Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Sales of chips, snack nuts/seeds, pretzels, and other salted snacks nearing $19 billion in total U.S.
- Population trends both favor and hinder market
- Competition coming from a variety of directions
- Potato chips still the largest segment despite slowdown in growth
- Tortilla chips slip in 2010 but still a major salty snack segment
- Innovation driving snack nuts/seeds segment
- Smaller brands having big impact on “other” salted snack segment
- Slower pretzel growth leaves segment in knots
- Supermarkets account for largest share of potato chips, tortilla chips, snack nuts/seeds, other salty snacks and pretzels sales
- Frito-Lay is the leading company for the report’s segments
- Salty snacks—aggressive innovators
- Big event advertising and social media key components of salty snacks marketing strategies
- Consumer responses show popularity of potato chips is ageless
Insights and Opportunities
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- Pretzels as a meal
- Salty snacks with functional benefits
- Licensed products with pro and college teams
- Individual snack sizes with dips included
- Merchandising healthier snacks at fitness centers and schools
- Waking up to snacks?
- Packaging that converts into a bowl
Inspire Insights
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- Trend: A Simple Balance for Health
Market Size and Forecast
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- Key points
- Sales slowdown may be a reflection of growing heath concerns
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- Figure 1: Total U.S. retail sales of potato chips, tortilla chips, snack nuts and seeds, pretzels, and other* salty snacks, at current prices, 2005-15
- Figure 2: Total U.S. retail sales of potato chips, tortilla chips, snack nuts and seeds, pretzels, and other* salty snacks, at inflation-adjusted prices, 2005-15
- Fan chart forecast
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- Figure 3: Fan chart forecast of total U.S. retail sales of potato chips, tortilla chips, snack nuts and seeds, pretzels, and other* salty snacks, at current prices, 2005-15
- Walmart sales
Market Drivers
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- Key points
- Asian and Hispanic population growth favors salty snacks
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- Figure 4: Population, by race and Hispanic origin, 2006-16
- Growing popularity of food rating systems will favor healthier salty snacks
- Aging population not in salty snacks’ favor
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- Figure 5: U.S. Population, by age, 2006-16
- Number of households with children decreasing could lower purchase occasions
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- Figure 6: Households, by presence of children, 1999-2009
- Corn prices potentially causing bushels of trouble with pricing
Competitive Context
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- Key points
- Desire to eat better makes fruits/vegetables a healthy alternative to salty snacks
- Snack/cereal/energy bars have been more innovative
- Salty snack segments compete amongst themselves
- Quick-service Restaurants’ (QSRs) aggressive pricing eating into salty snack usage occasions
- Frozen appetizers/snack rolls could chill salty snack sales
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- Figure 7: FDMx sales and forecast of frozen appetizers/snack rolls, 2005-15
Segment Performance
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- Key points
- Potato chips crunch other segments with large sales and share gains
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- Figure 8: Total U.S. retail sales of potato chips, tortilla chips, snack nuts and seeds, pretzels, and other* salty snacks, by segment, 2008 and 2010
Segment Performance—Potato Chips
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- Key points
- Dip in potato chips’ growth
- Sales and forecast—potato chips
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- Figure 9: Total U.S. retail sales and forecast of potato chips, at current prices, 2005-15
Segment Performance—Tortilla Chips
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- Key points
- Authentic and natural approach may help reverse recent sales decline
- Sales and forecast—tortilla chips
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- Figure 10: Total U.S. retail sales and forecast of tortilla chips, at current prices, 2005-15
Segment Performance—Snack Nuts and Seeds
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- Key points
- Innovation has consumers nuts about this segment
- Sales and forecast—snack nuts and seeds
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- Figure 11: Total U.S. retail sales and forecast of snack nuts and seeds, at current prices, 2005-15
Segment Performance—Other Salted Snacks
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- Key points
- Small brands have big impact on segment’s fortunes
- Sales and forecast—other salted snacks
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- Figure 12: Total U.S. retail sales and forecast of other* salted snacks, at current prices, 2005-15
Segment Performance—Pretzels
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- Key points
- Pretzels somewhat of an afterthought in salty snacks
- Sales and forecast—pretzels
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- Figure 13: Total U.S. retail sales and forecast of pretzels, at current prices, 2005-15
Retail Channels
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- Key points
- Shoppers tuned to other channels for snacking purchases
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- Figure 14: Total U.S. retail sales of potato chips, tortilla chips, snack nuts and seeds, pretzels, and other* salty snacks, by retail channel, 2008 and 2010
Retail Channels—Supermarkets
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- Key points
- Growth slows but supermarkets still hitting new highs
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- Figure 15: Supermarket sales of potato chips, tortilla chips, snack nuts and seeds, pretzels, and other* salty snacks, at current prices, 2005-10
Retail Channels—Other Channels
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- Key points
- Dollar stores helping other channels generate big bucks
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- Figure 16: Sales of potato chips, tortilla chips, snack nuts and seeds, pretzels, and other* salty snacks, at other channels**, at current prices, 2005-10
Retail Channels—Convenience Stores
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- Key points
- Convenience stores need to recharge salty snack sales
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- Figure 17: Sales of potato chips, tortilla chips, snack nuts and seeds, pretzels, and other* salty snacks, at
Retail Channels—Natural Supermarkets
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- Key points
- Insights
- Sales of savory snacks—chips, pretzels, nuts and seeds—in the natural channel
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- Figure 18: Natural supermarket sales of chips, pretzels, nuts and seeds, at current prices, 2008-10*
- Figure 19: Natural supermarket sales of chips, pretzels, nuts and seeds, at inflation-adjusted prices, 2008-10*
- Natural channel sales by segment
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- Figure 20: Natural supermarket sales of chips, pretzels, nuts and seeds, by segment, 2008 and 2010*
- Natural channel sales by organic content
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- Figure 21: Natural supermarket sales of chips, pretzels, nuts and seeds, by organic content, 2008 and 2010*
- Natural channel sales by gluten-free
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- Figure 22: Natural supermarket sales of chips and pretzels, by gluten-free, 2008 and 2010*
Leading Companies
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- Key points
- Frito-Lay leads the way both in sales and emphasizing healthier products
- “Other” brands show greatest sales growth and share gain
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- Figure 23: FDMx sales of leading chip, pretzel, snack nut and seed, “other salted snacks” companies, 2009 and 2010
Brand Share—Potato Chips
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- Key points
- Most of Frito-Lay’s potato chip brands not broken
- Line extensions proving more popular than entirely new brands
- P&G looking to cash in its chips?
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- Figure 24: FDMx manufacturer and brand sales of potato chips in the U.S., 2009 and 2010
Brand Share—Tortilla Chips
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- Key points
- Majority of Frito-Lay’s major brands losing traction
- Tough economy not enough to boost private label
- “Other” companies gaining from focus on authentic flavors and fun
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- Figure 25: FDMx manufacturer and brand sales of tortilla chips in the U.S., 2009 and 2010
Brand Share—Snack Nuts and Seeds (Including Corn Nuts)
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- Key points
- Private label finds snack nuts tough to crack despite leadership position
- Diamond Foods shines with largest sales gain
- Marketing of “paramount” importance to Wonderful Pistachios brand
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- Figure 26: FDMx manufacturer and brand sales of snack nuts and seeds in the U.S., 2009 and 2010
Brand Share—Other Salted Snacks
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- Key points
- Collection of salty snack products adds up to big sales
- SunChips making noise for all the wrong reasons
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- Figure 27: FDMx manufacturer and brand sales of other salty snacks in the U.S., 2009 and 2010
Brand Share—Pretzels
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- Key points
- Snyder’s of Hanover trades on strong regional support
- Frito-Lay not lying down in second place
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- Figure 28: FDMx manufacturer and brand sales of pretzels in the U.S., 2009 and 2010
Innovations and Innovators
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- Key points
- New product launch trends
- Snack/cereal/energy bars fuel launches
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- Figure 29: Number of snack launches, by type, 2005-10
- Chips are far from down in terms of flavor-based launches
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- Figure 30: Top 10 claims on chips launches, 2005-10
- Pretzel manufacturers more conservative in scope and number of flavor-based launches
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- Figure 31: Top 10 claims on pretzels launches, 2005-10
- New product highlights
- Chips
- Pretzels
- Snack nuts
- Seeds
Marketing Strategies
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- Key points
- Marketing and social media
- Major salty snack brands invest heavily in marketing
- Kraft integrates social media and traditional TV ad to maximize Super Bowl impact
- Facebook a key component of salty snacks marketing
- TV advertising
- Planters goes the distance in ‘tree-athalon’
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- Figure 32: Planters nut-rition mix, TV ad, December 2010
- Pringles ‘pops off’ at SunChips
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- Figure 33: Pringles multigrain, TV ad, July 2010
- Doritos transforms the everyday
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- Figure 34: Doritos late night cheeseburger, TV ad, October 2010
- Lay’s made by a chef?
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- Figure 35: Lay’s natural potato chips, TV ad, January 2011
Salty Snack Purchase
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- Key points
- Salty snacks purchases in supermarkets and mass merchandisers crunches other outlets
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- Figure 36: Frequency of buying salty snacks at specific types of retailer, November 2010
- Multipack/bulk purchases have slight edge over single packs
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- Figure 37: Purchase of salty snacks in single pack vs. multipack/bulk, by key demographics, November 2010
Reasons for Buying Salty Snacks
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- Key points
- Single-pack buyers looking for quick salty snacks fix
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- Figure 38: Reasons for buying salty snacks—to eat now, later, for others, by age, November 2010
- Figure 39: Reasons for buying salty snacks—to eat now, later, for others, by household income, November 2010
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- Figure 40: Reasons for buying salty snacks—to eat now, later, for others, by marital status, November 2010
- Figure 41: Reasons for buying salty snacks—to eat now, later, for others, by number of people in household, November 2010
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- Figure 42: Reasons for buying salty snacks—to eat now, later, for others, by employment groups, November 2010
- Salty snacks stock rated a buy for at home use
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- Figure 43: Reasons for buying salty snacks—stock at home/work, take to work/school, by age, November 2010
- Figure 44: Reasons for buying salty snacks—stock at home/work, take to work/school, by household income, November 2010
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- Figure 45: Reasons for buying salty snacks—stock at home/work, take to work/school, by number of people in household, November 2010
- Figure 46: Reasons for buying salty snacks—stock at home/work, take to work/school, by presence and number of children, November 2010
Factors Impacting Choice and Purchase
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- Key points
- Survey respondents play favorites when it comes to salty snacks
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- Figure 47: Important factors when choosing chips and salty snacks, November 2010
- Consumer responses suggest salty snacks fairly recession proof
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- Figure 48: Impact of the recession on amount of salty snacks bought, by age, November 2010
- Figure 49: Impact of the recession on amount of salty snacks bought, by household income, November 2010
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- Figure 50: Impact of the recession on amount of salty snacks bought, by presence and number of children, November 2010
- Figure 51: Impact of the recession on amount of salty snacks bought, by urban status, November 2010
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- Figure 52: Impact of the recession on amount of salty snacks bought, by education, November 2010
- More at-home time increasing salty snacks sales
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- Figure 53: Reasons for buying more salty snacks as a result of the recession, November 2010
- Figure 54: Reasons for buying fewer salty snacks as a result of the recession, November 2010
Types of Salty Snacks Eaten—Chips, Pretzels, Nuts and Seeds, and Other Salted Snacks
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- Key points
- Potato chips sees little dip across age groups
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- Figure 55: Types of chips, pretzels, nuts and seeds and other salted snacks eaten, by age, July 2009-Sept. 2010
- Figure 56: Types of salty snacks eaten, by household income, July 2009-Sept. 2010
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- Figure 57: Types of salty snacks eaten, by presence of children, July 2009-September 2010
The Potato Chip Consumer
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- Key points
- Lay’s brand and line extension plugged in to consumers’ tastes
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- Figure 58: Brands of potato chips eaten, by age, July 2009-September 2010
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- Figure 59: Brands of potato chips eaten, by household income, July 2009-September 2010
- Low-fat/fat-free potato chips allow consumers to weigh in on segment
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- Figure 60: Cross tabulation of types of potato chips eaten, July 2009-September 2010
- Cajun potato chip consumers jazz up entire segment
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- Figure 61: Cross tabulation of flavors of potato chips eaten, July 2009-Sept 2010
The Pretzel Consumer
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- Key points
- Varieties of pretzels has segment tied up in knots
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- Figure 62: Cross tabulation of brands of pretzels eaten, part 1, July 2009 Sept. 2010
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- Figure 63: Cross tabulation of brands of pretzels eaten, part 2, July 2009-September 2010
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- Figure 64: Brands of pretzels eaten, by age, July 2009-September 2010
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- Figure 65: Brands of pretzels eaten, by household income, July 2009-September 2010
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- Figure 66: Brands of pretzels eaten, by region, July 2009-Sept 2010
- Salt is the spice of life when it comes to pretzels
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- Figure 67: Cross tabulation of salted vs. unsalted pretzels eaten, July 2009-Sept 2010
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- Figure 68: Salted vs. unsalted pretzels eaten, by region, July 2009-September 2010
Who Eats What and Factors Impacting Choice
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- Key points
- Potato chip bag likely passed throughout household
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- Figure 69: Who in household eats each type of salty snack, November 2010
- Salty snacks feel at home with respondents
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- Figure 70: Occasions when respondent personally eats each type of salty snack, November 2010
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- Figure 71: Occasions when respondent personally eats each type of salty snack in home vs. out of home summary, November 2010
- Brands making a ‘name’ for themselves in salty snacks
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- Figure 72: Incidence of buying name brand or store brand for each type of salty snack, November 2010
- Salty snacks must demonstrate good taste
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- Figure 73: Impact of health, taste and price considerations on the purchase of each type of salty snack, November 2010
Impact of Race/Hispanic Origin
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- Key points
- Reasons for buying
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- Figure 74: Reasons for buying salty snacks—to eat now, later, for others, by race/Hispanic origin, November 2010
- Figure 75: Reasons for buying salty snacks—stock at home/work, take to work/school, by race/Hispanic origin, November 2010
- Impact of recession
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- Figure 76: Impact of the recession on amount of salty snacks bought, by race/Hispanic origin, November 2010
- Types and brands eaten
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- Figure 77: Types of salty snacks eaten, by race/Hispanic origin, July 2009-September 2010
- Figure 78: Brands of potato chips eaten, by race/Hispanic origin, July 2009-September 2010
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- Figure 79: Brands of pretzels eaten, by race/Hispanic origin, July 2009-September 2010
- Figure 80: Salted vs. unsalted pretzels eaten, by race/Hispanic origin, July 2009-September 2010
Custom Consumer Groups
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- Key points
- Reasons for buying
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- Figure 81: Reasons for buying salty snacks—to eat now, later, for others, by gender and children, November 2010
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- Figure 82: Reasons for buying salty snacks—to eat now, later, for others, by gender and age group, November 2010
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- Figure 83: Reasons for buying salty snacks—stock at home/work, take to work/school, by gender and household income, November 2010
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- Figure 84: Reasons for buying salty snacks—stock at home/work, take to work/school, by gender and age group, November 2010
- Impact of recession
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- Figure 85: Impact of the recession on amount of salty snacks bought, by marital status and children, November 2010
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- Figure 86: Impact of the recession on amount of salty snacks bought, by race and age group, November 2010
Cluster Analysis
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- Full A-Salts
- Demographics
- Characteristics
- Opportunity
- Chippers
- Demographics
- Characteristics
- Opportunity
- Low Snacks
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 87: Salty snack clusters, November 2010
- Figure 88: Types of chips, pretzels, nuts and seeds and other salted snacks personally eaten, by salty snack clusters, November 2010
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- Figure 89: Important factors when choosing chips and salty snacks, by salty snack clusters, November 2010
- Figure 90: Impact of health, taste and price considerations on the purchase of salty snacks, by salty snack clusters, November 2010
- Cluster demographics
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- Figure 91: Salty snack clusters, by gender, November 2010
- Figure 92: Salty snack clusters, by age group, November 2010
- Figure 93: Salty snack clusters, by household income, November 2010
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- Figure 94: Salty snack clusters, by race, November 2010
- Figure 95: Salty snack clusters, by Hispanic origin, November 2010
- Cluster methodology
IRI/Builders Panel—Key Household Purchase Measures
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- Overview
- Potato chips
- Consumer insights on key purchase measures – potato chips
- Brand map
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- Figure 96: Brand map, selected brands of potato chips buying rate, by household penetration, 2010*
- Brand leader characteristics
- Key purchase measures
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- Figure 97: Key purchase measures for the top brands of potato chips, by household penetration, 2010*
- Tortilla chips
- Consumer insights on key purchase measures – tortilla chips
- Brand map
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- Figure 98: Brand map, selected brands of tortilla chips buying rate, by household penetration, 2010*
- Brand leader characteristics
- Key purchase measures
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- Figure 99: Key purchase measures for the top brands of tortilla chips, by household penetration, 2010*
- Pretzels
- Consumer insights on key purchase measures – pretzels
- Brand map
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- Figure 100: Brand map, selected brands of pretzels buying rate, by household penetration, 2010*
- Brand leader characteristics
- Key purchase measures
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- Figure 101: Key purchase measures for the top brands of pretzels, by household penetration, 2010*
- Snack nuts
- Consumer insights on key purchase measures – snack nuts
- Brand map
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- Figure 102: Brand map, selected brands of snack nuts, by household penetration, 2010*
- Brand leader characteristics
- Key purchase measures
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- Figure 103: Key purchase measures for the top brands of snack nuts, by household penetration, 2010*
- Sunflower/pumpkin seeds
- Consumer insights on key purchase measures – sunflower/pumpkin seeds
- Brand map
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- Figure 104: Brand map, selected brands of sunflower/pumpkin seeds buying rate, by household penetration, 2010*
- Brand leader characteristics
- Key purchase measures
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- Figure 105: Key purchase measures for the top brands of sunflower/pumpkin seeds, by household penetration, 2010*
Appendix—Other Useful Consumer Tables
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- Reasons for buying
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- Figure 106: Reasons for buying salty snacks—to eat now, later, for others, by gender, November 2010
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- Figure 107: Reasons for buying salty snacks—to eat now, later, for others, by presence and number of children, November 2010
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- Figure 108: Reasons for buying salty snacks—stock at home/work, take to work/school, by gender, November 2010
- Impact of recession
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- Figure 109: Impact of the recession on amount of salty snacks bought, by marital status, November 2010
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- Figure 110: Impact of the recession on amount of salty snacks bought, by employment status, November 2010
- Types eaten
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- Figure 111: Types of salty snacks eaten, by number of people in household, July 2009-September 2010
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- Figure 112: Salted vs. unsalted pretzels eaten, by age, July 2009-September 2010
- Bagel chips
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- Figure 113: Occasions when respondent personally eats bagel chips, by key demographics, November 2010
- Crackers
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- Figure 114: Occasions when respondent personally eats crackers, by key demographics, November 2010
- Fruit chips
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- Figure 115: Occasions when respondent personally eats fruit chips, by key demographics, November 2010
- Kettle chips
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- Figure 116: Occasions when respondent personally eats kettle chips, by key demographics, November 2010
- Pita chips
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- Figure 117: Occasions when respondent personally eats pita chips, by key demographics, November 2010
- Pretzels
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- Figure 118: Occasions when respondent personally eats pretzels, by key demographics, November 2010
- Regular potato chips
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- Figure 119: Occasions when respondent personally eats regular potato chips, by key demographics, November 2010
- Snack nuts and seeds
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- Figure 120: Occasions when respondent personally eats snack nuts and seeds, by key demographics, November 2010
- Tortilla chips
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- Figure 121: Occasions when respondent personally eats tortilla chips, by key demographics, November 2010
- Vegetable chips
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- Figure 122: Occasions when respondent personally eats vegetable chips, by key demographics, November 2010
- Wholegrain chips
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- Figure 123: Occasions when respondent personally eats wholegrain chips, by key demographics, November 2010
Appendix—Trade Associations
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