Snacking is a significant macro trend driving trends in the US market and demand for healthier products is on the rise. Sally Lyons Wyatt, executive vice president and practice leader for snacks at IRI, outlines the factors manufacturers operating in – or eyeing – the segment need to consider.
The growth of the healthy snacks segment in the US is further evidence many consumers in the market are questioning what they eat and want to improve their wellbeing.
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Snacking is a massive part of US food culture. IRI’s research reveals Americans munch an average of 2.6 snacks every day, with 41% of consumers eating a snack more than three times a day.
However, our data also shows 41% of shoppers regard snacks as an important part of a healthy eating plan. In 2014, the sales of healthy snacks grew 2.5% in value year-on-year to approximately US$62bn, as more consumers consider them as a route to achieving their daily nutritional goals.
Many consumers have busy lifestyles and are seeing snacks as one way to consume vitamins, minerals and antioxidants to reduce their risk of heart disease, cancer or other diseases such as Alzheimer’s. Around half of shoppers want snacks that offer benefits beyond basic nutrition, including a quick energy boost.
Snacking is prevalent across the day due to busy lifestyles. For example, many people will eat five or six snacks or mini-meals a day rather than three meals. And the time of day people choose to buy particular snacks can determine whether they choose a healthy option or not.
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By GlobalDataYounger millennials like to graze throughout the day and tend to drive the snack consumption market in the mornings. In response, manufacturers have had to be innovative to exploit this trend. We have seen the introduction of healthy breakfast mini-meal/snack options including rival breakfast biscuit products like PepsiCo’s Quaker Breakfast Cookies, Mondelez International’s Belvita and Snyder’s-Lance’s Lance Quick Start.
It is a similar story later in the day, with nut-based snacks eaten at or after lunch. There have been developments around almond-based products that are driving growth in the bar category. Bars are seen as a healthy one-hand snack between meals and as a nutritional mini-meal.
The snack food industry must also tailor its healthy-eating message to different consumer segments to boost sales. Among the baby boomer generation, around one quarter is cutting back on the amount of money spent on snacks as this group drives the gluten-free market.
US retailers, meanwhile, are also working to meet consumer demand for healthier snacks. Wal-Mart, for example, has moved to making organic products more affordable and increase its organic range. The retailer, as well as rival Kroger, has already extended its choice of healthy on-the-go products.
Manufacturers that want to take advantage of the move to healthier snack options also need to understand how consumers are influenced. Social media and product reviews are increasingly driving snacking habits, especially among millennials.
However, more traditional, face-to-face interaction may also continue to be a factor. The workplace will be a key battleground for brand awareness and sales of healthy snacks over the next few years. More US employers are encouraging their staff to eat more healthily as part of corporate wellness programmes aimed at cutting absenteeism and they are installing vending machines that sell healthy snacks such as Clif Bar & Co.’s gluten-free Luna bars, which are aimed at women; verified non-GMO products; and Nature’s Path organic granola bars.
And people will respond to calls to snack differently if the healthy products are as tasty and affordable as the indulgent products they love and have grown up with.
A challenge snack manufacturers face is how to deliver healthy snacks with lower salt and sugar content but which are tasty enough for consumers to want to buy them frequently. In fact, taste could be the secret weapon that persuades more Americans to change their snacking habits and improve their health. If more healthy snacks came in the popular salty, sweet, cheesy or spicy flavours people love they would be more inclined to buy them.
There are emerging healthy snack categories trying to woo consumers. These include ancient grains and sprouted grains, natural chocolate candy, raw chocolate and vegan snacks. However, people will not buy anything more than once if it lacks taste.
