Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Products covered in this Report
- COVID-19: market context
- Economic and other assumptions
Executive Summary
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- The market
- Impact of COVID-19 on consumer snacking
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- Figure 1: Expected impact of COVID-19 on consumer snacking, short, medium and long term, 17 July 2020
- Large players are better placed to weather disruption from COVID-19
- Snacks will not escape value scrutiny
- Public health attracts an even bigger spotlight since COVID-19 outbreak
- The market
- Snacks see some success in reformulation but look likely to miss 2020 sugar targets
- Sugar continues to be targeted but campaigners urge a switch of focus to calories
- End of Brexit transition period brings further uncertainty for category
- Companies and brands
- Sugar reduction remains firmly on the NPD agenda
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- Figure 2: Share of launches in the UK snack market featuring sugar-related claims, 2015-May 2020
- Vegan claims continue to boom in snack launches
- Protein and fibre claims gain further ground in NPD
- Adspend on snacks stands at £230 million
- Brands respond quickly to COVID-19 in marketing
- ‘Me time’, irresistibility and targeting adults continue
- The consumer
- Snacking is almost universal and the majority eat a wide variety of snacks
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- Figure 3: Types of snacks eaten, March 2020
- Over two thirds snack at least once a day
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- Figure 4: Frequency of snacking, March 2020
- Home snacking will become even more pertinent post COVID-19
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- Figure 5: Where snacks are eaten, March 2020
- Taste is top priority in snacks
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- Figure 6: Factors prioritised when choosing between different types of snacks, March 2020
- Two in five look for healthy snacks all or most of the time
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- Figure 7: How often people look for a healthy snack, March 2020
- No clear winner in terms of health priorities
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- Figure 8: What people look for in a healthy snack, March 2020
- Nearly two thirds find snacks of British origin appealing, while environmental concerns around packaging are important for half
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- Figure 9: Behaviours related to snacks, March 2020
- Nearly two thirds see positives in traffic light labelling
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- Figure 10: Attitudes towards snacks, March 2020
- What we think
The Impact of COVID-19 on Consumer Snacking
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- The market
- Much of out-of-home snacking disappears overnight due to lockdown
- A permanent increase in home working may impact snack priorities
- Public health attracts an even bigger spotlight since COVID-19 outbreak
- COVID-19 recession could benefit snacking
- The consumer
- COVID-19 sees mood boost effect of snacks become even more relevant
- Consumers take more interest in healthy eating since COVID-19 outbreak
- COVID-19 sees consumers place food hygiene above packaging waste
- Ethical credentials likely to gain relevance post COVID-19
- Snacks of British origin could tap into COVID-19 community spirit
- Companies and brands
- Large players are better placed to weather disruption from COVID-19
- Brands respond quickly to COVID-19 in marketing
- Snacks will not escape value scrutiny
Issues and Insights
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- COVID-19 will make snacking at home even more important
- The facts
- The implications
- Snacks with a British origin could gain relevance post COVID-19 and Brexit
- The facts
- The implications
- Environmental concerns around packaging are important for half
- The facts
- The implications
The Market – What You Need to Know
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- Snacks see some success in reformulation but look likely to miss 2020 sugar targets
- Sugar continues to be targeted but campaigners urge a switch of focus to calories
- End of Brexit transition period brings further uncertainty for category
- Most frequent snackers will be hit hardest by economic downturn
Market Drivers
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- Public health attracts an even bigger spotlight since COVID-19 outbreak
- Snacks see some success in reformulation but look likely to miss 2020 sugar targets
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- Figure 11: Percentage of sugar reduction achieved across selected categories within PHE’s sugar reduction and reformulation programme, 2015-18*
- Sugar continues to be a focal point for consumers…
- …but campaigners urge a switch of focus to excessive calories
- National Food Strategy prompts calls for lower salt
- Action on Sugar and Action on Salt suggest new plan for tackling obesity in light of COVID-19
- Government looks to ‘junk food’ advertising ban to combat childhood obesity
- Blue Planet II draws attention to packaging waste
- COVID-19 sees consumers place food hygiene above packaging waste
- WWF report suggests human impact on the environment led to COVID-19
- Palm oil was on people’s radars pre-COVID-19, while vegan diets gain appeal
- Large players better placed to weather COVID-19 disruption, while end of Brexit transition period brings further uncertainty
- End of Brexit transition brings added uncertainty to 2021
- COVID-19 sees mood boost effect of snacks become even more relevant
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- Figure 12: Changes to how often consumers have been eating treats since the start of the COVID-19 outbreak, by age and gender, 23 April-7 May 2020
- COVID-19 recession could benefit snacking
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- Figure 13: Trends in consumer confidence for the coming year, January 2009-June 2020
- Evenings in provide more potential snacking occasions to tap into
- Snacks will not escape value scrutiny
- Most frequent snackers will be hit hardest by economic downturn
Companies and Brands – What You Need to Know
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- Sugar reduction remains firmly on the NPD agenda
- Vegan claims continue to boom
- Protein claims gain further ground
- Adspend on snacks stands at £230 million
- Brands respond quickly to COVID-19 in marketing
- ‘Me time’, irresistibility and targeting adults continue as marketing themes
Launch Activity and Innovation
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- Range extensions fuel launch activity
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- Figure 14: Launch type trends in the UK snack market, January 2015-May 2020
- Sugar reduction remains firmly on the NPD agenda
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- Figure 15: Share of launches in the UK snack market featuring sugar-related claims, 2015-May 2020
- Reduced sugar variants for Cadbury Dairy Milk and KitKat
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- Figure 16: Examples of reduced sugar chocolate launches, 2019
- Leading biscuit and cake players cut sugar
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- Figure 17: Examples of low/no/reduced sugar launches in the UK sweet biscuits, breakfast biscuits and cake markets, 2019-20
- Snack bars and yogurts avoid added sugar
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- Figure 18: Examples of low/no/reduced sugar launches in the UK snack bars market, 2019-2020
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- Figure 19: Examples of low/no/reduced sugar launches in the UK yogurt market, 2019-2020
- Protein claims continue to grow
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- Figure 20: Share of launches in the UK snack market featuring high/added protein claims, 2015-May 2020
- Snack/cereal/energy bars lead in the protein space
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- Figure 21: Examples of high/added protein launches in the UK snack bars market, 2019-20
- Other high in protein snacks
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- Figure 22: Examples of high/added protein launches in the UK snack market, 2019-2020
- High/added fibre remains area for further exploration
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- Figure 23: Share of launches in the UK snack market featuring high/added fibre claims, 2015-May 2020
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- Figure 24: Examples of high/added fibre launches in the UK snack market, 2019-20
- Vegan claims continue to boom
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- Figure 25: Share of launches in the UK snack market featuring vegan claims, 2015-May 2020
- Nestle and Premier Food launch vegan treats
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- Figure 26: Galaxy vegan chocolate and Plantastic cake launches in the UK, 2019-20
- Cheese-flavoured and ‘meat’ snacks go vegan
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- Figure 27: Examples of snack launches with vegan cheese in the UK, 2019-2020
- Companies are taking steps to tackle plastic waste
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- Figure 28: Share of launches in the UK snack market featuring vegan claims, 2015-May 2020
- Nestlé launches snack bars in paper wrapper, Walkers reduces plastic and Asda redesigns Easter eggs
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- Figure 29: Examples of environmentally friendly packaging in the UK snack market, 2019-2020
- Savoury and herb flavours appear in less typical categories
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- Figure 30: Examples of herb flavour launches in the UK snack market, 2019-2020
Advertising and Marketing Activity
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- Adspend on snacks stands at £230 million
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- Figure 31: Total above-the line, online display and direct mail advertising expenditure on sweet and savoury snacks, 2019-May 2020
- Environmental friendliness comes to fore for Yes! Bar
- Brands use humour to target their ‘grown-up’ audience
- Calling out that healthy can be delicious is big in yogurt
- Permissive indulgence explored by Müller
- The pleasure and respite offered by snacks continues to be explored
- Galaxy looks to giving modern women a break
- Walkers emphasises irresistibility…
- High profile popstars help spread Walkers’ message…
- …whilst the brand suggests parents hide snacks to enjoy them without their kids
- …and Biscoff taps into it too
- Cadbury partners with Age UK to tackle loneliness
- Brands respond quickly to COVID-19
- Maltesers tries to encourage people to ‘Look on the Light Side’ of lockdown
- Walkers and Haribo encourage people to recreate their adverts at home
- Cadbury looks to capture the community spirit wrought by COVID-19
- KitKat and Pringles target the online gaming community…
- …whilst Cadbury and Maynard Bassetts promise exciting football prizes
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Snacking is almost universal and the majority eat a wide variety
- Over two thirds snack at least once a day
- Home snacking will become even more pertinent post COVID-19
- Taste is top priority in snacks
- Two in five look for healthy snacks all or most of the time
- No clear winner in terms of health priorities
- Nearly two thirds find snacks of British origin appealing
- Environmental concerns around packaging are important for half
- Nearly two thirds see positives in traffic light labelling
- Interest in spices in sweet snacks and calming ingredients suggest areas for NPD
Types of Snacks Eaten
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- Snacking is almost universal
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- Figure 32: Types of snacks eaten, March 2020
- Chocolate, crisps and fruit remain the most popular snacks
- Most snacks see higher usage amongst younger demographics
- Pricier snacks are at risk in recession
- Difference between age groups is less marked in savoury snacks
- Majority eat a wide variety of snacks
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- Figure 33: Repertoire of types of snacks eaten, March 2020
Frequency of Snacking
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- Over two thirds snack at least once a day
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- Figure 34: Frequency of snacking, March 2020
- Busy society provides opportunities and reasons to snack
- Younger demographics snack the most frequently
Where Snacks Are Eaten
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- Home is the most common place to snack
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- Figure 35: Where snacks are eaten, March 2020
- COVID-19 is making snacking at home even more important
- Evenings in are a key occasion
- Snacking in the workplace was well-established pre COVID-19
- A permanent increase in working from home may impact snack priorities
- Single-portion formats will need to look beyond portability to remain relevant despite less on-the-go snacking
Choice Factors of Snacks
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- Taste is top priority in snacks
- Even healthy snackers give much weight to taste
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- Figure 36: Factors prioritised when choosing between different types of snacks, March 2020
- Over 4 in 10 look for convenience
- Health is prioritised by over a third
Role of Healthiness in Snack Choice
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- Two in five look for healthy snacks all or most of the time
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- Figure 37: How often people look for a healthy snack, March 2020
- More awareness needed around how snacks impact healthiness of diet
- COVID-19 makes health a bigger priority
What People Look For in a Healthy Snack
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- No clear winner in health priorities
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- Figure 38: What people look for in a healthy snack, March 2020
- Low sugar leads, with low fat close behind
- More reduced sugar products will build visibility of proposition
- Low fat claims continue to be relevant
Behaviours Related to Snacks
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- Nearly two thirds find snacks of British origin appealing
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- Figure 39: Behaviours related to snacks, March 2020
- Regional ingredients and local origin are established selling points for smaller brands and own-label
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- Figure 40: Recent examples of smaller crisps brands drawing attention to their regional ingredients, 2019-20
- Figure 41: Own-label products drawing attention to regional ingredients, 2019
- Walkers’ regional focus can offer inspiration for larger brands
- Local and regional focus warrants attention in all snacks
- Scope to highlight local production and people behind the brand
- Opportunities for snack concepts tapping into meal replacement occasions
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- Figure 42: Weetabix on the go strawberry breakfast drink, 2020
- Snack bars could benefit from emphasising their balanced nutrition
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- Figure 43: Recent examples of snack bars with nutritionally balanced propositions, 2019
- Environmental concerns around packaging are important for half
- Smaller brands lead innovation but bigger brands follow suit
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- Figure 44: Recent examples of paper and compostable packaging in snacks, 2019-20
- Figure 45: Recent examples of big brands outlining the environmental credentials of their packaging, 2019
- COVID-19 sees the environment become a higher priority for some, but the hygiene of products is paramount
Attitudes Towards Snacks
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- Nearly two thirds see positives in traffic light labelling
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- Figure 46: Attitudes towards snacks, March 2020
- Traffic light labelling would prove challenging for dried fruit snacks
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- Figure 47: Recent examples of snack bars detailing the simplicity of their ingredients, 2020
- Traffic light labelling could be used in marketing
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- Figure 48: Boka cereal bar uses four green traffic lights as a central proposition, 2018
- Endorsement from health authorities could strengthen healthy image
- Interest in spices in sweet snacks and calming ingredients suggests areas for NPD
- Spices in sweet snacks can take inspiration from interest in botanical drinks
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- Figure 49: Examples of sweet snacks with spice flavours, 2018-19
- Ingredients with calming association will gain relevance due to COVID-19
- Traditional ‘calming’ ingredients make an appearance in various snack categories
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- Figure 50: Nooro lemon & ginger vegan oat bar containing CBD, 2019
- Interesting flavours can create talking points
- US can offer cues for new ‘swavoury’ flavours
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- Figure 51: Recent examples of ‘swavoury’ combinations in snacks in the US, 2019-20
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix- Launch Activity and Innovation
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- Figure 52: New product launches* in the UK snacks market, by subcategory, 2015-May 2020
- Figure 53: New Variety/Range Extension launches in the UK snacks market, by subcategory, 2015-May 2020
- Figure 54: Share of product launches with sugar-related claims in the UK yogurt market, 2015-May 2020
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