Consumer Snacking - UK - December 2012

INTRODUCTION
Definitions
Abbreviations
EXECUTIVE SUMMARY
Market factors
Discretionary spending comes under consumer reassessment
Health remains an issue
Companies, brands and innovation
Mars dominates adspend
Figure 1: Total advertising expenditure in the snacking market, by top five advertisers, 2008-12
The consumer
The vast majority snack at home and on the go
Figure 2: Snacks eaten between meals, September 2012
Convenience is the main driver to snacking
Figure 3: Factors influencing choice of snack, September 2012
Half of consumers are adventurous on flavour
Figure 4: Attitudes towards snacking, September 2012
What we think
ISSUES IN THE MARKET
How can the market continue to appeal to the health-conscious consumer?
What factors can the market leverage to engage the growing older age groups?
Are consumers willing to spend on snacks?
How can the snacking market leverage interest in sharing/smaller formats?
How can product innovation offer brands standout?
TREND APPLICATION
Life – An Informal Affair
Minimize Me
2015 Trend: Brand Intervention
MARKET DRIVERS
Key points
Tight budgets dampen snacking
Convenience is important to busy consumers
Health remains a dividing issue
Figure 5: Trends in attitudes towards selected lifestyle statements, 2008-12
Demographic changes
Growth in 25-34s will drive on-the-go snacking
Figure 6: Trends in the age structure of the UK population, 2007-12 and 2012-17
Rise in families bodes well for future growth
Figure 7: Forecast adult population trends, by lifestage, 2007-17
STRENGTHS AND WEAKNESSES
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Definition
Own-label gains momentum in NPD
Figure 8: New product launches in the snacking market, own-label v branded, 2008-12
Catering to health-conscious consumers
Figure 9: New product launches in the snacking market, by health claim, 2008-12
Chocolate
Salty snacks and crisps
Fruit and vegetables
Spice beats fruit as most popular flavour component
Figure 10: New product launches in the snacking market, by top five flavour components, 2008-12
Packaging revamps have become ubiquitous in snacking market
Figure 11: New product launches, by launch type, 2008-12
Mini formats look to tap in to ‘grazing’
Events of 2012 prove inspirational to packaging
Popcorn and cassava-based snacks on the rise
COMPANIES AND PRODUCTS
Haribo
Mondelēz International (formerly Kraft Foods)
Mars
Nestlé
PepsiCo – Walkers, SunBites
United Biscuits
Ginsters
Danone
Kellogg’s
Whitworths
BRAND RESEARCH
Brand map
Figure 12: Attitudes towards and usage of brands in the snacking sector, November 2011, January and February 2012
Correspondence analysis
Brand attitudes
Figure 13: Attitudes, by snacking brand, November 2011, January and February 2012
Brand personality
Figure 14: Snacking brand personality – macro image, November 2011, January and February 2012
Figure 15: Snacking brand personality – micro image, November 2011, January and February 2012
Brand experience
Figure 16: Snacking brand usage, November 2011, January and February 2012
Figure 17: Satisfaction with various snacking brands, November 2011, January and February 2012
Figure 18: Consideration of snacking brands, November 2011, January and February 2012
Figure 19: Consumer perceptions of current snacking brand performance, November 2011, January and February 2012
Figure 20: Snacking brand recommendation – Net Promoter Score, November 2011, January and February 2012
Brand index
Figure 21: Snacking brand index, November 2011, January and February 2012
Figure 22: Snacking brand index vs. recommendation, November 2011, January and February 2012
BRAND COMMUNICATION AND PROMOTION
Key points
Total adspend drops from 2011 peak as major players cut back
Figure 23: Total advertising expenditure in the snacking market, 2008-12
Chocolate is the most advertised category
Figure 24: Total media advertising expenditure on snacking, by leading categories, 2010-12
Mars tops advertising ranks, while Cadbury decreases adspend
Figure 25: Total advertising expenditure in the snacking market, by top five advertisers, 2008-12
Figure 26: Total advertising expenditure in the snacking market, by top five brands, 2008-12
CONSUMER – SNACKS EATEN
Key points
The vast majority snack at home and on the go
Figure 27: Snacks eaten between meals, September 2012
Figure 28: Index of ‘any snack’ eaten between meals when on the go, by demographics (average = 100), September 2012
Fresh fruit is popular at home/elsewhere, chocolate when on the go
Women are more likely to snack
Figure 29: Snacks eaten between meals at home/elsewhere, by gender, September 2012
Figure 30: Snacks eaten between meals on the go, by gender, September 2012
CONSUMER – SNACKS BOUGHT
Key points
Seven in ten buy fresh fruit as a snack
Figure 31: Snacks bought in a typical week, September 2012
Women are more likely to purchase snacks…
Figure 32: Net difference * between snacks bought in a typical week, by gender, September 2012
…while the young fail to buy
Figure 33: Snacks bought in a typical week, by age, September 2012
CONSUMER – FREQUENCY OF SNACKING
Key points
Six in ten snack at home at least once a day
Figure 34: Frequency of snacking at home/elsewhere, September 2012
Figure 35: Frequency of snacking on the go, September 2012
The young are the most frequent snackers at home…
Figure 36: Frequency of snacking at least daily at home/elsewhere/on the go, by age, September 2012
…while men prefer to snack when elsewhere and on the go
Figure 37: Snacking at least daily at home/elsewhere/on the go, by gender, September 2012
CONSUMER – FACTORS INFLUENCING CHOICE
Key points
Convenience is the main driver
Figure 38: Factors influencing choice of snack, September 2012
Figure 39: Index of agreement with the influencing factor ‘convenient to eat’, by snacks eaten on the go (average =100), September 2012
Cost-conscious consumers
Healthier versions could be key to engaging the over-55s
Figure 40: Health-related factors influencing choice of snack, by age, September 2012
CONSUMER – REASONS FOR SNACKING
Key points
Hunger is main reason for consumers to snack
Figure 41: Reasons and occasions why and when consumers snack, September 2012
Figure 42: Times of snacking, by types of snacks eaten, 2012
Older consumers snack when having a hot drink
Figure 43: Snack ‘when I’m watching TV/DVDs’, by snacks bought in a typical week, September 2012
CONSUMER – ATTITUDES TOWARDS SNACKING
Key points
Half of consumers are adventurous on flavour
Figure 44: Attitudes towards snacking, September 2012
Figure 45: Index of agreement with the statement ‘I like to try more exciting flavours in snacks’, by age, annual household income, presence of children and household size (average = 100), September 2012
Health remains an important consideration
Figure 46: Agreement with statements on health in snacking, by gender, September 2012
A third of consumers cut back because of cost
Brands appeal to a third
APPENDIX – MARKET DRIVERS
Figure 47: GDP, PDI, consumer expenditure and savings, at constant 2012 prices, 2007-17
Figure 48: Attitudes towards selected lifestyle statements, by demographics, 2012
Figure 49: Attitudes towards selected lifestyle statements, by demographics, 2012
Figure 50: Obesity among adults, 1996-2010
Figure 51: UK households, by size, 2007-17
APPENDIX – WHO’S INNOVATING?
Figure 52: New product launches in snacking market, by claim category, 2008-12
Figure 53: New product launches in snacking market, by claim category, 2008-12
Figure 54: New product launches in snacking market, by sub-category, 2008-12
APPENDIX – BRAND RESEARCH
Figure 55: Brand usage, January 2012
Figure 56: Brand usage, January 2012
Figure 57: Brand usage, November 2012
Figure 58: Brand usage, January 2012
Figure 59: Brand commitment, November 2011, January and February 2012
Figure 60: Brand momentum, November 2011, January and February 2012
Figure 61: Brand diversity, November 2011, January and February 2012
Figure 62: Brand satisfaction, November 2011, January and February 2012
Figure 63: Brand recommendation, November 2011, January and February 2012
Figure 64: Brand attitude, November 2011, January and February 2012
Figure 65: Brand image – macro image, November 2011, January and February 2012
Figure 66: Brand image – micro image, November 2011, January and February 2012
Brand index
Figure 67: Brand index, January 2012
Figure 68: Brand index, January 2012
Figure 69: Brand index, November 2011
Figure 70: Brand index, February 2012
APPENDIX – BRAND COMMUNICATION AND PROMOTION
Figure 71: Total media advertising expenditure on snacking, by leading advertisers, 2008-12
Figure 72: Total media advertising expenditure on snacking, by leading brands, 2008-12
Figure 73: Total advertising expenditure in the snacking market, by media type, 2008-12
APPENDIX – CONSUMER – SNACKS EATEN
Figure 74: Types of snacks eaten between meals, September 2012
Figure 75: Most popular snacks eaten between meals (at home/elsewhere), by demographics, September 2012
Figure 76: Next most popular snacks eaten between meals (at home/elsewhere), by demographics, September 2012
Figure 77: Other snacks eaten between meals (at home/elsewhere), by demographics, September 2012
Figure 78: Most popular snacks eaten between meals (on the go), by demographics, September 2012
Figure 79: Next most popular snacks eaten between meals (on the go), by demographics, September 2012
Figure 80: Other snacks eaten between meals (on the go), by demographics, September 2012
APPENDIX – CONSUMER – SNACKS BOUGHT
Figure 81: Snacks bought in a typical week, September 2012
Figure 82: Most popular snacks bought in a typical week, by demographics, September 2012
Figure 83: Next most popular snacks bought in a typical week, by demographics, September 2012
Figure 84: Other snacks bought in a typical week, by demographics, September 2012
APPENDIX – CONSUMER – FREQUENCY OF SNACKING
Figure 85: Frequency of snacking, by location, September 2012
Figure 86: Frequency of snacking at home, by demographics, September 2012
Figure 87: Frequency of snacking at home, by demographics, September 2012 (continued)
Figure 88: Frequency of snacking elsewhere, by demographics, September 2012
Figure 89: Next most popular frequency of snacking elsewhere, by demographics, September 2012 (continued)
Figure 90: Frequency of snacking on the go, by demographics, September 2012
Figure 91: Next most popular frequency of snacking on the go, by demographics, September 2012
APPENDIX – CONSUMER – FACTORS INFLUENCING CHOICE
Figure 92: Factors influencing choice of snack, September 2012
Figure 93: Most popular factors influencing choice of snack, by demographics, September 2012
Figure 94: Next most popular factors influencing choice of snack, by demographics, September 2012
Figure 95: Other factors influencing choice of snack, by demographics, September 2012
Figure 96: Factors influencing choice of snack, by most popular snacks eaten between meals when on the go, September 2012
Figure 97: Factors influencing choice of snack, by next most popular snacks eaten between meals when on the go, September 2012
APPENDIX – CONSUMER – REASONS FOR SNACKING
Figure 98: Reasons and occasions why and when consumers snack, September 2012
Figure 99: Most popular reasons and occasions why and when consumers snack, by demographics, September 2012
Figure 100: Next most popular reasons and occasions why and when consumers snack, by demographics, September 2012
Figure 101: Other reasons and occasions why and when consumers snack, by demographics, September 2012
Figure 102: Reasons and occasions why and when consumers snack, by snacks bought in a typical week, September 2012
Figure 103: Reasons and occasions why and when consumers snack, by snacks bought in a typical week, September 2012
APPENDIX – CONSUMER – ATTITUDES TOWARDS SNACKING
Figure 104: Attitudes towards snacking, September 2012
Figure 105: Agreement with the statements ‘I like to try more exciting flavours in snacks’ and ‘I would like to see smaller packs so that I eat less’, by demographics, September 2012
Figure 106: Agreement with the statements ‘I have switched from snacks high in sugar/fat to healthier alternatives ’ and ‘I am cutting down on the amount I snack because of health reasons’, by demographics, September 2012
Figure 107: Agreement with the statements ‘I would like to see a wider choice of sharing packs’ and ‘I am cutting down on the amount I snack because of cost’, by demographics, September 2012
Figure 108: Agreement with the statements ‘Healthy snacks are worth paying more for’ and ‘I feel bad if I snack in between meals’, by demographics, September 2012
Figure 109: Agreement with the statements ‘I prefer the taste of branded snacks to own-label’ and ‘Snacking prevents overeating at mealtimes’, by demographics, September 2012