Hispanics' Snacking Preferences - US - February 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
The issues
Hispanics aren’t thinking about health and ingredients when choosing snacks
Figure 1: Hispanic snacking segments, October 2016 vs November 2018
Hispanics associate sweet and salty snacks with different needs and occasions
Figure 2: Correspondence Analysis – Snack type associations, November 2018
Sweet snacks encourage impulse purchases, salty snacks benefit from repeat purchases
Figure 3: Purchase behaviors – Sweet and salty snacks, November 2018
The opportunities
Bringing Spanish-dominant Hispanics on board
Figure 4: Hispanic households’ consumption of snacks, by language spoken at home and household income, July 2017-August 2018
Connecting through multiple channels
Figure 5: Snack information sources, November 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
Demographic factors influence how Hispanics relate to snacking
Lives are hectic
Hispanics’ approach to snacking indicates a shift in attitude
MARKET FACTORS 
The youth of the market diminishes need for healthy snacking
Figure 6: Distribution of population, by age and race/Hispanic origin, 2018
Larger household sizes democratize snacks consumption
Figure 7: Average number of people per household, by race and Hispanic origin, 2017
Figure 8: Households with related children, by race and Hispanic origin of householder, 2017
Hispanics’ lower household income is an obstacle for premium snacks
Figure 9: Median household income, by race and Hispanic origin of householder, 2017
Figure 10: Household income distribution, by race and Hispanic origin of householder, 2017
MARKET PERSPECTIVE
Fast-paced lifestyles are the norm
Hispanics think they are healthy
HISPANICS’ SNACKING SEGMENTS
Changes in snacking segments show healthy snacks are not a priority for Hispanics
Figure 11: Hispanics’ snacking segments, October 2016 vs November 2018
Conscious Snackers (11%)
Figure 12: Profile of Hispanic Conscious Snackers, November 2018
Therapeutic Snackers (21%)
Figure 13: Profile of Hispanic Therapeutic Snackers, November 2018
Averse Snackers (17%)
Figure 14: Profile of Hispanic Averse Snackers, November 2018
Indulgent Snackers (31%)
Figure 15: Profile of Hispanic Indulgent Snackers, November 2018
Unconcerned Snackers (20%)
Figure 16: Profile of Hispanic Unconcerned Snackers, November 2018
IMPLICATIONS OF HISPANIC SNACKING SEGMENTS 
Does the concept of healthy snacks resonate among Hispanics?
Figure 17: Hispanics’ attitudes toward healthy snacks, by attitudinal segments, November 2018
How big of a driver is indulgence?
Figure 18: Hispanics’ attitudes toward indulgent snacks, by attitudinal segments, November 2018
Do ingredients matter?
Figure 19: Hispanics’ attitudes toward ingredients, by attitudinal segments, November 2018
What are the other benefits in snacks?
Figure 20: Hispanics’ attitudes toward snacking benefits, by attitudinal segments, November 2018
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Fragmented market puts pressure on leveraging brand equity
Snacks face pressure from nontraditional competitors
WHAT’S HAPPENING?
Extending brands
Expanding flavors
Figure 21: Flavors of potato chips Hispanic households consume, indexed to all, July 2017-August 2018
Flavors worth exploring
Creating unexpected associations
Figure 22: Snickers News – Spanish-language TV ad, June 2017
Owning occasions
Figure 23: Brands of chocolate and other candy Hispanics personally consumed – Last 30 days, indexed to all, July 2017-August 2018
WHAT’S NEXT?
The concept of snacking will widen even further
THE CONSUMER – WHAT YOU NEED TO KNOW 
Spanish-dominant Hispanics hold the key to the category growth
Hispanics’ concepts of sweet and salty snacks are different
Sweet snack purchases are more impulsive than salty snack ones
Latin American brands need to define their value proposition to more acculturated Hispanics
Brands need to drive engagement at the store
HISPANIC HOUSEHOLDS’ SNACK CONSUMPTION  
Spanish-dominant Hispanics are significant opportunity
Figure 24: Hispanic households’ consumption of snacks, indexed to all, July 2017-August 2018
Figure 25: Hispanic households’ consumption of snacks, by language spoken at home and household income, July 2017-August 2018
Spanish-dominant Hispanics’ consumption growth skews sweet
Figure 26: Spanish-dominant Hispanic households’ consumption of snacks, trended, August 2013-August 2018
Hispanic teens’ snack consumption is consistent with average US teens for core snacks
Figure 27: Hispanic teens’ personal consumption of snacks, indexed to all Hispanics, July 2017-August 2018
Hispanic teens can influence their household snack consumption
Figure 28: Hispanic teens’ personal consumption of snacks, indexed to all Hispanics, July 2017-August 2018
SNACK TYPE ASSOCIATIONS 
Sweet and salty snacks consumption motived by different occasions
Figure 29: Correspondence Analysis – Snack type associations, November 2018
Figure 30: Snack type associations, November 2018
PURCHASE BEHAVIOR – SWEET AND SALTY SNACKS  
Sweet snacks are more likely to ignite curiosity
Figure 31: Purchase behaviors – Sweet and salty snacks, November 2018
Are Hispanics loyal to snacks?
Figure 32: Tendency to eat the snacks – Sweet and salty snacks, by key demographics, November 2018
Do Hispanics like to try new snacks?
Figure 33: Tendency to try new snack types – Sweet and salty snacks, by key demographics, November 2018
Which Hispanics buy snacks on impulse?
Figure 34: Impulse purchases – Sweet and salty snacks, by gender and age, and attitudinal segments, November 2018
LATIN AMERICAN BRANDS APPEAL – SWEET AND SALTY SNACKS 
Attachment to Latin American brands fades quickly
Figure 35: Latin American brands appeal – Sweet and salty snacks, November 2018
Figure 36: Latin American brands appeal – Sweet and salty snacks, by level of acculturation, November 2018
Bridge Builders are key to carrying on these brands
Figure 37: Latin American brands appeal – Sweet and salty snacks, by age, November 2018
SNACK INFORMATION SOURCES
Strong presence at POS is key to shift from awareness to action
Figure 38: Snack information sources, November 2018
Less-affluent Hispanics not learning about new products outside POS opportunities
Figure 39: Snack information sources, by language spoken at home and household income, November 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
A note about acculturation
Correspondence analysis’ methodology
APPENDIX – CONSUMER
Figure 40: Hispanic households’ consumption of snacks, by age of respondent, July 2017-August 2018
Figure 41: Hispanic households’ consumption of snacks, by household income, July 2017-August 2018
Figure 42: Hispanic households’ consumption of snacks, by language spoken at home, July 2017-August 2018
Figure 43: Hispanic households’ consumption of snacks, trended, August 2013-August 2018
Figure 44: English dominant Hispanic households’ consumption of snacks, trended, August 2013-August 2018
Figure 45: Fruit consumption as snack, by age, May 2018 (all US consumers), November 2018 (Hispanics)