TABLE OF CONTENTS
CHAPTER 1 EXECUTIVE SUMMARY 3
Hot topic 3
The future decoded 3
Action points 6
CHAPTER 2 THE FUTURE DECODED 15
Introduction 15
Important definitions and report coverage 15
Trends in consumer snacking and drinking occasions 17
Impulse and snacking markets continue to experience growth 18
More snacking is fueling the growth of eating occasions 19
The number of non-alcoholic drinks occasions is increasing 26
Snacking out-of-home is growing more than in-home snacking 27
‘On-the-go’ snacking and drinking occasions are increasing 30
Consumers are increasingly using impulse channels 32
An analysis of changing consumer needs and behaviors 34
Snacking is influenced by stress, boredom and time of year 35
Consumers are increasingly resorting to ‘whimsical consumption’ 38
Age and gender have a huge impact upon snacking preferences 39
Snacking is often time specific and varies by weekday 43
Consumer purchases are often combination orientated 44
Mega-trends affecting snacking and beverage consumption 45
Consumers increasingly demand healthy snacks and beverages 46
Snacks and drinks consumers continue to indulge and ‘trade-up’ 51
Traditional flavors and packs offer comfort and security 55
Consumers use food and drinks to facilitate social connections 57
Consumers need convenience and simplicity in snacks and drinks 59
Conclusions 61
Avoid category myopia: adopt a broad view to competitor tracking 61
Occasion is king: focussing on new occasions will be crucial 61
Successful innovations must focus on two or more mega-trends 62
CHAPTER 3 ACTION POINTS 64
Introduction 64
Prioritize targeting efforts towards consumer occasions 64
Seek out new occasion opportunities to increase volume sales 64
Position products against defined occasions 66
Target stress-driven occasions 67
Act upon consumers’ growing health and guilt concerns 68
Promote impulse snacking as a positive part of daily nutrition 68
Focus on reducing calories, fat, salt, and sugar content 69
Target women specifically without alienating male consumers 72
Target consumers’ unmet health need states on-the-go 73
Target health-on-the-go by building presence in specific channels 74
Avoid compromises between health and indulgence 75
Target healthy-lifestyle venues for sampling 76
Offer positive nutrition by incorporating functional ingredients 76
Extend the appeal of existing healthy adult brands to kids 79
Pursue opportunities in natural, organic and low-carb products 79
Target the growing trend for light meals 81
Adopt experiential marketing to leverage sensory appeal 82
Place greater emphasis on emotional benefits 83
Use exotic, indulgent and experiential flavors and ingredients 84
Develop broad product portfolios catering for fragmented tastes 85
Make use of innovative sensory cues 86
Capitalize on consumer tendencies to trade-up 87
Create innovative shapes/formats that enhance taste experiences 87
Target the convenience and simplicity need states 88
Develop packaging formats facilitating on-the-go consumption 88
Offer ‘hyper-convenience’ by combining ingredients and flavors 89
Help consumers organize food and drinks bought for the home 90
CHAPTER 4 APPENDIX 91
Supplementary data 91
Definitions 94
Research methodology 95
Bibliography 95
How to contact experts in your industry 97
LIST OF TABLES
Table 1: Key characteristics differentiating impulse and planned food purchase occasions 15
Table 2: The size and growth of snacking food markets, by country, 1998-2008 (US$bn and €bn) 18
Table 3: The size and growth of soft and hot drinks markets, by country, 1998-2008 (US$bn and €bn) 19
Table 4: The average number of daily and yearly eating occasions, by country, 2003-2008 20
Table 5: The average number of daily and yearly core mealtime eating occasions, by country, 2003-2008 21
Table 6: The average number of daily and yearly snacking occasions, by country, 2003-2008 23
Table 7: Percentage of snacking/impulse eating occasions, 2003-2008 24
Table 8: The value and average number of daily European and US snack occasions, by occasion, per person, by country, 2003-2008 25
Table 9: The average number of daily and yearly non-alcoholic drinking occasions, by country, 2003-2008 26
Table 10: The total number of annual at-home and out-of-home food snacking occasions (billions), by country, 2003-2008 27
Table 11: The percentage of European and US out-of-home versus in-home food snacking occasions, by country, 2003-2008 28
Table 12: The number of annual at-home and out-of-home morning, afternoon and evening snack occasions, by country, 2003-2008 29
Table 13: Total annual European and US morning, afternoon and evening snacking on-the-go occasions, 2003-2008 30
Table 14: The total number and value of annual on-the-go snacking occasions (millions), by occasion time and country, 2003-2008 31
Table 15: Number of annual and per person non-alcoholic on-the-go drinking occasions, by country, 2003-08 32
Table 16: Vending machine count by country, 1999-2003 33
Table 17: Growth forecast of the convenience store performance matrix (%) by country, 2007 34
Table 18: Average number of per head morning, afternoon and evening drinks occasions by country, 2003 41
Table 19: Snacking needs and motivations by gender 42
Table 20: Percent distribution of US and European snacking occasions, at different time intervals, 2003 44
Table 21: Healthy food and drink occasions on-the-go by daypart in Europe (millions of occasions), 2003-2008 48
Table 22: The varying importance of two key snacking and beverage needs - indulgence and performance boost - by daypart, 2004 49
Table 23: Gender differences in approach to healthy eating 49
Table 24: Attitudes of ‘occasional’ and ‘non-buyers’ of natural and organic goods towards buying more products if pricing issues were removed from the purchase evaluation, by category, 2003 51
Table 25: P&G: An example of helping to create the at-home on-trade experience 54
Table 26: European and US consumer attitudes concerning new and exotic flavors in snacks and drinks, 2004 57
Table 27: Examples of packaging simplicity in snacks and smoothies 60
Table 28: Very Italiano Vending machines - further blurring the boundaries of meals and snacks 61
Table 29: Examples of reducing salt and sugar from product offerings 70
Table 30: Helping consumers make more informed healthy snack purchases - the US Smart Snack ribbon 71
Table 31: Harvest Bay Snacks: capitalizing on new health orientated production techniques 71
Table 32: European, Asian and North American examples of impulse products offering beauty benefits 78
Table 33: Innovative US food and drink launches targeting growing consumer health concerns 81
Table 34: Ready-to-consume (RTC) drinks innovation 82
Table 35: Examples of food and drink innovation capitalizing on the desire for more taste and sensory experiences 84
Table 36: Developing new product shapes and formats to enhance the sensory taste appeal of snacks 88
Table 37: Drinks packaging facilitating on-the-go consumerism 89
Table 38: Hyper-convenience in snacking - Top Foods Double Dippers 90
Table 39: Examples of food and drinks manufacturers helping consumers organise food and drinks brought for the home 90
Table 40: The size and growth of overall confectionery markets attributable to snacking occasions, by country (US$bn and €bn), 1998-2008 91
Table 41: The size and growth of European and US dairy markets attributable to snacking (US$bn and €bn), 1998-2008 91
Table 42: The size and growth of overall bagged snack markets attributable to snacking occasions, by country (US$bn and €bn), 1998-2008 92
Table 43: The size and growth of European and US fruit and vegetable markets attributable to snacking (US$bn and €bn), 1998-2008 92
Table 44: The size and growth of the overall soft drink markets, by country (US$bn and €bn), 1998-2008 93
Table 45: The size and growth of European and US bakery markets attributable to snacking occasions (US$bn and €bn), 1998-2008 93
Table 46: Definitions used in this report 94
LIST OF FIGURES
Figure 1: Historic and future perspectives of eating: the impact of increasing snacking occasions and associated food intake 22
Figure 2: Stressful activities, split by DASS stress levels 36
Figure 3: An analysis of core snacking and drinks need states by age 40
Figure 4: Percentage of European and US snacking occasions which also involve consumption of a beverage, 2004 45
