Table of Contents
Executive Summary
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- The issues
- Chips and dips categories maintain growth
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- Figure 1: Total US sales of chips and dips, at current prices, 2010-15
- Figure 2: Total US sales and fan chart forecast of chips, at current prices, 2010-20
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- Figure 3: Total US sales and fan chart forecast of salsa and dips at current prices, 2010-20
- Millennials more likely to buy chips and dips
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- Figure 4: Chips and dip purchase – Any purchase, by Millennials and Non-Millennials, November 2015
- Taste, not health a key driver
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- Figure 5: Important nutritional attributes, November 2015
- The opportunities
- Promote products across all retail channels
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- Figure 6: Total US retail sales of chips and dips, by channel, at current prices, 2010-15
- Appeal to Millennials’ adventurous palates
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- Figure 7: Chips and dips behaviors, by generation, select statements, November 2015
- Focus on flavor innovation
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- Figure 8: Attitudes toward chips and dips – Any agree, November 2015
- What it means
The Market – What You Need to Know
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- Both chips and dips categories maintain steady growth
- Potato chips represent half of overall sales
- Supermarket sales fall to other retail channels
- Competition from a variety of foods, both at home and away
Market Size and Forecast
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- Chips and dips maintain steady overall growth
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- Figure 9: Total US sales and fan chart forecast of chips and dips, at current prices, 2010-20
- Potato chips continue to drive chip category growth
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- Figure 10: Total US sales and fan chart forecast of chips, at current prices, 2010-20
- Figure 11: Total US sales and forecast of chips, at current prices, 2010-20
- Figure 12: Total US sales and forecast of chips, at inflation-adjusted prices, 2010-20
- Strong product innovation helps dips thrive
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- Figure 13: Total US sales and fan chart forecast of salsa and dips at current prices, 2010-20
- Figure 14: Total US sales and forecast of salsa and dips, at current prices, 2010-20
- Figure 15: Total US sales and forecast of salsa and dips, at inflation-adjusted prices, 2010-20
Market Breakdown
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- Tortilla chips, dips, strongest growth over last five years
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- Figure 16: Total US retail sales of chips and dips, by segment share, 2015
- Figure 17: Total US retail sales of chips and dips, by segment, at current prices, 2010-15
- More than half of sales stem from other retail channels
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- Figure 18: Total US retail sales of chips and dips, by channel, at current prices, 2010-15
- Natural supermarket sales improve across segments
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- Figure 19: Natural supermarket sales of chips, salsa and dips, by segment, at current prices, rolling 52 weeks ending 10/06/13 and 10/04/15
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- Figure 20: Natural supermarket sales of chips, salsa and dips, by organic ingredients, at current prices, rolling 52 weeks ending 10/06/13 and 10/04/15
Market Perspective
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- Snacks across food and beverage categories heat up competition
- Foodservice options entice consumers away from home
Market Factors
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- Increase in snacking over time
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- Figure 21: Attitudes and opinions about food – Any agree, 2010-15
- Away-from-home food spending on the rise
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- Figure 22: Food sales at home and away from home, January 2003-October 2015
- Shifting US demographics to impact market
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- Figure 23: Households, by presence of own children, 2003-13
- Figure 24: Population by race and Hispanic origin, 2010-20
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- Figure 25: US population, by generation share, 2015
- Figure 26: US population, by generation, 2010-20
Key Players – What You Need to Know
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- PepsiCo brands maintain their market share hold across segments
- Consumers allow themselves to indulge
- Flavor innovation, segment blurring, and simple ingredients continue to trend
Manufacturer Sales of Chips and Dips
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- PepsiCo continues to dominate with more than half of category sales
- Manufacturer sales of chips and dips
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- Figure 27: MULO sales of chips, salsa and dip, by leading companies, rolling 52 weeks 2014 and 2015
What’s Working?
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- Potato chips
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- Figure 28: MULO sales of Munchos potato chips
- Figure 29: Commercial, “Introducing The Lay’s Do Us A Flavor Finalists,” July, 2015
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- Figure 30: MULO sales of Snyder’s-Lance potato chips
- Figure 31: MULO sales of Kettle potato chips
- Tortilla chips
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- Figure 32: MULO sales of Doritos tortilla chips
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- Figure 33: MULO sales of Calidad tortilla chips
- Figure 34: MULO sales of private label tortilla chips
- Salsa and dips
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- Figure 35: MULO sales of salsa brands
- Figure 36: MULO sales of PepsiCo Inc. dips
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- Figure 37: MULO sales guacamole dips
- Figure 38: MULO sales of Sabra dips
What’s Struggling?
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- Potato chip sales declines
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- Figure 39: MULO sales of Utz other potato chip brands
- Figure 40: MULO sales of Utz other potato chip brands
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- Figure 41: MULO sales of private label potato chips
What’s Next?
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- No flavor too odd
- Global influences
- Ingredient provenance
- Segment blurring
- Simple and real food
The Consumer – What You Need to Know
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- Chips, dips purchases common
- Supermarket purchases most popular, but competition heating up
- Taste, not nutrition, a key purchase driver
- Room for more flavor innovation
Chips and Dips Purchase
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- Chips, dips, common purchases for self
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- Figure 42: Chips and dip purchase, November 2015
- Presence of children in household has strong impact on purchase
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- Figure 43: Chips and dip purchase – Any purchase, by parental status, November 2015
- Millennials more likely to buy chips and dips
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- Figure 44: Chips and dip purchase – Any purchase, by age, November 2015
- Hispanics more likely to buy some types of potato chips, all dips
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- Figure 45: Chips and dip purchase – Any purchase, by race and Hispanic origin, November 2015
Purchase Location
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- Supermarkets most popular
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- Figure 46: Chips and dips purchase location, November 2015
- Men more likely to buy at convenience-based locations
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- Figure 47: Chips purchase location, by gender, select options, November 2015
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- Figure 48: Dips purchase location, by gender, select options, November 2015
- Hispanics more likely to diversify purchases
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- Figure 49: Chips purchase location, by race and Hispanic origin, select options, November 2015
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- Figure 50: Dips purchase location, by race and Hispanic origin, select options, November 2015
Factors Influencing Purchase
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- New flavor, convenient packaging, premium brand most influential
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- Figure 51: Factors influencing purchase, November 2015
- Millennials more likely to be influenced by product flavors, brands
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- Figure 52: Factors influencing purchase, by Millennials and Non-Millennials, November 2015
- Package type, premium products influential for parents
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- Figure 53: Factors influencing purchase, by parental status, November 2015
- Packaging, brand more important to Hispanics
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- Figure 54: Factors influencing purchase, by Hispanic origin, November 2015
Important Nutritional Attributes
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- Nutrition not top-of-mind with most consumers
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- Figure 55: Important nutritional attributes, November 2015
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- Figure 56: Natural supermarket sales of chips, salsa and dips, by GMO ingredients, at current prices, rolling 52 weeks ending 10/06/13 and 10/04/15
- Older consumers concerned about health
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- Figure 57: Important nutritional attributes, by age, select options, November 2015
- Parents interested in functional benefits, but taste also important
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- Figure 58: Important nutritional attributes, by parental status, select options, November 2015
- Hispanic Millennials gravitate toward low/no health claims
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- Figure 59: Important nutritional attributes, by Hispanic Millennials, select options, November 2015
Chips and Dips Behaviors
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- Shoppers stick to snacks they love, diversify their purchases across channels
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- Figure 60: Chips and dips behaviors, November 2015
- Men buying more chips and dips, women buy impulsively, feel guilty when eating
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- Figure 61: Chips and dips behaviors, by gender, select statements, November 2015
- Millennials buying more chips and dips, mix products together
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- Figure 62: Chips and dips behaviors, by generation, select statements, November 2015
- Hispanics may be open to BFY products, unique varieties
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- Figure 63: Chips and dips behaviors, by race and Hispanic origin, select statements, November 2015
- Package and brand type, key drivers for increased purchase
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- Figure 64: Key drivers of chips and dips behaviors, November 2015
Attitudes toward Chips and Dips
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- Consumers allow themselves to indulge, flavor a key attribute
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- Figure 65: Attitudes toward chips and dips – Any agree, November 2015
- Parents more brand loyal, have positive perceptions of store brands
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- Figure 66: Attitudes toward chips and dips – Any agree, by parental status, select statements, November 2015
- Flavor innovation key for appealing to Millennials, Hispanics
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- Figure 67: Attitudes toward chips and dips – Any agree, by Millennials and Non-Millennials, select statements, November 2015
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- Figure 68: Attitudes toward chips and dips – Any agree, by race and Hispanic origin, select statements, November 2015
- Innovative flavors may boost purchase among high-earning males
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- Figure 69: Attitudes toward chips and dips – CHAID – Tree output, November 2015
Consumer Segmentation
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- Figure 70: Chips and dips clusters
- Group one: Traditional Snackers
- Group two: Health-focused Snackers
- Group three: Super Snackers
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Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – Key Driver Analysis
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- Methodology
- Interpretation of results
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- Figure 71: Key drivers of chips and dips behaviors – Key driver output, November 2015
Appendix – CHAID Analysis
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- Methodology
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- Figure 72: Attitudes toward chips and dips – CHAID – Table output, November 2015
Appendix – Consumer Segmentation
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- Cluster methodology
Appendix – Market
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- Figure 73: Total US retail sales and forecast of chips and dips, by segment, at current prices, 2010-20
- Figure 74: Total US retail sales of chips and dips, by segment, at current prices, 2013 and 2015
- Figure 75: Total US retail sales and forecast of potato chips, at current prices, 2010-20
- Figure 76: Total US retail sales and forecast of potato chips, at inflation-adjusted prices, 2010-20
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- Figure 77: Total US retail sales and forecast of tortilla chips, at current prices, 2010-20
- Figure 78: Total US retail sales and forecast of tortilla chips, at inflation-adjusted prices, 2010-20
- Figure 79: Total US retail sales and forecast of salsa at current prices, 2010-20
- Figure 80: Total US retail sales and forecast of salsa, at inflation-adjusted prices, 2010-20
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- Figure 81: Total US retail sales and forecast of dips at current prices, 2010-20
- Figure 82: Total US retail sales and forecast of dips, at inflation-adjusted prices, 2010-20
- Figure 83: Total US retail sales of chips and dips, by channel, at current prices, 2010-15
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- Figure 84: Total US retail sales of chips and dips, by channel, at current prices, 2013 and 2015
- Figure 85: Natural supermarket sales of chips, salsa and dips, at current prices, rolling 52 weeks October 2013-October 2015
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- Figure 86: Non-GMO certified* share of natural supermarket sales of chips, salsa and dips, by segment, at current prices, rolling 52 weeks ending 10/06/13 and 10/04/15
- Figure 87: Organic share of natural supermarket sales of organic chips, salsa and dips, by segment, at current prices, rolling 52 weeks ending 10/06/13 and 10/04/15
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- Figure 88: Natural supermarket sales of chips, salsa and dips, by gluten-free labeling/certification, at current prices, rolling 52 weeks ending 10/06/13 and 10/04/15
- Figure 89: Gluten-free* share of natural supermarket sales of chips, salsa and dips, by segment, at current prices, rolling 52 weeks ending 10/06/13 and 10/04/15
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- Figure 90: Natural supermarket sales of chips, salsa and dips, by "natural" labeling or perception, at current prices, rolling 52 weeks ending 10/06/13 and 10/04/15
- Figure 91: Share of natural supermarket sales accounted for by "natural" labeled/perceived chips, salsa and dips, by segment, at current prices, rolling 52 weeks ending 10/06/13 and 10/04/15
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Appendix – Key Players
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- Figure 92: MULO sales of potato chips, by leading companies and brands, rolling 52 weeks 2014 and 2015
- Figure 93: MULO sales of tortilla chips, by leading companies and brands, rolling 52 weeks 2014 and 2015
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- Figure 94: MULO sales of salsa, by leading companies and brands, rolling 52 weeks 2014 and 2015
- Figure 95: MULO sales of dips, by leading companies and brands, rolling 52 weeks 2014 and 2015
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