snacking: a top food trend in the americas

SNACKING: A TOP TREND IN THE AMERICAS

FEBRUARY 2016

http://www.euromonitor.com/

© Euromonitor International

2

Americas: a tale of two distinct regionsOVERVIEW

* Excluding Argentina and Venezuela due to distortionary foreign exchange effects.

2010 2011 2012 2013 2014 20150%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%Packaged Foods Growth

Latin America * North America World

Cur

rent

val

ue g

row

th, f

ixed

201

5 ex

chan

ge ra

tes

The Americas

• 1/3 of global US$ Packaged Foods sale.

• US sales are 4 times Brazil’s, 7 times Mexico’s.

North America

• Retail volume sales are down since 2010.

• Value-added products and snacking buoy the industry.

Latin America

• Continued impressive, but decelerating value growth.

• Retail expansion and lifestyle changes drive growth.



3

The Snacks UniverseOVERVIEW

Packaged Food Snacks

Universe

Biscuits & Snack Bars

Cakes

Confectionery

Ice Cream

Pastries

Sweet & Savoury Snacks

Yogurt

Snacking occasions have increased as have the types of products that are being consumed as snacks. It is important to consider the full Snack Universe when looking to reach today’s consumer.



4

A Diverse Region of SnackingOVERVIEW

$0 $100 $200 $300 $400 $5000%

2%

4%

6%

8%

10%

12%

Brazil

ChileColombia

Costa Rica

Mexico

Peru

CanadaUS

Snacks Universe 2015

US$ per capita

2010

-201

5 C

AG

R

Opportunities as consumers shift away from artisanal /

unpackaged snacks.

Strong historic growth will confront difficult economic

circumstances ahead.

Developed, but still growing by successfully meeting the

latest consumer needs.

CAGR : compound annual growth rate

In this graphic we consider the trajectory of select countries’ US$ snacking per capita consumption over the previous five years to arrive at their 2015 level.



5

The Snackification of Packaged FoodsOVERVIEW

North America

Australasia

Asia Pacific

World

Latin America

Western Europe

Eastern Europe

Middle East and Africa

25% 30% 35% 40%

Snacks Penetration

2005 2015

% Snacks in Packaged Foods

The World Snacks % has remained flat

at 32%……while

Snacks in Latin America

and North America

advance faster than other regions.

In the US 10% of Packaged

Food sales go to Sweet &

Savoury Snacks only



6

Fastest Growth Snacks Categories in 2015OVERVIEW

Increasingly consumers are looking to a variety

of packaged food products to satisfy their

snacking needs. As seen here in the

diversity of the fastest growth categories, success is not one-

size-fits-all. Consumer demand is driving

categories that best adapt to their daily

routine and meet their evolving tastes.

Cakes

Sweet & Savoury Snacks

Yogurt

2015 Fastest Growth Category



7

Elements of Convenience

Busier Lifestyles(Especially in Capital

Cities)

Packaging Innovation

(Re-closable, Portable)

Expanded Distribution (Easier Access)

Convenience Plays a Vital Role in SnackificationSNACKING DRIVERS



8

Example

Driver

Country Argentina

Distribution: Expanded

infrastructure for frozen snacks

Freezers for products like Chocotorta ready-to-go

dessert by Arcor

Packaging: Focus on more portable product

packaging

Arcor Cereal Mix bars, Yogurisimo Cremix Dessert

Convenience Drivers in the AmericasSNACKING DRIVERS

Costa Rica

Distribution: Retailer

engagement in snack trends

Convenience stores and

supermarkets giving snack

foods prime shelf space

Packaging: Focus on more

portable product packaging

Bioland and NutriSnacks snack bars;

multipack ice cream from Dos

Pinos



9

Example

Driver

Country Mexico

Distribution: Rapid growth in convenience-

focused retailers

Rapid growth in convenience

stores like Oxxo; driving snack food availably

Busier Lifestyles:

Socioeconomic trends promote

snacking

Urbanisation and more working women make

yoghurt, biscuits and snack bars

popular breakfast

alternatives

Convenience Drivers in the AmericasSNACKING DRIVERS

USA

Packaging: Focus on more

portable product packaging

Belvita Biscuits, Kit Kat Minis, Nutella & Go, KIND Snack

Bars, Chobani Yoghurt; Meat

Snacks

Distribution:Consumers

favour convenience-

based channels

Snack sales at forecourt retailers grow with lower gasoline prices,

consumers spend savings inside the store on

snacks



10

Demand for Health & Wellness Snacks

Obesity crisis:

Consumers looking to eat a healthier diet

Indulgence:Consumers still

want to treat themselves

Regulation:Taxes or other

regulations against junk food

Health & Wellness also Drives Snack InnovationSNACKING DRIVERS



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In Mexico, an 8% special tax on high-caloric food took effect

in January 2014, impacting many snack food categories.In response, manufacturers in categories like confectionery introduced smaller portion sizes to reduce the selling price of the product and

maintain sales.

In Chile, new regulation will tag all products that exceed a

certain threshold of sugar, saturated fat, or sodium with a

notorious “high in” label. Companies are working to

change their product formulations or stand to

witness declines in sales.

Bolivia, Costa Rica, Peru and Uruguay introduce bans on the

sale of foods high in salt, sugar or fat content at schools.

In some cases, these regulations have helped other

categories. In Peru, snack bars has grown, including

brands like Angel Break, which are marketed for children.

Regulation Drives Better SnackingSNACKING DRIVERS

Regulation drives consumer snack habits



12

Yoghurt: A high-protein, low-fat snack• Trending In: Bolivia, Canada, Chile, Costa Rica, Dominican Republic

Ecuador, Mexico, USA• Examples: Yaqú (Ecuador), Pil Andina (Bolivia), Yoka Yoghurt Slender

(Dominican Republic), Digess de Migurt (Venezuela)

Snack Bars: Natural Ingredients, minimal processing• Trending In: Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica,

Ecuador, Mexico, Peru, US• Examples: Trio Nuts (Brazil), Angel Break (Peru), Simsa (Bolivia), KIND

(USA), Arcor Cereal Mix (Argentina)

Premium Offerings: Higher-Quality Indulgences• Trending In: Bolivia, Canada, Chile, Colombia, Mexico, USA• El Ceibo confectionery (Bolivia), Santander confectionery (Colombia),

Talenti ice cream (USA)

Demand Drives Growth from Healthier SnacksSNACKING DRIVERS



13

Winners & LosersSNACKING DRIVERS

Premium, Less-Processed, Better-for-You Snacks

Highly-Processed, Less Healthy Snacks Snack foods that are high in sugar, fat or calories

face challenges from both government regulation and consumer preferences. In several countries, state action like taxes or even outright bans of “junk foods” – often employed in the fight against obesity – have become increasingly common. At the same time, consumers want “healthy indulgence” offerings that they can enjoy with less guilt.

Consumers increasingly want snack foods that they can eat in place of traditional meals. This benefits higher-protein snacks which aid in satiety, as well as better-for-you offerings that cut the amount of salt, fat or sugar in a consumer’s diet. At the same time, shoppers are increasingly turning away from artificial ingredients in favour of more natural snacks.WIN

NER

SLO

SER

S



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THANK YOU FOR LISTENINGJared KoertenSenior Food [email protected]

Sean KreidlerResearch [email protected]

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snacking: a top food trend in the americas

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