Crisps, Savoury Snacks and Nuts - UK - February 2020

 OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Volume and value growth continue and the future looks rosy
Figure 1: Forecast of UK retail value sales of crisps, savoury snacks and nuts, 2014-24
Potato-based and other snacks thrive, while popcorn’s value begins to decline
Figure 2: UK retail value sales of crisps, savoury snacks and nuts, by segment, 2018 and 2019
Mealtime ‘snackification’ and ongoing concerns over sugar benefit the market
Government’s initiatives to improve the nation’s health affect the market
Public awareness of environmental impact of plastic increases
Companies and brands
Walkers’ core range suffers whilst its other lines, and own-label, see healthy growth
Figure 3: Leading brands’ shares in the UK crisps market, by value, 2018/19*
Strong performances across some top brands and own-label in potato-based, baked and other snacks
Figure 4: Leading brands’ shares in the UK potato-based, baked and other snacks market, by value, 2018/19*
A rise in protein claims, whilst L/N/R fat claims fall in new launches
Brands improve the environmental credentials of their packaging
Adspend reaches five-year high in 2019
Walkers continues to lead in positive perceptions
The consumer
Crisps, savoury snacks and nuts usage is extremely high across all age groups
Figure 5: Types of crisps/crisp-style snacks eaten, October 2019
Taste is the overriding priority for consumers; Millennials are most focused on health
Figure 6: Crisps, savoury snacks and nuts buying factors, October 2019
Favourite flavour and brand are top factors when buying crisps for oneself
Figure 7: Factors considered most important in a crisp or crisp-style snack, October 2019
High demand for more healthier options, yet scepticism lingers over reduced-salt varieties
Figure 8: Behaviours relating to crisps, savoury snacks and nuts, October 2019
Palm oil is a turn-off; over half of users see the snacks as mood-boosting
Figure 9: Attitudes towards crisps, savoury snacks and nuts, October 2019
What we think
ISSUES AND INSIGHTS
Demand for healthier products within the category remains high
The facts
The implications
‘Positive nutrition’ NPD can capitalise on the ‘snackification’ of mealtimes
The facts
The implications
Focus on ethical and environmental credentials can help brands distinguish themselves
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Continuous volume and value growth over 2014-19
A positive outlook for the category over the next five years
Potato-based and other snacks thrive
Nuts continue to benefit from health halo and rise in NPD
Popcorn value begins to decline, while meat snacks continue to grow
Mealtime ‘snackification’ and ongoing concerns over sugar benefit the market
Government’s initiatives to improve the nation’s health affect the market
Public awareness of environmental impact of plastic increases
MARKET SIZE AND FORECAST
Continuous volume and value growth over 2014-19
Healthy innovation has supported growth
The market also benefits from wider snacking trends
A slowdown in growth in 2019
Figure 10: UK retail value and volume sales of crisps, savoury snacks and nuts, 2014-24
Further volume growth ahead
Embedded snacking culture and healthier NPD will support growth
Growth of 15-24s and evenings in will benefit the category
Figure 11: Forecast of UK retail value sales of crisps, savoury snacks and nuts, 2014-24
Figure 12: Forecast of UK retail volume sales of crisps, savoury snacks and nuts, 2014-24
Forecast methodology
MARKET SEGMENTATION
Potato-based and other snacks thrive
Figure 13: UK retail value sales of crisps, savoury snacks and nuts, by segment, 2014-19
Figure 14: UK retail volume sales of crisps, savoury snacks and nuts, by segment, 2014-19
Potato crisps/chips slip into decline
Volume sales of baked snacks drop, but values return to growth
Popcorn value begins to decline
Meat snacks see healthy growth in value sales
Nuts continue to benefit from health halo
Figure 15: UK retail value and volume sales of nuts, by sub-segment, 2017-19
MARKET DRIVERS
Snacking is entrenched in British habits, and encroaching upon mealtimes
Meat snacks, nuts and high-protein savoury snacks benefit from enduring interest in protein
National Food Strategy prompts calls for lower salt
Calls for snacking to be banned on public transport
Government proposes crackdown on ‘junk food’ promotions and advertising
Parents have nutrition concerns within this category
Public awareness of environmental impact of plastic increases
Brands partner with TerraCycle to improve their environmentally friendly credentials
Heavy flooding and Brexit could affect crisp prices in 2020
Ageing population snack less but number of 15-24s set to increase
Figure 16: Trends in the age structure of the UK population, 2014-19 and 2019-24
Uncertainty around Brexit and the economic outlook
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Walkers’ core crisps range suffers whilst its other lines, and own-label, grow
Strong performances across some top brands and own-label in potato-based, baked and other snacks
Propercorn wins share in the popcorn segment
A rise in protein claims, whilst L/N/R fat claims fall
Seasonal launches see adventurous innovation
McCoy’s and Pringles tap into the popularity of world cuisine
Brands improve the environmental credentials of their packaging
Advertising spend reaches five-year high in 2019
Walkers continues to lead in positive perceptions
MARKET SHARE
Continued M&A activity in 2019
Walkers’ core range suffers whilst its other lines see healthy growth
Figure 17: Leading brands’ sales and shares in the UK crisps market, by value and volume, 2017/18 and 2018/19
Kettle feels the pressure
McCoy’s retains second place in crisps
Seabrook enjoys value growth
Strong performances across some top brands and own-label in potato-based, baked and other snacks
Hula Hoops enjoys strong value and volume growth
Pringles boosted by new launch activity
Most of Walkers’ brands grow in potato-based, baked and other snacks
Figure 18: Leading brands’ sales and shares in the UK potato-based, baked and other snacks market, by value and volume, 2017/18 and 2018/19
Butterkist sales stabilise
Figure 19: Leading brands’ sales and shares in the UK popcorn market, by value and volume, 2017/18 and 2018/19
Own-label remains market leader in nuts
Figure 20: Leading brands’ sales and shares in the UK nuts market, by value and volume, 2017/18 and 2018/19
Peperami and Fridge Raiders continue to dominate meat snacks
Figure 21: Leading brands’ sales and shares in the UK meat snacks market, by value and volume, 2017/18 and 2018/19
LAUNCH ACTIVITY AND INNOVATION
A rise in protein claims
Figure 22: Share of new product launches in the UK crisps, savoury snacks and nuts market, by top 20 claims, 2015-19 (sorted by 2019)
Figure 23: Savoury snack launches with an emphasis on protein, 2019
Growth in fibre claims…
Figure 24: Brave Sweet Chilli Flavoured Roasted Chickpeas, 2019
Packaging revamp for KP highlights protein and fibre
Figure 25: New pack design for KP Nuts, 2019
Graze extends Crunch range
Figure 26: Graze Lightly Sea Salted Crunch, 2019
…whilst L/N/R fat and calorie claims fall
Walkers extends Oven Baked range to include vegetable crisps
Figure 27: Walkers Oven Baked with Veg, 2019
Just 3% of launches carried L/N/R calorie claims in 2019
Figure 28: Share of new product launches in the crisps, savoury snacks and nuts market featuring high/added fibre, L/N/R fat, high/added protein and L/N/R calorie claims, 2015-19
Propercorn extends into lentil chips with less than 100 calories
Sainsbury’s ‘Taste of the Future’ helps emerging snack brands get a foothold
Innovation using more unusual base ingredients continues
Figure 29: Not Corn Sweet & Salty Popped Sorghum, 2019
Popped lotus seeds have burst onto the snacking scene
Figure 30: Guruji Salt & Cacao Popped Lotus Seeds, 2019
Nairn’s diversifies into popped snacks
Figure 31: Nairn’s Pop Oats Sour Cream & Chive Popped Oat Snacks, 2018
Walkers unveils Hint of Salt line
Brands improve the environmental credentials of their packaging
Smaller brands explore greener materials
Figure 32: Just Natural Organic Blanched Almonds with compostable packaging, 2019
Figure 33: Two Farmers Salt & Cider Vinegar Herefordshire Hand-Cooked Crisps, 2019
Figure 34: Natural Selection Raw Crunchy Cashew Nuts, 2020
Graze sets out an ambitious plastic reduction plan
Brands respond to food waste
Figure 35: Savoury snack launches with an emphasis on tackling food waste, 2019
Meat snacks see a rise in NPD…
Figure 36: Recent meat snack launches,  2019
...and vegan jerky alternatives start appearing on shelves
Figure 37: Examples of vegan jerky, 2019
Walkers adds to the Max range
Seasonal launches see adventurous innovation
Figure 38: Examples of seasonal launches, 2019
International flavours continue to attract NPD
Retailers look to world flavours in their premium ranges
International snack and dip products emerge
KP Snacks responds to popularity of Mexican flavours with McCoy’s Muchos
Pringles launches Rice Fusions
Shoppers poll chooses new Pringles Piri Piri flavour
Old El Paso launches Tortilla Bowl format
Figure 39: Old El Paso Tortilla Bowls with Sea Salt, 2019
Danone launches an allergy-friendly kids’ range
Figure 40: Marty’s Barbeque popped Chickpea Chips, 2019
Innovation in ‘savoury’ snacks
ADVERTISING AND MARKETING ACTIVITY
TV advertising loses spend, digital and cinema
Figure 41: Total above-the-line, online display and direct mail advertising expenditure on crisps, savoury snacks and nuts, by media channel, 2015-19
Figure 42: Total above-the-line, online display and direct mail advertising expenditure on crisps, savoury snacks and nuts, by advertiser, 2015-19
Walkers enlists the Spice Girls to kick off ‘Too Good to Share’…
…maintaining the message throughout its campaigns
Walkers spends big on Mariah Carey for Christmas
Pringles marks new launch with £3 million campaign
Peperami supports repositioning with seven-figure marketing campaign
KP Snacks supports Tyrrells with “Tyrrellbly Tyrrellbly tasty” campaign
KP partners with Movember to raise awareness for men’s health
KP Snacks makes significant investment in Flavarings
Flavour calls for McCoy’s Muchos
Butterkist campaign encourages consumers to ‘get things popping’
Criticism of cricket tournament for KP Snacks sponsorship
Graze goes big on advertising
BRAND RESEARCH
Brand map
Figure 43: Attitudes towards and usage of selected brands, December 2019
Key brand metrics
Figure 44: Key metrics for selected brands, December 2019
Brand attitudes: Walkers sets itself apart on positive perceptions
Figure 45: Attitudes, by brand, December 2019
Brand personality: Pringles wins on the fun factor
Figure 46: Brand personality – macro image, December 2019
Walkers is the most traditional, family-friendly brand
Figure 47: Brand personality – micro image, December 2019
THE CONSUMER – WHAT YOU NEED TO KNOW
Usage is extremely high across all age groups
Crisps and crisp-style snacks enjoy most frequent usage in the market
Taste is the overriding priority for consumers
Millennials are most focused on the healthiness of savoury snacks
High demand for more healthier options for adults and children…
…but consumers are sceptical of reduced-salt varieties
More vegan options interest nearly half of 16-34s
Palm oil puts 48% of users off snacks
Over half of users see the snacks as mood-boosting
‘Snackification’ of mealtimes provides opportunities for high-protein NPD
USAGE OF CRISPS, SAVOURY SNACKS AND NUTS
Usage is extremely high across all age groups
Young women have the broadest repertoires
Figure 48: Repertoire of types of crisps, savoury snacks and nuts eaten, October 2019
Crisps enjoy greatest popularity
Figure 49: Percentage of different types of crisps/crisp-style snacks eaten, October 2019
Nuts benefit from health halo
Figure 50: Types of nuts eaten, October 2019
Meat snacks and popcorn enjoy highest popularity amongst 16-24s
Figure 51: Types of other savoury snacks eaten, October 2019
Baked savoury snacks’ popularity demonstrates interest in healthier options
Over a third choose hand-cooked snacks
Figure 52: Types of snacks eaten, October 2019
FREQUENCY OF EATING CRISPS, SAVOURY SNACKS AND NUTS
Crisps and crisp-style snacks enjoy most frequent usage
Figure 53: Frequency of eating crisps, savoury snacks and nuts, October 2019
Popcorn fails to carve a place as a daily snack
Nuts buck trend of other subcategories’ youth bias in usage frequency
CRISPS, SAVOURY SNACKS AND NUTS CHOICE FACTORS
Taste is the overriding priority for consumers
Figure 54: Crisps, savoury snacks and nuts choice factors, October 2019
Only a third prioritise healthiness
Millennials are most focused on how healthy their savoury snacks are
Price is less important than taste
Ethical and environmental considerations aren’t a huge priority…
…but a proactive approach can nonetheless garner interest and create standout
Favourite flavour and brand are top factors when buying crisps for oneself
Figure 55: Factors considered most important in a crisp or crisp-style snack, October 2019
Opportunity for new twists on favourite flavours
BEHAVIOURS RELATING TO CRISPS, SAVOURY SNACKS AND NUTS 
High demand for more healthier options for adults
Alternative base ingredients hold potential
A rounded better-for-you proposition is needed
Figure 56: Behaviours relating to crisps, savoury snacks and nuts, October 2019
Three in four parents think there should be more healthier snacks for children
Consumers sceptical of reduced-salt varieties
More vegan options interest nearly half of 16-34s
Palm oil puts 48% of users off snacks
Figure 57: Brave Dark Chocolate Flavoured Roasted Chickpeas back packaging detail, 2019
Local ingredients would be popular with over half of consumers
ATTITUDES TOWARDS CRISPS, SAVOURY SNACKS AND NUTS
Over half of users see the snacks as mood-boosting
Scope to further build on feelgood connotations
Figure 58: Attitudes towards crisps, savoury snacks and nuts, October 2019
‘Snackification’ of mealtimes provides opportunities for high-protein NPD
Interest in organic options is high
Snacks play a significant role in Big Night In
APPENDIX – DATA SOURCES, ABBREVIATIONS, AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology
APPENDIX – MARKET SIZE AND FORECAST
Forecast methodology
Figure 59: Total UK retail value sales of crisps, savoury snacks and nuts, best- and worst-case forecast, 2019-24
Figure 60: Total UK retail volume sales of crisps, savoury snacks and nuts, best- and worst-case forecast, 2019-24
APPENDIX – MARKET SHARE
Figure 61: Leading manufacturers’ sales and shares in the UK crisps market, by value and volume, 2017/18 and 2018/19
Figure 62: Leading manufacturers’ sales and shares in the UK potato-based, baked and other snacks market, by value and volume, 2017/18 and 2018/19
Figure 63: Leading manufacturers’ sales and shares in the UK popcorn market, by value and volume, 2017/18 and 2018/19
Figure 64: Leading manufacturers’ sales and shares in the UK nuts market, by value and volume, 2017/18 and 2018/19
Figure 65: Leading manufacturers’ sales and shares in the UK meat snacks market, by value and volume, 2017/18 and 2018/19
APPENDIX – LAUNCH ACTIVITY AND INNOVATION
Figure 66: Share of product launches in the UK crisps, savoury snacks and nuts market, by sub-segment, 2015-19 (sorted by 2019)
APPENDIX – ADVERTISING AND MARKETING ACTIVITY
Figure 67: Total above-the-line, online display and direct mail advertising expenditure on crisps, savoury snacks and nuts, by advertiser, 2015-19
APPENDIX – BRAND RESEARCH
Pringles user profile
Figure 68: User profile of Pringles, December 2019
Walkers user profile
Figure 69: User profile of Walkers, December 2019
Tyrrells user profile
Figure 70: User profile of Tyrrells, December 2019
Doritos user profile
Figure 71: User profile of Doritos, December 2019
Kettle user profile
Figure 72: User profile of Kettle, December 2019
McCoy’s user profile
Figure 73: User profile of McCoy’s, December 2019
Popchips user profile
Figure 74: User profile of Popchips, December 2019