Everyday snacking
After the Covid pandemic the snacking trend strengthened further, as we got used to eating on the go again. We like modern snacks – enjoying tasty food and at the same time feeling that we are conscious and responsible consumers.
This article is available for reading in Trade magazin 2023/5
Let’s make it clear: snack means all kinds of food and drink enjoyed between meals, purchased in a bakery, at the greengrocer’s or from a vending machine.
Cause and effect
Today snacks aren’t necessarily impulse products, as there is a phenomenon called planned snacking, which is about consumer consciousness and benefits from the fact that owing to their diversity and added values, whole diets can be built around snacks. It seems that the current high inflation hasn’t done serious damage to the snack category, it just changed it to a certain extent. Interestingly it was the consumption of private label snacks that dropped in the last twelve months, while sales of branded snacking products hardly reduced. However, how people think about snacking and what we can call a snack is definitely changing, for instance the selection of “light” snacks is growing.
Every day is a surprise
Even when there are economic hardships and consumers are rethinking their spending, where they start the economising isn’t health and eating. Quite often snacks are highly positioned products, but they are of the size and kind that make them affordable. This is the reason why manufacturers tend to use premium ingredients in snacks, which have special colour, taste, etc. The main source of new flavours is international cuisine and unusual flavour combinations. There is no need to worry, though, as classic flavours will always have their place on the snacking scene – hot and cheese flavours haven’t lost their popularity, just like chocolate and strawberry are at the top of the list of sweet flavours. Crisps continue to be very popular, but new ingredients are entering the category, such as sweet potato, mushroom, squash, cauliflower, flour from legume or certain fruits, dried fruits and meats, etc. It doesn’t matter which flavour or snack ingredient we are talking about, experts say it is the younger generations who like snacking the most, with the members of generation Y and Z being the most receptive to new innovations.
Modern mentality
It doesn’t come as a surprise that the “plant-based” craze has reached the snacking category too; what is more, there are much more brands and product types for consumers who have quit meat or try to eat less from it. In the last 2-3 years the proportion of products made with dairy, egg and meat substitutes has been growing unbelievably fast. Health trends also have their influence on snacks, and there are products which can provide extra energy or contribute to a better mental performance. Snack makers are researching special technologies too. They more and more frequently use the technique of lyophiliation (freeze drying), which perfectly preserves the taste and useful elements in a given snack ingredient.
Although the pandemic had a negative impact on the importance of sustainability and ethical retail, the snacking segment was among the first to get back on its feet in this respect – perhaps because snack buying consumers are probably more interested in these topics. Sustainability and the use of natural ingredients are important directions in developing new snacks. One thing is for sure: shoppers want value for their money, and these values need to be instantly recognisable! //
A price-sensitive category
In the snack category cheaper segments are coming up, such as popcorn. Price and promotions have become more important. Interestingly the drop in private label snack consumption was bigger in the last year, while sales of branded snacks hardly decreased. The health trend has affected the snack category too, as the selection of light products is growing. Intersnack prefers to use natural ingredients even if they are more expensive. //
The nuts are coming!
As a reaction to the needs of more conscious shoppers who wish to have healthier snacks, Kifli.hu has increased the share of nuts and oven baked snacks in its product selection. Popcorn’s share also keeps growing. There are new market players as well: Kifli.hu is one of the few places where edible insects can be bought, and our dried fruit selection hasn’t been this big for a year. //
Growing share for private labels
During the last year snack volume sales dropped 7-8%, due to the high inflation and the extending of the public health product tax (NETA) in 2022. The market share of private labels has increased, especially in the breakfast cereal and muesli segments, despite that private label product prices have been growing faster. Many new products and innovations have appeared in the bar segment. //
Psychological threshold
In general what we see is that shoppers react to higher prices by more planned shopping trips and fewer impulse purchases – the latter obviously affects the snack segment. However, rising prices can create a psychological threshold, when the prices of certain products go above a given point. This is the moment when consumers say “I am not buying it for this much money”. Pek-Snack has come out with wallet-friendly offers and started monthly price promotions. //
Consumers demand brave and special flavours
Our recent experience is that shoppers are searching for snacks with brave and special flavours. They also like it if snacks are practical, easy to reseal, and can be eaten on the go. Various bars and protein shakes are also more and more popular, as for many people snacks now replace a meal. The ecological footprint and environmental impact of the food they eat matters more to consumer than before. //
Rising prices affect sales
Consumers want their snack products to be tasty and affordable, but recently healthiness has also become more important. Oven baked products have appeared in the category, and rice crisps and vegetable crisps are also popular. Sales are diminishing because of the growing prices. //
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