical or environmental claim, 2016-20
- Environmentally friendly packaging claims are widespread, but little real innovation
- Biscuit brand highlights its commitment to sustainability
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- Figure 28: Example of kids’ snack launch with a focus on sustainability, 2020
Advertising and Marketing Activity
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- Children’s snack adverts highlight the importance of imaginative play and outdoor adventures
- Petits Filous returns to TV screens as it teams up with Change4Life
- Arla Explorers promoted as ‘yogurt for adventurous kids’
- Freddo Treasures linked with family fun
- Dairy snacks go surreal with Strings & Things
- Kinder focuses on permissibility and family connections
- Rice Krispies Squares promoted as ideal after-school snack for teens …
- Sharing snacks portrayed as a means of bringing people together
The Consumer – What You Need to Know
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- Buying of snacks for children is near-universal
- The afternoon is the most popular time for kids to snack
- No added sugar, 5-a-day claims and nutritional benefits are leading influences on snack buying
- Children’s preferences have strong influence on parents’ buying habits
- Healthier versions of children’s snacks appeal to many
Purchasing of Kids’ Snacks
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- ‘All’ parents buy snacks for their kids
- Fresh fruit/veg and crisps/crisps-style snacks/flavoured nuts lead
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- Figure 29: Foods typically bought for children to snack on, by type, April 2020
- Overall sweet snacks are out in front
- Daily snacking is nearly universal
- Over a quarter snack more than twice a day …
- … ramping up the importance of healthy snacking
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- Figure 30: Frequency of kids’ snacking, April 2020
- Wide purchasing repertoires among parents
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- Figure 31: Repertoire of foods typically bought for children to snack on, by age of child, April 2020
When Children Snack
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- The afternoon is the most popular time for kids to snack
- Scope for expansion in snacks presented as suited to the after-school occasion
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- Figure 32: When children snack, April 2020
- A focus on health for morning snacks
- Low levels of morning snacks among teens
- Scope to target older children with filling and energising morning snacks
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- Figure 33: Selected foods typically bought for children to snack on, by time of day children snack, April 2020
Factors Influencing Choice
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- No added sugar is a leading factor
- No added sugar products without artificial sweeteners must flag this up on-pack
- More brands bring out no added sugar products in 2019
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- Figure 34: Factors influencing choice when buying snacks for children, April 2020
- Over a third look for snacks contributing to the 5-a-day
- 5-a-day claims are underexplored outside of fruit snacks
- Vegetables should play a bigger role in kids’ snacking NPD
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- Figure 35: Example of vegetable-based children’s snack product, 2020
- Nutritional benefits are valued by nearly four in 10
- Scope for expansion in fortified foods aimed at preteens/teenagers
Behaviours Related to Kids’ Snacking
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- Strong unmet demand for snacks supporting eye health
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- Figure 36: Behaviours related to kids’ snacking, April 2020
- Children’s preferences hold sway …
- … including (to some extent) their preferred brands
- Brand loyalty is higher among those with tight finances
- Opportunities for brand extensions
- Making snacks fun boosts their appeal among children
- Advertising to children can deter parents
Attitudes towards Kids’ Snacking
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- Openness to healthier versions among 74% of parents
- Involve consumers in the reformulation process
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- Figure 37: Attitudes towards kids’ snacking, April 2020
- Role for single-serve portions despite concerns over packaging
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- Figure 38: Barny launches a big pack, 2020
- Concerns about over-snacking trump environmental concerns for many parents
- Plant-based snacks appeal to half of parents
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Drivers
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- Figure 39: Live births in England and Wales, 2014-18
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Appendix – Launch Activity and Innovation
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- Figure 40: New launches assigned children (aged 5-12) claims in snack categories, by top 30 claims, 2016-20 (sorted by 2019)
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