What you need to know

The US chips, salsa, and dips category is worth an estimated $14.8 billion in 2014 and is forecast to reach $17.4 billion by 2019. Sales are primarily driven by growing snacking behavior in the US, as well as expanding consumer palates that demand the frequent introduction of new styles and flavors. Demographics including Millennials, Hispanics, and households with children also drive sales. New styles of chips that combine flavor with healthier ingredients, such as corn- or potato-vegetable hybrids, and dips such as hummus, yogurt-based dips, and spicier, fresher salsas have potential to fuel growth.

Definition

A similarly focused report was published in Chips, Popcorn, Nuts and Dips – US, January 2014 and Salty Snacks – US January 2013. This report also draws from analysis presented in prior Mintel reports: Chips, Pretzels & Corn Snacks – US, January 2012; Salty Snacks: Chips, Pretzels, Snack Nuts and Seeds- US, March 2011; Salty Snacks: Popcorn, Cheese, Corn and Meat Snacks – US, April 2011.

The following food segments are included in this report:

  • Potato chips

  • Dips (refrigerated, frozen, shelf-stable, dry dip mixes)

  • Tortilla chips

  • Salsa (refrigerated, frozen, shelf-stable, dry salsa mixes)

Excluded from this report are those items covered in Salty Snacks – US, January 2015, which are:

  • Popcorn

  • Pretzels

  • Cheese snacks (eg cheese balls, cheese puffs, etc)

Also excluded are snack nuts, meat snacks, and corn snacks.

Value figures throughout this report are at rsp (retail selling prices) excluding sales tax unless otherwise stated.

Data sources

Sales data

  • Market Size and Forecast, Segment Performance, and Retail Channels: total retail sales based on Information Resources, Inc., InfoScan Reviews; USDA Economic Research Service; NACS; CSP Magazine/Mintel; forecast developed by Mintel

  • Leading Companies and Brand Share: based on MULO sales data from Information Resources, Inc. InfoScan Reviews. MULO is defined as Multi Outlet, representative of the following channels: total US Grocery, Mass, total US Drug, total Walmart, Dollar, Military, and Club. Note that the values shown in this section differ from the Market Size and Forecast and Segment Performance sections of this report. Companies and brands sales data encompasses only sales through MULO channels, while Market Size and Forecast and Segment Performance sales cover the entire retail market.

Consumer survey data

For the purposes of this report, Mintel commissioned exclusive consumer research through GMI to explore consumer consumption of/attitudes and behaviors toward chips, salsa, and dips. Mintel was responsible for the survey design, data analysis, and reporting. Fieldwork was conducted in October 2014 among a sample of 2,000 adults aged 18+ with access to the internet.

Mintel selects survey respondents by gender, age, household income, and region so that they are proportionally representative of the US adult population using the internet. Mintel also slightly over-samples, relative to the population, respondents that are Hispanic or Black to ensure an adequate representation of these groups in our survey results and to allow for more precise parameter estimates from our reported findings. Please note that Mintel surveys are conducted online and in English only. Hispanics who are not online and/or do not speak English are not included in the survey results.

Mintel has also analyzed data from EMS (Experian Marketing Services), using the Simmons NCS (National Consumer Study), the Simmons NHCS (National Hispanic Consumer Study), and the Simmons NCS Kids Study.

The Experian Marketing Services, Simmons NCS/NHCS was carried out during April 2013-June 2014 and the results are based on the sample of 24,073 adults aged 18+, with results weighted to represent the US adult population.

While race and Hispanic origin are separate demographic characteristics, Mintel often compares them to each other. Please note that the responses for race (White, Black, Asian, Native American, or other race) will overlap those that also are Hispanic, because Hispanics can be of any race.

Abbreviations and terms

Abbreviations

The following abbreviations are used in this report:

BFY Better-for-you
CPI Consumer Price Index
GMO Genetically modified organism
GNPD Global New Products Database
MSG Monosodium glutamate
MULO Multi Outlet, representative of the following channels: total US Grocery, Mass, total US Drug, total Walmart, Dollar, Military, and Club
NHCS National Consumer Study/National Hispanic Consumer Study (Experian Marketing Services)
oz Ounce
: :
: :

Generations are discussed within this report; they are defined as:

World War II/Swing generations Members of the WWII Generation were born in 1932 or before and are aged 83 or older in 2015. Members of the Swing Generation were born between 1933 and 1945 and are aged 70-82 in 2015.
Baby Boomers The generation born between 1946 and 1964. In 2015, Baby Boomers are between the ages of 51 and 69.
Generation X The generation born between 1965 and 1976. In 2015, Gen Xers are between the ages of 39 and 50.
Millennials* Born between 1977 and 1994, Millennials are aged 21-38 in 2015.
iGeneration Born between 1995 and 2007, members of iGen are aged 8-20 in 2015.
Emerging generation The newest generation began in 2008 as the annual number of births declined sharply with the recession. In 2015, members of this as-yet-unnamed generation are younger than 8.

* also known as Generation Y or Echo Boomers

In order to provide an inflation-adjusted price value for markets, Mintel uses the CPI to deflate current prices. The CPI is defined as follows:

CPI The Consumer Price Index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.



The CPI and its components are typically used to adjust other economic series for price changes and to translate these series into inflation-free dollars. Examples of series adjusted by the CPI include retail sales, hourly and weekly earnings, and components of the national income and product accounts. In addition, and in Mintel reports, the CPI is used as a deflator of the value of the consumer’s dollar to find its purchasing power. The purchasing power of the consumer’s dollar measures the change in the value to the consumer of goods and services that a dollar will buy at different dates.



The CPI is generally the best measure for adjusting payments to consumers when the intent is to allow consumers to purchase, at today’s prices, a market basket of goods and services equivalent to one that they could purchase in an earlier period. It is also the best measure to use to translate retail sales into real or inflation-free dollars.



Based on Bureau of Labor Statistics definition.
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