Consumer Snacking - UK - May 2018

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
PHE aims to combat child obesity, shaking up the snacking market
New calorie targets for kids’ snacks and adult meals
Ageing population poses a challenge for snacks
Companies and brands
Dynamic growth in L/N/R allergen claims
L/N/R sugar claim nearly doubles share
Fibre and protein claims gain traction
Sweet and savoury flavour combinations go beyond salted caramel
Category blurring and brand stretch continue
Advertising spend falls in 2017
Sweet snacks put the focus on sharing and social connections
Mars and Lindt focus on connecting with oneself
The consumer
Fresh fruit, crisps and chocolate are the nation’s top three snacks
Figure 1: Snacks eaten in the last two weeks, February 2018
Snacks are on the daily menu for most
Figure 2: Frequency of eating snacks, February 2018
Home is still where people snack the most
Only two in five snackers look mostly for healthy snacks
Figure 3: How often people eat healthily and look for a healthy snack, November 2017 and February 2018
No magic bullet – Health priorities vary
Figure 4: What people look for in a healthy snack, February 2018
Snacks’ mood boost and energising roles chime widely
Figure 5: Snacking behaviours, February 2018
Evenings in still a key occasion for snacks
Figure 6: Snacking attitudes, February 2018
Ease of opening is under-utilised in snacks
Figure 7: Important convenience factors in snack choice, February 2018
What we think
ISSUES AND INSIGHTS
Snacks’ energising role chimes widely
The facts
The implications
Snack brands can stand out by catering to or countering busy lifestyles
The facts
The implications
Demand for healthy and indulgent snacks, and more clarity
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
PHE aims to combat child obesity, shaking up the snacking market
New calorie targets for kids’ snacks and adult meals
People try to eat mostly healthily, but are more relaxed when snacking
Busy lifestyles fuel snacking
Ageing population poses a challenge for snacks
MARKET DRIVERS
PHE aims to combat child obesity, shaking up the snacking market
Sugar reduction
Calorie reduction
100-calorie recommendation for kids’ snacks
New 400-600-600-calorie target for adults leaves room for snacks
People try to eat mostly healthily, but are more relaxed when snacking
Busy lifestyles fuel snacking
Ageing population poses a challenge for snacks
Figure 8: UK population trends, by age, 2012-17 and 2017-22
Discretionary incomes have little bearing on snacking
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Dynamic growth in L/N/R allergen claims
L/N/R sugar nearly doubles share
Fibre and protein claims gain traction
Sweet and savoury flavour combinations go beyond salted caramel
Category blurring and brand stretch continue
Advertising spend falls in 2017
Sweet snacks put the focus on sharing and social connections
Mars and Lindt focus on connecting with oneself
LAUNCH ACTIVITY AND INNOVATION
Dynamic growth in L/N/R allergen claims
Figure 9: New products in the UK snack market, by claim (top 15), 2013-18
Pairing free-from claims with a rounded proposition
Ethical packaging claims in long-term growth
Widespread concern about plastic packaging
Compostable, plant-based foil adopted by various smaller brands
Vegan claims leap ahead
L/N/R sugar nearly doubles share
Leading players cut sugar in sweets…
…cakes…
…and chocolate
Fibre claims gain traction
Protein claims are niche, but rising rapidly
Figure 10: Share of new products in the UK snack market with a high/added-protein claim, 2013-18
Sweet and savoury flavour combinations go beyond salted caramel
Spice flavours and vegetables
Savoury snacks go sweet
Category blurring and brand stretch continue
Taking flavour inspiration from other treats
Updating traditional treats
Brand extensions look to unlock new snack occasions
Alcohol flavours appear from crisps to cupcakes
ADVERTISING AND MARKETING ACTIVITY
Advertising spend falls in 2017
Chocolate continues to lead on advertising
Figure 11: Total above-the-line, online display and direct mail advertising on sweet and savoury snacks, 2014-18 (sorted by 2017)
Sweet snack brands put the focus on sharing and social connections
Cadbury Dairy Milk spotlights generosity
Mr Kipling shows a kindly ‘thief’
Butterkist focuses on family time
McVitie’s shifts focus onto ‘Sweeter Together’
Mentos looks to connect people
Mars and Lindt prompt fans to relax, Snickers pushes hunger-busting
Mars and Lindt focus on connecting with oneself
KitKat continues to focus on having a break
Snickers continues with hunger-busting message
Diversity remains at the centre of Maltesers’ advertising
Sweet and savoury snacks look to tap into the ‘big night in’ occasion
Crisps/savoury snacks offer free films
Nestlé links up with Sky Store
THE CONSUMER – WHAT YOU NEED TO KNOW
Fresh fruit, crisps and chocolate are the nation’s top three snacks
Under-35s and parents are top users of sweet snacks
Snacks are on the daily menu for most
Home is still where people snack the most
Only two in five snackers look mostly for healthy snacks
No magic bullet – Health priorities vary
Snacks’ mood boost and energising roles chime widely
Evenings in still a key occasion for snacks
Ease of opening is under-utilised in snacks
TYPES OF SNACKS EATEN
Fresh fruit, crisps and chocolate are the nation’s top three snacks
Figure 12: Snacks eaten in the last two weeks, February 2018
Under-35s and parents are top users of sweet snacks
Biscuits buck the trend
Savoury snacks’ usage holds up better across ages
Fresh fruit appeals to all ages, under-35s drive trendy snacks
Under-35s have widest repertoires
Figure 13: Repertoire of snacks eaten in the last two weeks, February 2018
FREQUENCY OF SNACKING
Snacks are on the daily menu for most
Figure 14: Frequency of eating snacks, February 2018
WHERE PEOPLE SNACK
Home is still where people snack the most
Figure 15: Where people snack, February 2018
Emotions come to the fore in at-home snacking
Marketing campaigns shift focus to connecting people
Two thirds of workers snack out of home
Out-of-home occasions necessitate convenient formats
Younger groups snack out of home the most
Parents’ busy lifestyles fuel snacking out and about
ROLE OF HEALTHINESS IN SNACK CHOICE
Only two in five snackers look mostly for healthy snacks
Figure 16: How often people try to eat healthily and look for a healthy snack, November 2017 and February 2018
Frequent snackers are much more likely to focus on healthy choices
WHAT PEOPLE LOOK FOR IN A HEALTHY SNACK 
No magic bullet – Health priorities are fragmented
Figure 17: What people look for in a healthy snack, February 2018
Low sugar holds the lead, followed by low fat
Saying goodbye to sweet snacks beats low sugar
Low-sugar and low-fat claims work together
100-calorie claim must work harder
SNACKING BEHAVIOURS
Snacks’ mood boost and energising roles chime widely
Figure 18: Snacking behaviours, February 2018
No authorised satiety claims under EFSA, but energy-yielding claims appearing
Snacking seen as an aspect of busy lifestyles
More scope for messages focused on catering or countering to busy lifestyles
Snacking chips away at meals
Breakfast and lunch are at risk
Further blurring of boundaries ahead?
SNACKING ATTITUDES
Evenings in still a key occasion for snacks
Figure 19: Snacking attitudes, February 2018
Big night in benefits from people going to cinema less
Brands look to align with evenings in
IMPORTANT CONVENIENCE FACTORS IN SNACK CHOICE
Ease of opening is under-utilised in snacks
Figure 20: Important convenience factors in snack choice, February 2018
Resealability speaks to waste concerns and stop-and-start snacking
Mess-free appeals widely
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 21: Share of new products in the UK snack market, by sub-category, 2013-18