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State of Global Snacking: New Growth FrontiersSNAXPO, April 2019
Jared Koerten, Head of Packaged Food
© Euromonitor International
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Euromonitor International
OVERVIEW
© Euromonitor International
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“Snackification” Trends
Health Trends Shape the Market
Snacking as Experience
Channel Shifts
“Snackification” Trends
Confectionery Sweet biscuits Snack bars
Ice cream Fruit snacks Savory snacks
© Euromonitor International
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StaplesSnacks
Sweet biscuits
Confectionery
Fruit snacks
Ice cream
Snack bars
Savory snacks
Baby food
Baked goods
Breakfast cereals
Dairy
Dessert mixes
Edible oils
Rice, pasta and noodles
Processed fruit and vegetables
Processed meat and seafood
Ready meals
Sauces, dressings and condiments
Soup
Spreads
7
© Euromonitor International
$15.6 billionRepresented by 0.7% of global
packaged food in 2018
$191 billionAbsolute growth in snacks
between 2008-18
56%Snacks growth between 2008-18
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Source: Euromonitor International
22.1% 22.5% 22.8%
77.9%
77.5%
77.2%
$0
$500
$1,000
$1,500
$2,000
$2,500
2008 2013 2018
Sale
s (U
SD b
illio
n)
Global Packaged Food: Snacks versus Staples, 2008-18
Staples
Snacks
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Younger consumers have driven this “snackification” of food
SNACKIFICATION TRENDS
2.88 2.79 2.14 1.32
Source: Euromonitor International Lifestyles Survey, 2016 n:28,305
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Generation Z Millennials Generation X Baby Boomers
% o
f re
spo
nd
ents
How many times per week do you typically buy a snack outside the home?
0 Times
>1 Time
1-2 Times
3-4 Times
5-6 Times
7+ Times
© Euromonitor International
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Occasions matter: Snacks take the place of traditional “sit down” meals
SNACKIFICATION TRENDS
Source: Euromonitor International Lifestyles Survey, 2011 n:15,933; 2017 n:28,466
+48.7%
+30.8%
+6.4%
+4.3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
7-10am (Breakfast) 12-2pm (Lunch) 5-8 pm (Dinner) All Other Times
% o
f re
spo
nd
ents
On a typical day, at what time do you eat a snack?
2011
2017
© Euromonitor International
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Younger consumers are particularly fond of snacking as meal replacement
SNACKIFICATION TRENDS
Source: Euromonitor International
18.6%
12.9%
16.5%17.5%
11.1%
13.5%14.4%
6.9%
10.1%11.2%
5.3%
7.7%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
7-10am (Breakfast) 12-2pm (Lunch) 5-8pm (Dinner)
% o
f re
spo
nd
ents
On a typical day, at what time do you eat a snack?
Generation Z
Millennials
Generation X
Baby Boomers
© Euromonitor International
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The battle for breakfast
SNACKIFICATION TRENDS
Source: Euromonitor International Source: Euromonitor International
0%
1%
2%
3%
4%
5%
6%
7%
Breakfast Cereals Snack Bars Yogurt Sweet Biscuits
CA
GR
, 20
13
-18
Global Breakfast Categories, 2013-18
$0
$100
$200
$300
$400
$500
$600
$700
$800
$900
2012 2013 2014 2015 2016 2017 2018
Sale
s (U
SD m
illio
n)
Disruptive Brands: Global Sales, 2012-18Belvita KIND
© Euromonitor International
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Manufacturers target mornings with breakfast innovations
SNACKIFICATION TRENDS
1. South Korea: Yohai Greek Yogurt Biscuits
2. Brazil: Dan’ Up & Nesfit
3. Saudi Arabia: Deemah Kleija
4. Philippines: Quaker Good Start
5. USA: Jack Links AM
1 2 3
4
5
Portability is critical for snack innovation
Source: Euromonitor International Lifestyles Survey, 2017 n:25,362
Single-serve Canisters
Pouches
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0% 10% 20% 30% 40%
Ready meals are tastier than thefood I cook myself
I do not like to cook
I do not cook very well
Ready meals are affordable
I would rather spend my timedoing other things
I do not have time to cook
More convenient than cooking
What are reasons you eat pre-prepared meals (versus cooking)?
© Euromonitor International
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Shrinking pack sizes speak to the growing importance of portability
SNACKIFICATION TRENDS
Source: Euromonitor International
0%
10%
20%
30%
40%
50%
1-2oz 3-4oz 5-11oz 12-18oz 18-27oz 27oz +
Un
it s
har
e
Global Savory Snacks Packaging: Unit Sales by Pack Size
2012
2017
© Euromonitor International
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Satiety: Protein and fiber are vital
SNACKIFICATION TRENDS
Chocolate Confectionery
Austria
Sweet Biscuits
USA
Savory Biscuits
UAE
Source: Euromonitor International
-10% -5% 0% 5% 10% 15% 20% 25%
Sugar
Salt
Saturated Fat
Fat
Carbohydrates
Fiber
Protein
Calories
Change in consumption, 2011-16
Growth in Nutrient Consumption across Global Snack Categories
© Euromonitor International
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Are staples staging a comeback?
SNACKIFICATION TRENDS
Source: Euromonitor International
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18p
Y-o
n-y
gro
wth
Growth in Global Packaged Food: Snacks versus Staples
Snacks
Staples
© Euromonitor International
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0% 5% 10% 15% 20% 25%
Middle East & Africa
Latin America
Eastern Europe
Asia Pacific
Australasia
North America
Western Europe
Value growth (2016-18)
Growth in Snacks and Staples, 2016-18p
Snacks Staples
“Snackification” is alive and well in developed markets
SNACKIFICATION TRENDS
Source: Euromonitor International
© Euromonitor International
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Traditional staples are still lagging; a fewstandout categories are driving growth
SNACKIFICATION TRENDS
Total Pack Food Avg
Source: Euromonitor International
Edible Oils
Ready Meals
Butter
Soup
Spreads
Baby Food
Sauces/Condiments
CheeseMilk
Yogurt
Other Dairy
Baked Goods
Breakfast CerealsProcessed Fruit & Veg
Processed Meat
Rice, Pasta & Noodles
0%
5%
10%
15%
20%
25%
0% 2% 4% 6% 8% 10% 12% 14% 16% 18%
Gro
wth
(2
01
6-1
8)
Share of total packaged food
Staples: Category Share and Growth, 2016-18
Cheese Breakfast cereal Spreads
Dips Processed fruit Soup
© Euromonitor International
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Packaging innovation creates a new segment
21
© Euromonitor International
P3 Kraft Trios
Sargento Balanced Breaks
Hillshire Snacking Plates
Babybel Cheese & Crackers
Oscar Mayer Natural Source: Euromonitor International
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2013 2014 2015 2016 2017 2018
Sale
s (U
SD m
illio
n)
US Chilled Lunch Kits, 2013-18
Health Trends Shape the Market
© Euromonitor International
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Sugar becomes enemy number one
HEALTH TRENDS SHAPE THE MARKET
Source: Euromonitor International
-10% -5% 0% 5% 10% 15% 20% 25%
Sugar
Salt
Saturated Fat
Fat
Carbohydrates
Fiber
Protein
Calories
Change in consumption, 2011-16
Growth in Nutrient Consumption across Global Snack Categories
© Euromonitor International
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Leading to strong growth in savory
HEALTH TRENDS SHAPE THE MARKET
Source: Euromonitor International
Confectionery
Ice Cream
Savory Snacks
Fruit Snacks
Snack Bars
Sweet Biscuits
3.0%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
$0 $5 $10 $15 $20 $25 $30
CA
GR
, 20
13
-18
Per capita sales, 2018
© Euromonitor International
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Savory snacks get healthy around the globe
HEALTH TRENDS SHAPE THE MARKET
Source: Euromonitor International
Nuts, Seeds & Trail Mixes
Potato ChipsTortilla Chips
Puffed Snacks
Rice Snacks
Vegetable, Pulse &Bread Chips
Savory Biscuits
Popcorn
Pretzels
Other Savory Snacks
2%
4%
6%
8%
10%
$0 $1 $2 $3 $4 $5 $6
CA
GR
, 20
13
-18
Per capita sales, 2018
Superfoods / Ancient grainsLocally-sourced
Colombia Philippines
Nigeria Costa Rica
Thailand Germany
Hungary Mexico
© Euromonitor International
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© Euromonitor International
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Clean label becomes a global priority
HEALTH TRENDS SHAPE THE MARKET
Croatia USA Chile
Georgia Bulgaria
Source: Euromonitor International
20 30 40 50
Is low calorie
Contains added vitamins
Has no added fat
Has no artificial ingredients
Does not contain GMOs
Has no trans fats
Has no added sugar
Has no artificial sweeteners
Is all-natural
% of respondents
What factors do you look for on food labels?
© Euromonitor International
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Organic and free-from lead the way
HEALTH TRENDS SHAPE THE MARKET
Romania
Organic
USA
Organic
Spain
Vegan
Israel
Gluten-Free
14%CAGR
9%CAGR
* Organic snack categories include Savory Snacks, Confectionery, Yogurt, Nuts/Seeds, Ice Cream, Sweet Biscuits, Cereal Bars and Fruit Snacks ** Free-From snack categories include Yogurt (Dairy), Ice Cream (Dairy), Sweet Biscuits (Gluten), Cakes (Gluten)
Source: Euromonitor International
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
2013 2014 2015 2016 2017 2018
USD
mill
ion
Organic and Free-From Snacks, 2013-18
"Free-From" Snacks* Organic Snacks**
© Euromonitor International
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Innovation in fortified snacks goes beyond protein and probiotics
HEALTH TRENDS SHAPE THE MARKET
Fortified snacks
CaffeineUS:WrigleyAlert
CollagenColombia:ColombinaGrissly
BotanicalsJapan:Lotte Wakan
GinsengRussia:LyubelEco
Snacking as Experience
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The rise of the “green” shopper
© Euromonitor International
Alternative ethics
Plastic-free
Religious label reinvented
Plant-based consumption
Clean label reformulation
Concerns drive ethical labels
$0
$50
$100
$150
$200
$250
Total Snacks
Sale
s (U
SD b
illio
n)
Global Snacks: Ethical Labels by Type, 2016
SustainableSourcing
Animal Welfare
Clean Label
Religious Labels
SustainablePackaging
64.7% of global consumers try to have a positive impact on the environment through everyday actions
32
© Euromonitor International
Source: Euromonitor International
© Euromonitor International
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Snack innovations cater to demand for ethical labels
SNACKING AS EXPERIENCE
Costa RicaConservation
USAConservation / Fair Trade
SwedenFair Trade
FinlandSustainable Proteins
SwitzerlandSustainable Proteins
LatviaFood Waste
TaiwanFood Waste
USAFood Waste
Texture / Mouthfeel:Savory snacks
Texture / Mouthfeel:Choco-bakery
Argentina
Milka Bis - Mondelez
USA
Cookie Layer Crunch – Hershey
Switzerland
Petit Beurre Lait – Cailler/Kambly
Dominican Republic
Chokis Mix – Gamesa
Combinations
Cheez It Duoz - USA
Mouthfeel
Tasu Mango Chips - Guatemala
Format
LaFabrique Browkie - France
Texture
Babol Filifolly Gum - Indonesia
© Euromonitor International
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Channel Shifts
© Euromonitor International
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Are unplanned purchases under siege?
CHANNEL SHIFTS
Source: Euromonitor International Lifestyles Survey, 2013 n:16,327; 2015 n:16,353; 2016 n:28,305; 2017 n:28,487
21%
22%
23%
24%
25%
26%
27%
28%
2013 2014 2015 2016 2017
% o
f re
spo
nd
ents
I often make impulse purchases
28%
29%
30%
31%
32%
33%
34%
35%
36%
37%
2013 2014 2015 2016 2017
I regularly buy myself small treats because I
deserve them
32%
34%
36%
38%
40%
42%
44%
2013 2014 2015 2016 2017
I like to browse in stores even if I don’t need to
buy anything
© Euromonitor International
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The challenge of e-commerce
CHANNEL SHIFTS
DeliveryClick and Collect
Fewer store trips
Third-party delivery Pureplay online retail
38
Click & collect
© Euromonitor International
© Euromonitor International
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The challenge of e-commerce
CHANNEL SHIFTS
Changes at the front-
end
Focus on the store perimeter
Fewer impulse
moments
© Euromonitor International
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Changing the shopper journey
CHANNEL SHIFTS
Zone 1
Self checkouts Automated stores
41
Scan & go
© Euromonitor International
© Euromonitor International
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Changing the shopper journey
CHANNEL SHIFTS
Zone 1
Zone 2
© Euromonitor International
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Foodservice and prepared food Fresh food In-store meal kits
© Euromonitor International
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Image: NACS
© Euromonitor International
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Threats to unplanned in-store purchases
CHANNEL SHIFTS
Focus Areas
Strategies/Approaches
Challenges/Threats
Market Shifts Omnichannel
E-CommerceDeclining trip
frequency
Online Focus Position brands to win in e-commerce
New merchandising
New models
New logistics
In-Store Impulse zones are
losing traction
In-Store FocusReconsider store-
based investments
Prioritize the right channels
Improve trip
efficiency
Snacks as destination
retail
Conclusion
“Snackification” is changing how consumers eat
Young consumers snack in place of meals; portability
and satiety are crucial
Staple foods innovate with format and packaging in
order to compete
Better-for-you trends shape the
market
Sugar as public enemy number one; clean label
drives health trends
Superfoods / ancient grains, local ingredients and new
types of product fortification
46
New paradigms are shifting consumer
demand
The rise of ethical consumerism
Experiential snacking – texture, mouthfeel, combinations
Dramatic shifts in retail; new challenges for impulse
© Euromonitor International
Thank YouJared Koerten, Head of Packaged Food
Jared.Koerten@Euromonitor.com
Facebook.com/euromonitor
@Euromonitor
Linkedin.com/in/jaredkoerten
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