Snack Foods

Published: February 2010

Publisher: Key Note

Product ref: 88169

Pages: 107

Format: PDF

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Executive Summary

1. Market Definition
REPORT COVERAGE
MARKET SECTORS
MARKET TRENDS
Health Issues
Flavours
‘Do us a Flavour’

ECONOMIC TRENDS
Population
Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2004-2008
Gross Domestic Product
Table 1.2: UK Gross Domestic Product at Current and Annual Chain-Linked Prices (£m), 2004-2008
Inflation
Table 1.3: UK Rate of Inflation (%), 2004-2008
Unemployment
Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2004-2008
Household Disposable Income
Table 1.5: UK Household Disposable Income Per Capita (£), 2004-2008

MARKET POSITION
The UK
Table 1.6: Consumer Expenditure on Food and Non-Alcoholic Drink (£m), 2004-2008
Europe

2. Market Size
THE TOTAL MARKET
Manufacturers’ Sales
Table 2.1: UK Manufacturers’ Sales of Prepared or Preserved Potatoes Including Crisps (£000), 2004-2007
Table 2.2: Net Supply of Prepared or Preserved Potatoes Including Crisps in the UK (£000), 2004-2007
Retailers’ Sales
Table 2.3: The Total UK Snack Foods Market by Sector by Value at Current Prices (£m at rsp), 2005-2009
Figure 2.1: The Total UK Snack Foods Market by Sector by Value at Current Prices (£m at rsp), 2005-2009

BY MARKET SECTOR
Figure 2.2: The Total UK Snack Foods Market by Sector by Value at Current Prices (%), 2009
Potato Crisps
Table 2.4: The UK Potato Crisps Sector by Value at Current Prices (£m at rsp and %), 2005-2009
Figure 2.3: The UK Potato Crisps Sector by Value at Current Prices (£m at rsp), 2005-2009
Other Savoury Snacks
Table 2.5: The UK Other Savoury Snacks Sector by Value at Current Prices (£m at rsp and %), 2005-2009
Figure 2.4: The UK Other Savoury Snacks Sector by Value at Current Prices (£m at rsp), 2005-2009
Snack Nuts
Table 2.6: The UK Snack Nuts Sector by Value at Current Prices (£m at rsp and %), 2005-2009
Figure 2.5: The UK Snack Nuts Sector by Value at Current Prices (£m at rsp), 2005-2009

OVERSEAS TRADE
General Overview
Table 2.7: UK Manufacturers’ Imports and Exports of Prepared or Preserved Potatoes Including Crisps (£000), 2004-2007
Imports
Table 2.8: UK Manufacturers’ Imports of Prepared or Preserved Potatoes Including Crisps (£000), 2004-2007
Exports
Table 2.9: UK Manufacturers’ Exports of Prepared or Preserved Potatoes Including Crisps (£000), 2004-2007
Leatherhead Food International Ltd Export Figures

3. Industry Background
RECENT HISTORY
NUMBER OF COMPANIES
Table 3.1: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Processing and Preserving of Potatoes by Turnover Sizeband (£000, number and %), 2009

EMPLOYMENT
Table 3.2: Number of UK VAT- and/or PAYE-Based Enterprises Engaged in the Processing and Preserving of Potatoes by Employment Sizeband (number and %), 2009

REGIONAL VARIATIONS IN THE MARKETPLACE
DISTRIBUTION
HOW ROBUST IS THE MARKET?
LEGISLATION
KEY TRADE ASSOCIATIONS
European Snacks Association
Snack Food Association
Snack, Nut and Crisp Manufacturers Association

ADVISORY AND INFORMATION SERVICES
The Food Commission (UK) Ltd
Food and Drink Federation
Food Standards Agency

4. Competitor Analysis
THE MARKETPLACE
MARKET LEADERS
Intersnack Ltd
Seabrook Crisps Ltd
Tayto (NI) Ltd
United Biscuits Topco Ltd
Walkers Snack Foods Ltd

OUTSIDE SUPPLIERS
Raw Materials
Snack Processing Equipment
Packaging

MARKETING ACTIVITY
Main Media Advertising Expenditure
Table 4.1: Main Media Advertising Expenditure on Savoury Snacks (£000), Years Ending September 2008 and 2009
Table 4.2: Main Media Advertising Expenditure on Potato Crisps and Snacks (£000), Year Ending September 2009
Table 4.3: Main Media Advertising Expenditure on Crispbreads and Crackers (£000), Year Ending September 2009
Recent Promotions
Other Marketing Activities
Exhibitions

5. Brand Strategy
RESEARCH FINDINGS
Table 5.1: Popularity of Selected Snack Food Brands (% of respondents), 2008 and 2009
By Sex
Table 5.2: Popularity of Selected Snack Food Brands by Sex (% of respondents), 2009
By Age
Table 5.3: Popularity of Selected Snack Food Brands by Age (% of respondents), 2009
By Social Grade
Table 5.4 Popularity of Selected Snack Food Brands by Social Grade (% of respondents), 2009
By Region
Table 5.5: Popularity of Selected Snack Food Brands by Region (% of respondents), 2009
Table 5.6: Popularity of Selected Snack Food Brands by Remaining Regions (% of respondents), 2009

COMPANIES’ BRANDS
Intersnack
Largo Food Exports
Tayto (NI)
Tyrrells Potato Chips
United Biscuits
Walkers Snack Foods

TOP BRANDS
The Guild of Fine Food Great Taste Awards
Table 5.7: Winners of The Guild of Fine Food Great Taste Awards, 2009

6. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

7. Buying Behaviour
HOUSEHOLD EXPENDITURE ON FOOD AND DRINK
CONSUMER PENETRATION
Potato Crisps, Tortilla and Corn Snacks
Table 7.1: Penetration of Potato Crisps, Tortilla and Corn Snacks in the Past 12 Months by Frequency (% of adults), 2009
Nuts and Dried Fruit
Table 7.2: Penetration of Nuts and Dried Fruit in the Past 12 Months by Frequency (% of adults), 2009
Other Savoury Snacks
Table 7.3: Penetration of Other Savoury Snacks in the Past 12 Months by Frequency (% of adults), 2009

8. Current Issues
CLOSURES, MERGERS AND ACQUISITIONS
MBMG
Tyrrells Potato Chips

BOARD AND SENIOR MANAGEMENT CHANGES
PepsiCo UK and Ireland

NEW PRODUCT DEVELOPMENT
McCoy’s
Penn State
Pringles
Tyrrells
Walkers

9. The Global Market
EUROPE
THE US
ASIA PACIFIC
SELECTED GLOBAL COMPETITORS
Calbee Foods
Intersnack Knabber-Gebäck
ITC
J&J Snack Foods
Largo Food Exports
Liberation Foods
Lorenz Snack-World
PepsiCo
Procter & Gamble
Snack Foods
Snyder’s of Hanover

10. Forecasts
INTRODUCTION
The Economy
Population
Table 10.1: Forecast UK Resident Population by Sex (000), Mid-Years 2009-2013
Gross Domestic Product
Table 10.2: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2009-2013
Inflation
Table 10.3: Forecast UK Rate of Inflation (%), 2009-2013
Unemployment
Table 10.4: Forecast Actual Number of Unemployed Persons in the UK (million), 2009-2013

FORECASTS 2010 TO 2014
Table 10.5: The Forecast UK Snack Foods Market by Sector by Value at Current Prices (£m at rsp), 2010-2014
Figure 10.1: The Forecast UK Snack Foods Market by Sector by Value at Current Prices (£m at rsp), 2010-2014

MARKET GROWTH
Figure 10.2: Growth in the UK Snack Foods Market by Value at Current Prices (£m at rsp), 2005-2014

FUTURE TRENDS
Industry Consolidation
Overseas Markets
Health Issues

11. Company Profiles
INTERSNACK LTD
SEABROOK CRISPS LTD
TAYTO (NI) LTD
UNITED BISCUITS TOPCO LTD
WALKERS SNACK FOODS LTD

12. Company Financials

13. Further Sources
Associations
General Sources
Government Sources
Other Sources
Key Note Sources
Understanding TGI Data
Number, Profile, Penetration
Social Grade
Standard Region
Key Note Research
The Key Note Range of Reports

Report description

This report examines the UK snack foods market, which comprises potato crisps, other savoury snacks (including tortilla chips, baked snack biscuits and rice- and corn-based snacks) and snack nuts. It excludes sweet snack items, such as chocolate. It estimates that, in terms of retail sales, the total value of the market increased by 12% between 2005 and 2009 to reach £2.39bn. An especially strong growth of 8.4% was seen between 2008 and 2009 as manufacturers passed on steep rises in commodity costs for items such as potatoes, sunflower oil and nuts.

Manufacturers of snack foods continued to respond to health issues in 2008/2009, reducing salt and fat content in their foods through the introduction of ‘light’ and low-fat variants. Emphasis has been placed on the use of more ‘natural’ ingredients, as well as on baked, rather than fried, goods. Seabrook Crisps has admitted that when celebrity chef Jamie Oliver advised people against eating crisps because of their fat and salt content, it decimated its sales ‘almost overnight’. However, despite most snack foods being relatively low in nutritional value, consumption of them on a regular basis is very high. A Target Group Index (TGI) survey carried out by BMRB International Ltd found that 84.1% of respondents had consumed potato crisps, tortilla or corn snacks in the 12 months ending March 2009, indicating that consumers look upon such foods as indulgent treats.

As well as being indulgent, savoury snack foods such as crisps are also an affordable treat. Even at the premium end of the market, products are cheap in comparison to other food treats, such as premium chocolate. In fact, the current recession has helped demand for upmarket products, as there has been an increase in consumers staying in rather than going out and replacing luxuries such as eating out in restaurants with eating snack foods at home. This has also led to retailers giving more shelf space to snack foods, particularly large sharing packs.

The hike in commodity costs in 2008/2009 led to hefty price rises in the industry, and there have been corporate casualties as a result. For example, Natural Crisps Ltd was close to administration when it was bought by Tayto Crisps of Northern Ireland in a ‘distress deal’ completed in a week over Christmas 2008. The deal was Tayto’s fourth acquisition in 3 years, following its purchases of Golden Wonder in 2006, Real Crisps in 2007 and Red Mill Snack Foods in 2008. Germany’s Intersnack purchased a 15% stake in Largo Foods (the owner of the Tayto brand in the Republic of Ireland), and is thought to be considering making more acquisitions in the UK market. Further consolidation in an industry currently dominated by Walkers Snack Foods seems likely in the future, especially as the recession continues and companies struggle to survive.

The report forecasts that the retail sales value of the UK snacks market will increase by 3.6% to £2.48bn in 2010, and will grow by an overall 5.3% between 2010 and 2014 to finish at £2.61bn.