Healthy Snacking - US - June 2009

SCOPE AND THEMES
What you need to know
Definition
Figure 1: Foods eaten as snacks and as healthy snacks, February 2009
Data sources
Sales data
Consumer survey data
Advertising creative
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
Market at a glance
Challenges abound
But so do opportunities
12 diverse segments show mixed results through FDMx
Innovations include fortified/functional versions of familiar snacks and new snacks that blur category lines
What is a healthy snack?
What do people want in healthy snacks?
Race/Hispanic origin affects views on snack foods
Better-for-you and better-for-planet positioning of SunChips
Creating a weapon against “bad” snacks helps promote sales
INSIGHTS AND OPPORTUNITIES
Known flavors help consumers manage expectations
Sweet potatoes move from exotic to commonplace
Consumers are seeing through 100-calorie packs
Boomer food
Raw food trend and nutrition bars
Figure 2: Natural supermarkets’ retail sales of nutrition and energy bars, by type, 2006 and 2008
INSPIRE INSIGHTS
 CUSTOMIZATION
What it’s about
What we’ve seen
Implications for healthy snacking
 MOOD FROM FOOD
What it’s about
What we’ve seen
Implications for healthy snacking
MARKET SIZE AND FORECAST
Key points
Snack food sales rise, but not as fast as inflation
Volumes decline while prices rise
Figure 3: FDMx sales of healthy snacks, at current prices, 2003-13
Figure 4: FDMx sales of healthy snacks, at inflation-adjusted prices, 2003-13
COMPETITIVE CONTEXT
Key points
More competition from private label
Snack bars
Yogurt
QSR value menus and snacks continue to compete for snack dollars
Innovation in natural/organic markets gives direction for larger healthy snacking market
SEGMENT PERFORMANCE
Key points
Dairy segments show strong growth
Fiber in snack bars has sparked new interest in a stagnating segment
Trail mix and rice/popcorn cakes grow
Dried fruit/snacks and BFY chips grow slowly
Sales and forecast
Figure 5: FDMx sales of healthy snacks, by segment, 2006 and 2008
SEGMENT PERFORMANCE—CHEESE
Key points
Natural cheese carries segment
Most forms of natural cheese grow
Natural cheese takes share from processed
Incidence of eating cheese as a healthy snack
Figure 6: Incidence of eating cheese as a snack and as a healthy snack, 2009
SEGMENT PERFORMANCE—CEREAL
Key point
Mature segment with little growth
Thinking outside the box
Healthier options come at a premium
Incidence of eating cereal as a healthy snack
Figure 7: Incidence of eating cereal as a snack and as a healthy snack, 2009
SEGMENT PERFORMANCE—CRACKERS
Key points
Uneven sales results vary by type of cracker
Baked and wholegrain versions propel sales
Incidence of eating crackers as a healthy snack
Figure 8: Incidence of eating crackers as a snack and as a healthy snack, 2009
Sales and forecast
Figure 9: FDMx sales and forecast of crackers, at current prices, 2003-13
SEGMENT PERFORMANCE—YOGURT
Key points
Strong growth through innovation and the addition of new flavors
Functional benefits grow segment
Dessert-flavored yogurts complement traditional fruit varieties
Superfruits find a new medium
Incidence of eating yogurt as a healthy snack
Figure 10: Incidence of eating yogurt as a snack and as a healthy snack, 2009
SEGMENT PERFORMANCE—ENERGY, CEREAL, DIET AND SNACK BARS
Key points
Inherent portability and convenience grow segment
Bars are packed with fiber
Sales of nutrition and energy bars in the natural channel
Figure 11: Natural product supermarket retail sales of nutrition and energy bars, at current prices, 2006-08
Incidence of eating energy/diet/cereal/snack bars as a healthy snack
Figure 12: Incidence of eating energy/diet/cereal/snack bars as a snack and as a healthy snack, 2009
SEGMENT PERFORMANCE—NUTS AND SEEDS
Key points
Sales rise even amid safety concerns
Snack nuts are taking on new shapes and flavors
Recalls have not had severe negative effects
Incidence of eating nuts and seeds as a healthy snack
Figure 13: Incidence of eating nuts and seeds as a snack and as a healthy snack, 2009
Sales and forecast
Figure 14: FDMx sales and forecast of nuts and seeds, at current prices, 2003-13
SEGMENT PERFORMANCE—DRIED FRUIT AND FRUIT SNACKS
Key points
Fruit snacks a drag on sales
Superfruits attract attention to the segment
Prunes get a makeover
Interest in other dried fruits detracts from raisins
Incidence of eating dried fruit and fruit snacks as a healthy snack
Figure 15: Incidence of eating dried fruit and fruit snacks as a snack and as a healthy snack, 2009
Sales and forecast
Figure 16: FDMx sales and forecast of dried fruit and fruit snacks, at current prices, 2003-13
SEGMENT PERFORMANCE—BFY CHIPS
Key points
Olestra and Light chips drag on sales
Whole grains and baked chips drive sales
Incidence of eating potato/corn chips as a healthy snack
Figure 17: Incidence of eating potato/corn chips as a snack and as a healthy snack, 2009
Sales and forecast of BFY chips
Figure 18: FDMx sales and forecast of BFY chips, at current prices, 2003-13
SEGMENT PERFORMANCE—POPCORN
Key points
Diacetyl concerns and lack of innovation stifle growth
RTE and kernel go organic
Incidence of eating popcorn as a healthy snack
Figure 19: Incidence of eating popcorn as a snack and as a healthy snack, 2009
Sales and forecast
Figure 20: FDMx sales and forecast of popcorn, at current prices, 2003-13
SEGMENT PERFORMANCE—PRETZELS
Key points
Thins and crisps and flavored varieties grow sales
Incidence of eating pretzels as a healthy snack
Figure 21: Incidence of eating pretzels as a snack and as a healthy snack, 2009
Sales and forecast
Figure 22: FDMx sales and forecast of pretzels, at current prices, 2003-13
SEGMENT PERFORMANCE—TRAIL MIX
Key point
Exotic mixes give new life to the segment
Incidence of eating trail mix as a healthy snack
Figure 23: Incidence of eating trail mix as a snack and as a healthy snack, 2009
Sales and forecast
Figure 24: FDMx sales and forecast of trail mix, at current prices, 2003-13
SEGMENT PERFORMANCE—RICE/POPCORN CAKES
Key points
Rice cakes struggle to deliver the flavor consumers want
Incidence of eating rice/popcorn cakes as a healthy snack
Figure 25: Incidence of eating rice/popcorn cakes as a snack and as a healthy snack, 2009
Sales and forecast
Figure 26: FDMx sales and forecast of rice/popcorn cakes, at current prices, 2003-13
MARKET DRIVERS
Key points
Unemployment and fears of job loss lead consumers to tighten food budgets
Figure 27: Seasonally adjusted unemployment rate, 16 years and older, by month, 2000-09
Weight issues create market for healthier alternatives
Figure 28: Age-adjusted* prevalence of overweight and obesity among U.S. adults, age 20 and over, 1988/94-2005/06
Childhood obesity is an ongoing concern
Figure 29: Prevalence of overweight among children and adolescents aged 6-19 years, 1971/74-2005/06
Growth in food allergies creates market for low-allergen foods
More people reading labels means fewer foods may be seen as “healthy”
SELECTED BRAND ANALYSIS—CHEESE
Key points
Kraft processed and natural sales take a tumble
Sargento grows on natural products
Manufacturer and brand sales
Figure 30: Selected FDMx brand sales of cheese, 2008 and 2009
SELECTED BRAND ANALYSIS—CEREAL
Key point
Kashi meets BFY demand and hits popular price point
Special K as a dieter’s friend
Manufacturer and brand sales
Figure 31: Selected FDMx brand sales of cereal, 2008 and 2009
SELECTED BRAND ANALYSIS—CRACKERS
Key point
More BFY brands hit FDMx
Whole grains and baked varieties boost traditional brands
Toasted versions are on the decline
Manufacturer and brand sales
Figure 32: Selected FDMx brand sales of crackers, 2008 and 2009
SELECTED BRAND ANALYSIS—YOGURT
Key points
Brands promoting digestive health thrive
Manufacturer and brand sales
Figure 33: Selected FDMx brand sales of yogurt, 2008 and 2009
SELECTED BRAND ANALYSIS—ENERGY, CEREAL, DIET AND SNACK BARS
Key points
Fiber continues to reinvigorate category
Sales of diet bars uneven
Manufacturer and brand sales
Figure 34: Selected FDMx brand sales of energy/cereal/diet/snack bars, 2008 and 2009
SELECTED BRAND ANALYSIS—NUTS AND SEEDS
Key point
Innovative packaging helps consumers count calories
Kraft expands its natural offerings
Manufacturer and brand sales
Figure 35: Selected FDMx brand sales of nuts and seeds, 2008 and 2009
SELECTED BRAND ANALYSIS—DRIED FRUIT AND FRUIT SNACKS
Key points
Antioxidants and fiber hit the sweet spot
Manufacturer and brand sales
Figure 36: Selected FDMx brand sales of dried fruit and fruit snacks, 2008 and 2009
SELECTED BRAND ANALYSIS—BFY CHIPS
Key points
BFY snack giants lose traction
Manufacturer and brand sales
Figure 37: Selected FDMx brand sales of BFY chips, 2008 and 2009
SELECTED BRAND ANALYSIS—POPCORN
Key points
Natural and organic are the key words
Smart Food appears in your microwave
Pop Secret changes hands
Manufacturer and brand sales
Figure 38: Selected FDMx brand sales of popcorn, 2008 and 2009
SELECTED BRAND ANALYSIS—PRETZELS
Key point
Snyder’s multigrain misses mark
Manufacturer and brand sales
Figure 39: Selected FDMx brand sales of pretzels, 2008 and 2009
SELECTED BRAND ANALYSIS—TRAIL MIX
Key point
Kraft launches more natural products
Manufacturer and brand sales
Figure 40: Selected FDMx brand sales of trail mix, 2008 and 2009
SELECTED BRAND ANALYSIS—RICE/POPCORN CAKES
Key point
Highly concentrated segment owned by Quaker Oats Company (PepsiCo)
Manufacturer and brand sales
Figure 41: Selected FDMx brand sales of rice/popcorn cakes, 2008 and 2009
BRAND QUALITIES
Key point
SunChips, the better-for-the-planet snack
INNOVATION AND INNOVATORS
Omega-3 and antioxidants in new versions of familiar snacks
Nut crisps offer a non-traditional way to consume nuts
ADVERTISING AND PROMOTION
Key points
 MANUFACTURER INITIATIVES
PepsiCo Inc.
Quaker Foods
Frito-Lay
A Woman’s World (Frito-Lay)
Figure 42: Awomansworld.com (Frito-Lay) TV ad, 2009
Brand-specific ad activity
Kashi wants to make all eating occasions healthier
Philadelphia Cream Cheese (Kraft Foods) is not just for breakfast anymore
Emerald Nuts (Diamond Foods) uses humor
Yoplait Whips (General Mills) become an indulgent, but healthy treat
Figure 43: Yoplait Whips TV ad, 2008
Dannon Light & Fit (Groupe Danone) is too good to resist
Figure 44: Dannon Light & Fit TV ad, 2009
Activia (Groupe Danone) works or your money back
Kellogg’s Special K (Kellogg Co.) competes with traditional chocolate treats
Figure 45: Kellogg’s Special K Chocolately Delight TV ad, 2009
Sunsweet Ones (Sunsweet Growers) aren’t your grandparents’ prunes
Figure 46: Sunsweet Ones TV ad, 2007
Partnerships with retailers
WHAT IS A HEALTHY SNACK?
Key points
Snacks more likely to be salty than fruity
Figure 47: Foods eaten as snacks and as healthy snacks, February 2009
Women have a broader view of what makes a healthy snack
Figure 48: Foods eaten as snacks, by gender, February 2009
Figure 49: Foods eaten as healthy snacks, by gender, February 2009
Healthy snacking is a daily occurrence
Figure 50: Incidence of eating a healthy snack, February 2009
ATTITUDES AND MOTIVATIONS
Key points
Attributes that make a snack healthy
Figure 51: Important attributes when choosing a healthy snack, by gender, February 2009
Younger adults willing to sacrifice taste for health, while older adults look for what’s not in a snack
The search for energy not limited to drinks
Figure 52: Important attributes when choosing a healthy snack, by age, February 2009
No surprise—women place higher value on healthy eating
Figure 53: Behaviors and opinions towards healthy snacking, by gender, July 2007-September 2008
Healthy eating concerns appear to be grown into
Figure 54: Behaviors and opinions towards healthy snacking, by age of head of household, July 2007-September 2008
Majority of respondents have not let the down economy impact their snacking habits
Figure 55: How snacking habits have changed along with changes in economy, by age, February 2009
RACE AND HISPANIC ORIGIN
Key points
Black and Hispanic respondents show higher interest in price and nutrition
Figure 56: Important attributes when choosing a healthy snack, by race/Hispanic origin, February 2009
Hispanics least likely to snack between meals, but most likely to try new healthy snacks
Figure 57: Behaviors and opinions towards healthy snacking, by race/Hispanic origin, July 2007-September 2008
Hispanics changing snacking habits with economy
Figure 58: How snacking habits have changed along with changes in economy, by race/Hispanic origin, February 2009
CUSTOM CONSUMER GROUPS
Key points
Young men want it all
Figure 59: Attributes important to men when choosing a healthy snack, by age, February 2009
What older women want from a snack
Figure 60: Attributes important to women when choosing a healthy snack, by age, February 2009
Kids go to mom to get what they want
Figure 61: Important attributes when choosing a healthy snack for children, dads vs. moms, February 2009
Dads snacking healthier in response to changes in the economy
Figure 62: How snacking habits have changed along with changes in economy, dads vs. moms, February 2009
CLUSTER ANALYSIS
Introduction
Tasties
Who they are
Opportunity
Steadies
Who they are
Opportunity
Cluster 3: Adjusters
Who they are
Opportunity
Cluster characteristics
Figure 63: Healthy snacking clusters, February 2009
Figure 64: Incidence of eating a healthy snack, by healthy snacking clusters, February 2009
Figure 65: Important attributes when choosing a healthy snack, by healthy snacking clusters, February 2009
Figure 66: How snacking habits have changed along with changes in economy, by healthy snacking clusters, February 2009
Cluster demographics
Figure 67: Healthy snacking clusters, by gender, February 2009
Figure 68: Healthy snacking clusters, by age, February 2009
Figure 69: Healthy snacking clusters, by HH income, February 2009
Figure 70: Healthy snacking clusters, by race, February 2009
Figure 71: Healthy snacking clusters, by Hispanic origin, February 2009
Cluster methodology
APPENDIX: OTHER USEFUL CONSUMER TABLES
Detailed sample sizes for foods eaten as snack and considered a healthy snack
Figure 72: Foods eaten as snacks and as healthy snacks, February 2009
APPENDIX: TRADE ASSOCIATIONS