Chips and Dips - US - February 2017

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
The issues
Steady growth continues for chips and dips
Figure 1: Total US sales and fan chart forecast of chips and dips, at current prices, 2010-20
Tortilla chips generate fastest growth of four segments
Figure 2: Sales and forecast chips and dips, by segment, 2011-21
Younger adults purchase a wider variety of chips and dips
Figure 3: Chips and dips purchase – Any purchase, by age, November 2016
The opportunities
Turn routine into impulse and discovery
Figure 4: Behaviors related to chips and dips, November 2016
Chips can tap into interest in fresh salsas and dips
Figure 5: Chips and dips innovation areas, November 2016
Leverage in-store sampling to drive trial of new flavors
Figure 6: Attitudes toward chips and dips concerning taste and experience – Agree strongly, by age, November 2016
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Steady growth continues for chips and dips
Potato chips remain foundation for the category
Snacking competition heats up
MARKET SIZE AND FORECAST
Steady growth continues for chips and dips
Figure 7: Total US sales and fan chart forecast of chips and dips, at current prices, 2010-20
Figure 8: Total US sales and forecast of chips and dips, at current prices, 2011-21
MARKET BREAKDOWN
Potato chips remain foundation for the category
Figure 9: Sales of chips and dips, by segment, 2016
Tortilla chips generate fastest growth of four segments
Figure 10: Sales and forecast chips and dips, by segment, 2011-21
MARKET PERSPECTIVE
Snacking competition heats up
Figure 11: Total US retail sales and forecast of salty snacks, by segment, at current prices, 2010-15
MARKET FACTORS 
Snacking is the new norm
Figure 12: Attitudes and opinions about food – Any agree, 2010-16
Shifting US demographics to impact market
Figure 13: Households, by presence of own children, 2006-16
Figure 14: US population, by race and Hispanic origin, 2012-22
Figure 15: US population, by generation, 2012-22
KEY PLAYERS – WHAT YOU NEED TO KNOW 
PepsiCo’s lead secure despite small share declines in key segments
Wholly Guacamole typifies gains for refrigerated dips
On the Border creates space in tortilla chips and salsa
Always a next new flavor
Beyond corn and potatoes: new chip bases
COMPANY SALES OF CHIPS AND DIPS
PepsiCo’s lead secure despite small share declines in key segments
On the Border tortilla chips gain momentum for Truco Enterprises
Company sales of chips and dips
Figure 16: MULO sales of chips, dips, and salsa, by leading companies, rolling 52 weeks 2015 and 2016
WHAT’S WORKING?
Wholly Guacamole
Other refrigerated dips
On the Border chips and salsa
Cape Cod potato chips
Other potato and tortilla chips
WHAT’S STRUGGLING?
Relics of the category’s regional past
WHAT’S NEXT?
Always a next new flavor
Beyond corn and potatoes: new chip bases
Functional chips
THE CONSUMER – WHAT YOU NEED TO KNOW 
Chip purchase nearly universal
Dip purchase incidence just a little lower
Opportunity to turn routine into impulse and discovery
Strongest interest in fresh salsas and dips
A permissible indulgence, but with limits
Leverage in-store sampling to drive trial of new flavors
CHIPS AND DIPS PURCHASE 
Chip purchase nearly universal
Dip purchase incidence just a little lower
Figure 17: Chips and dips purchase, November 2016
Younger adults purchase a wider variety of chips and dips
Figure 18: Chips and dips purchase – Any purchase, by age, November 2016
Hispanics purchase a wider variety of chips and dips
Figure 19: Chips purchase – Any purchase, by race/Hispanic origin, November 2016
Figure 20: Dips purchase – Any purchase, by race/Hispanic origin, November 2016
FACTORS INFLUENCING CHIPS AND DIPS PURCHASE
New flavor a top motivator for increased chip purchase
Figure 21: Factors influencing chips purchase, November 2016
Young purchasers focus on flavor; older adults consider health
Figure 22: Factors influencing chips purchase, by age, November 2016
Figure 23: Factors influencing dips purchase, by age, November 2016
BEHAVIORS RELATED TO CHIPS AND DIPS
Opportunity to turn routine into impulse and discovery
Figure 24: Behaviors related to chips and dips, November 2016
Younger adults most likely to buy on impulse
Figure 25: Behaviors related to chips and dips, by age, November 2016
CHIPS AND DIP INNOVATION AREAS
Strongest interest in fresh salsas and dips
Figure 26: Chips and dips innovation areas, November 2016
Younger adults interested in wider variety of concepts
Lifestyle-oriented packaging could extend to dips and salsa
Figure 27: Chips and dips innovation areas, by age, November 2016
ATTITUDES TOWARD CHIPS AND DIPS
A permissible indulgence, but with limits
Opportunity for packaging innovation
Limited opportunity for better-for-you products
Figure 28: Attitudes toward chips and dips, November 2016
Young adults more likely to indulge on chips and dips
Figure 29: Attitudes toward chips and dips concerning healthfulness – Agree strongly, by age, November 2016
Leverage in-store sampling to drive trial of new flavors
Figure 30: Attitudes toward chips and dips concerning taste and experience – Agree strongly, by age, November 2016
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX – MARKET 
Figure 31: Total US sales and forecast of chips and dips, at inflation-adjusted prices, 2011-21
Figure 32: Total US sales and forecast of potato chips, at current prices, 2011-21
Figure 33: Total US sales and forecast of tortilla chips, at current prices, 2011-21
Figure 34: Total US sales and forecast of salsa, at current prices, 2011-21
Figure 35: Total US sales and forecast of dips, at current prices, 2011-21
Figure 36: Total US sales of chips and dips, by retail channel, 2011-16
APPENDIX – KEY PLAYERS 
Figure 37: MULO sales of potato chips, by leading companies and brands, rolling 52 weeks 2015 and 2016
Figure 38: MULO sales of tortilla chips, by leading companies and brands, rolling 52 weeks 2015 and 2016
Figure 39: MULO sales of salsa, by leading companies and brands, rolling 52 weeks 2015 and 2016
Figure 40: MULO sales of dips, by leading companies and brands, rolling 52 weeks 2015 and 2016