Consumer Snacking - UK - March 2016

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The market
Health remains an ongoing issue
Rising incomes poses an opportunity and a threat to snacks
Cakes, pastries and sweet goods lead on NPD
Adspend increases in 2015, with Mars taking the lead
The consumer
95% snack but this is down year on year
Figure 1: Snacks eaten between meals, December 2014 and December 2015
Naturalness appeals to more than a fifth
Figure 2: Attributes worth paying more for when buying snacks, December 2015
Hunger remains the key driver to snacking
Figure 3: Reasons why people snack, December 2015
80% say snacking is enjoyable
Figure 4: Attitudes towards snacking, December 2015
What we think
ISSUES AND INSIGHTS
Healthier formats offer brands a way to appeal to health-aware consumers
The facts
The implications
Catering to young people’s on-the-go habits should be lucrative
The facts
The implications
Efforts to premiumise snacks will have to go further
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Health remains an ongoing issue
Rising incomes pose an opportunity and a threat to snacks
Cakes, pastries and sweet goods lead on NPD
Adspend increases in 2015, with Mars taking the lead
Snack brands are seen to be accessible
MARKET DRIVERS
Health remains an ongoing issue
Obesity levels are rising…
…putting pressure on snacks
Figure 5: Trends in Body Mass Index (BMI), England, 1993-2013
An increase in focus on sugar
Rising incomes pose an opportunity and a threat to snacks
Workers are pressed for time
Figure 6: Workers' agreement with the statement “I sometimes struggle to find the time to eat as healthily as I would like to”, September 2015
Lengthy commutes provide opportunities for on-the-go snacking
Young people are driving snacking
Catering to the older demographic
One-person households are less likely to snack
LAUNCH ACTIVITY AND INNOVATION
Definition
Cakes, pastries and sweet goods lead on NPD
Brands dominate NPD, although Asda leads in 2015
Figure 7: New product launches in the UK snacks market, by brands vs own-label, 2011-15
Nakd and Weight Watchers lead innovation in 2015
Galaxy and Cadbury look to fillings
Snack brands target occasions
Seasonality is a driver
Evenings in
Arla looks to sports participation as a driver to driving
Brands extend into new areas
More brands enter cracker crisps market
Cross-category launches
Graze enters the retail market
Ben & Jerry’s targets snacking occasion with ‘Wich line
Premium claims add value to the market
Emphasising provenance and handmade credentials
‘Grown-up’ flavours as a feature
Snacks fail to cater to consumer interest in health
Figure 8: New product launches in the UK snacks market, by selected health claims, 2011-15
L/N/R sugar claims rise but remain niche
All-natural products remain rare
Little activity in low-calorie snacks
Thins become a feature
Gluten-free claims leap ahead
Figure 9: New product launches in the UK snacks market carrying a gluten-free claim, 2011-15
Social media claims see strong rise
Packaging looks to aid portability and sharing
Few on-the-go launches
Figure 10: New product launches in the UK snacks market carrying on-the-go claims, 2011-15
Sharing provides an incentive to NPD
ADVERTISING AND MARKETING ACTIVITY
Adspend increases to £261 million in 2015, with chocolate taking the lead
Figure 11: Total above-the line, online display and direct mail advertising expenditure on snacks, 2012-15
Figure 12: Total above-the line, online display and direct mail advertising expenditure on snacks, by category, 2012-15
Mars leads by advertising spend
PepsiCo supports Walkers and Doritos lines
Yogurt advertisers hold an almost 19% share
Lidl increases spend; the only retailer to feature in the top 10
Figure 13: Total above-the line, online display and direct mail advertising expenditure on snacks, by top 10 advertisers (sorted by 2015), 2012-15
Mars’ Galaxy tops spend, receiving ad support for 40 weeks of 2015
Figure 14: Total above-the line, online display and direct mail advertising expenditure on snacks, by top 10 brands (sorted by 2015), 2012-15
Nielsen Media Research coverage
BRAND RESEARCH
Methodology
What you need to know
Brand map
Figure 15: Attitudes towards and usage of selected food brands, April, October and December 2015 and January 2016
Key brand metrics
Figure 16: Key metrics for selected food brands, April, October and December 2015 and January 2016
Brand attitudes: Snack brands have a similar profile, yogurt brands stand out
Figure 17: Attitudes, by food brand, April, October and December 2015 and January 2015
Brand personality: Most snack brands are seen to be accessible and engaging
Figure 18: Brand personality – macro image, April, October and December 2015 and January 2015
Yogurt brands are seen to be the most natural and healthy but also bland
Figure 19: Brand personality – micro image, April, October and December 2015 and January 2015
Brand analysis
Cadbury Dairy Milk is seen most widely as accessible
Figure 20: User profile of Cadbury Dairy Milk, January 2016
Walkers has all-round strong image
Figure 21: User profile of Walkers, October 2015
Galaxy has a more indulgent image than its chocolate rival
Figure 22: User profile of Galaxy, January 2016
Cadbury Cakes is the most favourite brand
Figure 23: User profile of Cadbury Cakes, December 2015
Activia has a strong healthy image
Figure 24: User profile of Activia, April 2015
Mr Kipling seen to be traditional and family-oriented
Figure 25: User profile of Mr Kipling, December 2015
Müllerlight has a healthy and widely accessible appeal
Figure 26: User profile of Müllerlight, April 2015
Pringles is seen as upbeat but has a stronger association with unhealthiness than other brands
Figure 27: User profile of Pringles, October 2015
THE CONSUMER – WHAT YOU NEED TO KNOW
95% snack but this is down year on year
71% snack at least once a day
Naturalness appeals to more than a fifth
Hunger remains the key driver to snacking
80% say snacking is enjoyable
SNACK USAGE
95% snack but this is down year on year
Figure 28: Snacks eaten between meals, December 2014 and December 2015
71% snack at least once a day
Figure 29: Frequency of eating snacks, December 2015
Majority snack at home
29% snack at work; 49% of those employed snack at work
13% snack on the go, especially 16-24s
Figure 30: Where people snack in a typical week, December 2015
ATTRIBUTES WORTH PAYING MORE FOR
Naturalness appeals to more than a fifth
Figure 31: Attributes worth paying more for when buying snacks, December 2015
High-quality ingredients drive premiumisation
Premium claims remain rare
Wide availability dilutes added value of quality claims
16-24s show an interest in ethical credentials…
…and portability
REASONS TO SNACK
Hunger remains the key driver to snacking
Figure 32: Reasons why people snack, December 2015
Younger people are driven by needs beyond hunger
10% snack to replace a meal
ATTITUDES TOWARDS SNACKING
80% say snacking is enjoyable
Figure 33: Attitudes towards snacking, December 2015
Health is an important consideration
Cutting down on snacks is seen as a way to reduce calorie content
70% agree manufacturers should cut sugar content
Interest in guidance on healthy snacks
On-the-go packaging appeals to under-25s
Customisation appeals to 35%
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET DRIVERS
Figure 34: Trends in the age structure of the UK population, 2010-20
Figure 35: UK households, by size, 2010-20
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 36: New product launches in the UK snacks* market, by top 10 sub-categories, 2011-15